Procurement Professional is the official publication of CIPS Australasia

Supply chain lessons from Toyota recall

09 Feb 2010

Source: AMR Research, 1st February 2010

Toyota’s recent recall of more than two million vehicles for a suspected accelerator defect will have massive business implications.

At the time of this writing, the recall involves eight vehicle models, representing 57% of Toyota’s U.S. sales alone, including the Camry, Corolla, Tundra, and other popular models. The recalls have shut down production in five U.S. plants, leaving inventory sitting on dealership lots around the globe.

How did this happen, and what steps could have been taken to avoid it? Although the root cause of the recall has yet to be validated publicly, any manufacturer on a path to expand globally while reducing new product time to market can learn from these events.

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