May 17, 2020

Toyota Expects Profits To Fall By 31 Percent

Toyota
Supply Chain
earthquake
tsunami
Freddie Pierce
2 min
JDA Software offers its advice on changing up supply chain management to adapt to an evolving automotive supply chain
This Friday Toyota Motor reported that it expected its annual net profit to drop almost a third from the previous year, as a result of continued produc...

This Friday Toyota Motor reported that it expected its annual net profit to drop almost a third from the previous year, as a result of continued production issues caused by the tragic earthquake and tsunami that struck Japan in March. Toyota’s prediction of a 31 percent drop in net profit to ¥280 billion, or $3.5 billion, for the year ending in March 2012 was worse than expected, reports The New York Times.

But despite the doom and gloom of profit fall, Toyota’s forecast projected a robust recovery within the next few months as the automaker made headway in mending its supply chain. Even though Toyota’s 17 plants in Japan escaped the disaster relatively unharmed, factory lines have been working below capacity, as important suppliers in Japan’s worst-hit areas are still in the process of restarting operations.

Toyota also restated that there would not be a full recovery in global production until November, but there are still signs that output might be bouncing back more quickly than expected, said The New York Times. But even with a recovery Toyota may lose its title as the world’s biggest automaker.

General Motors and Volkswagen sales’ will surpass Toyota’s causing the Japanese automaker to surrender its crown after just three years. Toyota now expects to sell 7.24 million vehicles for the year through March 2012, down from 7.31 million vehicles in the previous year.

But a Toyota executive said its not global rankings that are most important. “We don’t see it as necessary to be the largest automaker in the world,” said Satoshi Ozawa, Toyota’s executive vice president, according to The New York Times.

According to Toyota executives, customer trust and safety are the most important, especially after the major spate of recalls the company experienced in 2009.

 

 

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Jun 8, 2021

DHL Claim Multi-Sector Collaboration Key to Fighting COVID

DHL
Supplychain
COVID19
Logistics
3 min
Global logistics leader DHL’s new white paper highlights what supply chain professionals have learned one year into the pandemic

Since January, global logistics leader DHL has distributed more than 200 million doses of the COVID vaccine to 120+ countries around the globe. While the US and UK recently rolled out immunisation plans to most citizens, countries with less developed infrastructure still desperately need more doses. In the United Arab Emirates (UAE), which currently has one of the highest per-capita immunisation rates, the government set up storage facilities to cover domestic and international demand. But storage, as we’ve learned, is little help if you can’t transport the goods.

 

This is where logistics leaders such as DHL make their impact. The company built over 50 new partnerships, bilateral and multilateral, to collaborate with pharmaceutical and private sector firms. With more than 350 DHL centres pressed into service, the group operated 9,000+ flights to ship the vaccine where it needed to go. 


 

Public-Private Partnerships

With new pandemic knowledge, DHL just released its “Revisiting Pandemic Resilience” white paper, which examined the role of logistics and supply chain companies in handling COVID-19. As Thomas Ellman, Head of Clinical Trials Logistics at DHL, said: “The past one year has highlighted the importance of logistics and supply chain management to manage the pandemic, ensure business continuity and protect public health. It has also shown us that together we are stronger”. 

 

Multisector partnerships, DHL said, enabled rapid, effective vaccine distribution. While international scientists developed a vaccine in record time—five times faster than any other vaccine in history—manufacturers ramped up production and logistics teams rolled out distribution three times faster than expected. When commercial routes faced backups, logistics operators worked with military officers to transport vaccines via helicopters and boats. 

 

In the UAE, the public-private HOPE Consortium distributed billions of COVID-19 doses to its civilians as well as other countries in need by partnering with commercial organisations such as DHL. For the first time, apropo for an unprecedented pandemic, logistics companies made strong connections with public health and government.

 

“While the race against the virus continues, leveraging the power of such collaborations and data analytics will be key”, said Katja Busch, Chief Commercial Officer DHL and Head of DHL Customer Solutions & Innovation. “We need to remain prepared for high patient and vaccine volumes, maintain logistics infrastructure and capacity, while planning for seasonal fluctuations by providing a stable and well-equipped platform for the years to come”. 


 

How Do We Sustain Immunisation? 

By the end of 2021, experts estimate that we need approximately 10 billion doses of vaccines—many of which will be shipped to areas of the world, such as India, South Africa, and Brazil, that lack significant infrastructure. This is perhaps the greatest divide between countries that have rolled out successful immunisation programmes and those that have not. As Busch noted, “the UAE’s significant investments in creating robust air, sea, and land infrastructure facilitated logistics and vaccine distribution, helping us keep supply chains resilient”. 

 

Neither is the novel coronavirus a one-time affair. If predictions hold, COVID will be similar to seasonal colds or the flu: here to stay. When fall comes around each year, governments will need to vaccinate the world as quickly as possible to ensure long-term immunisation against the virus. This time, logistics companies must be better prepared. 


Yet global immunisation, year after year, is no small order. To keep reinfection rates low and slow the spread of COVID, governments will likely need 7-9 billion annual doses of the vaccine to meet that mark. And if DHL’s white paper is any judge of success, multi-sector supply chain partnerships will set the gold standard.

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