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Maruti suppy chain

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Page 1: Maruti suppy chain
Page 2: Maruti suppy chain

As of Dec 2014 MSIL had 246 local suppliers and 20 global suppliers.

This is a result of application of Lean operation which reduced the number of suppliers. Initially it was 345.

Out of 246 local suppliers , Maruti has joint ventures with 19 of them and hold strategic equity stake to have a say in production and quality issues.

Page 3: Maruti suppy chain

• The ruled out poor perfoming suppliers and absorbed many suppliers to tier 2.• A total of 800 supplier (combined Tier 1 & Tier 2).• Sources 10 percent of its components directly from foreign markets.• 10 to 15 per cent of components are imported by its vendor.• Implemented JIT.• Quality Circle Competition• Maruti Production System• Shikhar

Page 4: Maruti suppy chain

• Reduction on material schedule from 1 month to 15 days.• Maruti has halved man hours spent on each car in five years• Assist dealers in inventory management.• Maruti has a separate organization called Maruti Centre for Excellence

(MACE) to give vendors advice.• Encouraged dealers to supply during night shift to reduce traffic.• Outsourced warehouse management and transportation of spare

parts.• Star network used for spare parts distribution.

Page 5: Maruti suppy chain

• 90% transportation of cars through Road. Astar is the only car transported using train.• Effective utilization of trucks.• Redesigned the halting patterns of parent company’s ship.• Trako Visual Cargo is software