FPT Delivers Reliable Just-In-Time Freight Management for Toyota Tsusho America's Steel Division for Over 20 Years.
Q: Can you tell us about Toyota Tsusho America, Inc. and the scope of your operations?
A: Toyota Tsusho America, Inc. is the trading company for Toyota Motor Corporation. In the beginning, about 45-50 years ago, we mainly handled raw materials for all Toyota plants, such as steel and plastic.
Over time, Toyota Tsusho has grown to become the 6th largest trading company in Japan, dealing with every commodity imaginable. While the company manages various sections, including food, precious metals, gems, and hydrogen technology, my section specifically handles steel and aluminum for automotive production.
Q: What are some of the significant logistics challenges you face in your operations, and what is the impact of failing to meet these challenges?
A: One of the major challenges we face is preventing raw steel from rusting during transport, especially when moving it from Ohio in the winter to California.
We use temperature-controlled trucks to ensure the material doesn't rust. Parts move across North America to California and then to our Toyota plants in Mexico for production. Most of our steel and aluminum are sourced from mills in Canada and the Midwest and are shipped by rail or truck depending on urgency.
The impact of failing to meet these challenges is significant. If a shipment is delayed or compromised, it can halt production at the Toyota plant. This is extremely costly, as shutting down a major Toyota plant can cost around $45,000 per minute. Ensuring timely and safe delivery of materials is crucial to avoid such expensive disruptions.
Q: When choosing a logistics partner, what key attributes are you looking for?
A: The most important attributes we look for are reliability, accountability, and the quality of material handling. Adherence to safety standards and proper handling of materials are also vital.
Our experience with Kevin's team at FPT has been exceptional; they've been a reliable partner for over 20 years. Their ability to handle urgent shipments efficiently have been crucial.
Q: How do you evaluate the performance of your logistics partners?
A: On-time delivery is our top criterion. We also assess the quality of the material upon arrival, ensuring it hasn't been damaged during transit.
FPT has consistently met these standards, maintaining the condition of our materials throughout the supply chain.
Q: How does technology play a role in your logistics operations?
A: Technology, especially GPS tracking, is crucial for real-time updates on shipments. For urgent deliveries, we rely on timely communication from our logistics partners to manage any potential delays.
FPT's use of GPS tracking ensures we are always informed about the location of our shipments, which is essential for our just-in-time manufacturing process.
Q: Can you share more about your long-term experience with Kevin's team at FPT?
A: Our relationship with FPT spans over 20 years, and it has been very positive. We've faced numerous urgent situations where FPT had to step up, and they have always delivered. Their reliability and ability to manage crises efficiently have been key to our continued partnership.
Kevin and his team are considered friends, and their trustworthiness is invaluable to us.
Q: How do you handle cost negotiations with your logistics partners?
A: Toyota is very strict with cost management, requiring stable annual pricing. When negotiating with Kevin, we factor in fluctuating fuel surcharges and ensure the pricing is fair and comprehensive.
This approach helps maintain cost stability while ensuring that FPT is adequately compensated. Kevin’s understanding of our needs and his fair pricing strategies have been essential for our operations.