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Srm @ m&m automotive sector

Supply chain Managemment- a case study

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Srm @ m&m automotive sector

  1. 1. SRM @ M&M Automotive Sector Dinesh, Smita, Santosh, Kuldeep , Arshiya
  2. 2. Agenda  Introduction  SCM @ M&M  Scorpio –A Classic Case  Rationale for Vendor Partnership  Unique Supplier Initiatives  Factors determining appropriate Supplier  Vendor rating  Conclusion
  3. 3. Introduction  Mahindra & Mahindra is the flagship company of the Mahindra Group. Mahindra & Mahindra Limited (M&M) is an Indian multinational automobile manufacturing corporation headquartered in Mumbai. It is one of the largest vehicle manufacturers by production in India and the largest seller of tractors across the world. It is a part of Mahindra Group, an Indian conglomerate.  M&M Automotive Sector manufactures 200 models with 30 different colors.  It was ranked as the 10th most trusted brand in India, by The Brand Trust Report, India Study 2014. It was ranked 21st in the list of top companies of India in Fortune India 500 in 2011.  Its major competitors in the Indian market include Maruti Suzuki, Tata Motors, Ashok Leyland, Toyota, Hyundai, Mercedes-Benz (Merc) and others.
  4. 4. SCM@ M&M  Our focus has always been on providing end to end solutions. Our capabilities spanning a plethora of logistics activities are a reflection of this focus.
  5. 5. Scorpio –A Classic Case
  6. 6. Scorpio –A Classic Case  M&M states that:  “When we designed the Scorpio (known in Europe as the Goa) we started with a clean sheet of paper and just one thing in mind — our customers. Your needs became its features, and your destinations its motivation.”  Since its inception in 2002, the Scorpio has always been at the forefront of customer satisfaction with every model continuing to delight consumers and award juries alike with a high-technology offering at an amazing value proposition.
  7. 7. Rationale for Vendor Partnership  In 90s M&M adopts “ Strategic Sourcing”. Following are the reasons for adoption:  Rapid changes in technology  Complexity in technology  Shorter product life cycle  Lead time shrinking for product introductions  Increasing cost Pressure
  8. 8.  Benefits to M&M  Increased Outsourcing  Lean supply base  System and module buying  Co-Design  Pro-active communication  Reduction in total cycle time  Benefits To Supplier  Assured Business  Advantage of M&m experience  Anchoring Support  Growth & development
  9. 9. Unique Supplier Initiatives  Giving autonomy and complete freedom to the suppliers  Supplier upgradation and vendor development helped M&M to maintain Relationships  Initiatives were aimed at bridging gap b/w loyalty and competence  Suppliers to be upgraded are chosen on several parameters- product tech, process tech, changing tech and customer feedback.
  10. 10.  Supplier Satisfaction Survey:  This survey was done with a great enthusiasm.  In this M&M was being rated and evaluated by the suppliers once a year based on several factors viz policies, cost, behavior, negotiations, etc.  Mahindrasuppliers.com  Mahindarsrm.com  Cluster Program for ISO certification.
  11. 11. Factors determining appropriate Supplier  Steps:  Business need analysis  Current and future spending  Cross-functional team(CFT)  Total Acquisition cost(TAC)  Questionnaire Analysis  Short listing by CFT  Negotiations by pricing cell  Selection
  12. 12. Vendor rating  Vendor Rating is very important as it provides an insight to the company about the suppliers.  The performance Rating is Shared with vendors as it encourages them and motivates to excel.  The Stages of Evaluation:  Evaluation for supplier selection  Evaluation for Continuous Performance

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Supply chain Managemment- a case study

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