THE PROCUREMENT INTERVIEW
The digital evolution of the Toyota Production System( TPS) The Toyota Production System( TPS) is one of the best-known management philosophies in manufacturing history. Traditionally associated with the factory floor and the elimination of waste, TPS is being redefined for the digital age. Rather than being seen as a rigid set of manual tools, it is now viewed as a system for empowering people to solve problems at digital speeds.
Chris describes the translation as seamless:“ Digitalisation in a lot of ways adds speed, right? It allows us to diagnose problems, analyse, collect the data that would be needed to analyse a process to identify where are the weak points, where are the things we need to improve?
“ So we feel like, as we’ re beginning to digitalise TPS tools, for example, it’ s allowing us to move even faster than we have in the past.”
“ On a typical vehicle, 75 % of the content is outsourced... the integration with the suppliers and their buy-in to come along on this is absolutely critical”
Ryan Grimm Group Vice President, Toyota Purchasing Supplier Development Toyota Motor North America
This digital version of TPS maintains a human-centric core. Kevin says that, while it is easy to see physical flow in a warehouse, observing a business process that spans months and multiple geographies is harder.
Digital capabilities bring“ observability” to these invisible workflows. By creating feedback loops – such as using consumer search data to refine forecasts rather than relying on historical sales – Toyota can see“ true demand” and adjust the entire supply chain accordingly.
Building two-way connectivity with suppliers On a typical vehicle, 75 % of the content is outsourced, and there are over 1,000 locations just within North America that receive demand signals.
Ryan Grimm, Group Vice President, Toyota Purchasing Supplier Development, says:“ So the integration with the suppliers and their ability or buy-in to come along on this and support this is absolutely critical.”
Ryan emphasises that partnerships are foundational to Toyota’ s success. The organisation has moved beyond“ demand signals” toward what it calls“ two-way supplier connectivity”.
Historically, a manufacturer might send a demand signal and hope for the best. Today, the TMNA platform allows for real-time integration. Kevin provides a compelling example involving an interior trim supplier. The system flagged a demand spike eight weeks before it became a crisis.
30 June 2026