SRM @ M&M Automotive Sector

Dinesh, Smita, Santosh, Kuldeep , Arshiya

Agenda

Introduction SCM @ M&M Scorpio –A Classic Case Rationale for Vendor Partnership Unique Supplier Initiatives Factors determining appropriate Supplier Vendor rating Conclusion

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.

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.

Scorpio –A Classic Case

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 consumersand award juries alike with a high-technology offering at an amazing value proposition.

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

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

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.

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.

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

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