>> Most companies seem to not know that nuance.

Toyota's tier-two suppliers surely know it pretty well. Their suppliers a little less well. And so on, down through the supply chain.

It isn't the case that Toyota has some magical vision (though they are clear-thinkers). The key difference is that Toyota is at the end of the supply chain for all their suppliers.

Think of pulling an elastic tether on a solid object, which pulls an elastic tether on a solid object, which pulls an elastic tether on a solid object. Friction accumulates and it doesn't disperse evenly.

So the Toyota model is great iff you are Toyota or similar OEM. With diminishing returns as you progress further down the supply chain.