Description
SCM at Tata-Nano and it contains topics like complete supply chain of tata nano, drivers of supply chain, facility location, transportation, sourcing, inventory, IT startegy, pricing
Tata Nano
Tata Nano – The Complete Supply Chain
Customer
• Largest distribution network • Middle Class families
Suppliers
• 100 suppliers • Vendor Park
Tata Motors
• Leading auto manufacturer • Nano plant in Sanand, Gujarat
Third Party Logistics
Local 3PL institutions.
3PL
Leveraged existing distribution network. Modular approach
Drivers of Supply Chain
Facility Location Transportation Sourcing Inventory Information Pricing
Facility Location
Infrastructure and Connectivity
• Multi – modal connectivity • MICT
Supplier proximity and convenience
Business Environment Government Regulation and Support Land Future Prospects
• Rajkot • Land for supplier parks
• GM •Gujarat Industrial Development • Industrial and Labor environ. Corporation (GIDC) • Ahmadabad
•Land
• Gujarat Industrial Development Corporation (GIDC) • Land
•DMIC •SIR
•Gujarat Agriculture University (GAU)
• Gujarat Agriculture University (GAU)
• Delhi-Mumbai Industrial Corridor (DMIC) • Special Investment Region (SIR)
Transportation
• Increased modularity • Local 3PL leveraged
• Truck optimization softwares • Lead Time Map
Open Distribution
Optimal transportati on network
Distributed Assembly Model
• Most of the suppliers are located across India. • JIT and JIS requirements
Shorter Lead TImes
• 97% local vendors • Almost half located in Vendor Park
Sourcing
Suppliers divided into Proprietary and Non-proprietary. 97% parts sourced from local suppliers. Innovation in mfg. processes done locally to avoid extra costs Long term volume contracts rather than annual contracts 75% single source components
Inventory
Just in time Inventory
• Leveraging the proximity of suppliers • Less number of suppliers • Innovative but not too much complexity in design • Less number of total components • Accurate data on forecast • Early Capture of design issues
Multi-purpose components
Seamless Integration
NANO – IT strategy
• Tata Motors investment in IT for efficient supply chain
– Implementation of SAP 3.1 and 4.6c (Asia’s largest implementation) – SAP SRM (Supplier Relationship Management) for end to end supply chain integration) – SAP WM (Warehouse Management) combined with barcodes to automate warehouse operations) – Knowledge based Engineering (KBE) in design
NANO – IT strategy
• SRM platform used for sustainable savings and value generation • Benefits
– Reduction in procurement cycle time – Improve process by e-procurement – Real time supplier integration with business – Knowledge sharing
NANO – IT strategy
• SAP WM with mobile data entry is combined with RF Technology (barcodes) to automate warehouse operations • Benefits
– Improved throughput at warehouses by RF enabled processes – Capability enhancement to handle more parts and team size – Real time inventory tracking
NANO – IT strategy
• Knowledge based engineering in CAD/CAM with help of KNEXT – in house software • Benefits of KBE • 30% reduction in cycle time • Designer’s knowledge and company’s best practices retained
Pricing NANO supply chain strategy
Reducing Inventory
Eliminating waiting time and delays
Increasing utilization of warehouses & trucks
Optimizing location of warehouses and plants
Optimizing transportation networks
Pricing: Cost of the supply chain
Conventional Strategy Calculate Production costs + Margin = Price
Tata Nano’s strategy Set price => Work backwards & Challenge Suppliers to lower costs
Pricing: Cost of the supply chain
70% of the cost of the supply chain is fixed at the design stage
Upstream Supply chain time Lead Time map
Downstream: Functional Collaboration with Suppliers at an early stage Bosch & Delphi – low cost components
Thank You
Group 1A
Neha Baid Anand Pillay
Arun Sharma
Naveen Kumar Nidheesh Hirwani
doc_614489108.pptx
SCM at Tata-Nano and it contains topics like complete supply chain of tata nano, drivers of supply chain, facility location, transportation, sourcing, inventory, IT startegy, pricing
Tata Nano
Tata Nano – The Complete Supply Chain
Customer
• Largest distribution network • Middle Class families
Suppliers
• 100 suppliers • Vendor Park
Tata Motors
• Leading auto manufacturer • Nano plant in Sanand, Gujarat
Third Party Logistics
Local 3PL institutions.
3PL
Leveraged existing distribution network. Modular approach
Drivers of Supply Chain
Facility Location Transportation Sourcing Inventory Information Pricing
Facility Location
Infrastructure and Connectivity
• Multi – modal connectivity • MICT
Supplier proximity and convenience
Business Environment Government Regulation and Support Land Future Prospects
• Rajkot • Land for supplier parks
• GM •Gujarat Industrial Development • Industrial and Labor environ. Corporation (GIDC) • Ahmadabad
•Land
• Gujarat Industrial Development Corporation (GIDC) • Land
•DMIC •SIR
•Gujarat Agriculture University (GAU)
• Gujarat Agriculture University (GAU)
• Delhi-Mumbai Industrial Corridor (DMIC) • Special Investment Region (SIR)
Transportation
• Increased modularity • Local 3PL leveraged
• Truck optimization softwares • Lead Time Map
Open Distribution
Optimal transportati on network
Distributed Assembly Model
• Most of the suppliers are located across India. • JIT and JIS requirements
Shorter Lead TImes
• 97% local vendors • Almost half located in Vendor Park
Sourcing
Suppliers divided into Proprietary and Non-proprietary. 97% parts sourced from local suppliers. Innovation in mfg. processes done locally to avoid extra costs Long term volume contracts rather than annual contracts 75% single source components
Inventory
Just in time Inventory
• Leveraging the proximity of suppliers • Less number of suppliers • Innovative but not too much complexity in design • Less number of total components • Accurate data on forecast • Early Capture of design issues
Multi-purpose components
Seamless Integration
NANO – IT strategy
• Tata Motors investment in IT for efficient supply chain
– Implementation of SAP 3.1 and 4.6c (Asia’s largest implementation) – SAP SRM (Supplier Relationship Management) for end to end supply chain integration) – SAP WM (Warehouse Management) combined with barcodes to automate warehouse operations) – Knowledge based Engineering (KBE) in design
NANO – IT strategy
• SRM platform used for sustainable savings and value generation • Benefits
– Reduction in procurement cycle time – Improve process by e-procurement – Real time supplier integration with business – Knowledge sharing
NANO – IT strategy
• SAP WM with mobile data entry is combined with RF Technology (barcodes) to automate warehouse operations • Benefits
– Improved throughput at warehouses by RF enabled processes – Capability enhancement to handle more parts and team size – Real time inventory tracking
NANO – IT strategy
• Knowledge based engineering in CAD/CAM with help of KNEXT – in house software • Benefits of KBE • 30% reduction in cycle time • Designer’s knowledge and company’s best practices retained
Pricing NANO supply chain strategy
Reducing Inventory
Eliminating waiting time and delays
Increasing utilization of warehouses & trucks
Optimizing location of warehouses and plants
Optimizing transportation networks
Pricing: Cost of the supply chain
Conventional Strategy Calculate Production costs + Margin = Price
Tata Nano’s strategy Set price => Work backwards & Challenge Suppliers to lower costs
Pricing: Cost of the supply chain
70% of the cost of the supply chain is fixed at the design stage
Upstream Supply chain time Lead Time map
Downstream: Functional Collaboration with Suppliers at an early stage Bosch & Delphi – low cost components
Thank You
Group 1A
Neha Baid Anand Pillay
Arun Sharma
Naveen Kumar Nidheesh Hirwani
doc_614489108.pptx