Scm in Tatasteel

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Case Study

Satisfying Customer Demand
Customer-Centric Approach Drives Global Growth for Tata Steel

Tata Steel Fast Facts
Industry Manufacturer of Steel Products Headquarters Mumbai, India Description The Tata Steel Group has a balanced global presence in over 50 developed European and fast-growing Asian countries, with manufacturing operations in 26 countries and various ongoing projects in different parts of the world. It is the first integrated steel plant in Asia and the world’s second most geographically diversified steel producer.

Business Challenge
Tata Steel sought to improve customer satisfaction and asset utilization and needed a solution that would enable the company to optimize its inventory investment, including raw materials, work-in-process and finished inventories, as well as improve the reliability of its customer delivery promises.

Business Solutions
• JDA® Sales and Operations Management • JDA® Factory Planner • JDA® Material Allocator

Business Benefits
“Now, when we understand that an order is in jeopardy, we have the tools in place to troubleshoot the order and can often take corrective action to fix the problem before we even have to notify the customer.” - Biswajit Roychowdhury, chief of planning, Tata’s flat steel division JDA Software Group, Inc., completed its acquisition of i2 Technologies, Inc., in January 2010. Tata Steel, a legacy i2 customer, continues to work with JDA on its supply chain management initiatives.

• Increased order promising accuracy to 85-92 percent • Increased order booking efficiency to more than 80 percent • Improved forecast ability enables due-date-based planning and higher utilization of assets • Improved visibility into demand, orders and shipments

The steel manufacturing industry has never been known for being particularly responsive to market needs. In fact, until recently, the industry has been plagued by extremely long lead times, poor customer service and high levels of manufacturing inefficiencies. But there’s a quiet revolution going on, serving up more change in the last decade than in the 150 years preceding it. The use of leading-edge technology has driven business efficiencies, and continued globalization has created further economies of scale, with both fueling rapid industry consolidation. Tata Steel, the flagship of India’s $40.84 billion Tata Group, is Asia’s first and India’s largest private-sector steel company. One of the lowest cost producers of steel in the world, Tata purchased Thailand’s Millennium Steel and Singapore’s NatSteel Asia, and in 2007 completed its acquisition of Anglo-Dutch Corus Group in a $12 billion transaction. “Before we started looking at supply chain optimization, we suffered from all of the typical problems manufacturers face: non-optimized asset utilization, long cycle times, disparate IT systems and lack of visibility into demand, orders and shipments,” said Anand Sen, vice president of Tata’s flat product division. “We knew that we simply couldn’t meet our strategic objectives by maintaining the status quo.” versus actual performance, it was impossible to design improvements in the overall delivery system. Realizing that its industry-leading position was hanging in the balance, Tata started the improvement process by articulating its strategic drivers: improved customer satisfaction and higher asset utilization. To address customer needs, the company conducted an exhaustive survey to establish detailed customer requirements. The survey yielded three imperatives. First, provide an accurate promise as to when the order would be delivered. Second, in the event that the order due date would be missed, notify the customer early in the process – not at the point of the missed delivery. And third, accurately project a revised delivery date so that the customer could modify its schedules accordingly. the culmination of a long process of due diligence and included all members of executive management.” The...
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