MARUTI SUZUKI

WELCOME TO

PRESENTED BY MOHD. SALMAN SHEIKH

SUPPLY CHAIN MANAGEMENT • Managing upstream and down stream value added flow of materials, final goods and related information among suppliers; company; resellers; final consumers is supply chain management.

• Supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management.

MARUTI SUZUKI OVERVIEW  India’s Leading Automobile Company  Market Leader In Car Segment  Maruti Suzuki India Has Produced And Sold Over 7.5 Million Vehicles In India  Company’s Revenue- Over Usd 243 Million

SUPPLY CHAIN OF INDIAN AUTOMOBILE INDUSTRY  Supply Chain Of Indian Automobile Industry Is Very Much Similar To Europe & America.  Orders Of The Industry Arise From The Bottom Of The Supply Chain.

 From The Consumers And Goes Through The Automakers And Climbs Up Until The Third Tier Suppliers.  Supply Chain Is The Key To The Automaker And Are Responsible For The Products And Innovation In The Industry.

MARUTI SUZUKI SUPPLY CHAIN MANAGEMENT

• Maruti Suzuki is one of the most successful stories in supply chain management in the Indian automobile market. • The company has 246 local suppliers and 20 global ones

• They all function in a seamless manner

MARUTI SUZUKI SUPPLY CHAIN PROCESS

SUPPLY CHAIN DESCRIPITON & ROLE • Third Tier Suppliers: Companies provide basic products like rubber, glass, steel, plastic and aluminium to the second tier suppliers. • Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier Suppliers and OEMs. & Services which include welding, fabrication, shearing, etc. • First Tier Suppliers: These companies provide major systems directly to assemblers. First tier suppliers are responsible management of second-tier suppliers.

DECRIPTION & ROLE CONT….. • Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs) : Researching consumers’ wants and needs, automakers begin designing models. Companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply chain of the automotive industry.

LAST PHASE OF SUPPLY CHAIN • Dealers: Vehicles after ready are shipped to the authorised dealers of the companies. The dealers then sell the vehicles to the end customers. • Parts and Accessory: These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers.

• Service Providers: Services to the customers include servicing of vehicles, repairing parts, or financing of vehicles. Many dealers provide these services but, customers can also choose to go to independent service providers.

MARUTI KEY POINT OF SCM • Maruti Suzuki is one of the most successful stories in supply chain management in the Indian automobile market. • Company had adopted the Japanese system, Just In Time (JIT) to achieve higher operational efficiencies and reduce inventory carrying cost. • To achieve JIT material supplies, the company has given preference to locally based suppliers. Over 76% of the company's 246 suppliers are located within 100 kms of radius.

CONT…… • Maruti supports it’s vendors in all possible ways. Eg : Finding technology partners, giving financial, technical and management support • Quality Circle Competition Fifty four of the top eighty component suppliers of Maruti Suzuki India compete against each other and the top three get a chance to present their cases in Suzuki's Japan facility alongside other global vendors. • The idea behind the Quality Circle Competition was for the teams from different vendors to identify, discuss and resolve any one core business issue that will add value to the overall functioning of the company, thereby increasing overall efficiency.

MARUTI SUZUKI NEW SUPPLY CHAIN • To support the growing business, Maruti needed a transparent system to interact with its partners abroad. • Started using a combination of Unix Shell programming, Oracle forms, .Net, and Windows FTP technology. • The project covers the entire process from when a distributor orders a vehicle to production to shipment. • Provided all stakeholders complete visibility of an order's progress. • Updated distributors' systems to facilitate their dispatch planning. • Facilitates electronic transfer of orders and acknowledgements.

KEY FACTS OF NEW SCM • The entire process is IT driven and any exception during production, planning, and factory dispatch can be traced and corrective action made with no delay. • The new supply chain has helped it achieve substantial cost reduction, from production to distribution. • Prime driver with the supply chain project was to increase customer base in the current economic downturn.

MARUTI SUZUKI SUCCESS • Maruti Suzuki has sold over 7.5 million cars since it opened its doors and exported 500,000 units. • In 2008-09, it exported over 70,000 cars, growing the exports business by over 30 % and making it a clear focus area for the company.

EXPERT VIEWS Mr.S.Maitra Managing Executive Officer (Supply Chain) "We consider suppliers an integral part of the Maruti Suzuki family. It is our collective responsibility to understand sustainability impacts of our supply chain operations and work towards minimizing them with our concerted efforts.“ Mr. Kazuhiko Ayabe Executive Officer (Supply Chain) "Implementation of environment friendly processes, adoption of people friendly policies, minimisation of wastage and adherence to quality systems will ensure long term sustainability of our suppliers and in-turn, our own sustainability."