Maruti Suzuki has a strong supply chain capability due to its strategically aligned and collaborative supply chain ecosystem. It sources 70-80% of components locally and uses a "milk run" system and container optimization to reduce logistics costs. Maruti Suzuki's supply chain outcomes include low costs, reduced time, and reduced risk due to its modern manufacturing facilities and pull-based production system.

1. {
Supply Chain Management of
Maruti Suzuki
Prepared By :- AMIT KUMAR
1853362

2. INTRODUCTION
1. Maruti Suzuki India Ltd was incorporated on
February 24, 1981 , Headquartered in Delhi.
2. Originally owned by Government of India,
named Maruti Udyog Ltd.
3. Entered in Joint Venture with
Suzuki Motor Corporation of Japan.
4. Maruti had a market share of , 51% of the Indian
passenger car market.

3. INDIAN AUTOMOBILE INDUSTRY DIVISON
1. Passenger Cars.
2. Multi- Utility Vehicles (MUVs).
3. Two- and Three- Vehicles.
4. Commercial Vehicles - Light Commercial Vehicles
(LCVs) / Medium and
Heavy Commercial Vehicles (MHCVs).
5. Tractors.

4. SUPPLY CHAIN NETWORK
Manufacturing &
Stamping of body
Panels
Bodies
Body Assembling
& painting
Components
Manufacture of Mechanical & Electrical Component
(Wheels,Tires,Seats,Breaks,Windsheilds,Exhaust etc.
Engines & Transmission
Forging & Casting of
Engine & Transmission
Components
Machining & Assembly of
Engine & Transmission
Final
Assembly
Consumer
Market

5. MARUTI SUZUKI DISTRIBUTION CHANNEL
MARUTI SUZUKI INDIA LTD.
Nexa True Value Dealership
Model
Service
Centres

6. SUPPLY CHAIN ECOSYSTEM
Assets
. Location
. Infrastructure
. Industry
. Supply Chain Capability
Supply Chain
Ecosystems
. Collaboration
. Strategic Alignment
. Partnerships
Outcomes
. Low Cost
. Reduced Time
. Reduced Risk

7. Location
 Plants located at Gurgaon
Haryana at Manesar Industrial
Area.
 Company has 246 local Tire-1
suppliers and 20 global ones
 Capacity of three lakh units of
production in 2013
 1204 dealers across in India
 16 warehouses
 Service network of 3013 service
stations

8. Vendor Management
Sources 70-80% of its component requirements form
locally developed vendors.
Primary raw material- Steel coils and paint.
Strategized logistics.
Manufacturing Lead time reduced from 57 days in 1992
to 19 days in 2003.
Automated Material Receipt System and Wi-Fi enabled
handheld devices.

9. MILK RUN SYSTEM

10. Resource Optimization
Initiative of container
Forward Journey -> Export Cars Return Journey -> Steel Coils

11. Multi – Purpose use of Container’s
5 CARS 3 COILS
Benefits - Optimum Rack Utilization , Reducing Truck Loads
rward
urney:
ports
rs from
ockyard
Port
Return
Journey:
Steel Coil
from port
to
Stockyard

12. SWOT ANALYSIS
Strength
1 Brand Loyalty.
2 Service &
Distribution Network.
3 Use of Modern
Technology.
Weakness
1 Changing
Customer Preferences.
2 Obsolescence of
Technology,
Opportunities
1 Attraction of Youth
Job.
2 Increasing Middle
Class Income.
3 Exports.
Threats
1 Foreign Brands
Entry in the Market.
2 Fuel Prices.

13. PUSH & PULL FOR MARUTI SUZUKI
PUSH and PULL , is used in operations management, logistics
and supply chain management.
It is a Manufacturing Strategy.
In PUSH system production orders begin upon inventory
reaching to a certain level of market (make-to-stock).
In PULL system production begins based on demand
(forecasted or actual demand) (make-to-order).
Pull System reduce waste in the production process.

17. Conclusion
1. Maruti Suzuki has strong supply chain capability.
2. It uses green manufacturing process.
3. Its supply chain ecosystem is strategically aligned
and collaborative.
4. Its Product outcomes are low cost, reduced time
and reduced risk.