SUPPLY CHAIN MANAGEMENT

BY
Pramod Kumar
Amal Vyas
Arushi Manglunia
Mukulika Sisodia
Sahaj Kaushik
Sushmita Nigam

INTODUCTION
Founded 1945(63 years)
Founded by - Mr. J.C.Mahindra and Mr. K.C.Mahindra
Manufacturing facilities :- Kandivili, Mumbai
Area of 254,398 sq.m with built area 86, 998 sq.m accommodating
factory premises and main offices building of the automotive division
Employers :- 17,000 technical and non-technical personnel
Major Competitors : Maruti Suzuki, Tata Motor, Ashok Leyland,
Toyota, Hyundai, Mercedes-Benz (Merc)
Its global subsidiaries include Mahindra Europe (Italy) , Mahindra
USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co.
Ltd

Manufacturing facilities : Utility vehicles - Kandivli & Nashik

LCVs Zaheerabad
Engines and their related spares Igatpuri Plant
Assembly Units : Bangalore (Karnataka)
Chakan (Maharashtra)

Nasik (Maharashtra)
Haridwar (Uttarakhand)

CONCEPT OF PRODUCT UNIT (P.U)

Functions of Product Unit : In-process and final inspection

Product identification
Control of non-conforming products

SUPPLY CHAIN NETWORK

PRODUCT FLOW STREAM
VENDORS

PLANTS

DISTRIBUTION
CENTRES

MARKETS

OBJECTIVES OF SC

The traditional objective of supply chain management is to

minimize total supply chain cost to meet fixed and given demand.

Supply chain management should also

Span all the movements and storage of materials
Work in process inventory
Finished goods

PROBLEMS ADDRESSED BY SCM

Distribution network configuration

Distribution strategy
Trade offs in logistical activities
Information
Inventory management
Cash flow

HOLISTIC VIEW OF SCM AT MAHINDRA & MAHINDRA

Dealers

Most of the Distribution of M&M Automobiles takes place through

company appointed exclusive dealers and exclusive showrooms across the
country.

Dealers are segregated in two types of catagories:

1. Personal Segments (Scorpio, Bolero , Xylo etc.)
2. Commercial segments (other UVs and CVs)

Duty of Dealers :

Stock vehicles as per demand.

Help marketing team in deciding the product portfolio and communicate

the customer requirments.

Marketing
Research Projects to gauge market requirements

Maintain the Sales and Distribution channels

Indulge in Demand Forcasting to ensure production is

carried out effectively.

Suppliers
M&M has a large pool of suppliers from whom the materials
are procured by the procurement team as per the plan and
schedule. Suppliers are spread across all over India.
Example. For the Kandivali workshop:
Sheet Metal: Mahindra Ugine Steel Co Ltd.
Bearings: Fag Bearing India Ltd , National Engineering
Industries Ltd.
Mechanical Seals and Lubricants: SKF Ltd

SAP and its Functions

Stock Overview

Creating
Schedule
Agreements

ASN- Advance
Shipment
Notification

Integration of
SAP with
Vendors to
view the total
in-transit
quantity

Collection and
storage of data

Creating
Individual
Variants

Creating
Purchase
Orders

Material List

Stock
Overview

Creating
ASNAdvance
Shipment
Notification:

INVENTORY MONITORING
Determination of optimum levels of inventory and procedure of their
review and adjustment.
Determination of the degree of control that is required for best results
Designing and planning of the inventory control system and planning
the inventory control organization

SELECTIVE CONTROL OF
INVENTORY
It refers to the variation in method of control from item to item on some
selective basis

more effective and is directed to more significant groups of items

helps the organization for scientific inventory control

DYNAMIC BUFFER
MANAGEMENT
Tool which focuses on Inventory Monitoring.

Monitoring is targeted for Inventory at both Plant

& In-transit Level.

Focuses on VMI (Vendor managed inventory/3PL)

Segregate all parts into four colors based on their current stock levels:Red Color Low Inventory

Yellow & Green Colors

OK stock levels

Blue Color High Inventory

Targets are set by the buyers for all individual parts depending on the consumption
and safety stock.

Using the database, Buffer Warehouse, they generate a variant in SAP which
captures actual stock of materials in the plant and in-transit.

This variant is then compared to the target levels set by the buyer and a report is
generated which is known as the DBM report.

DBM Reports at SCM Kandivali is further drilled down & made available Commoditywise & Buyer- wise.

DATA ACQUISITION
PHASE
A list of the total number
of parts was made
All sorted out
Commodity-Wise and
Buyer-Wise
The target level for each
and every part was taken
from the respective
buyer and fed into the
database
By the SAP system, they
get the Advance
Shipment Number of
each and every part i.e.
the total in-transit
quantity of every part

Identification of Parts

Regular: High consumption and frequent usage.

Slow Moving: Do not move under regular basis. Used for

Customised equipments, exported vehicles or discontinued
equipments.

Non moving: Have not moved since 3 years.

Analysis Phase

ABC analysis (helps assigning priorities)

XYZ analysis (Strategic and basis for other activities like

Alternate Stock arrangements, reorder calculations)

Thank You