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Presented By
Srikant Singh

Faculty: Mr. Bharat Khantharia

 MARUTI Challenge
Manuf. Base:
Gurgaon
Finished
30% Manesar
Product

70% 60% Local

Procurement

Development of local
Low Cost Vendor
Delivering High Quality
product
High Service Japanese joint venture
Level partner
 MARUTI at Present

MARUTI 16 Regional
Office

700 Dealers

3PL

500N/W
Extranet
Dealer
Management
System (DMS)
 Vendor Management System
' Encourage vendor to establish facility near
their plant
' Provided lot of incentive. { subsidized land,
bank Guarantee, Reliable Power Supply}
' Vendor Development and Strategic Alliance.
{key to success of localization}
' Match global player on price, quality and tech.
support.
 Earlier
Limited Tendering.
Selecting Low cost bidder. Quotation- based system +
flexibility of negotiation
price
Current

VENDOR
MUL Promotion scheme,
Rebates, etc.

MUL Collaborative Roll To Bring Price Down:

1. Assist vendor in improving their processes Align Vendor interest
2. Regular Interaction, training, audits and with MUL manf. And
follow-ups. {Reduce Line Rejection and service stand.
warranty cost}
' @ield Improvement Programme (@IM)
Meet the increasing demand
' Foreign Collaboration, Upgradation of vendor
production system. {Efficiency, Cost of prod.}
' Purchase Agreement with vendors. { delivery
and payment condition}. Minimize Future Risk

' Vendor proximity: Near { save packaging and

transport cost.}
World Wide Purchase (WWP)

Supply all over Increase in sales-> economies

the world of scale-> Reduce cost

Value Analysis/ Value Engineering (VA/VE) R& D, Continuous

Product Redesign

Time saving in clearance

Ratio : Function / Cost from 1 min to 5 secs.,
Manpower reduction

Automated Receipt System (AMRS)

MRS Automated: Barcode
57 days consignment, Wi-Fi Enabled
19 days handheld device. (Real Time)

2 days
'Standardization of Parts.{ Risk Pooling}
1 Day
'Models Having Common Parts.
'Reduction in Inventory
 Vendor Rationalization
' Long term Strategic Partnership.
' No formal tendering.
' Limited number of reliable vendors
370 (March,2000) Cost reduction
Quality Improvement
299(March,2003) Work closer, meet Goal
n- Nagare System
220(End 2003-04)
Building Vendor
Capabilities 100 Vendors
Timely payments
Technology (weekly)
Transfer
Training 13 Joint Venture Comp.
Loan
guarantee Lease 100 Foreign Coll.
Finance for
Equipment Collaboration
 Vendor Managed Inventory(VMI)
' Automated Replenishment System

' Accurate data sharing with vendors.

' Utilization of BI to support automated replenishment.
' Strengthen Collaborative Planning Forecasting &
Replenishment (CPFR).
' Supply Chain Oriented Performance matrices.
' Continuous Monitoring & Joint Effort.
 e-NAGARE S@STEM
' Problem:
Material accumulation due to multiple sourcing.
Loss of Procurement Information.
Sub-model variation.
Un-synchronized supplies and production.
' Implemented e-NAGARE in January,2003.
{Electronic Version of Kanban System}.
Reduce average inventory with ͞Just In Time ͞
philosophy.
 CORPORATE MARUTI PRODUCTION DEPT
Annual Production

Broken to Monthly &

weekly

Firm daily Schedule

Large Volume Items.

Low Transit Time
EXTRANET

Local Vendor
Flexible Manufacturing System (FMS)

'High level of Info. Sharing

'Supp. get same copy of monthly schd. 'Flexibility to cope with changing
'Firm delivery sch. Sent on 5th and 20th requirement.
of the month. 'Inventory reduced to seven days and
'Reduce Bullwhip Effect. now to one day.
 Logistics
' 3MARUTI
3 PL
WRange 100 Kms

80% of Supplies

VENDORS
70%
'Aggregate Supply
'Achieve FTL
'Achieve frequent
Replenishments.
'Coordination with
other outstation vendors
'Manage Bulk Shipment
 ¢





 



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