Research Article
Corporate Strategy of Supply Chain Risk Management: The Case of Toyota Motor Corporation
1 Professor, Department of Public Administration, Ajou University, 2 Professor, Department of Political Science and Diplomacy, Ajou University
Published: May 2026 · Vol. 30 No. 2 · pp. 171-194
DOI: https://doi.org/10.17287/kbr.2026.30.2.171
Full Text
Abstract
This study analyzes Toyota Motor's supply chain risk management strategy using inventory management data. Despite significant disruptions to the global supply chain due to factors such as the US-China strategic competition, the COVID-19 pandemic, and the Russia-Ukraine War, Toyota maintained its global leadership in new car sales from 2020 to 2024. This achievement is based on the RESCUE (REinforce Supply Chain Under Emergency) system, established after the 2011 Great East Japan Earthquake. Through RESCUE, an integrated system for proactively assessing and preparing for supply chain risks, Toyota systematically identified and managed hard-to-replace items among approximately 20,000 parts. For these final risk items, Toyota established a collaborative system with Denso, Aisin, and Toyota Tsusho, extending to third- and fourth-tier suppliers. Analysts have suggested that, as inventory increased following the introduction of RESCUE, Toyota abandoned its “just-in-time” approach and adopted a “just-in-case” approach. However, RESCUE, which has developed strategic redundancy and deep visibility, has evolved not to completely abandon just-in-time but to partially embrace just-in-case. Inventory management data from the past 20 years has shown that most low-risk components still have minimal inventory, while supply chain diversification has increased inventory only for high-risk items. In this sense, RESCUE can be evaluated as a significant example of how to balance efficiency and resilience in supply chain risk management.
