Supply Chain Management in Mahindra

Topics: Inventory, Supply chain management, Economic order quantity Pages: 6 (1521 words) Published: October 16, 2014
Supply Chain Management
Mahindra & Mahindra has a separate logistics chain, Mahindra Logistics Limited (MLL), for all it subsidiaries among which Auto Industry forms a large part of the supply chain business. It remains an area of considerable focus for Mahindra Logistics because of the challenges faced by auto manufacturers, suppliers and distributors.

Automotive Logistics
With integrated logistics operations across the country the solutions provided by Mahindra can be broadly classified as Inbound & Inter-unit
Stores & Linefeed
Yard & Outbound
Inbound & Inter-unit
Inbound processes can be tailored to the specific needs of a customer / plant. May include various hybrids of the following:

Inter-unit capabilities include transportation and tracking of semi-finished units (axels, engines, transmissions, etc) Stores & Line Feed

Another critical auto SCM component, the expertise ensures JIT parameters are met and right inventory is always available at the right time.

Yard & Outbound
The sum of outbound activities can be classified as:

Pre-Outbound and Yard management
The activities we support and specialize in:
Custody Transfer takes care of transferring responsibility to MLL. Quality Check of Vehicles done by visual and technical methods. Shifting of Vehicles takes responsibility for Vehicle movement ex-plant Documentation such as permits, invoices etc.

Vehicle Storage & Inventory Management such as parking as per yard plan and inventory tracking. Vehicle Care for regular Start-up and tyre roll, battery check, washing of inventory Location Control tracks parked location of vehicle, stock aging, maximum space utilization. Retrieval done physically per assigned location and line ups for dispatch. Billing of Vehicles for processing and control.

Outbound dispatch and transportation
The outbound activities ensure vehicle safety as well as maximum dispatch reliability. Planning and Scheduling that includes managing carrier availability and dispatch scheduling Trailer Allocation by type of vehicle and load optimization planning Trailer Condition Check done in detail of the physical condition as per check lists Dispatch Documentation of Control and Processing

Custody Transfer to transporter for acceptance by transporter and condition OK check Vehicle Loading ensuring optimization, safety and security of vehicles Managing actual dispatch performance against planned dispatch performance

Supply Chain process followed in Mahindra & Mahindra
Techniques for inventory management
A method of inventory control to indicate a broad framework for managing inventories efficiently in conformity with the goal of wealth-maximization. The major problem-areas that comprise the heart of inventory controls are (i) the classification problem to determine the type of control required, (ii) the order quantity problem, (iii) the order point problem, and (iv) safety stocks. 1. A B C System

The first step in the inventory control process is classification of different types of inventories to determine the type and degree of control required for each. The A B C system is a widely-used classification technique to identify various items of inventory for purpose of inventory control. On the basis of the cost involved, the various inventory items are, according to this system, categorized into three classes: (i) A (ii) B and (iii) C. 2. Economic Order Quantity (EOQ) Model

Buying in large quantities implies a higher average inventory level which will assure (i) smooth production/sale operations, and (ii) lower ordering or set-up costs. But it will involve higher carrying costs. On the other hand, small orders would reduce the carrying cost of inventory by reducing the average inventory level but the ordering costs would increase as there is interruption in the operations due to stock-outs. The optimum level of inventory is popularly referred to as the economic order quantity...
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