A study conducted on the supply of automobiles in the Great Britain highlighted that the customization of automobiles and the time it took in addition to production and delivery was one of the major contributors of lag between the supply and demand in the market. “The key obstacle for not building an increasing percentage of vehicles to customer order is the vehicle manufacturer’s inability to supply customized vehicles within timeframes customers find acceptable.
Within new vehicle supply systems, two general types of logistics operations can be found: outbound logistics and inbound logistics. Outbound logistics or vehicle distribution from the vehicle assembly plant to the dealership directly contributes to the responsiveness of the overall vehicle supply system by representing the lead-time from the factory to customers.” (Miemczyk & Holweg, 2004)
The supply chain management has been increasingly targeted with the Toyota Production system approach by the businesses operating in the global market. One such business is that of Electronic Product Integration Co. which has made changes to its supply china by employing the rules and constructs of the Toyota Production System. The company has used kanban and just in time based supply chain operations which have enabled the company to improve its inventory turns and move towards growth and profitability, instead of going over the cliff of business failure which it was nearing before its amendment of its supply chain management system. The company now aims to conduct its business operations through forecasting realistically and building only enough products as being demanded in the market. This reduces wastage, therefore decreasing expenses and the increasing the profitability for the company. “EPIC worked out a JIT operational system, supported by software to customers and from suppliers.
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