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    Tata Motors: Supply Chain Analysis SC Cycles Location of Push/ Pull Boundary

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    Laxmi Priya
    Tata Motors uses both proprietary and in-house designed parts in their supply chain. For proprietary parts they work with established suppliers, while for in-house parts they select suppliers with strong process capabilities. They prefer long term contracts over annual contracts to reduce costs. They also give suppliers freedom in design and materials to lower costs. Tata Motors follows a customer pull strategy, introducing products like the Tata Sumo and Tata Ace to meet customer needs where no alternatives existed.

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    Tata Motors: Supply Chain Analysis SC Cycles Location of Push/ Pull Boundary

    Uploaded by

    Laxmi Priya
    397 views7 pages
    Tata Motors uses both proprietary and in-house designed parts in their supply chain. For proprietary parts they work with established suppliers, while for in-house parts they select suppliers with strong process capabilities. They prefer long term contracts over annual contracts to reduce costs. They also give suppliers freedom in design and materials to lower costs. Tata Motors follows a customer pull strategy, introducing products like the Tata Sumo and Tata Ace to meet customer needs where no alternatives existed.

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    Supply Chain Analysis Location of Push/ Pull Boundaries of Tata Motors

    Original Title

    Tata Motors

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    Tata Motors uses both proprietary and in-house designed parts in their supply chain. For proprietary parts they work with established suppliers, while for in-house parts they select suppliers with strong process capabilities. They prefer long term contracts over annual contracts to reduce costs. They also give suppliers freedom in design and materials to lower costs. Tata Motors follows a customer pull strategy, introducing products like the Tata Sumo and Tata Ace to meet customer needs where no alternatives existed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    397 views7 pages

    Tata Motors: Supply Chain Analysis SC Cycles Location of Push/ Pull Boundary

    Uploaded by

    Laxmi Priya
    Tata Motors uses both proprietary and in-house designed parts in their supply chain. For proprietary parts they work with established suppliers, while for in-house parts they select suppliers with strong process capabilities. They prefer long term contracts over annual contracts to reduce costs. They also give suppliers freedom in design and materials to lower costs. Tata Motors follows a customer pull strategy, introducing products like the Tata Sumo and Tata Ace to meet customer needs where no alternatives existed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    TATA MOTORS

    o SUPPLY CHAIN ANALYSIS


    o SC CYCLES
    o LOCATION OF PUSH/ PULL BOUNDARY
     For the Automotive organization, the main products
    provided by their suppliers are different automobile parts
    such as radiators, heat exchangers, seating system, gear
    boxes etc., raw materials like steel, iron, plastic required

    SUPPLY CHAIN for manufacture some parts, design, technology etc.

    ANALYSIS – TATA  TML mainly divide its component into two different types:

    MOTORS o Proprietary Design and

    o Tata Motors Design


     For proprietary design sector, TML use
    Proprietary Design established suppliers such as Bosch who
    supplies engine management system

     whereas for in-house parts and system


    TATA Motors Design design TML choose supplier with strong
    process capabilities who can give valuable
    suggestions as well as improve the designs.
     TML prefers to go for long term contract instead of annual contract which helps them to low
    down their cost. About 75% of their components are from single source whereas about 90% of
    total cars are being outsourced.
     To drop cost they have adopted entirely new approach to their supplier relationship. Instead of
    following typical model of supply chain they have simply given the outputs they expected and
    allowed their supplier to get creative with their design, materials and prices. Thus TML is being
    innovative to their supplier relationship to obtain desired goals.
     The degree of manufacturing flexibility of each member
    of the supply chain influences the placement of push/ pull
    DETERMINE boundaries.

    PUSH/ PULL  Push/ pull boundaries refer to the positioning of a


    decoupling point in the supply chain – up to which supply
    BOUNDARIES is pushed forward as make-to-stock but beyond which
    demand drives make-to-order execution.
     Push Strategy: A”PUSH” strategy make use of a
    company’s sales force and trade promotion activities to
    Create Consumer Demand for a product.
     Pull Strategy: A “PULL” strategy is one that requires high
    PUSH & PULL spending on advertising and consumer promotion to
    build up consumer demand for a product
     Tata motors follows the “customer pull strategy”. For
    example when they have introduced TATA - SUMO in
    the year 1994, there is no 8+1 seating cars in luxury
    cars segments, except some public transportation
    jeeps. Tata - sumo has been big success, when they
    have introduced TATA - Ace, there is no other light
    Example: commercial goods transportation vehicle, except some
    old generation three wheeler Bajaj vehicles. As an
    improvement to TATA - Ace, they introduced Tata-magic
    for public transportation for semi-urban and rural
    areas.

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