Toyota Logistics Services optimizes finished vehicle logistics networks with INFORM
Toyota Logistics Services (TLS) is Toyota’s North American organization responsible for finished vehicle logistics. Facing rising costs, growing network complexity, and increasing sustainability requirements, TLS relies on INFORM Network Planning for Vehicle Logistics to continuously optimize its nationwide transport network and make data-driven strategic decisions.
Challenge
TLS manages one of the most complex finished vehicle logistics networks in North America, spanning plants, ports, modification centers, distribution compounds, dealers, rail providers, and truck carriers. The network includes:
- Tens of thousands of carrier and route combinations
- High cost pressure combined with strict service level requirements
- Increasing expectations around sustainability and CO₂ reduction
- The need to regularly reassess the network as volumes, rates, and constraints change
Traditional planning approaches were no longer sufficient to evaluate this complexity holistically. TLS needed a solution that could strategically analyze its entire network, compare scenarios, and balance cost, service quality, and operational risk.
Solution
TLS partnered with INFORM to implement INFORM Network Planning for Vehicle Logistics, enabling intelligent, scenario-based optimization of its finished vehicle logistics network.
The solution allows TLS to:
- Model the entire North American vehicle logistics network in one system
- Analyze and compare multiple planning scenarios based on:
- cost
- transit times
- service level agreements
- capacity constraints
- operational and sustainability criteria
- Evaluate carrier performance, risks, and fallback options
- Optimize the balance between rail and truck transport
- Create transparent, data-driven input for carrier sourcing and RFP processes
TLS runs multiple optimization scenarios per cycle, ensuring that strategic decisions are based on a complete and objective view of the network.
Results
By applying INFORM Network Planning, Toyota Logistics Services achieved measurable and sustainable improvements:
- Annual cost reduction of 3%, despite rising logistics costs
- Overall cost avoidance of approx. 5% per year
- Fully transparent network for improved decision-making
- Better balance between cost efficiency, service quality, and operational risk
- Increased competitiveness between rail and truck carriers
- Support for corporate sustainability goals through CO₂-aware planning
The optimization process was implemented with minimal disruption to daily operations and has since become a repeatable, strategic planning approach.
Future Outlook
Following two successful optimization cycles, TLS plans to repeat the network optimization process every five years. The organization continues to enhance sustainability criteria, including CO₂ emissions, rail-to-truck ratios, and carrier fleet characteristics, ensuring continuous improvement in both cost and environmental performance.
Conclusion
Toyota Logistics Services’ collaboration with INFORM has transformed its vehicle logistics network, achieving significant cost savings, improved sustainability, and enhanced service quality. By leveraging advanced optimization solutions, TLS continues to lead in operational excellence and environmental stewardship in the automotive logistics industry.
Lill Haase
Product Marketing Manager
Lill Haase has been part of INFORM since 2023. She has been focusing on Vehicle Logistics ever since – turning complex topics into clear, accessible messages. In her work, she puts strong emphasis on customer relevance, clarity, and trust.
