CASE STUDY
Presented By - SMBA 15, Malad, Marketing
Team Members
Table Of Content
• Honda Siel Cars India Ltd
– An Overview – Sales Analysis – Most selling cars 2011 – 2012
• Case study
– Key Points – How is this case connected with SCM? – If you were the CEO of the company, what you would have planed / done after the incident? – Do you see such a situation in your organization? How do you propose to deal with this?
• Conclusion
Honda Siel Cars India Ltd: An Overview
Present Since
• 1995
Production Plants & Annual Capacity
• Greater Noida Plant: 100,000 units • Tapukara Plant: 60,000 units
Growth
• 343 % growth in May 2012 v/s May 2011 • May 2012: 10,334 units sold • May 2011: 2,334 units sold
Sales Analysis
Source: Balance sheet 2011 Press release May 2012
Honda Siel : Most selling cars 2011 - 2012
Source: Rediff.com 2011 - 2012
Honda Siel Case study Summary
Product
• Cars Market
• India
Constraint
• Lack of suppliers, lead to reduction / stop production of finished products
Alternative • Find new suppliers & source components from them Impact • Reduction in production has impacted deliveries & sales
Question 1
HOW IS THIS CASE CONNECTED WITH SCM?
SCM Structure: Automobile Industry
Default in SCM reduces the Sales
Honda car sales Jan 2011
• City 5059 Civic 508 Accord 174 Jazz 579 CRV 38
Honda car sales Jan 2012
• Brio Jazz City Civic Accord CRV 0 0 1503 176 98 7
Scenario 2
IF YOU WERE THE CEO OF THE COMPANY, WHAT YOU WOULD HAVE PLANED / DONE AFTER THE INCIDENT?
Source multiple suppliers across the APAC region
Make each country self-sufficient by finding suppliers within country
Use of standardized auto parts that could be manufactured at several locations Request suppliers to hold inventory enough to sustain production for few months, as a measure to tackle manufacturing problems
Scenario 3
DO YOU SEE SUCH A SITUATION IN YOUR ORGANIZATION? HOW DO YOU PROPOSE TO DEAL WITH THIS?
Problem
Solution
A) Inventory Accumulation B) Largely dependent on third party agents for supply of raw materials (masalas) C) Unable to implement ERP app to synergise technology for order placement of raw materials
• Backward Integration
• Implementation of ERP in the inhouse factory for real time order placement
Problem
• Raw material is imported from Singapore • Warehousing Problem • In case raw material were sourced from India the cost would increase
Solution
• Crises Management
– Two months materials are always in stocked
• Imported Raw Materials are now directly send to other warehouse • Coordinating with Manufacturers or Major suppliers
• Areas where SCM plays a key role
– Customer service
• Policy documents printing & delivery • Call center support
– Distribution
• Sales tools
– – – – Brochures Leaflets Sales kit E-sales tools
Conclusion
• Crises management is a key factor when it come to supply chain management • A company should have multiple suppliers rather than relying on 1 or 2 • Value chain analysis in supply chain • SCM plays a critical role as at the end it effects
– Customer Satisfaction
THANK YOU
doc_603533704.ppt
Presented By - SMBA 15, Malad, Marketing
Team Members
Table Of Content
• Honda Siel Cars India Ltd
– An Overview – Sales Analysis – Most selling cars 2011 – 2012
• Case study
– Key Points – How is this case connected with SCM? – If you were the CEO of the company, what you would have planed / done after the incident? – Do you see such a situation in your organization? How do you propose to deal with this?
• Conclusion
Honda Siel Cars India Ltd: An Overview
Present Since
• 1995
Production Plants & Annual Capacity
• Greater Noida Plant: 100,000 units • Tapukara Plant: 60,000 units
Growth
• 343 % growth in May 2012 v/s May 2011 • May 2012: 10,334 units sold • May 2011: 2,334 units sold
Sales Analysis
Source: Balance sheet 2011 Press release May 2012
Honda Siel : Most selling cars 2011 - 2012
Source: Rediff.com 2011 - 2012
Honda Siel Case study Summary
Product
• Cars Market
• India
Constraint
• Lack of suppliers, lead to reduction / stop production of finished products
Alternative • Find new suppliers & source components from them Impact • Reduction in production has impacted deliveries & sales
Question 1
HOW IS THIS CASE CONNECTED WITH SCM?
SCM Structure: Automobile Industry
Default in SCM reduces the Sales
Honda car sales Jan 2011
• City 5059 Civic 508 Accord 174 Jazz 579 CRV 38
Honda car sales Jan 2012
• Brio Jazz City Civic Accord CRV 0 0 1503 176 98 7
Scenario 2
IF YOU WERE THE CEO OF THE COMPANY, WHAT YOU WOULD HAVE PLANED / DONE AFTER THE INCIDENT?
Source multiple suppliers across the APAC region
Make each country self-sufficient by finding suppliers within country
Use of standardized auto parts that could be manufactured at several locations Request suppliers to hold inventory enough to sustain production for few months, as a measure to tackle manufacturing problems
Scenario 3
DO YOU SEE SUCH A SITUATION IN YOUR ORGANIZATION? HOW DO YOU PROPOSE TO DEAL WITH THIS?
Problem
Solution
A) Inventory Accumulation B) Largely dependent on third party agents for supply of raw materials (masalas) C) Unable to implement ERP app to synergise technology for order placement of raw materials
• Backward Integration
• Implementation of ERP in the inhouse factory for real time order placement
Problem
• Raw material is imported from Singapore • Warehousing Problem • In case raw material were sourced from India the cost would increase
Solution
• Crises Management
– Two months materials are always in stocked
• Imported Raw Materials are now directly send to other warehouse • Coordinating with Manufacturers or Major suppliers
• Areas where SCM plays a key role
– Customer service
• Policy documents printing & delivery • Call center support
– Distribution
• Sales tools
– – – – Brochures Leaflets Sales kit E-sales tools
Conclusion
• Crises management is a key factor when it come to supply chain management • A company should have multiple suppliers rather than relying on 1 or 2 • Value chain analysis in supply chain • SCM plays a critical role as at the end it effects
– Customer Satisfaction
THANK YOU
doc_603533704.ppt