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B2B Sales Dynamics and Transporter Selection Dynamics for Maruti Suzuki India Limited
The document discusses the dynamics of B2B sales and transporter selection processes for Maruti Suzuki India Limited (MSIL), detailing the company's history, logistics operations, and vendor selection criteria. It outlines the business model, key partners, activities, and resources, alongside procedures for purchase orders and vendor contracts. The document also highlights the importance of compliance, performance assessment, and strategic relationships in ensuring timely and efficient delivery of vehicles.
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B2B Sales Dynamics and Transporter Selection Dynamics for Maruti Suzuki India Limited
- 1. B2B Sales MSIL TransporterSelection Dynamics Aviral | Suyash | Sanjana | Kanishk | Anurag | Gaurav
- 2. Company Overview •Maruti UdyogLimited (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 Canvasfor 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 VendorSelection 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 01Order 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 VendorSelection Process Logistics Logistics
- 7. Process Flow forIssuance 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 forPlacing 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 meettechnical 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
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- 12. Institutional sales forMSIL 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 •Sponsoringtrade 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
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