MARUTI SUZUKI

INTRODUCTION
• One of India’s leading automobile manufacturers & market leader in “car segment”.
• Established in 1981 with headquarters at Delhi.
• Joint venture between two companies , Maruti Udyog Limited(India) and Suzuki Motor
Corp.(Japan).
• Until recent, Indian Govt. had 18.28% shares of company and 54.2% by Suzuki of Japan.
• Has become a subsidiary of Suzuki Motor Corp.
• Has manufactured and sold over 7 million cars in India.
• Revenue of approx. USD 234 Million.

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 SUPPLY CHAIN OF INDIAN
AUTOMOBILE INDUSTRY

• Indian Automobile industry’s Supply Chain is very much

identical to that of Europe and America.

• The bottom of the supply chain is where the order arises.

• Orders starts from the customers and goes up to the

suppliers.

• The key to the automaker is “Supply Chain” which also

effects the innovation in the industry.

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 SUPPLY CHAIN OF MARUTI SUZUKI
• Has one of the most successful supply chain in the automobile segment in the Indian
Market.

• Has a total of 240 local suppliers and 20 global suppliers.

• 1204 dealers and 16 warehouses across the country.

• Plant located at Gurgaon Haryana(Manesar Industrial Town).

• The service network has a total of 1303 service stations across india

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SUPPLY CHAIN
PROCESS

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 SUPPLY CHAIN DESCRIPTION & ROLE
• THIRD TIER SUPPLIERS: These companies provides basic products like rubber, glass, steel aluminium to
second tier suppliers
• SECOND TIER SUPPLIERS: These companies design vehicle systems or bodies for first tier suppliers and
OEMs and service which includes welding, fabricating, etc.
• FIRST TIER SUPPLIERS: These companies are responsible for providing major systems directly to the
Assemblers.
• AUTOMAKERS/ASSEMBLERS/OEMs: These are responsible for researching consumer wants and needs,
and they have manufacturing units where engines are manufactured and parts supplied by first and
second tier suppliers are assembled.
• DEALERS: Completed vehicles are then shipped to the authorised dealers of the company, who then sells
it to the customers.
• PARTS: They provide products like tires and accessories to the automakers and dealers as well as to the
customers.
• SERVICE PROVIDERS: Provides services to the customer that includes servicing of vehicles, repair of parts
etc.
(Dealers, Parts & Service providers constitute the last phase of Supply Chain)

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KEY POINTS IN COMPANY’S SCM

• Company has adopted just-in-time(JIT) delivery system, adopted from the

japan to achieve higher efficiency in operations & reduce inventory carrying
cost.

• To achieve JIT material supplies, the company has given preferences to local
suppliers. Over 76% of the company’s suppliers are located within 100kms of
radius.

• Maruti supports its vendors in all possible ways.

• Quality circle competition- The idea behind the Quality Circle Competition
was for the teams from different vendors to identify, discuss and resolve any
one core business issue that will add value to the overall functioning of the
company, thereby increasing overall efficiency.

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COMPANY,S NEW SUPPLY CHAIN

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 THANK YOU
S U BT I T L E G O E S H E R E

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