5 Lessons from the NextGen Logistics Conference, According to a Long-Time Toyota Executive
By John Brooks, CEO, Warehouse on Wheels
Last month, our Warehouse on Wheels team attended our first NextGen Supply Chain Conference. We learned a ton from logistics pros from across the country, and had a great time in the process.
It was more than networking, though. I had the honor of hosting a conversation alongside my friend, but most notably, longtime Toyota executive, Terry Stumpf.
Terry spent more than two decades inside one of the most efficient manufacturing operations in the world. He helped launch the first full-size Toyota pickup in North America, managed complex supply chains through hurricanes and tsunamis, and lived through more “Friday night emergencies” than most plant managers will see in a lifetime.
In just 20 minutes or so, Terry reshaped how many think of flexibility in their supply chain management. Terry put on a master class, unpacking his experiences with Toyota’s just-in-time system.
You can see the whole thing in the video above, but if you’re pressed for time, I’ve done the hard part for you. Here are my 5 favorite lessons Terry shared from the event.
Toyota runs lean, but even the leanest systems hit snags. That’s weather, strikes, equipment failure, you name it. Terry reminded everyone that the best operators don’t panic—they plan. Having mobile storage ready to deploy when things back up keeps production running and stress down.
When a plant floor hits capacity, or containers start stacking up at the dock, the quickest, cheapest way to create space is already on wheels. Terry called trailers “Toyota’s true warehouse.” They allowed his team to keep freight moving, avoid detention fees, and prevent costly shutdowns.
One of my favorite points from Terry was if you build a warehouse, you’ll fill it. Teams will fill a warehouse to the brim, whether they need to or not. Toyota’s philosophy of eliminating waste applies to square footage, too. Renting storage only when you need it forces discipline and keeps costs low.
During Japan’s 2011 tsunami, Toyota used storage trailers to offset $300,000 in potential detention costs. What was clearly a tragic event did come with some hard-earned lessons. Sure, flexibility is about short-term convenience but it’s more. This is about risk management. It’s the difference between an interruption and a shutdown for many companies.
As Terry put it, logistics problems don’t happen at 10 a.m. on a Tuesday. They happen at 9 p.m. on a Friday. When that call comes in, you don’t need a vendor. Vendors will often leave you hanging. You need a partner who picks up the phone. That’s how Toyota sees suppliers, and that’s how we operate at WOW.
Hearing Terry’s stories on stage confirmed something I’ve believed since day one: the companies that win in logistics aren’t always the biggest. Size often brings complications. The supply chain winners are often the most adaptable.
We take pride in that at WOW. Every day our team wakes up and thinks about our little three word motto: Simple. Smart. Storage. Whether it’s a Fortune 100 manufacturer or a family-owned distributor, we show up fast, stay flexible, and solve storage problems before they stop production.
Because as Terry proved, even the best supply chains need a reliable neighbor when space runs out.
If you want to learn more, please don’t hesitate to reach out.
