STRATEGIC PRACTICES OF STRATEGIC PRACTICES OF LOGISTICS MANAGEMENTLOGISTICS MANAGEMENTA CASE OF MARUTI UDYOG.A CASE OF MARUTI UDYOG.

The wide the acceptance of supply chain management has had a The wide the acceptance of supply chain management has had a profound impact on inventory levels throughout the manufacturing profound impact on inventory levels throughout the manufacturing and logistics systems. There have been a number of developments in and logistics systems. There have been a number of developments in both manufacturing and distribution that have had considerable both manufacturing and distribution that have had considerable influence influence on inventory levels. For example, the acceptance of JIT and on inventory levels. For example, the acceptance of JIT and computer- based manufacturing methods have reduced the need for computer- based manufacturing methods have reduced the need for inventory as an insurance buffer with the overall logistics activity. The inventory as an insurance buffer with the overall logistics activity. The joint commitment showed by manufactures and distributors have joint commitment showed by manufactures and distributors have eliminated some of the reasons for holdings inventories. Also, there is eliminated some of the reasons for holdings inventories. Also, there is a greater realization by companies that a greater return on investment a greater realization by companies that a greater return on investment (ROI) can be obtained by developing the core business and that (ROI) can be obtained by developing the core business and that investment in working capital items, such as inventory, return far less investment in working capital items, such as inventory, return far less in comparison.in comparison.

KEY WORDSKEY WORDS

Value Added Service Focus ShiftDeveloping Innovative InfrastructureMutually Beneficial Collaborations

FACTORS FACTORS CONTRIBUTEDCONTRIBUTED

CHANGES IN MARUTICHANGES IN MARUTIA strong corporate culture with

discipline as the mainstay.An efficient and quickly adapting

information system.Young and dynamic employeesA responsive and fast developing

infrastructure

VALUE ADDITION BY VALUE ADDITION BY INFORMATION INFORMATION

TECHNOLOGY DIVISIONTECHNOLOGY DIVISIONMore accurate and rapid information flowsImproved logistic system productivityCloser relationship with the dealers and

customersImproved cash flowMore accurate forecasting methods

SALES AND DESPATCH SALES AND DESPATCH DEPARTMENTDEPARTMENT

Earlier known as Vehicles Despatch Department S & D Department stimulated the functions &

managed logistics & provided vital information like colour choice & product mix

S & D also manage the following traditional key functions

Reduce inventory Reduce cost Increase efficiency

S & D ACHIVED COST S & D ACHIVED COST MINIMISATION MINIMISATION

The areas looked into to The areas looked into to achieve the goalachieve the goal

Handling cost per vehicleEmployee cost, productivity per employeeTransportation costsInventory holding costs

OPERATIONAL TO STRATEGIC OPERATIONAL TO STRATEGIC FUNCTIONSFUNCTIONS

Now a days the status of the logistic is Now a days the status of the logistic is changing & it is more called Supply Chain changing & it is more called Supply Chain Management.The shift has occurred mainly Management.The shift has occurred mainly because from being an operational because from being an operational activity it is increasing becoming a activity it is increasing becoming a strategic function.Logistics is now more strategic function.Logistics is now more focus on costs and SUPPLY CHAIN focus on costs and SUPPLY CHAIN MANAGEMENT is responsible for management MANAGEMENT is responsible for management of resources to achieve customer of resources to achieve customer satisfaction in most of the manufacturing satisfaction in most of the manufacturing setups.setups.

STRATEGIC ISSUES OF STRATEGIC ISSUES OF COST MINIMIZATIONCOST MINIMIZATION

Handling cost per vehicleEmployee cost, productivity per employeeTransportation costsInventory holding costs

ROLE OF S & D IN ROLE OF S & D IN DESPATCH CYCLEDESPATCH CYCLE

To maximize dispatchesIn the fastest mannerAt a lowest costWith minimum damages

INTERNAL LOGITICS & INTERNAL LOGITICS & PHYSICAL MOVEMENT PHYSICAL MOVEMENT

SECTIONSECTION Receipt Group Accessory Stores Loading Group Generation of sale documents Security check Truck Leaves the premises with vehicle load

DISPATCH PLANNING & DISPATCH PLANNING & PAYMENT PROCESSINGPAYMENT PROCESSING

Quota / Load Planning

Planning of load done as per the stock status & funds available in dealer account

Excise clearance Director General of Supplies & Disposal – Quota

allocation.

EXTERNAL LOGISTICS EXTERNAL LOGISTICS SECTIONSECTION

The basic jobs of this section are : i ) Arranging for adequate transport : ii) Appointment of new transporters : iii) Fleet inspection : iv ) Freight processing : v) Damage control : vi ) Auctioning : Modes of Transport …………CONTD……

Trucks and Trailer Railway rakes By Containers ( Only for export vehicles till

Nhava Sheva Port ) By road to local dealer ( Only in special cases )

TWO SUCCESS FACTORTWO SUCCESS FACTOR Introduced dedicated specially design car carriers

first time in Indian Automobile Industry. Focus shift

Phase I : Faster despatch since the product was new & making an impression & generating market reaction during 1980s.

Phase II : In 1990s the despatch speed remained as and important criteria but the reason change – Higher production / Demand for vehicle / Low inventory / Achieve customer satisfaction.

Phase III :

In late 1990s delivering fast in damage free condition continued. Additional focus area of internal damage control was added since the stock movement of various models started fluctuating.

Two new plants became operational with the result more movement of vehicles with in the factory premises.

Development & Introduction of new & better hardware resulted in reducing cost of Logistics operations.