SCM in Maruti Suzuki India Limited
Maruti Suzuki India Limited (MSIL) has very efficient process with its suppliers to develop new products, achieve high localization levels, and reduce cost. It has a strong base of over 250 suppliers including 16 JV companies where the company has strategic equity stake. More than 3/4th of the company's suppliers are located in the 100 kms of radius from its manufacturing facilities. Most of the JVs are situated in the Suppliers' Park adjacent to the company facilities. With a large number of variants under the 14 running models, the supply chain management is especially challenging. The supply chain solution enables the concerned product reach in time, be it the type of fabric used, the audio system, the tyres or the specific engine and transmission systems. The entire inventory management has also been fully automated and integrated with its vendors. Key Challenges
* When it comes to its operation and supply chain, Maruti Suzuki’s key challenges include: * Achieving a lean supply chain
* Managing effectively the variations in the components for various models * Managing continuous supply-demand matching and optimization * Achieving efficient use of materials and other resources * Managing demand and customer expectations
* Enabling MSIL, suppliers and dealers to constantly adapt their strategies, processes and systems to meet dynamic market needs. Key SCM Initiatives
Due to stiff competition and cost leadership of Maruti, lean manufacturing and zero inventory are its goals. Maruti’s supply chain management represents one of the best examples of lean manufacturing in the country. The manufacturing plants have been almost fully linked to IT systems and all inventory and processes are networked. Every component-set has a bar coded tag which helps to monitor the movement of materials right from suppliers to the Trim line. This helps to know exactly how much...