Some Organizations in the Indian Auto sector have resolved the chronic conflicts and created a harmonious supply chain where demand and supply is synchronized almost perfectly.

1. Auto Industry
Unresolved Conflicts

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A typical company in the auto
industry deals with following
chronic conflicts

3. But at same time
suffer from frequent
stock outs
Dealers frequently
complain of high FG stocks
(30 to 60 days)
despite
having excess
capacity
Plants struggle
with high overtime
at month end
Copyright © 2015 Vector Consulting Group. All rights reserved.

4. Copyright © 2015 Vector Consulting Group. All rights reserved.
Manufacturing
ends up producing
what sales do not
want immediately.
Despite all kinds
of project control
systems and
reviews, most
projects of NPD
are grossly
delayed.
Assembly plants
are continually
rescheduled
despite having
parts inventory
for about 20 to
30 days in plant
and vendor
warehouses.

5. Copyright © 2015 Vector Consulting Group. All rights reserved.
Some organizations in Indian auto sector have
resolved the chronic conflicts and created a
harmonious supply chain where demand
and supply is synchronized almost perfectly.

6. Case Studies
1. Fleetguard Filters Pvt. Ltd.
2. JK Fenner (India) Ltd.
3. Lucas TVS

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Fleetguard Filters Pvt. Ltd.
Leader in manufacturing and
distribution of automotive filters
to commercial vehicle segment.
Part of the Cummins group
and over 400 SKUs, it is a
major supplier to renowned
OEMs. The Company has an
extensive pan-India
presence through its 125+
distributors and 20000+
retailers.
Fleetguard Filters has
implemented TOC company
wide to achieve significant
improvements in financial
and operational results.

8. In the 5 years
of engagement
with Vector,
the sales have
Increased 4 times
and profit
8 times.
Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Fleetguard Filters Pvt. Ltd.
15%
The growth
is inspite of the
commercial vehicles
industry growing at about
CAGR.
100%
It
provides near
availability to
its OEMs
The
new product
development is half the
previous lead times. The
output of the new
product development
has increased 5 times
in last 3 years.

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With five
manufacturing
facilities in Tamil Nadu
and Andhra Pradesh
and an undisputed
market leader in
Power Transmission
Products, it exports to
over 50 countries and
is progressing towards
a stronger global
presence.
JK Fenner (India) Ltd.
J K Fenner manufactures
Industrial and Automotive V-
Belts, Oil seals, Engineering
Products providing total
Mechanical Power Transmission
and Sealing Solutions. It’s name
is synonymous with
transmitting mechanical power,
in vehicles and industries.

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Results
JK Fenner (India) Ltd.
Industrial &
Automotive Belts
34%increase in the bottleneck
operation leading to
increase in average
plant output
Sales & Profits
The above actions
has led to significant
increase in both topline
and bottomline YOY
in Q1 2015-16
23%
Oilseals
increase in the bottleneck
operation leading to
increase in average
plant output

11. Copyright © 2015 Vector Consulting Group. All rights reserved.
Established in 1930,
Lucas Indian Service
(LIS) is aftermarket arm
of Lucas TVS. It
manufactures and/or
distributes a wide
range of auto parts
including auto
electricals, fuel
injection equipment,
ignition coils, solenoid
switches, Lamps, horns
and automotive
batteries.
Lucas TVS
Lucas TVS a joint venture
between Lucas (UK)and TVS
(India )to manufacture
Automotive Electrical Systems
is the Leader in Auto Electricals
design and manufacturing.

12. Copyright © 2015 Vector Consulting Group. All rights reserved.
Same-day
order fill rate has
improved from
50%to
80%
Sales
from regular
dealers converted as
TOC distributors are growing
by an avg.
45%(when compared Apr Vs
Aug of 13 Vs 14)
Overall
inventory has
reduced by
25%
Results
Lucas TVS Ltd.