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Auto Industry Case Study

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.

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Auto Industry Case Study

  1. 1. Auto Industry Unresolved Conflicts
  2. 2. Copyright © 2015 Vector Consulting Group. All rights reserved. A typical company in the auto industry deals with following chronic conflicts
  3. 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. 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. 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. 6. Case Studies 1. Fleetguard Filters Pvt. Ltd. 2. JK Fenner (India) Ltd. 3. Lucas TVS
  7. 7. Copyright © 2015 Vector Consulting Group. All rights reserved. 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. 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.
  9. 9. Copyright © 2015 Vector Consulting Group. All rights reserved. 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.
  10. 10. Copyright © 2015 Vector Consulting Group. All rights reserved. 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. 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. 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.

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