What strategies can Toyota implement to mitigate future risks?
To mitigate future risks, Toyota can adopt several strategies. Diversifying their supplier base can reduce dependency on a few critical suppliers. Additionally, investing in vertical integration strategies, where Toyota could control more stages of their production process, can give them greater control over their supply chain. Implementing advanced inventory management systems can help in better forecasting and managing component needs. Toyota might also consider increasing their reserves of critical components to buffer against future shortages.