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How Toyota Extends Lean Thinking from the Factory Floor to the Dealership

Posted: March 30, 2026
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Toyota’s commitment to quality begins on the factory floor, where the Toyota Production System (TPS) drives everything we do. By eliminating waste, improving flow and efficiency, and empowering team members to pursue continuous improvement, TPS has defined Toyota Material Handling’s approach to operational excellence for decades.

 

In 2017, we extended that same philosophy to our dealer network by creating the Toyota Lean Management team. By partnering with independent dealerships, the team helps implement proven lean principles, reduce waste, and standardize processes to strengthen performance and better serve customers. 

 

Logan Fowler, Senior Manager of Toyota Lean Management, explains how these principles work in practice and how you can apply them to elevate your dealership’s operations. 

Frequently Asked Lean Management Questions

What is Toyota Lean Management’s core operating philosophy?

We exist to help dealerships grow into learning organizations. Our team works side by side with the dealer network to develop people, improve processes, and build a culture of continuous improvement.

 

Many of our dealerships are independent businesses, but we bring them into the Toyota way by staying customer-focused, cutting waste, and committing to long-term growth. In the end, everything we do aims at one goal: helping dealers run stronger businesses that deliver greater value to customers. 

How does Toyota help dealerships get started on the lean management path?

We start by meeting each dealership where it is. Every organization has its own mission and vision, so we begin by aligning values. We ask them to define what they stand for, compare that to Toyota’s core values, and find the overlap. With that foundation in place, we introduce the basics of lean management, starting with 5S: sort, systemize, shine, standardize, and sustain. These steps give dealerships consistent, repeatable results they can build on. 

 

That work ties directly into our After Sales Service Evaluation and Certification Program, which helps dealers raise the level of service they deliver. Once 5S and standard work are in place, our consultants guide them through the two pillars of lean: Jidoka, or built-in quality, and just-in-time (JIT) delivery. These principles ensure that customers receive what they need when they need it and in the right quantity.

 

We also use tools like visual tracking and data analysis to verify performance and identify opportunities for improvement. With the data in front of them, dealerships can drive continuous improvement, cut waste, and stay focused on meeting customer expectations. 

How are dealerships putting lean management into practice?

Many dealerships have embraced the process and are seeing clear results. Because we provide this service at no cost, dealers gain tools to streamline operations, cut waste, and improve profitability. In many cases, they rediscover more efficient ways to work and bring new energy into the business.

 

About half of our dealerships already use lean management, and that number continues to grow. Each dealer moves at its own pace, and we focus on meeting them where they are and helping them take the next step. 

How do lean principles benefit warehouse and logistics managers?

Just-in-time delivery is critical in warehouses, and lean management makes it possible. Customers expect exactly what they want, when they want it, and in the right quantity. By cutting waste and standardizing processes, managers keep inventory moving, reduce excess stock, and respond quickly to demand.

 

Lean tools also improve visibility. Managers can track data, spot issues early, and adjust before problems grow. The result is faster flow, lower costs, and happier customers. 

Where is Toyota Lean Management headed next?

The mission is to keep applying Toyota’s core values in ways that help dealerships grow and serve customers better. Respect for people, using resources wisely, and driving continuous improvement will always guide that work. We understand that dealerships are all in different places on their lean journey, so our goal is always to meet them there, walk alongside them, and keep moving forward together. 

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