Toyota's Reputation Taking a Hit; Collaboration Can Help in Recovery
Posted 02-01-2010 at 11:49 AM by Albert Fong
Over the past 6 days, Toyota has been in the minds of the media and the consumer for the wrong reasons. When you buy a new car or truck, recalls tend to come with the package. In Toyota’s case, however, the recalls involving sticky accelerators have become a slowly tightening noose. Last year, Toyota was the #1 auto manufacturer in the world, and in this still very young 2010, its fortunes have turned as its market share and stock price have tanked.
Don’t get me wrong, I think Toyota has done everything possible to address the issue from closing assembly lines to getting parts out to plants and dealers. In fact, the Toyota lean manufacturing techniques are considered some of the best in supply chain management.
But one area that Toyota has struggled is in the area of communication. We know, or should at least, that perception plays a significant part in how we view a company’s reputation. That’s why the kid in class who constantly goes out of his way to ingratiate himself with the teacher often is viewed more positively than the other kid who simply does his school work and keeps to himself. Toyota has not done a mediocre job of communicating with its plants or those on the frontline, the dealerships. From news reports, it was clear that many were left out of the loop. You can imagine what consumers are feeling since they’re relying on sensationalist media stories as their information source.
Managing inventory is so much more than figuring out how many boxes are sitting in the warehouse or on a truck. It’s about collaborating with partners which include everyone from those driving forklifts to those forking over dollars at the cash register. Knowing where something is at, but being unable to share that information makes your supply chain vulnerable.
As someone who has dealt with crisis management, I can say that disseminating as much information as early as possible is key. The longer you wait, the less control you have over that information, and the more likely, it will be distorted. While this sounds obvious, too many examples exist where this just doesn’t happen. Whether or not Toyota had the information and simply didn’t get it out there to the masses remains to be seen. Either way, perception is shaping Toyota’s reputation as we speak. Do you know what your customers think about you?
A popular saying is “There is no such thing as bad publicity.” Ask Toyota if that’s true.
Don’t get me wrong, I think Toyota has done everything possible to address the issue from closing assembly lines to getting parts out to plants and dealers. In fact, the Toyota lean manufacturing techniques are considered some of the best in supply chain management.
But one area that Toyota has struggled is in the area of communication. We know, or should at least, that perception plays a significant part in how we view a company’s reputation. That’s why the kid in class who constantly goes out of his way to ingratiate himself with the teacher often is viewed more positively than the other kid who simply does his school work and keeps to himself. Toyota has not done a mediocre job of communicating with its plants or those on the frontline, the dealerships. From news reports, it was clear that many were left out of the loop. You can imagine what consumers are feeling since they’re relying on sensationalist media stories as their information source.
Managing inventory is so much more than figuring out how many boxes are sitting in the warehouse or on a truck. It’s about collaborating with partners which include everyone from those driving forklifts to those forking over dollars at the cash register. Knowing where something is at, but being unable to share that information makes your supply chain vulnerable.
As someone who has dealt with crisis management, I can say that disseminating as much information as early as possible is key. The longer you wait, the less control you have over that information, and the more likely, it will be distorted. While this sounds obvious, too many examples exist where this just doesn’t happen. Whether or not Toyota had the information and simply didn’t get it out there to the masses remains to be seen. Either way, perception is shaping Toyota’s reputation as we speak. Do you know what your customers think about you?
A popular saying is “There is no such thing as bad publicity.” Ask Toyota if that’s true.
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