## Toyota Resumes Operations at Japanese Plants Following Supply Chain Disruption
Toyota, the world’s leading automaker in terms of sales, has announced that operations at its Japanese assembly plants will resume following a 24-hour halt caused by a disruption in its supply chain. The company, renowned for its finely-tuned “just-in-time” production system, had to suspend activities at its 14 vehicle factories across the country. This was due to a system malfunction that began on Monday, which prevented the automaker from processing orders for automotive components.
The company anticipates that production will return to normal at all 14 factories in Japan from the start of the second shift on Wednesday. In a statement, Toyota explained that the system malfunction was not the result of a cyberattack. However, the company is continuing to investigate the cause. The automaker expressed its apologies to customers, suppliers, and related parties for any inconvenience caused by the temporary halt in operations.
## The Vulnerability of Just-in-Time Production
Toyota has been a pioneer of the “just-in-time” production method, a system that is based on the delivery of component parts to assembly plants in the right quantities just before they are needed. This approach is advantageous as it saves warehouse space and money. However, it is susceptible to disruption if any link in the supply chain breaks. It is still unclear how much output has been lost due to the recent disruption.
The Japanese plants account for approximately a third of Toyota’s global production, according to Reuters calculations. Last year, Toyota delivered almost 10.5 million cars. This figure is significantly higher compared to Volkswagen, which usually competes with Toyota for the global sales crown, having sold 8.3 million vehicles in 2022.
## Previous Disruptions in Production
Last year, Toyota was forced to shut down Japanese production for a day due to a cyberattack on one of its suppliers. The attack led to a system failure and a similar issue in obtaining automotive parts. As the world’s biggest automaker by sales, any disruptions in Toyota’s operations can significantly impact the global automotive industry. The company’s swift response to the recent supply chain disruption demonstrates its resilience and commitment to maintaining steady production levels.
Original Story at www.cnn.com – 2023-08-29 12:17:00
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