Professional Documents
Culture Documents
CIA 3
Submitted by Group 2,
Arpit - 1421005
Sauraj - 1421008
Naveen - 1421020
Nitish - 141021
Saurabh - 1421026
Virender - 1421032
Ankit - 1421205
Right product
Right customer
Right time
Right place
Right condition
Right quantity
Right cost
DEFINITION: Delivering the Right product to the Right customer at the Right time and at the
Right place in the Right condition and in the Right quantity at the Right cost leads to customer
fulfillment and reduces waste and improves cost efficiency.
i.
Right Product: Manufacturer has to make sure that product which is in demand in
ii.
the market is in available with them and also through its channel member.
Right Customer: Manufacturer should segment the market in a way that the targeted
iii.
customers get the products through best supply chain available with them.
Right Time: The needs of the customers are changing from time to time, so
manufacturers have to make sure the timely availability of their products with their
iv.
v.
their products.
Right Condition: The products available at different channel have to be in good
working condition without any damage to avoid the return of the product to previous
channel member which may result in delay/shortage of products for the next channel
vi.
vii.
margins for the channel member so that they will push the products faster as
compared to the competitors.
Right Product: Many of Suzuki Motor Corporations global vendors has set up the
joint ventures in the northern region of India. While setting up the plant the
government had approved of manufacturing only on the condition of localization of
components. Maruti used this opportunity by scouting for entrepreneurs and turning
them into vendors, facilitating loans, licenses, technical know-how and even location
ii.
iii.
customer.
Right Time: Maruti started its operations in India with the Maruti 800 model and
today it is the largest car manufacturer in India by providing the largest variety of
brands in the same category, the hatch back segment. The company has 246 vendors,
out of these, they have joint ventures with 19 of them and hold strategic equity stake
to have a say in production and quality issues. In order to reduce delays in production
due to the lag time in supplies, Maruti adopted the Just-in-Time system of inventory
management and E-Nagare system of electronic flow. These two systems of supply
chain management have helped Maruti reduce the lead time of key components from
suppliers from 30 days to 2 hours. Over 76 per cent of the company's 246 suppliers
are located within 100 kilometers of radius, who supply 86 per cent of the
components by value to Maruti.
iv.
Right Place: In order to ensure that the vehicles and spares reach the distributors on
time and without any mismatch. Maruti has integrated the E-Nagare system of MSIL
throughout the outbound logistics. The management of spare parts and components in
terms of warehouse management and transportation was outsourced. Through the ENagare system, MSIL can download the production schedule and coordinate with
v.
vi.
vii.