The origins of Mazda Canada date back to Japanese Mazda Motor Corporation, Mazda Canada’s parent company, who made the first Mazda vehicle. Figure 1 shows the Mazda-Go which was first introduced in 1931. However it was known back then as Toyo Kogyo C. Ltd. The name Mazda was adopted in 1984. Today, Mazda Motor Corporation has business operations in 140 countries and regions including Canada. Mazda Canada began operations in 1968 and today boasts 165 independent and franchised dealers across the country and two parts distribution centers.
Richmond, Ontario serves as the location for Mazda Canada’s sole corporate office, which provides sales, marketing, customer service, and parts support across the entire Canadian network. For information to be accurate and up to date, Canadian suppliers send daily product quality reports and audits to the corporate office where they inspect and verify the data.
The distribution network for Mazda Canada received a much needed boost with the addition of a second regional operations and parts distribution center in Langley, British Columbia. Before 2012, the sole distribution center for Mazda Canada was located in Mississauga, Ontario.
In integration with the two distribution centers in Canada, Mazda has adapted a web-based online virtual parts warehouse which allows parts distribution centers, Mazda Canada as well as independent dealers to connect in order to source new and replacement parts more effectively and efficiently. This allows the right parts to be where they are demanded as well as flawless communication across the network.
The following is a list of goals Mazda lists for appropriate risk management
1. Ensure the health and safety of all those who make up the Mazda Group as well as local citizens.
2. Maintain and increase the truth from the community.
3. Make appropriate use of the tangible and intangible corporate assets of the Mazda Group.
4. Secure interests of the stakeholders, earn their trust and meet their expectations.
5. Support the functions of the organization and seek a rapid restoration of business activities at the time of abnormal circumstances or emergencies.
Mazda Motor Corporation expects all corporate officers and employees to abide by PDCA protocols and be aware of and control potential risks. They would like both internal and external environment risks to be considered under every angle. Mazda Motor Corporation has been quite proactive in preparing for any potential risks as stated in 2004 they quake-proofed buildings and facilities, prepared evacuation and emergency contact drills, as well as in-house rules like fire and disaster prevention management regulations and emergency management regulations.
CHALLENGES TO THE SUPPLY CHAIN
An incident in October 2013 revealed some issues in regards to logistics within Mazda Motor Corporation. A three day strike causing the main shipping port in North America to be closed in Baltimore, Maryland resulted in three days of no parts or vehicle importation. The port had a five year contract to import as much as 65000 vehicles from Japan. As service parts could have suffered less due to the new distribution center in western Canada, fully assembled vehicle importations were put on hold for those three days. This shows that Mazda should not only research the logistics of companies effecting their supply chain, but employee relations as well.
LEAN SUPPLY CHAIN THROUGH MANUFACTURING
Lean is defined through Mazda Motors Corporation’s Flexible Manufacturing System. The main key in this system is quick adjustment to meet market demands in real time. The smaller production volumes, compared to other vehicle manufacturers, is used to Mazda’s advantage as they do not have to focus on many different vehicle lines and can dedicate expertise and development to each of their vehicle lineups uniformly.
The newest focus has been their Skyactiv mills which are believed to bring Mazda into…