Fewer links in the chain result in increased quality

Directly delivered hot-rolled sheet in pre-cut lengths and ready-to-assemble parts has a positive effect on production for Toyota's assembly operations in Mjölby.

At Toyota Material Handling Europe's facility in Mjölby, the production volume is currently approximately 80,000 electric warehouse trucks and 100,000 hand pallet trucks per year. The facility is a welding, painting and assembly factory. The company buys in steel components that can go directly to welding without any internal processing and then on to painting and assembly into a finished truck. Tibnor, awarded by Toyota with the award "Supplier of the Year 2016", supplies hot-rolled sheet metal and machined parts. That way Toyota has constant access to all the parts they need when they need them. The factory in Mjölby is the largest production facility for trucks that Toyota has in Europe.

The challenge

Toyota is in need of materials and parts in the right amount at the right time.

In Toyota's facility in Mjölby, Tibnor keeps a so-called consignment stock of hot-rolled sheet metal in various qualities. The stock is administered by Toyota, but the plate is owned by Tibnor until Toyota takes it out of stock.

- Owning your own large warehouses is costly and normally requires a great deal of detailed control between supplier and customer, but with this arrangement, Tibnor can act in a more independent way while the availability of sheet metal to Toyota is 100 percent, says Magnus Andersson, purchasing director at Toyota Material Handling Manufacturing , Sweden.

The processing

Tibnor constantly ensures that the parts that Toyota needs are always available. Processed parts are delivered from Tibnor in Köping based on Toyota's production needs. Hot-rolled sheet metal is delivered from Borlänge to the warehouse at Toyota's plant, always to the extent needed.

The key to success is a strong partnership. Tibnor has contributed its production specialty in close collaboration with Toyota's own designers.

- We have a refined collaboration where the customer is involved all the way. When it comes to sheet metal, we use subcontractors who process the steel blanks we have cut at our own facilities. The well-functioning collaboration with our subcontractors results in us being able to offer what Toyota wants in terms of quality of workmanship and delivery reliability, says Johan Botold, Key Account Manager at Tibnor.

Briefly

About Toyota
Toyota Material Handling Europe's production facility in Mjölby, Sweden, is the company's largest truck manufacturing unit in Europe.

Challenge
It is of prime importance that the components in Toyota's trucks maintain high quality for competitive purposes.

Solution
Tibnor supplies raw materials and ready-to-assemble parts in close cooperation with Toyota, which ultimately results in a positive development for the trucks' design and load capacity.