By 1947, it started producing boilers for imported locomotives. The company also entered into collaborations with Marshal Sons (UK) to manufacture steam road roller, and with Krauss Maffei (West Germany) to manufacture steam locomotives.
In 1954, the company entered into a technical collaboration with Daimler-Benz to manufacture automotive vehicles.
TELCO went to an Italian company, IDEA, for the product design, which gave it a 5-door hatchback resembling the Fiat Palio. TELCO bought the engine from the Institut Francais du Petrol of France. The transmission was developed at in-house at Pune, India. Putting all this together and engineering skills they had, TELCO gave birth to Indica model.
Finally, the company purchased its machinery with the objective of lowering project-costs. The assembly line of Nissan, Australia was bought for a mere Rs.90 Crores ( a new assembly line would have cost TELCO at least Rs.400 Crores ).
Others in the domestic market are global players and hence TELCO should be ready to face competition with this in mind. To evolve into a global player, one important element is an efficient Supply Chain network to cater the car market. All this has driven TELCO to put SCM in the prime slot and it plans to achieve the objective by organizing itself around capabilities & alliances - not products alone.
Vendors far away from Pune plant have set their plants there.
Advantages were: -
Cost become low margins become high.
Time spend in transportation get reduced.
The name various suppliers of components are: -
Automotive components (TACO)
Automotive services (TACO, Tata Technologies)
Commercial vehicles (Tata Motors)
Diesel engines (Tata Cummins)
OUTSOURCING THE COMPONENTS JBM Tools Sheet metal items Sona Steering Differential assemblies Imperial Auto Fuel lines Asahi Glass Wind screens and windows Subros Ltd Air conditioning kits Tata-Auto Plastics Front and rear bumper, dash-board, inside trims Tata-Ficosa Rear view mirrors Tata-Toyo Radiators Tata-Johnson Controls Seating Systems Sundaram Brake Linings (SBL) Clutch facings and rear (drum) brake linings Rane TRW Steering Systems Steering systems Lucas-TVS Electrical components and fuel injection systems India Pistons Pistons and Piston rings Mercedes Benz Presses Nissan’s Plant, Australia Assembly Line Institut Francais du Petrol, France Engine I.DE.A, Italy 5 door hatchback Supplier Components
Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies.
The ultimate goal of any effective supply chain management system is to reduce inventory which at last results in reducing the cost.
A basic supply chain management system has five (5) components:
1) The plan , which refers to the over-all strategy of the SCM program including the development of SCM metrics to monitor;
2) The source , which refers to the suppliers who'll provide you with goods and services necessary for you to run your business;
3) The ' make ' or manufacturing component, which refers to the execution of processes needed to produce, test, and package your products or services;
4) The delivery , which refers to the system for receiving orders from customers, developing a network of warehouses; getting the products to the customers; invoicing customers and receiving payment from them; and
5) The return , which is the system for processing customer returns and/or supporting customers with problems with the products they received.
TELCO has set up a company - Tata Autocomp Systems (TACO) a separate company to manage the auto components business. This is in tune to its plan that its supply chain network works with the state-of the art technology of the world. TACO in turn has entered into several JVs to supply components for Indica.
With respect to vendors, the company has created a two-tiered structure - with the Tier II supplying components to the Tier I, which assembles them into complete systems, which is the only level TELCO interacts directly. This lowers both costs and complications.