Toyota: Service Chain Management

The Toyota Motor Co. Ltd, in addition to its world class supply and demand chain management practices, excels in managing its service chain. The service chain, which the company views as key to its long term success, is responsible for providing products in the form of service parts for maintenance and repair, and services in the form of improving the value that a customer derives from a vehicle. The service chain management is based on establishing strong links with customers, both through the dealer channel and directly. This case describes the network that Toyota has created to provide reliable supply of service parts to dealers in an efficient manner, and how the company proactively helps dealers to improve the service they offer their customers. The case also discusses how Toyota uses advanced technologies such as e-commerce and telematics to build strong relationships directly with the vehicle owners. The case focuses on Toyota’s operations in Japan and the US.