Empowering customers with the power of choice: A supply chain study; Mahindra & Mahindra Ltd.

Abstract

Over the last few years, Automobile manufacturers have felt the constant need to engage with their customers in a competitive and dynamic business environment. The industry is a cyclical in nature, constantly plagued by supply-demand gap. Customers are the lifeline of the automotive business, and Mahindra & Mahindra Ltd . intends to enhance this relationship with the Power of Choice Project. The Power of Choice (poC) project is aimed at engaging with the customer through every stage of the automobile life cycle, from pre-purchase, financing, sale, post-sale and after market opportunities. As a part of this project, customers will be provided with the choice of customizing their own vehicles, place orders through the World Wide Web, track and receive their vehicles at their doorstep. The Demand Chain Management Group at M&M Auto has been at the forefront of Supply Chain Management, developing customer centric approaches like e-DCM, and providing focus towards inventory management, cost reduction and process improvement through effective supply chain practices. The objective of this study is to evaluate the Mahindra & Mahindra Supply Chain, develop a methodology of order planning, execution and delivery of customized vehicle and recommend suitable changes to manage the new process. The project is divided into four stages: • STAGE 1: Study existing e-DCM business process • STAGE 2: Develop and evaluate the Power of Choice (po C) business process • STAGE 3: Suggest Supply Chain Modifications to the current processes • STAGE 4: Identify Supply Chain Risks and recommend suitable mitigation After studying the current business process, methodologies for planning PoC vehicles, prioritization, order tracking and updating were developed. The effects of these methodologies on the existing supply chain were studied and suitable changes were suggested to the Information Management System, Procurement, Production, Inventory Policy and Dispatch. Subsequently, Supply Chain Risks arising from implementing the new process were identified and suitable techniques for mitigation were suggested.