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GROUP NO: 08

TOPIC: 3PL AND SUPPLY CHAIN MANAGEMENT WITH REFERENCE TO MAHINDRA & MAHINDRA LTD

FEBIN PHILIPOSE VIJETH SHETTY

184

161 ROSHNI PEHERWAR 130 HIRAL PASAD PAWAN PARWANI YOGESH SHARMA NAYANA K.S. GANESH KHAIRE JALAJ PASOLI 117 SHRADDHA PATEL 118

116 115 159 149 193

HISTORY
Began On 2 nd OCTOBER 1945.
MAHINDRA Brothers Join HandsWith GHULAM MOHAMMAD. GHULAM MOHAMMAD migrated to PAKISTAN.

Today M&M has evovled into a giant group.

Introduction of Mahindra & Mahindra Limited


Today M&M ltd. Is $800 million company,

employing some 12,000 people.


The company started manufacturing

commercial vehicles in 1945. and thereafter company became the worlds 6th largest medium and heavy commercial vehicle manufacturer.
It is the second largest in passenger vehicles

The division's launch of high-performance tractors

played a vital role in the mechanization of Indian agriculture, directly impacting the lives of some 6 milli Indian farmers.
Later it becomes 3rd largest producer of the tractors

the world.
The company has been market leader in FARM

EQUIPMENT machinery in the highly competitive INDIAN market since 1986.

Third party logistics (3PL) is the employment of outsid

companies whose expertise is in handling a firms logistical processes .

3PL has benefited firms in terms of gaining competitive

advantage, expertise to do their job more effectively, bett process and resources to handle operations and logistics cost savings.

Mahindra & Mahindra has adopted Om Logistics for its

3PL.

Om Logistics Ltd., the flagship company of Om Group has been instrumental in providing innovative and value added solutions for Indian Corporate and Multinationals. Through its innovative and cost saving methods, Om Logistics Ltd. has consistently added value for its customer which can be complimented by our competence to take the driving seat for generating maximum air cargo in India. It has been dealing with corporate,

Cost saving/cost optimization. For large coverage. For more professional and scientific

approach to logistical problems. Techniques used. Different modes of transportation. Supervision. Insurance. Obligation.

When the Indian market opened in the mid-1990s, the global players came to India to compete against M&M, M&M felt that, to really compete and win, they needed to build up their skills and benchmark their processes against these global leaders, becoming best than all at managing the business. They needed a solution that could link all their plants to provide an integrated view and help them decide that which plant should make what, when, and for which market in order to optimize total costs and operational efficiency and respond quickly to customer needs.

Mahindra & Mahindra was SAPs first supply-

chain implementation in the Asia-Pacific region.

The solution enables a pull-based

replenishment system that optimizes logistics and manufacturing operations which helps M&M to improve margins and reduce costs while enabling it to respond quickly to customer needs.

IMPLICATIONS OF IMPLEMENTATION OF SAP


POINTS BEFORE IMPLEMENTING SAP AFTER IMPLEMENTING SAP (CURRENT)

No. of units manufactured

Appx. 80,000 units p.a.

Appx. 1,50,000 units p.a. Pull based


19 days 4000 tractors 2000

Replenishment system Push based


Lead time Dealer inventory Company stock 52 days 6000 tractors 3500

RECOMMENDATIONS
To increase number of staff- lack of skill labour, lack of training facility, employ skill labour who has good expierience. Material handling techniques- poor material handling techniques theirfore more mechanize material handling equipments should be use Lack of infrasturctural facilities- nearly 25% of the area is wasted due to poor infrastuctural facilities ack of flexibility- The infrasturcture of the space utilisation was not in the hands of Om logistics, so they should given the right to take decision to make the

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