The lower level supply chain management includes the vendor or dealer management for the finished goods of the company where the manufacturers, its distributors and dealers as well as the logistic transport service providers come together to create a supply chain of the motor vehicles to the consumer sin the market.
The above depicted form of a continuous supply chain creates a value chain for the company which needs the human resource, technology resource of the company, its management and the organizational culture to support the value chain. In order to better comprehend their own companies, the automobile manufacturers need to perform business process reengineering and the revaluation of their business processes in terms of their performance, their inputs, their outputs and the productivity being generated by them at the different levels of production. By knowing the procurement, the production and the distribution prices include out the company would be able to better realize where and how the principles of the Toyota Production System can be applied to business process to make them more efficient and lean resulting in of minimum wastage being generated and cost savings for the company which can be added to the profit margins.
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