Supply Chain Management
Submitted to: Sir Anas Iftikhar
Iqra University
12/19/2012
Pak Suzuki Motors
Group Members:
Arif Ahmed 6719
Ibad Ur Rehman 5873
Saad Ahmed 5810
Shoaib Ahmed 5785
Sohail Ahmed 5943
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Table of Contents
Introduction 3
Company Profile 3
Process of Supply Chain Management 4
Vendor Network 5
Sourcing Raw Materials 5
IPP Department 5
LPP Department 9
GP Department 11
SWOT Analysis with reference to SCM 12
Push Vs Pull 13
Planning process through ERP 13
Flow of manufacturing process 14
Material handling department 16
Shut down activities 19
Role of Quality Assurance 20
Dealer Network 20
Government Regulations 20
Law and order situation 21
Recommendations 21
Conclusion 22
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SUPPLY CHAIN MANAGEMENT
Introduction
Supply chain management (SCM) is the oversight of materials, information, and finances as they move in
a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain
management involves coordinating and integrating these flows both within and among companies.
(Rouse, 2010).
It is defined by Tom McGuffog as, “Maximizing added value and reducing total cost across the entire
trading process through focusing on speed and certainty of response to the market”
Supply Chain is a vast chain consists of Managing supply and demand, sourcing raw materials and parts,
manufacturing and assembly, warehousing and inventory tracking, order entry and order management,
distribution across all channels, and delivery to the customer.
Suzuki Motors are continuously working and improving their Supply chain process globally by trying
surprising innovations. In Pakistan, Pak Suzuki motors are working on efficient and effective Supply chain
management model.
Company Profile
Cars & Lcvs Plant:
Location: Downstream Industrial Estate of Pakistan Steel Karachi
Total Area: 259,200 m2 (64 acres)
Facilities: Press Shop, Welding Shop, Paint Shop, Plastic Shop, Engine and Transmission Assembly Shop,
Final Assembly & Hi-Tech Inspection Shop. The Company has also established a modern Waste Water
Treatment Plant as its contribution to the environment.
Production Capacity: 150,000 units per annum (double shift)
Motorcycles Plant:
Location: Mauripur Link Road Karachi
Total Area: 4 Acres
Production Capacity: 37,000 units per annum (double shift)
Pak Suzuki Motor Company Limited (PSMCL) is public limited company with its shares quoted on Stock
Exchanges in Pakistan. The Company was formed in August 1983 in accordance with the terms of a
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joint venture agreement between Pakistan Automobile Corporation Limited (representing Government
of Pakistan) and Suzuki Motor Corporation (SMC) - Japan. The Company started commercial production
in January 1984 with the primary objective of progressive manufacturing, assembling and marketing of
Cars, Pickups, Vans and 4 x 4 vehicles in Pakistan. The Company’s long term plans inter-alia includes
tapping of export markets.
Salient features of Pak Suzuki Motors
The 1st in Pakistan
Pioneer in Pakistan Automobile Industry
Largest Dealership Network
Highest Market Share
Has Become a Household name
PROCESS OF SUPPLY CHAIN MANAGEMENT
1. Demand planning and forecasting
2. Procurement
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3. Manufacturing and assembly
4. Distribution
5. Return
Vendors (Supplier) Network
Pak Suzuki has played an impetus role in the engineering sector by promoting and encouraging the
downstream vendor industries in the private sector ("Downstream" refers to movement in the direction
of the customer).
Currently there are about 143 local vendors for difference parts whereas there are more than 10 foreign
suppliers for some major components.
Sourcing raw material
Pak Suzuki are sourcing raw material from different countries like, Japan, Korea , Thailand but most of
the components are sourced from Japan SMC i.e. Suzuki motor company.
Furthermore Pak Suzuki importing components from SMC Japan as CKD that means (completely knock
down) i.e. fully disassembled form. There are three department they involving for procuring
components from vendor that are as follows.
1. IPP (imports part purchasing)
Deals in Procurement of Components (CKD, KD, Spares), CNG Cylinders, Raw Materials (Steel Sheet,
Plastic Resins, CED Paint), PMEs and their Spares from foreign sources
2. LPP (local parts purchasing)
Deals in Procurement of locally developed Components from local Vendors
3. GP (general purchasing)
Deals in Procurement of Plant Consumables (Paint, Industrial Gases, Lubricants, etc.), PMEs and their
Spares, Administrative Procurement (Computers, Mobile Phone, Stationery, etc.) from local suppliers
Objective of IPP department
“To ensure continuous supply of all the imported inputs to the end user to keep running the production
without any interruption, which ensures that:
The right materials are available at the right place, at the right time, at the right quantity and quality,
and at the competitive cost.
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SECTIONS / FUNCTIONS OF IPP DEPARTMENT
1. Planning
2. Operations
3. Exports
PLANNING SECTION
REGULAR /PERIODIC ACTIVITIES
Following are the regular activities of planning section in IPP Department.
1. Inventory Planning
2. Ordering
3. L/C, DP Contracting
4. Price Negotiation
TARGETS
Following are the targets assigned to the IPP’s planning section for the proper working of supply chain
process.
1. Inventory Control: To Maintain the Inventories at the desired optimum levels.
2. Improvement in Supply Chain: The improvement in supply chain made up by;
Lead Time Reduction
Increase the No. of Shipments
Consolidation of Shipment: Cargo shipping method in which a freight forwarder at the port of
origin combines several individual consignments to make up a full container load. This
arrangement allows the goods to be shipped as containerized-cargo that offers greater security
at lower shipping rates. At the port of destination, the consolidated shipment is separated
(deconsolidated or de-grouped) back into the original individual consignments for delivery to
their respective consignees.
OPERATIONS SECTION REGULAR /PERIODIC ACTIVITIES
Shipment Monitoring & Control
Customs Clearance
In-Bound Logistics
Insurance
Marine Insurance
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Motor Insurance
Fire and Allied Insurance
Miscellaneous Insurance
Custom Matters
Legal matters (Customs)
Interaction with Different government agencies for;
Import / Export Policies
Proposal for trade policy (Coordination with PAMA - Pakistan Automotive Manufacturers
Association)
Coordination with ministry of Commerce and EDB (Engineering development board)
Coordination with FBR in respect of custom laws and import/export related notifications
and rules.
Payment through TT Remittance
Targets
Following are the general targets of operation section of IPP department at Suzuki Motors.
Cost Down: Their target is to bring the cost down of the department in the following charges/duties.
Custom duty: Chemical and consumables, CKD Cargoes
Insurance cost: Premium on all insurance policies, Premium on container transit policy
Freight cost
System improvement: Another target of operation section is to bring improvement in the system by;
Shipment Monitoring & Control Procedures: Switch over from Manual Database system to AS
400 system (IBM)
Custom Clearance
Reduction of custom clearance time from 5 days to 3 days
To build good relationship with custom officials for improvement in custom related
activities.
EXPORTS SECTIONS
REGULAR / PERIODIC ACTIVITIES
1. Commercial Exports
Spare Parts Exports: SF410 In-house assembled parts to MSC (Mediterranean Shipping
Company), Hungary. SB308 & RA410 In-house assembled parts to SMC, Japan.
CBU Exports: ST 308R & RH 413 Lxi to Uttara Motors, Bangladesh
2. Export of Hardware for CNG Fitments
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To Myanmar, Burma.
3. Non-Commercial Exports
Returnable Racks (frames) Export: To SMC – Japan
4. Duty Draw Back: An import and export incentive provided by customs agencies in which a portion of
the duty tax is refunded.
On Export of imported parts: CBU Spare parts (Completely Built Unit)
Other related information of IPP Department
Mode of Payment: Payment by IPP department is done by:
Letter of Credit
DP contract - payment against receipt of document
T/T remittance
Mode of Shipment:
By sea and By air
Port of Discharge:
Port Qasim (99%)
Karachi Port
Major shipping Lines:
Maersk Line
NYK
Clearing and Forwarding agent:
Express services and A.Shakoor brothers
Inland Transporter:
Al hammas freight Liner
Insurance company:
EFU general Insurance
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Objective of LPP department
Following are the objectives of LPP department:
1. Arranging components from vendors at competitive prices, in right quantity and at right time
2. Order local components at competitive prices & look out for all possible ways to reduce cost of
vendorized parts
Departmental Functions
1. Costing & Cost control
2. Scheduling
3. Parts Follow up
COSTING SECTION
REGULAR /PERIODIC ACTIVITIES
The regular activities of costing section in LPP department are;
1. Cost assessment of new developing parts.
2. Re-assessment of cost of developed parts for price revision
COSTING
1. Cost assessment of new developing parts
The assessment in this activity includes Landed Cost, FOB, Material cost, Labor cost, Tooling cost, Over
Heads, Transportation cost, Financial Cost, Profit margin and Price negotiation
2. Re-assessment of cost of developed parts for Price Revision (activity)
The assessment in this activity includes Landed Cost, FOB, Material cost, Labor cost, Tooling cost, Over
Heads, Transportation cost, Financial Cost and Profit margin
SCHEDULING SECTION
REGULAR /PERIODIC ACTIVITIES
Following are the activities periodically done in scheduling section;
1. Issuance of LOI (Letter of Intent)
2. Issuance of schedule against short supplies.
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3. Issuance of Price Revision Letter.
4. Issuance of Trial/Mass production schedule.
5. Issuance of Monthly schedule
6. Issuance of additional schedule
TARGETS - Scheduling
1. Stock Reduction
a. ABC INVENTORY TECHNIQUE
ABC inventory management technique is used for all High value items, Medium value items and Low
value items to reduce and manage the level of stock. The ABC analysis provides a mechanism for
identifying items that will have a significant impact on overall inventory cost, while also providing a
mechanism for identifying different categories of stock that will require different management and
controls. It categorizes items in terms of importance. Thus, more emphasis is placed on higher rupee
value items (“A”s) than on lesser rupee value items (“B”s), while the least important items (“C”s) receive
the least time and attention.
b. Safety Stock
c. Increase in no. of Deliveries
d. Day wise schedule
e. Elimination of manual work
f. To update vendors profile timely
g. To update item master timely
h. To update schedule master before issuance of schedule
i. Define packing quantity before issuance of schedule.
2. Sending Monthly Schedules Electronically
3. Ensuring all supplies in defined (returnable) packing mode
4. Data consolidation & management for Pre ERP activities
5. Standardization of packing mode for multi source components
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PARTS FOLLOW UP
REGULAR /PERIODIC ACTIVITIES
1. Receipt of schedule confirmation
a. Advance follow up by 3 & 5 days for local and upcountry vendors respectively.
b. Check actual arrival against schedule
c. Follow up with delayed vendors
d. Arrangement of parts urgently required by Production Department
e. Coordinate with Production Department
f. Maintain CKD Stock status of vendors
g. Maintain stock status of imported parts by vendors
TARGETS
Following are the targets of LPP department’s parts follow up section
1. FTP (First Time Pass) : First time pass yield is defined as the amount of satisfactory products or
services available after the completion of a given set of operating processes expressed as a percentage
of the total amount produced/purchased.
2. Zero Production Loss
3. In- time Supply
4. Improvement of Problematic Vendors
FUNCTIONS OF GP DEPARTMENT
Among the three departments, the last one is GP department. Following are the main functions of GP.
1. Planning
2. Ordering
3. Follow Up
4. Price Negotiation
5. Market Sourcing
As it is general purchase department therefore it is involved in following types of procurement:
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1. Plant Procurement
In this category following items are being placed which are procured
a. Paint & Allied Materials
b. Consumables
c. Packaging Materials
d. PMEs Spares
2. Administrative Procurement
The administrative procurement in GP department includes the items like Computer Peripherals,
Mobile Phones, Stationery items, Janitorial items, Capital Procurement, Computer, Printers, Scanners etc
TARGETS
1. Vendor Consolidation
One of their targets involves consolidating vendors from which general procurement is done.
2. Cost Control
Cost controlling can be possible by adopting measures like elimination of Bad performing vendors,
merger of sister concerns & uni-group companies under one name to efficiently manage vendorized
procurement through minimum in qty & better in performance vendors and creating chain of Tier-2
vendors to make the procurement cycle efficient
SWOT analysis with reference to supply chain
The SWOT analysis of Pak Suzuki with reference to their supply chain management is as follows:
1. Strengths
The strengths are Production capacity, large vendor industry and market goodwill
2. Weaknesses
The weaknesses of Suzuki motors with reference to SCM are warehousing, forecast methods and
quality.
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3. Opportunities
The opportunities include ERP and R&D Computerization.
4. Threats
The threats for Pak Suzuki motors are the Competitors, Innovations in the supply chain of motor
industry.
Push versus pull
Push system: material is pushed into downstream workstations regardless of whether resources are
available.
Pull system: material is pulled to a workstation just as it is needed.
INVENTORY
Traditionally Suzuki motors are keeping inventory as in case problems arise i.e. of stock out. They are
also working on Just in Time approach (JIT).
1. JIT objective: To eliminate inventory
2. JIT requires:
a. Small lot sizes
b. Slow setup time
c. Containers for fixed numbers of parts
3. JIT inventory: Minimum inventory to keep system running, Lower inventory reduces waste and
reducing inventory reveals problems so they can be solved.
Planning process through Enterprise resource planning (ERP)
Enterprise resource planning (ERP) systems integrate internal and external management information
across an entire organization, embracing finance/accounting, manufacturing, sales and service,
customer relationship management, etc. ERP systems automate this activity with an integrated software
application. The purpose of ERP is to facilitate the flow of information between all business functions
inside the boundaries of the organization and manage the connections to outside stakeholders (ERP)
Local parts purchasing department (LPP): LPP sent delivery order to vendors which is monthly basis and
also known as firm orders, delivery order contains order quantity, delivery dates, packing size, minimum
lot size, and starting date.
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Ordering process through ERP in PSMCL: LPP issue delivery order and part tags to vender, delivery order
shows all details and part tags to vender through e-mail and vender is liable to paste part tags and
delivery instruction letter along with supplier in order to generate GRINS (goods receivable inspection
notes)
DI’s (delivery instructions) and part tags explore all the relevant information about location and
quantity.
Advantages of ERP
1. Better scheduling and control
2. Effective delivery order through DI Slip & Part Tag
3. No mistake in required documents for making GIRN.
4. Effective application of FIFO
5. Better control on supply over delivery order quantity.
6. Easy handling of received materials in standard packing with Part Tag
Production planning, shop floor planning & capacity planning
Production planning of all production models under specified time frame by considering the factors such
as plant capacity, manpower, available working time e.t.c.
Yearly activity plan
Departmental head of production control prepares YEARLY ACITVITY PLAN in consultation with all the
sectional heads of the department and takes approval from divisional head.
In the yearly plan, the basic activities of production control are described. Additional assignments from
management, other than the basic jobs stated in the yearly plan, are performed as when required.
FLOW OF MANAFACTURING PROCESS
The manufacturing process and the concerned shops in Pak Suzuki motors are as follows:
As long as welding shop enters the product into the system, version and color is allocated to each
chassis number into the system, which has to be followed by the all concern shops.
PRESS SHOP: manufactures sheet metal parts.
WELDING SHOP records COWL-OK (chassis number punching status) and WB-OK (transfer of body shells
from white body line) into the system. After that the bodies are transferred to paint shop. WB-OK is
treated as production of press and welding shop.
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Paint shop records PB-ON (loading of white body shells from welding shop) and PB-OK (transfer of
painted body shells to VFA) into the system. PB-OK is treated as production of paint shop. VFA (Vehicle
Final Assembly Area), records AB-ON (loading of painted body shells i.e., PBS on conveyor), AB-OF (off-
loading vehicles from conveyer) and AB-OK (transfer of OK vehicles to tester line) into the system. AB-OK
is treated as production of VFA, E&T, MHD and plastic shops. (AB means Auto body)
Engine & Transmission (E&T) shop and plastic shop synchronizes their production with VFA production
using information received from AB-ON. E&T shop produce engine number into the system. It records,
EG-OF (off loading of engines from conveyor), EG-OK (OFF-loading of OK engines after firing test line)
and EG-TRF (transfer of engine to VFA) into the system.
PLASTIC SHOP uses the information of AB-ON and transfers the required sub-assemblies to VFA lines for
smooth production.
MHD (Material handling department) keeps close liaison with LPP (local parts purchasing), IPP and
production control. It supplies parts to all production lines in all departments for smooth flow of
production
VID (Vehicle inspection department) records FC-ON, (entrance of vehicle on tester line) and FC-OK
(reporting as complete OK vehicle) into the system
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PRODUCTION MONITORING & REPORTING
Production monitoring and report includes the following procedures:
1. Loading sequence report
2. Monthly standard cycle time report
3. Color wise & version wise cycle time report
4. Color wise & version-wise production follow up
5. Monthly reports
6. Monthly activity report
7. CKD stock position
8. Production division manpower status
PRODUCTION LOSS ANALYSIS REPORT
Planning section take information from ANDON system to prepare and maintain the summarized
production loss analysis report, which describes the reasons of production losses during the whole
month.
MONTHLY ATTENDENCE RESULTS
Planning section collects the daily attendance results from all departments of production division and
compiled these results in daily plant attendance report.
MONTHLY PRODUCTION RESULTS
Planning section prepares the monthly production results report for review of DMD. This report includes
production results of AB-OK &FC-OK.
Material Handling Department (MHD)
FUNCTIONS
1. Receiving
2. Storage
3. Supply to the Production Line
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RESPONSIBILITIES
1. Head of Department
Head of department is responsible for monitoring / supervising overall operations of Material Handling
Department.
2. Section In-charge
Section In-charges of department are responsible for conducting smooth production operation. He is
responsible for carrying out all activities in respect of safety, quality, productivity and resolve
administrative affair.
3. Shift In-charge
Shift In-charge is responsible for shift production and to resolve abnormalities related to production.
Department Coordinators
4. Integrates Management System (IMS) Coordinator
IMS Coordinator of department is responsible for conducting all concerned departmental activities
according to IMS
5. Quality Coordinator
Quality coordinator assures and co-ordinate the production of desired quality process.
6. Safety Coordinator
Safety Coordinator is responsible for conducting all departmental activities and operation in safe and
healthy working environment
7. Kaizen Coordinator
Kaizen coordinator of department is responsible for achieving kaizen (improvement) targets of shop and
motivate worker for it.
ISSUANCE OF PARTS TO OTHER DEPARTMENT
1. The MHD receives requisition called TV (Transfer Voucher) from the demanding Department. Then
after checking of stock level it approves to deliver the parts.
2. The same TV goes to the CKD receiving section for adjustment of stocks.
3. All delivered parts compiled in the end of the month to place the order for replenishment of stock.
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SUPPLY OF PARTS TO PRODUCTION LINE
1. Material Handling department ensure FIFO (first in first out) of the parts.
2. The shop wise staff have deployed for the supply of parts.
3. Material Handling Department has the separate staff for the supply of Local parts and the CKD parts
for each shop.
4. Parts wise distribution has done amongst the workers so that everybody knows which vehicle and line
part he has to supply.
5. There are specified and general trolleys have been designed in order to carry more parts in less time.
6. Parts filled in trolleys & bin at un-boxing area and then push it to the desired place.
7. Bins system also introduces by MHD for small parts either it is local or CKD.
8. Waste generated during un-boxing properly disposed off in trolleys by workers of MH department
CRITICAL PARTS
The Local parts which are not sufficiently present in the stock, or in other words their stock is going to
be empty in one or two days (depend on their need) are subjected as Critical Parts.
Each and every day the list of Critical parts made by the MHD and then sends to the concern
departments such as: PID (Parts inspection department), VPS (Vendor parts supply).
It is done in order to ensure the proper supply from the vendors. This list depends upon the Vendor also
either it is the vicinity of Karachi or outside Karachi.
There are some parts that get received every day because the vendor is quite stable they can give us
daily supply and secondly these parts are in big size and acquire a lot of space that’s why we do not put
them in Critical List.
The Up Country vendors take more time to supply their parts, that’s why their stock level taken more
than the Karachi vendors.
STORAGE AREAS
The storage areas are properly defined to allow orderly and safely storage for various categories of parts
such as CKD, KD and Local parts.
The storage areas of all the respected shops have been defined. The CKD and Local parts have their
separate designation areas.
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The parts information tags have displayed according to the parts setting on the storage areas. Each part
has its separate location as well. All parts in these areas are clearly identified and arrange in groups
according to their type. The storage areas need proper cleaning and maintenance in order to prevent
damages and deterioration of stored items.
MAJOR PROBLEMS FACED BY MHD
1. LINE REJECTION
It causes by the mishandling of worker (unskilled), or the manufacturing fault should be one case.
2. DEFECTED & SHORT SUPPLY
Some times MHD gets defected supply or the quantity you are getting is not up to the specification. It
also causes the shortage.
3. PARTS ISSUANCE TO OTHER DEPARTMENTS
Parts issued to the other departments because of some unavoidable situations.
MATERIAL HANDLING DOCUMENTATION
Various records generated in the MH Department during the normal activities. The details are
documented on the ‘Master Document List´. Such as;
1. MATERIAL HANDLING SHOPS
VFA (Vehicle Final Assembly Area), Welding Shop, Engine Shop, Paint Shop, Plastic Molding Shop,
Marketing Department (Delivery Yard)
2. MATERIAL HANDLING FACILITIES
Fork Lifters, Erica, Tow Truck (Stacker), Specified Trolleys, General Trolleys, Racks, Flow Racks, Gravity
Base Roller Conveyor.
3. SAFTY MANUALS
Bolts, Tin Boxes, Cartons, Polythene Sheets, Polythene Bags, Thermo pole, Papers, Wooden Boxes,
Wooden Ply, Nails, Rubber Boots, Cotton Gloves, Card Board, Damaged Bins, Damaged Trolleys,
Damaged Racks
SHUT DOWN ACTIVITIES
1. Stock Taking (Audit)
2. Maintenance
3. Special Assignments & Projects
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ROLE OF QUALITY ASSURANCE
Parts inspection department is involved in assuring quality in the supply chain.
PARTS INPECTIONS DEPARTMENT: PID checks the quality of those components which are delivered by
vendor or supplier through JIGS and FIXTURE in order to ensure PSMCL standard. Jigs and fixtures are
special purpose tool which are used to facilitate production (machining, assembling and inspection
operations).
Dealer (Customer) Network
The dealers of Pak Suzuki are situated across the country to cater all the important areas. These provide
sales, service and genuine Suzuki spare parts. At present there are 74 dealers of Pak Suzuki stretched in
all major cities of Pakistan. These dealerships make up the country’s largest vehicle after sales service
and genuine spare part network.
Government Regulation
Monetary policy of the government effect the automobile market because of the money supply and the
exchange rate directly effects to the leasing and financing sector. Without any prior notice or discussion
with the automobile assemblers government has changed the duty structure that will alter the cost of
the product. Government’s Tax policies are not consistent which causes uncertainty in market. This
results in turbulence in actual demands levels.
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Law and order situation
Law and order situation is not good as compared to the previous years. The incident 27th December
compelled them to think about the change in planning to keep buffer in the parts order that also
increase in carrying cost. Transportation of the parts suppliers and distributors has problems. Two
distributors have located at Front road in Korangi Industrial area totally burn out by the miscreants.
Recommendations
1. Lobbying with Policy Makers:
a. Should focus on important government officials and policy makers to achieve goals.
b. Know upcoming policy and mold policies in own favor.
2. SCM Process Definition:
Pak Suzuki should adopt the concept of suppliers’ supplier to customers’ customer and this will be
possible when company expand their Standard operating procedure for more parts of Supply chain
processes.
3. MRP System
Pak Suzuki is practicing MRP (Material Resources Planning) system and they are maintaining their
material planning on excel. In our opinion Pak Suzuki should consider more advance software for their
facility and it is being informed us that they are about to introduce ERP (Enterprise resource planning
which will be based on AS-400.
4. Alternative Vendor’s Pool
Some times company face shortage of supply due to non availability of materials. Several times single
source vendor create this problem to increase cost of materials therefore PAKSUZUKI try to minimize
vendors monopoly by introducing new vendor for same parts.
5. Develop Vendors Society
In the consideration of the law and order situation especially in Karachi Pak Suzuki is also emphasizing to
develop a vendor’s society for the purpose they are lending land to their vendors (importantly critical
parts’ vendors). Pak Suzuki offer land on the basis of lease.
6. Market Intelligence
Pak Suzuki not having the Market Intelligence department which provides the information about the
market changes, competitors activities and Government policies which also effect the entire planning of
the organization.
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7. The E- Supply Chain
High speed, low cost, communication and collaboration with your customers and suppliers are critical
success factors to more effectively manage your supply chain. Then, the e-Supply Chain is very likely in
your future. The very essence of Supply Chain Management is effective information and material flow
throughout a network of customers and suppliers.
Good supply chain practitioners know that information should be passed on only to those who need to
know it, in the form they need to have it.
Demand information, inventory positions, order-fulfillment, supply management and a whole host of
other information exchange activities will change how we sell products, supply products and make and
receive payments for goods and services.
Conclusion
SCM is now days one of the greatest emerging technological implication. Supply chain management
(SCM) is a concept that has flourished in manufacturing, originating from Just-In-Time (JIT) production
and logistics.
Today, SCM represents an autonomous managerial concept, although still largely dominated by logistics.
SCM endeavors to observe the entire scope of the supply chain. All issues are viewed and resolved in a
supply chain perspective, taking into account the interdependency in the supply chain.
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