IntroductionToyota has operated in Australia for over 50 years as a wholly owned subsidiary of Toyota Motor Corporation. The company's success is due to the support of its customers, employees, suppliers, retailers and the commitment of the government and other organizations in Australia. As such, Toyota has grown to become one of Australia's leading automotive companies, with an 18% market share at the end of 2011 (Toyota Australia, 2014). Suppliers Toyota has over 1,400 suppliers (Appendix 1) that assist them in the production of their automobiles, whereby the supply chain is divided into three main categories, including indirect purchasing (IP), spare parts and accessories (SP&A) and direct purchasing (DP) (Toyota Australia, 2013). Toyota's key suppliers who have been recognized for service excellence (Appendix 2) in various categories including: TT Steel Center Australia Pty Ltd/ TT Assembly Australia Pty Ltd, Toyota Tsusho (Australasia) Pty. Ltd was established (TTALA), a wholly owned subsidiary of Toyota Corporation as the trade and supply chain specialist of the Toyota Group. The Vehicles, Components and Machinery division is continuously growing and therefore diversifies its product range including automotive components, electronics and accessories to meet customer preferences. As the electronics industry continues to grow, Toyota Tsusho's business in this field includes a wide variety of products, including electronic components, personal computers, semiconductor manufacturing equipment and Computer Aided Design (CAD) systems. TT Steel Center and TT Assembly were awarded for Safety and Quality respectively (Toyota Tsusho Australasia, n.d.).Continental Pty LtdContinental Pty Ltd, g...... middle of paper ......replacement or replacement of goods from other sources. Additionally, Toyota allows failures or delivery delays that occur outside of suppliers' control, such as floods, fires, explosions, riots, windstorms, or terrorist acts (Marksberry, 2012). However, suppliers are not exempt from the obligations if their employees participate in slowdowns, lockouts or strikes. Ultimately, the delivery requirements set by Toyota may seem severe, the JIT inventory system requires a clear understanding and close coordination of each other's intertwined networks. Therefore, based on this relationship, it can be concluded that the bargaining power of suppliers in the supply chain is weak. This is because, due to the large number of suppliers, the materials are widely accessible and therefore the suppliers do not pose a great threat to future integration (Marksberry, 2012).