BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

2014, and largely because of changes in the marketenvironment Toyota Tsusho also sold its shares in 2015and withdrew from management of the company.9 Lithium Project in ArgentinaIn March 2012, Toyota Tsusho became a developmentpartner with Australian resource company Orocobre Ltd.,which held mining rights for lithium, the raw materialused in lithium batteries, in Argentina. In December thesame year, construction of a plant started at Olaroz, a saltlake situated at an altitude of 4,000 meters in Argentina,and extraction of lithium began there in August 2014.Section 2 The Global Parts & Logistics Division1 Achieving an Optimal Value ChainThe Global Parts & Logistics Division expandedto span 79 companies and 177 bases overseas in 38countries as it fused capabilities such as productdevelopment, materials processing, supply and demandmanagement, logistics, tires and wheels, and othercomponent assembly in the field of core mobility topromote business development in new markets, includingMexico, India, and the Mekong region. In additionto a techno park business that combined support ofparts manufacturers entering overseas markets and thecontracting of processing services and an aftermarketautoparts business eying the global market, ToyotaTsusho has also succeeded in making inroads into newbusinesses, such as the aircraft parts industry. Usingits strengths of multi functions and a global network,the Global Parts & Logistics Division worked towardachievingthegoalofanoptimalbusinessvaluechain.2 Major Shift to Global Vendor-to-VendorIn the 1990s, vendor to vendor (V-V: a scheme thatconnects overseas suppliers with a combined logisticsand commercial route) was established. The schemethat evolved the conventional consolidated logisticsto a procurement logistics scheme, expanded furtherglobally among overseas countries (bypassing Japan) inthe Toyota IMV Project in 2004. Linking more than 10countries mainly in Asia, the V-V scheme allowed forcentralized management of parts distribution betweenoverseas countries that achieved shortened lead times,cost reduction, and an efficient supply chain. With thecooperation of customers and partners, V-V now has aglobal reach with more than 1,000 employees.3 Business Alliance with Kimura UnityIn December 2000, Toyota Tsusho entered into abusiness alliance with Kimura Unity Co., Ltd., with theprimary goal of expanding Toyota Tsusho’s logisticsbusiness in overseas markets. As Toyota Tsusho facedthe need to establish a worldwide logistics service tomeet the needs of globalizing customers, Kimura Unitysubmitted a planning proposal for a logistics business thatwould deploy systems and consulting to conduct everyaspect, from proposal, to design and launch, and followup.The shared motives of the two companies promptedan alliance. Accordingly, Toyota Tsusho acquired 8.3%of Kimura Unity’s shares in February 2001 to furtherdeepen the relationship between the two companies.Together, Toyota Tsusho and Kimura Unity establisheda joint venture company in Brazil in 2001 and another inThailand in 2002.Lithium project (Argentina) Business alliance with Kimura Unity (2000)134