Supply chain Managemment- a case study

1. SRM @ M&M
Automotive Sector
Dinesh, Smita, Santosh, Kuldeep , Arshiya

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. 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.

5. 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.

7. Scorpio –A Classic Case

8. 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.

9. 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

10.  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

11. 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.

12.  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.

13. 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

14. 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