Sdm ppt
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This document discusses WABCO-TVS (India) Limited, a joint venture between TVS Group and WABCO Holdings Inc. that is a leading provider of air brake actuation systems for commercial vehicles in India. It has an 85% market share in the original equipment segment and over 75% in the aftermarket. The project scope is to study WABCO-TVS's distribution channels for OEMs, wholesale dealers, and authorized service centers, and address challenges from competitors and spurious parts. The document outlines these distribution channels and provides organization charts, sales hierarchies, and points for improvement.
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Sdm ppt
- 1. Team Members: Faculty: Abhimanyu Kr. Singh Prof.P.C.Mehra Deeptodip Sen Sam Matthew Saurav Anand Shrish Singh Sudhanshu Kumar
- 2. Contents • Introduction • The product • The company • Major customers • Scope of the project • Distribution Channel for OEM: (For New Customer) • Distribution channel for the authorised service centre • Distribution channel for the whole sale dealers • Sales Hierarchy • Points of improvement • Annexure Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 3. The Product-Brake system & some of its major components Components of a brake system Compressor Brake chamber Air dryer Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 4. • WABCO-TVS (INDIA) Limited (ex Sundaram- Clayton Limited, established in 1962) is the leading provider for air brake actuation systems for commercial vehicles • Joint venture between TVS Group and WABCO Holdings Inc.of USA. • Pioneer in air-assisted and air brake systems for commercial vehicles in India • It has 85% share in the OE (Original Equipment) segment and greater than 75% share in the after- market Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 5. Major Customers: Distribution Channel followed to serve the customer 1) Directly to OEM’s 2) Through its whole sale dealers 3) Through authorised service centres across the country Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 6. Scope of the project • To study : – Distribution channel for the OEM’s – Distribution channel for the whole sale dealers – Distribution channel for the authorised service centre • To address the major challenges faced by the company due to its competitor and spurious parts. • To suggest if any to modify the distribution system in order to fight these challenges and bridge the gap between the ideal and the existing channel Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 7. Distribution Channel for OEM Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 8. Contd…. Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 9. OEM Salesforce structure North Zone East Zone West Zone South Zone New Delhi Kolkata (WB) Mumbai (MH) Chennai (TN) Alwar (Rajasthan) Cuttack (Orissa) Ahemdabad (Gujarat) Bangaluru (Karnataka) Jaipur (Rajasthan) Guwahati (Assam) Indore (MP) Hosur (TN) Jamshedpur Kanpur(UP) (Jharkhand) Nagpur (MH Kochi (Kerela) Lucknow (UP) Pune (MH) Madurai (TN) Jalandhar (Punjab) Salem (TN) Secundrabad (AP) Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010 Vijaiwada (AP)
- 10. Organization Chart - OE, Tech Sales & WABCO Business Development Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 11. Distribution channel for the authorised service centre Product Flow TVS – Wabco Distributor Field Staff- Authorised Chennai, Plant TVS Wabco service Centre Services of other Checking of AMC contracts manufacturers damaged parts obtained through braking system Field staff. Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 12. Annual Maintenance Contracts Inputs Authorised Service Centre AMC contracts obtained through Field staff. Fleet Owners, State Transport department , Logistic Companies,etc. Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 13. Checking of damaged parts Product Flow TVS – Wabco Distributor Damaged Authorised Chennai, spare part service Plant Centre Scraped(if not If spare repairable) part is repairable Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 14. Distribution channel for the whole sale dealers Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 15. Categorization of Products TVS – WABCO has categorised the products in 2 different categories 1) USP (Unique selling price, Fast Moving) For USP product 9-10 % 2) Non-USP (Slow Moving) Non USP product 15 to 20 % margin Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 16. Key Responsibility Area for Sales force • Distributor management (takes the order, follow up of orders, payment,) • Covers major garages • Fleet operators • STU (state transport unit) • To achieve sales target • ASC authorised services centre • CWS company certified workshops • All OEM dealers • Training program • Competitor feedback to HO • Payment follow-up Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 17. Sales Hierarchy Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 18. Points of improvement • Size of the territory • Size of the sales target • Proximity of distributors • Cartel of distributor • Spurious part control Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 19. Thank You !!!!!
- 20. Annexure-1 Customer feedback collection at Kashmere Gate Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
- 21. Annexure-2 Expense Incurred in project Project Expense Incurred Sr No Description Expense Incurred (INR) 1 Transportaion 84 2 Refreshment 106 3 Water and Drinks 64 4 Auto Rickshaw 50 5 Telecalls 43 6 Petrol 175 7 Xerox of Price list 100 Rs. 622 Rajiv Gandhi Institute of Petroleum Technology-MBA 2008-2010
Editor's Notes
- 1. OEM’s invite RFQ (Request for Quote). RFQ contains mainly: Product description Drawing if available Product specification Based on the RFQ obtained the marketing department sends the commercial proposal to customer mentioning the part number, with payment terms. The documents sent along with the product are: Drawing (If the product is a current product) Product Specification Test report After the quotation is accepted by customer (Signed by both parties), a formal Purchase order (PO) is issued to WTVS. The customer code is created in the system through Finance and marketing; the data used are CST number, VAT number and PAN number and address. For domestic market there are usually two types of quotations. Ex-works price: Price (Basic price + taxes) of the component at the manufacturing site. It does not include logistics. Price based on contract (Bulk buyers, Major OEMS): The price will be quoted considering all the costs till it reaches the user end i.e. basic price +taxes +logistics. Once the PO is received the data is updated in SAP System in the following sequence Creation of customer part number against supplier part number is done by quality department/team. Updating of Price, PO number and is done by Marketing department The PO is signed by central marketing and checked for all the details Here ends the job of order obtainment, next the job is forwarded to order fulfilment team Order obtainment is done by central marketing and order fulfilment is done by Value stream (Value stream means total supply chain of production, process, marketing and delivery) Once the PO is handed over to Value stream marketing, they enter the quantity in monthly MRP (Material requirement planning) and release bar code labels. This MRP is run 7 days before the start of any month. Once MRP is run it triggers value stream purchase to arrange for raw material and child parts, Production engineering to check for production capacity, and Production to plan for number of shifts, man power etc. Accordingly assemblies are produced and packed in designated pallets or standard packing boxes (cartons). Bar code labels are pasted on the boxes mentioning part number, quantity per box, customer name, number and location. These boxes are then moved to warehouse after scanning the bar code labels. The stock is updated in SAP system as bar code labels are scanned. Depending on the stock shown in SAP invoice will be made by central marketing. If the quoted price is Ex-works, customer will arrange to pick up the material from the ware house after invoice is made. He will use his own logistics method WTVS has godowns (Pune, Pithampur, Alwar) at major OEM locations and if the quoted price is on contract basis (including logistics) then the material is loaded into trucks and is sent to godowns. WTVS chooses transport in such way that each location is operated by a particular transporter. With the field staff located at that place WTVS arrange to unload the material into godown and stock it in specified racks. Based on customer daily schedules (released previous day) the material is fed into the customer plant. In major OEM cases JIT or milk run is followed If in case WTVS don’t have godowns arrangement is made to send the truck directly to the customer plant. After in warding the material at customer place through GRN (Goods receipt note) the payment is made following specified payment terms. Payment is made either by Hundi method where WTVS receive money immediately after the GRN is raised – In this case WTVS offers them a discount of some X% or it is paid by cheque in the name of WTVS Company to the bank account.
- TVS – WABCO has categorised the products in 2 different categories 1) USP (Unique selling price, Fast Moving) 2) Non-USP (Slow Moving) The 70% products are categorised in the USP and the rest 30 % product fall in the Non-USP category. Different pricelist is maintained for the above mentioned 2 categories. For the USP products the margin for the Distributor is 9-10 % and for the Non USP products the margin is 15-20 % . The Price to the dealers is fixed by the distributor in every state and the pre decided margin to the Dealer is 4-5 % for the USP products. This ensures that the distributor is getting more for parts which are slow moving. As the working capital is blocked for a long time and requires some incentive from manufacturer
- Size of the territory : Each sales person is assigned with a huge territory which cannot be covered by a single staff. The company needs to rope in more staffs to cover the market exhaustively as the same sales person has to look for new product market Size of the sales target : The sales target comes along with several other criteria which they have never been able to achieve. Proximity of distributors: There are few distributors which are too close geographically like Hosur and Bangalore. There is a cartel of distributor in each state which leads to different margin charged to the next level channel member in different state. This can lead to conflict. The company should ensure the transparency in margin to be delivered to the end customer. Spurious part control The rejected part at the OEM’s end is sold to outside vendor on which TVS has no control. This leads to generation of parallel channel. However, its size is small.eg. Goyal Autoparts @ Kashmere Gate