INTRODUCTION

Maruti Suzuki India is the leading four wheeler manufacturing. Its a Subsidiary of Suzuki Motor Corporation. In 1953, the Government of India and the Private sectors
initiated manufacturing to develop the Automobile Industry.

1981: Maruti Udyog was incorporated. 1982: License and joint venture between Maruti Udyog and Maruti Suzuki India was launched in 1983. 1987: 500 cars exported to Hungary. SMC increases stake to 50 % in Maruti.

Suzuki Corporation in Japan; the Renamed as Maruti Suzuki India.

VISION AND MISSION

Customer Obsession Fast, Flexible and Fast Movers. Innovation and Creativity Partnerships and Networking Openness and Learning

STANDARD OPERATING PRACTICES FOR SUPPLY CHAIN

5S

3K

Product Mix
Hatchback Sedan Light Utility Vehicle Sport Utility Vehicle

Alto Wagon R

Swift Dzire SX4

Ertiga

Grand Vitara

A Star
Ecco Zen Estilo

Kizashi

Ritz
Swift

 They have four plants, three located at 1. Palam Gurgaon Road, 2. Gurgaon, Haryana 3. and one located at Manesar Industrial Town,
Gurgaon, Haryana.

Challenges of Maruti

Cost and Quality Pressures Long Transportation Machine problem/ System breakdown

Long set up time

Supplier Delivery Absenteeism and workers strike

Global players presence

Maruti Suzuki Deploys Trimble's Fleet and Cargo Management Solution to Equip its Logistics Fleet in India

Maruti Suzuki India Limited (MSIL), the largest automobile

manufacturer in India, outsources it logistics to Trimble trako Visual Cargo solution in outbound logistics trucks that transport new cars from the factory to Maruti Suzuki dealers across India.

As part of the implementation, Trimble configured a

Consignment Tracking module for use by Maruti Suzuki and a Fleet Management module for use by Maruti Suzukis transport vendors.

The Consignment module, Visual Cargo, has advanced

dashboard and report features that allow logistics managers to easily monitor, track and manage operations.

Maruti Suzuki to invest 200 crore on logistics hub in Bengal

Maruti Suzuki is planning to set up an integrated logistics hub
near Kolkata at an estimated investment of over Rs 100 crore. The country's leading automaker is eyeing some 60 acres near Panagarh for the project.

This hub at Siliguri will to cater to its customers in across

North Bengal and the North east.

Continued.
The proposed unit will have warehousing facility for 10,000-15,000
cars, a servicing unit and a store house for automobile spares.

It will service Maruti's existing and future client base across the
entire eastern region in states like West Bengal, Jharkhand, Orissa and Chhatisgarh.

Based on a hub and spoke model, Maruti has already unveiled such
a warehousing and servicing facility at Bangalore on 120 acres to meet the needs of its customers in south.

While Maruti caters to its customers in the northern region though

its facilities at Gurgaon, construction has already started on a similar facility at Nagpur for the western region.

DISTRIBUTION CHALLENGES OF MARUTI

Managing demand and customer expectations Achieving a lean supply chain

Reducing the Lead time

Managing effectively the variations in the components for various models

IT and Network linked Inventory and processes

Challenges of Warehousing

Lack of house keeping Inventory pile up Space utilization / warehouse layout Redundant processes

Inventory Levels

 Dealers are holding about 500-600 units of stock. Average of about 500 vehicles are sold per month. On an average dealers maintain inventories of about 6-8
Weeks for Four-wheelers.

Maruti dealers maintain an average 25 days-to-a-month

of stock.

 In 2012, Maruti Suzuki received bookings for 1000 cars

including both Swift and Swift Dzire every day.

Inventory turnover ration: How many times a year a

product goes through the cycle of being sold and restocked.

Inventory turnover ratio for year ended 2012 was 22.80

 The performance of the dealers is followed and improvements

are suggested frequently.

MARUTI SUZUKI has introduced a concept of Balanced

Scorecard.

Sales, service, spares and accessories, financial management and

management systems is measured.

Dealers who perform well on the Balanced Scorecard are

reward with a cash payment at the end of the fiscal year.

The Balanced Scorecard serves as an effective incentive for

dealers to enhance their performance.