Contains the company overview with the business model canvas for MSIL. This deck can help you understand the business dynamics and processes behind the selection of logistics service providers for Maruti, it also encompasses the hierarchy level and the way MSIL approaches corporate sales as a whole.

1. B2B Sales
MSIL Transporter Selection Dynamics
Aviral | Suyash | Sanjana | Kanishk | Anurag | Gaurav

2. Company Overview
•Maruti Udyog Limited (MUL) : established in February 1981, though the actual production
commenced in 1983 with the Maruti 800, based on Suzuki alto kei.
•Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. (17 Sept. 2007)
Sales Channel Service Channel Facilities in India

3. Business Model Canvas for MSIL Logistics
Key Partners Key Activities Value Proposition Vendor Relationships Vendor Segments
Channels
Key Resources
Cost Structure Revenue Streams
• Indian Railways
• TCI
• RIVIGO
• Om logistics
• NYK logistics
• Timely and damage free
delivery of cars
• Managing demand lead
times for customers
• Reducing transit times
and increasing coverage
area
• Infusion of technology
• High volumes
• Pan India coverage and
international presence
• Largest car manufacturer
of the country
• Long term business
associations and stable
payouts
• Long term associations
• Vendor development and
best practices programs
• Monthly reviews and
support from LOGS team
• Transporters categorized
as per fleet size.
• Categorized as per service
ratings for added benefits
• Proper review
mechanisms for business
appraisal
• Dedicated team with
high work experience
• Cash rich stature of
MSIL
• 110+ transporters in India
as of 2020
• 3386 customer channels as
of 2020
• Transportation cost payouts as per the delivery terms
• Distribution method/ model development is a significant cost
• Operating Income: from sales of cars
• Interests from investments, since MSIL is cash rich

4. Parameters of Vendor Selection Process
Organization
Performance
Vendor’s Past
performance on
cost, time & delivery
Financials
Financial health
and ability to
conduct business
Professionalism
and organisational
structure
JIT Delivery
Capability to
integrate with
MSIL systems
Policy
Warranties and
claim policies
Compliance
Adherence to MOS and
contract under view

5. Internal Processes Used
01 Order Quantity
Fleet size is determined by the MSIL
vehicle demand projections in the
particular zone/ region & existing
transporters attached to the region.
02 Specifications
Truck/Trailer specifications as per
Maruti Operating Standards. Vendors
to submit technical and commercial
bids and fleet inspection documents.
03 Vendor Identification
RFQs floated for vendor induction for a
particular route/zone. EOIs are floated
through newspapers and internal
channels. Thorough background check.
04 Service Plan
Long term contracts (3~5 years) with
quarterly service report analysis and
rating provided for additional order of
fleet size to meet the demand.

6. Steps in Vendor Selection Process
Logistics
Logistics

7. Process Flow for Issuance of Purchase Order
PR Receiving
PR Accepted
Vendor
Paneling &
Process RFQ
Quotation on
EPROC
Return PR to
User
Y
N
Check Quoted
Price, LPP
Payment Terms,
Rates / Value
Technical
approval
Technical
Approval
Received?
Negotiation
Value Approval if
Negotiated Price is more
than 30% of PR
Y
Y
Y
Process PO
Check PO & Release
after DOP
Y
Vendor Follow-up
N
Check final price, payment
terms, LPP, Incoterms as per
DOP
N
Send Value for
Approval to Users
Value
Approval
Rcvd?
Y
N
N
User Follow-up
PR Purchase Requisition
RFQ Request for Quotation
LPP Last Purchase Price
DOP Delegation of Power
EPROC E-Procurement
Abbreviations

8. Process Flow for Placing Purchase Order
Manager
Senior Manager
Head of Maintenance, Repair,
Operations & Services
Chief Procurement Officer
Vice President
DOP Hierarchy
Order Confirmed up to different
level of hierarchy depending on
the type and size of order
Types of Purchase
Type Description
Q1
• PR floated to a single vendor
• Order placed to same vendor
L1
• Inquiry floated to many vendors
• Lowest quote accepted
H1 • Next lowest quote after L1
P1
• Proprietary Buying
• Inquiry floated to many vendors
• Majority of order is fulfilled by one vendor,
rest by others
SQ1
• Modified Q1
• Tender floated to a selected group of vendors
Permission Required from
higher levels, up to CEO, for Q1
and SQ1 buying

9. Vendors to meet technical and
commercial bid requirements. Meetings
with MSIL team for concurrence.
Audit certificate of fleet quality to be in
concurrence with MOS and through
certified MSIL auditors.
Vendors to agree per km prices as per
MSIL zero based costings and to submit
bank guarantees for attaching fleets.
Legal contracts finalized in line with the
approved rates and terms of services as
finalized between vendor and MSIL.
Bid Qualification Fleet Quality
Price Concurrence Contract Finalization
Parameters for order finalization

10. Key Influencers & Decision Makers
Logistics Secretariat
Sales & Dispatch Teams
Finance Division
Supply Chain Team
DVM LOGS, DDVM LOGS
DPM SND-G, M, GJ, PZ
DVM FIN, DPM FIN-2
DVM, DPM LOGSC

11. Specification Sheet

12. Institutional sales for MSIL
Bulk Sales
Corporate Sales Fleet Sales
Elements
Government Sales
DGS&D Sales NRI Sales Embassy Sales
Process
Corporate Sales
Government Sales
Embassy Sales
Enquiry
Received
Understanding
requirement
and delivery
timelines
Offering
Discounts and
service options
Delivery and
Feedback
Fleet Sales
Bulk Sales
Business
Discussions
Stock
availability/
production
timelines
Bulk Delivery/
Setting
Delivery Plan
Order
execution and
newsletter
release

13. Business Development Initiatives
•Sponsoring trade
fairs and exhibitions
•Lead generation
through networking
•Partnering with
government
institutions for
providing vehicles for
police and ambulance
services
•Preferred discounts
to select business
and signing delivery
contracts
•Display of vehicles
at major office
zones/ government
institutions
Engagement
Camps
Contract
Building
Marketing and
Sponsorship
CSR Initiatives

14. Seek your guidance.