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Tata Motors Limited - Vendors Meet 2017

Tata Motors Limited - Vendors Meet 2017

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Tata Motors Limited - Vendors Meet 2017

  1. 1. ©2012 Vector Consulting Group. All Rights Reserved. www.vectorconsulting.inwww.vectorconsulting.in VCG employs the 'Theory of Constraints’ philosophy to bring about quantum jump in performance of organizations in its target industry clusters. LEVERAGING THE POTENTIAL RetailConsumer Goods Equipment Manufacturing Engineering & Construction Automobile & Auto Components
  2. 2. ©2012 Vector Consulting Group. All Rights Reserved.
  3. 3. ©2012 Vector Consulting Group. All Rights Reserved.
  4. 4. ©2012 Vector Consulting Group. All Rights Reserved.
  5. 5. ©2012 Vector Consulting Group. All Rights Reserved.
  6. 6. ©2012 Vector Consulting Group. All Rights Reserved. Inherent Win-Win: there are no conflicts in reality
  7. 7. ©2012 Vector Consulting Group. All Rights Reserved.
  8. 8. ©2012 Vector Consulting Group. All Rights Reserved.
  9. 9. ©2012 Vector Consulting Group. All Rights Reserved.
  10. 10. ©2012 Vector Consulting Group. All Rights Reserved.
  11. 11. ©2012 Vector Consulting Group. All Rights Reserved.
  12. 12. ©2012 Vector Consulting Group. All Rights Reserved. OEM does not achieve sales targets Sales people have targets and incentives Blame it on insufficient / unreliable supplies from suppliers Same supplier supplying in market at lower prices Service centre complaining about unavailability Change supplier or Share of Business Ask for reduction in price/ change supplier/ VALUE parts Supplier wants to utilize his capacity- Get other customers/ sell more in after market
  13. 13. ©2012 Vector Consulting Group. All Rights Reserved.
  14. 14. ©2012 Vector Consulting Group. All Rights Reserved. Let us first evaporate the issue that supplier is sabotaging the OEM for deliver Two reasons to think so- 1. Suppliers fails to supply according to schedule 2. Cannot react fast to last minute requirements 1. Suppliers have varying lead times due to their varying load profile 2. Forecast are not accurate and
  15. 15. ©2012 Vector Consulting Group. All Rights Reserved.
  16. 16. ©2012 Vector Consulting Group. All Rights Reserved. Both parties will agree upon- • Great service levels – higher sales of the model • More sales of parts for both together • More parts in market, better service levels for model The question is- who will sell more…. and at what price? Fact: In the market each brand has an accepted price • Most supplier sell to the same big retailers of OEMs!! • OEM feels that it is doing marketing for the supplier, through first fit branding, • And the supplier is misusing it by hampering its sale through lower prices.
  17. 17. ©2012 Vector Consulting Group. All Rights Reserved.
  18. 18. ©2012 Vector Consulting Group. All Rights Reserved. Facts: • 70% vehicles go to non OEM dealer workshops • These mechanics buy from the nearest retailer, which may be small retailers. • 60-70% sales in retail is from small retailers - in by lanes • Their tolerance time of the mechanic is very low, so they buy what is available Most OEMs and suppliers- pursue monthly sales targets. They focus on sales to large wholesalers and retailers. Don’t reach small retailers/ don’t have capacity to develop that market This untapped market is over 40 - 50% of the total market. Sales and price: If sales increases for both.. The questioning of prices will stop Is there substantial the market for both to increase sales?
  19. 19. ©2012 Vector Consulting Group. All Rights Reserved.
  20. 20. ©2012 Vector Consulting Group. All Rights Reserved. Proven in the TML dealer implementation… High availability- higher sales.. Price pressure is low. If you both follow these tactics  Now the competition is against the other suppliers Pricing… decide based on your capacity and market demand
  21. 21. ©2012 Vector Consulting Group. All Rights Reserved. If price has to be reduced by OEM: Declare to suppliers that price has to be reduced.. But will help to maintain gross contribution Take up improvement projects and provide help. Only when achieved, reduce prices What is needed is not ideas, but faster implementation. There will be exceptions- so what?
  22. 22. ©2012 Vector Consulting Group. All Rights Reserved.
  23. 23. ©2012 Vector Consulting Group. All Rights Reserved. 1. Near 100% delivery to OEMs and SPD in the last 9 years. 2. Has accepted no branding in the first fit 3. Has increased reach from 5000 retailers to 75000 retailers, and average range at retailers from 4 to 24. 4. Prices higher than OEMs 5. No discounts or schemes in market 6. Sales has increased significantly. Fleetguard Filters
  24. 24. ©2012 Vector Consulting Group. All Rights Reserved. More details……
  25. 25. ©2012 Vector Consulting Group. All Rights Reserved. Thank You Facebook/VectorConsultingIndia Twitter/Vectorconsultin LinkedIn/company/vector-consulting-group www.vectorconsulting.in ): ©2016 Vector Consulting Group. All Rights Reserved.

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