What does Toyota's global complementation strategy ensure?

Toyota's global complementation strategy is designed to create a network of production facilities that can flexibly meet demand across different markets by allowing plants to produce vehicles not only for local consumption but also for export to other markets where demand is strong. This approach enhances Toyota's ability to respond to global market dynamics and shifts in consumer preferences while optimizing resources.

This strategy allows Toyota to leverage its manufacturing capabilities by positioning plants in locations that take advantage of regional strengths, such as lower labor costs, access to specific raw materials, or proximity to key markets. By enabling plants to produce for multiple markets, Toyota can better balance supply and demand, reducing lead times and improving delivery performance.

This contrasts with options that imply restrictions on production capabilities, such as limiting plants to local market production or restricting them to one specific market. Such limitations would hinder the company's ability to adapt to changes in global demand and opportunities. Maintaining inventory to avoid supply delays, while important, does not capture the broader strategic advantage of being able to produce vehicles for strong export markets, which is integral to Toyota's competitive edge in the automotive industry.