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OUTBOUND LOGISTICS

m Product distribution
m Different distribution flow in Europe and North
America
m Toyota uses multiple 3PL providers
m Rail roads, common carriers and trucks
m Transports vehicles, goods and raw materials
m Multiple Manufacturers Ȃ cost effectiveness
NORTH MERIC N VEHICLE
DI TRIBUTION

Plant

Marshaling
Yard

Rail hipm nt and


th n Truck D liv ry
taging
r a Dir ctly Truck D al r
D liv ry
MARSHALING YARD OPERATION

Assembly
Plant

Rail Truck
Staging
Area

Accessory Dealer
Staging
Plant
STAGING AREA OPERATION
m Heijunka - Smoothen production process by
destination to avoid spikes in deliveries

Railcars

Bi-Level Tri-level
RAIL CAR LOADING PROCESS
Stage for Pre-stage Assign Release the
Load the
rail empty destinations rail car for
vehicles
shipment railcars to railcars shipment

m Limitations of the process


m Lack of co-ordination among the plant marshaling yard
management and rail company local management

m Solution to overcome Limitations


m Classification by region
m Classification by city
TRACKING PROGRESS

m Tracking of vehicles through the entire logistic


network
m Real time information
m ETA = FQA + estimated delivery elapse time
m Buffer time of 3-5 days
m Regular updating of information
m Helps in updating the customers about expected
delivery time
DISTRIBUTION FLOW IN EUROPE

 Accessory Installation Assembly


Plant
done at the regional hub
 Most dealers operate in Marshaling
Yard
urban area
 Most of the Regional
Hubs
transportation by truck
 Minimal use of rail Dealer

 ETA Calculation Method


FORD AND GENERAL MOTORS

m Ford Ȃ UPS Logistics Group


m Providing logistics expertise
m Hub-and-Spoke system
m Optimum use of available resources
m GM Ȃ Con-way
m Outsourcing of inbound and outbound logistics
m Responsible for shipment of parts and vehicles
m Implementation of IT for transparency

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