Just an Emergency
Toyota's overproduction and inventory emergency (thanks to Jason for the tip):
Toyota is currently renting a ship in the Swedish port of Malmâˆšâˆ‚: to store 2,500 unsold autos.
“It's an emergency measure that we had to take due to storage space issues,” EUobserver reports Toyota press spokeswoman Anne Gaublomme as saying. “Our vehicle logistics center in Malmâˆšâˆ‚ had reached a maximum capacity as core sales in the region have decreased recently.”
EUobserver says the decision to store the cars aboard a Wallenius Wilhelmsen car carrier was made last month when Malmâˆšâˆ‚ port facility reached its limit of 12,000 cars.
Yikes… I guess the supply chain to Sweden is long and slow… Toyota certainly didn't dial down production fast enough. An argument for the just in time system is that it's supposedly more responsive to demand signals. But the system wasn't responsive enough to a 50% drop in sales, was it? Is Toyota doing better with inventory management in Japan, being closer to the customers there? How about in Georgetown Kentucky?
What do you think? Scroll down to comment or share your thoughts and the post on social media. Don't want to miss a post or podcast? Subscribe to get notified about posts via email daily or weekly.