Introduction
The global strategies of Japanese automobile manufacturers have evolved immensely especially in the ASEAN
region which has become a significant market. However, ASEAN’s automobile parts industry has not yet progressed
to the same level of Japan, and its automobile industry cluster remains undeveloped. As a result, the original model
of the Toyota Production System including parts procurement was modified in the ASEAN region using the Just-InTime
(JIT) concept as a basis. Its feature is that most parts are procured from local suppliers by the Milk-Run
logistics, and the strategic parts (e.g. high-value added parts having scale economy in their production) are procured
from neighbouring countries under the concept of the international division of labour system in the ASEAN region.
In this paper, Toyota Motor Corporation, an automobile manufacturer typifying Japan, is taken up as a case study,
and the synchronization of production and parts procurement used by Toyota assembly firms, suppliers and third
party logistics (3PL) providers in Thailand is analyzed. The paper reveals that the Milk-Run logistics is achieved in
Bangkok, even if road congestion is especially severe, through the use of ITS. In addition, it will explain how zero-waste production was achieved through the synchronization of the assembly process and parts procurement. Finally,
the paper will try to clarify the features of Milk-Run logistics and its implications for city logistics.