Enhancing Customer Value Through TPS Initiatives in Sales Workspaces
In a groundbreaking move, Toyota is applying the principles of its renowned Toyota Production System (TPS) to its dealerships, revolutionising the sales operations and improving customer satisfaction.
The new RAV4, debuted in May, marks a significant milestone for the company. It is the first vehicle to feature Arene, Toyota's software development platform, signalling the company's first step in mass-producing software-defined vehicles (SDVs).
Toyota Sales Logistics (TSL), a system developed over 30 years ago, is at the heart of this transformation. Adapted from TPS, TSL focuses on improving the flow of products within dealerships, reducing waste, and streamlining the process from storage to customer pick-up.
The introduction of TSL has resulted in a remarkable acceleration in service. What used to take over two hours at dealerships has been reduced to about ten minutes in some cases. This speedy service is primarily due to better coordination and fewer inefficiencies in moving cars from large parking lots to the departure area where customers collect their vehicles.
Many Toyota dealerships are leveraging the benefits of TSL, using the extra capacity to provide new value for customers. For instance, at Toyota Rent a Car's Naha Airport Shop in Okinawa Prefecture, wait times have been significantly reduced, with customers now waiting approximately 10 minutes.
The Naha Airport Shop, which ranked lowest in customer satisfaction in the Kyushu-Okinawa region in the past, has seen a marked improvement in customer satisfaction due to the implementation of TSL.
The TSL-driven kaizen (continuous improvement) is unfolding in various dealerships, with each branch working to uniquely serve local customers. The new challenges dealerships are undertaking are not specified, but it is clear that they are committed to improving efficiency and customer satisfaction.
This commitment to quality and customer service is evident in the premiere of the new RAV4, which reflects Toyota's commitment to achieving zero traffic accidents. Akio Toyoda, a sub-section manager, was responsible for incorporating TPS into the company's sales force, a move that has significantly improved the customer experience at Toyota dealerships across Japan.
[1] Toyota Global Website. (n.d.). Toyota Sales Logistics (TSL). Retrieved from https://global.toyota/en/newsroom/corporate/2328345.html [2] Toyota Global Website. (n.d.). TSL: Toyota's Sales Logistics System. Retrieved from https://global.toyota/en/newsroom/corporate/2129210.html
- The application of Toyota's industrial principles, as demonstrated in the Toyota Production System (TPS), has extended to the financial sector, with the introduction of Toyota Sales Logistics (TSL), aiming to improve efficiency in the automotive industry's finance and transportation sectors.
- Leveraging technology, Toyota's software development platform, Arene, is set to play a significant role in the transition of the automotive industry towards software-defined vehicles (SDVs), contributing to advancements in the Technology sector.
