The aim of this paper is to present a brief information about the logistics and transportation system of Toyota Kirloskar motor Pvt Ltd, company that provides ample of automobile products to the customers across the globe. The paper further outlines the business activities, operations, customers, products and organizational structure of TKAP. Apart from this, global transportation policies, regulations and mode of transportation also have been presented in the report briefly. The paper discusses how various transportation modes help TKAP to run the business successfully with minimizing the prices. Current policies and system of TKAP also are drawn in the paper. At the end, some suggestions have been given to reduce and handle the issues related to transportation.
Toyota Kirloskar motor Pvt Ltd, is an auto parts manufacturing corporation based at Bidadi near Bangalore India which is formed in 2002 (TKAP, 2018). The company is a joint venture amongst Aisin seiki Co.Ltd, Japan, Toyota motor corporation, Japan and Kirloskar systems limited, India (TKAP, 2018).
The company provides innovative automobile products to the customers across the globe. The company is well known for the manufacturer and sales of Toyota cars in India. The main mission of the company is to enrich the lives of stakeholders with eco-friendly and safe products to the customers around the globe. The company wants to be the most significant and unique admire manufacturer of ever better units globally. The company manufactures and produces transmission, engines and axles and shafts and supplies these products to Toyota companies globally and domestically. The company is continuously striving to delight unique and dynamic customers with outstanding quality of products and services. It is further believed that future lies in the hands of valued customers globally. The company exports its products in various countries such as Malaysia, Thailand, Indonesia, South Africa and Latin America. All these are covered in the customer list of TKAP.
There are approx 501 to 1000 workers working in the company to render products to the customers around the globe (Glassdoor, 2018). It has been investigated that TKAP uses innovative and unique management style to grow business and uplift profitability in the international market. It has possessed a strong and effective leadership team to motivate and guide the majority of employees for performing roles and responsibilities effectively. The organization has phenomenal professional and technical experts in auto parts and TKAP in today’s globalization world shows this global quality in its products and facilities. It is analyzed from the various studies that leaders at TKAP use democratic leadership style to make unique decisions in the competitive market. By using this leadership style, the leaders are trying to motivate the subordinates towards the achievement of goals and objectives.
It is stated that TKAP follows strong and dynamic structure to attract majority of customers in all over the world. It is liable to report the Toyota Company which is located in Japan. The decision making process is done by Toyota Company in Japan. In this way, global hierarchy system is followed by TKAP while initiating the business globally. It is portrayed that TKAP has approx 8 geographic divisions that are Europe, China, Africa, North America, China, Japan, Middle East, Latin America and Caribbean. All the divisions are responsible to report to the headquarters. The organizational chart of TKAP has been drawn below.
The total revenue of TKAP has been calculated approx 29.4 trillion Japanese yen in the 2018. There are three product division of the company including engines, transmission and axles that are accountable to provide attractive automobile and vehicle parts to the customers across the globe. The company provides innovative facilities to Toyota, Japan by rendering various products such as transmission, engines and axles to the customers across the globe.
The presence of an effective and dynamic logistics related infrastructure and unique logistics management are needed for the company to cope up with rivals and to gain competitive benefits internationally. It is stated that transport policy deals and handles the development and expansion of a set of proposition and constructs that are established to attain specific objectives relating to economic, environmental development, social and the transport system (Bennett & Raab, 2017). The motive of the transportation policy is to intervene and communicate for addressing security, safety and environmental harms and generate economic benefits in the international market. It is noted that the ministry, as the minister’s principal policy adviser is responsible for the equality of policy development and expansion of legislations including consequential regulations and transport rules. Transport agencies are liable for the operation and activities of transport legislation and for the implementation of transport rules to ensure effective and unique completion. It is significant for TKAP to follow all these rules and regulations related to transportation in the global market (Swinburn, Sacks, Hall, McPherson, Finegood, Moodie, & Gortmaker, 2011).
The purpose of the air transport strategy and regulation is to minimize the costs in performing its economic regulatory activities and operations. The international civil aviation organization can resolve the issues and challenges of air transportation further it protects the rights and interests of the stakeholders globally. The global transportation department is offering practical solutions to address and resolve the emerging regulatory challenges of TKAP Company (ICAO, 2018). The UN economic commission for Europe assists and guides the process and procedure of simplifying and harmonizing border crossing process for the various modes of Inland transport and renders an overview and information of international UNECE transport agreements on its website (World bank group, 2018). While exporting the automobile products or parts, the company needs to focus on the economic regulations. The most of the economic regulations include European commission, ILO, United national, Bank for international settlements, world trade organization and IMF. It shall be analyzed from the various studies that antitrust laws are responsible to monitor and supervise on the transportation activities and operations (Wensveen, 2018).
The different international transportation mode has been discussed below.
Air freight: It is one of the fastest and growing ways to ship cargo but it is very expensive. To attain the demand and need for growth, the world air cargo traffic is estimated to grow and survive an average 4.2% per year. Air freight is a complex mode of transport. It serves global markets and supply chains that fulfill the demands and needs of the customers. Air transportation helps in providing various benefits to the customers across the globe. There is a less need of documentation and formalities and it further enhances the level of security for cargo. Air transportation is one of the leading and fastest way to export the products globally. TKAP Company uses this mode to supply various automobile parts or products to the customers across the globe. This method also saves the time and money of TKAP Company (SteadieSeifi, Dellaert, Nuijten, Van Woensel & Raoufi, 2014).
Road transportation: It is significant method that can be used by the company while exporting the products in the global market. Road freight is one of the significant and unique modes of transportation. It is often used in various countries such as Africa, North America and Europe. The single customs document process renders a seamless movement of products and services even around various countries and states. It shall be noted that road freight renders various benefits to the customers in the international market (Mula, Peidro, Díaz-Madroñero & Vicens, 2010). By implementing this mode, TKAP can improve productivity and save cost. Quick delivery can be possible with the help of road transportation. By using this method, the firm can track and trace of truck and cargo effectively and efficiently. Road transport is one of the unique eco-friendly transport systems that provide various benefits to the csutomers. However, the truck transport is limited and further it is also affected by conditions and traffic (Akarca, 2013).
Rail transportation: Rail transportation is effective mode of exporting the automobile and vehicle parts or products across the globe. TKAP can use this mode make easy the transportation process globally (Freighthub, 2018).
Multimodal transportation: One of the vital models that can be used by the companies is multimode option. It is a mixture of various modes of shipping such as rail, road, and sea which permits the customers to price successfully run and handle the shipments from begin to end ensuring best care and efficiently every step and actions of the way. One of the crucial examples is the cross district rail network joint with truck (Schuessler & Axhausen, 2009). Sea air is significant and fundamental example of multimodal transport system. This service is measured inexpensive mode than air and faster than sea service. Sea air transportation mode is eco-friendly because it saves time and money of the company. Multimodal transportation mode helps in reducing the distance for the products and goods between the consumers and manufacturer. The products or cargo can be moved to various part of the global world using or implementing various modes of transport. Along with that, customers can manage and deal with one enterprise to handle and control all the modes of transport and it is one of the cost effective delivery options (Freighthub, 2018).
It is analyzed that transportation risk management is essential to overcome the competitors and expand the business activities sand operations successfully. Without measuring and analyzing these risks and challenges, TKAP cannot cope up with rivals in the competitive market (Monden, 2011). Effective and dynamic policies and rules shall be made to handle and manage transportation risk globally. Risk management is significant and crucial in transportation business practices.
Current policy: It has been examined that TKAP Company follows intelligent transport system to conduct the business activities and functions smoothly in the global market. The company maintains good and strong relationship with customers, suppliers and partners to attain profitability and revenue globally (Urry, 2016). Environment protection and road safety standards and rules are followed by TKAP to protect the rights and value of the partners and shareholders internationally. The firm provides continuous training to the workers to improve and enhance the transportation system at the workplace. The training program called TLEP is conducted by the firm to enhance and improve the driving skills of the drivers. Various improvements have been done in marine transportation by the company to be a leader in the automobile sector (TLKI, 2018).
Existing system: Toyota has shown a new safety technology and resource that open lines of communication between road infrastructure and vehicles. The company uses intelligent transportation system in today’s competitive world (Burns, 2013). The purpose of Toyota’s intelligent transportation system is to reduce and limit the traffic incidents when poor and ineffective visibility or error is an element (Cho, 2012). The system is now available on three of its innovative and unique Japanese models that help to run the business process effectively. It has been found that Toyota is obtaining raw material for their automobile and vehicle products in the competitive market for fulfilling the expectations and needs of the customers (Tseng, Wu & Liu, 2013). Using and implementing vehicle to vehicle and vehicle to infrastructure communication and collaboration via a 760MHz radio frequency, a car that comes from 100 meters of a transmitter would get a symbol on the equipments display denoting data transfer. Moreover, TKAP promises the systems would become more widespread and cut down on the traffic fatalities which take place at busy junctions that recently adjust approx 45% of traffic fatalities in the country (Button, 2010). In Japan, the ITS connect system costs around 25000 yen and is being rolled out to internal automobile or vehicle like the prius soon. The transportation sector in India has become an effective and significant area of priority (Branman, 2018). It has been evaluated that Toyota Company uses Just-in-time production system to automobile products in the global market.
(Source: https://www.lean.org/lexicon/toyota-production-system)
It has been found that transportation risk can be measured and improved by implementing the innovative strategies and policies globally. The company needs to set the effective and unique transportation agency to keep an eye on the transportation and logistics internationally. Transportation agencies set strategic objectives and goals to manage and eliminate the risks of the transportation. Internal and external risks events can be identified and measured by the company to optimize the investment decisions effectively (Branman, 2018). The company further should focus on the external market to analyze and evaluate the challenges and risks of the market. It will help to improve the transportation system in the global market. TKAP further must set up a SMS notification system or process for all drivers to improve the transportation system efficiently and effectively. It shall be portrayed that the firm should use advanced and innovative technologies to eliminate and avert the challenges and issues related to transportation in the Indian market. Electronic and hybrid vehicles shall be used to make easy the transportation system in the competitive market. It is analyzed from the various studies that TKAP further should focus on the resources and infrastructure to decrease the transportation concerns and challenges internationally. The firm must make agreements with other companies to take various competitive benefits.
They should make innovative strategies and policies to keep an eye on the process, policies and strategies of the competitors. It will help the company to achieve desired goals and objectives. Effective and unique logistics and supply chain management strategy shall be implemented by the firm to provide products to the customers around the world. In this way, the risks and challenges related to transportation can be minimized to a large extent. Health and safety standards and norms shall be kept in mind by the company while operating and functioning the activities. Innovative opportunities shall be provided to potential and talent staff so that they can give full contribution towards the attainment of goals and objectives. Emission from vehicles must be reduced while conducting the business globally. It shall be analyzed that TKAP must focus on the mode of transportation to select appropriate transportation mode effectively. TKAP shall also develop and improve a contingency plan for improving and ensuring the effective and adequate transportation system within the organization (Toyota, 2018). The firm should appoint talented and capable people to handle the transportation system in the organization.
Conclusion
From the above study, it is concluded that Toyota Kirloskar motor Pvt Ltd is a automobile company that provides automobile parts and products to the key target audience in the world. It is analyzed from the above paper that Toyota uses innovative production system to manufacture products successfully and effectively. Just in time production system is designed by TKAP to reduce the negative impact of inventory and transportation system. In today’s modern world, the company is flourishing and growing the business operations globally by exercising dynamic and innovative transportation and production system. It has been portrayed that TKAP follows global transportation policies and regulations to survive and grow business in the international market
References
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