Name: Krishna Chandak

Roll No.: 50
Subject: Supply Chain Management
Assignment: Study on Tata Motor’s Logistics & Supply
Chain Management
Guided By: Prof. M. R. Jain
 Index

Sr. No. Description Page No.

1. Introduction to Logistics & Supply Chain Management 2

2. Industry Overview 4
3. Case Study on Tata motors - Introduction 6
4. Company Background 8

5. Tata Motors Automotive Products 10

6. Market & Competitors 12

7. Tata Motors Transformational Model 13

8. Manufacturing Facility Capabilities 14

9. Tata Motors Testing Facilities 15

10. Automotive Industry Supply Chain 16

11. Tata Motors Supply Chain 17

12. Tata Motors Supply Chain Flow 18

13. Primary & Support Activities 19

14. Value Chain & Value System of Tata Motors 20

15. Environment of Supply chain 23
16. Tata Motors Distribution Strategy & Network 24
17. Tata motors Logistics in Covid-19 situation 28
18. Tata Motors on Post COVID World 29

19. Protective Packaging For Vehicles 30

20. Conclusion 31

1
Introduction to Logistics & Supply Chain Management

What is Logistics?
In industrial and commercial world, logistics covers activities for the material flow
from the source to the processing facilities and subsequent distribution of finished
goods from there to the ultimate user.
Later logistics was considered in a broader sense, meaning,
Logistics is the process of planning, implementing and controlling of efficient, effective
flow and storage of goods, services and related information from the point of origin to
the point of consumption for the purpose of conforming expectations.
On this basis logistics management was developed, meaning,
Logistics management refers to designing, developing, producing and operating an
integrated system which responds to customer expectations by making available the
required quantity of required quality products as and when required to offer best
customer service at the least possible cost.

Major features of logistics management:

1. It ensures a smooth flow of all types of goods such as raw material,
Work-in-process and finished goods.
2. It has the ability to meet customer expectations and requirements of goods.
3. It ensures the delivery of quality product.
4. It offers the best possible customer service at the least possible cost.
5. It is an integration of various managerial functions for optimization of
resources.
6. It deals with movement and storage of goods in appropriate quantity.
7. It enhances productivity and profitability.

Major missions of logistics management:

1. To make available the right quantity or right quality products at right time and
right place in the right physical condition.
2. To offer the best possible customer service for core competency.
3. To minimize total logistical costs.

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Logistics management involves numerous elements, including:
● Selecting appropriate vendors with the ability to provide transportation facilities
● Choosing the most effective routes for transportation
● Discovering the most competent delivery method
● Using software and IT resources to proficiently handle related processes
In logistics management, unwise decisions create multiple issues.
For example, deliveries that fail or are delayed lead to buyer dissatisfaction.
Damage of goods due to careless transportation is another potential issue. Poor
logistics planning gradually increases expenses, and issues may arise from the
implementation of ineffective logistics software. Most of these problems occur due to
improper decisions related to outsourcing, such as selecting the wrong vendor or
carrying out delivery tasks without sufficient resources.

To resolve these issues, organizations should implement best logistic management

practices. Companies should focus on collaboration rather than competition. Good
collaboration among transportation providers, buyers and vendors helps reduce
expenses. An efficient and safe transportation provider is also vital to business
success.

Supply Chain:
Supply chain is a network between a company and its suppliers to produce and
distribute a specific product or service.
The entities in the supply chain include producers, vendors, warehouses, transportation
companies, distribution centers, and retailers.
The functions in a supply chain include product development, marketing, operations,
distribution, finance, and customer service.
Supply chain management results in lower costs and a faster production cycle.

3
Industry Overview:

Introduction

India became the fourth largest auto market in 2019 displacing Germany with about
3.99 million units sold in the passenger and commercial vehicles categories. India is
expected to displace Japan as the third largest auto market by 2021.
The two wheelers segment dominate the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for
the near future. In addition, several initiatives by the Government of India and major
automobile players in the Indian market is expected to make India a leader in the
two-wheeler and four-wheeler market in the world by 2020.

Market Size

Domestic automobiles production increased at 2.36% CAGR between FY16-20 with

26.36 million vehicles being manufactured in the country in FY20. Overall, domestic
automobiles sales increased at 1.29% CAGR between FY16-FY20 with 21.55 million
vehicles being sold in FY20.
Two wheelers and passenger vehicles dominate the domestic Indian auto market.
Passenger car sales are dominated by small and mid-sized cars. Two wheelers and
passenger cars accounted for 80.8% and 12.9% market share, respectively, accounting
for a combined sale of over 20.1 million vehicles in FY20.
As per the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle
wholesales in India increased by 26.45% to 2,72,027 units in September 2020, up from
2,15,124 in September 2019.

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Overall, automobile export reached 4.77 million vehicles in FY20, growing at a
CAGR of 6.94% during FY16-FY20. Two wheelers made up 73.9% of the vehicles
exported, followed by passenger vehicles at 14.2%, three wheelers at 10.5% and
commercial vehicles at 1.3%.
EV sales, excluding E-rickshaws, in India witnessed a growth of 20% and reached
1.56 lakh units in FY20 driven by two wheelers.
Premium motorbike sales in India recorded seven-fold jump in domestic sales,
reaching 13,982 units during April-September 2019. The sale of luxury cars stood
between 15,000 to 17,000 in the first six months of 2019.

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 TATA MOTORS

Tata Motors Limited, formerly known as Tata Engineering and Locomotive Company
(TELCO), is a $35 billion organisation. It is a leading global automobile
manufacturing company. Its diverse portfolio includes an extensive range of cars,
sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is one of India's
largest OEMs offering an extensive range of integrated, smart and e-mobility solutions
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first
commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in
1969. Tata Motors entered the passenger vehicle market in 1988 with the launch of the
Tata Mobile followed by the Tata Sierra in 1991, becoming the first Indian
manufacturer to achieve the capability of developing a competitive indigenous
automobile. In 1998, Tata launched the first fully indigenous Indian passenger car, the
Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors
acquired the South Korean truck manufacturer Daewoo Commercial Vehicles
Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.

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MISSION
We innovate mobility solutions with passion to enhance the quality of life

VISION
By FY 2024, we will become the most aspirational Indian auto brand, consistently
winning, by
● Delivering superior financial returns
● Driving sustainable mobility solutions
● Exceeding customer expectations, and
● Creating a highly engaged work force

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Company Background:
Tata Motors was incorporated on September 1, 1945 as a public limited company
under the Indian Companies Act VII of 1913 as Tata Locomotive and Engineering
Company Limited and we received a certificate of commencement of business on
November 20, 1945. Their name was changed to Tata Engineering and Locomotive
Company Limited on September 24, 1960, and to Tata Motors Limited on July 29,
2003. Tata Motors Limited is incorporated and domiciled in India. They commenced
operations as a steam locomotive manufacturer. This business was discontinued in
1971. Since 1954, they have been manufacturing automotive vehicles. The automotive
vehicle business commenced with the manufacture of commercial vehicles under
financial and technical collaboration with Daimler-Benz AG (now Daimler AG) of
Germany. This agreement ended in 1969. They produced only commercial vehicles
until 1991, when they started producing passenger vehicles as well. Together with
their consolidated subsidiaries they form the Tata Motors Group.
In June 2008, they acquired the Jaguar Land Rover business from Ford Motor
Company. Jaguar Land Rover is a global automotive business, which designs,
manufactures and sells Jaguar luxury sedans and sports cars and Land Rover premium
all-terrain vehicles as well as related parts, accessories and merchandise. The Jaguar
Land Rover business has internationally recognized brands, a product portfolio of
award-winning luxury performance cars and premium all-terrain vehicles, brand
specific global distribution networks and research and development capabilities. As a
part of their acquisition of the Jaguar Land Rover business, they acquired three major
manufacturing facilities located in Halewood, Solihull and Castle Bromwich and two
advanced design and engineering facilities located at Whitley and Gaydon, all in the
United Kingdom, together with national sales companies in several countries.
In September 2004, they became the first company from India’s automotive sector to
be listed on the New York Stock Exchange. Their ADSs are traded on the NYSE under
the symbol “TTM”. Their Ordinary Shares and ‘A’ Ordinary Shares are traded on the
BSE under the codes 500570 and 570001, respectively, and the National Stock
Exchange of India Ltd., or NSE, under the symbols “TATAMOTORS” and
“TATAMTRDVR”, respectively.
They offer a broad portfolio of automotive products, ranging from sub-1 ton to 49 ton
GVW, trucks (including pickup trucks) to small, medium, and large buses and coaches

8
to passenger cars, including the world’s most affordable car—the Tata Nano, premium
luxury cars and SUVs.
They have a substantial presence in India and also have global operations in
connection with production and sale of Jaguar and Land Rover brand passenger
vehicles. They are the largest commercial vehicle manufacturer in terms of revenue in
India and among the top six passenger vehicle manufacturers in terms of units sold in
India during Fiscal 2015.
They operate six principal automotive manufacturing facilities in India: at Jamshedpur
in the state of Jharkhand, at Pune in the state of Maharashtra, at Lucknow in the state
of Uttar Pradesh, at Pantnagar in the state of Uttarakhand, Sanand in the state of
Gujarat and at Dharwad in the state of Karnataka. They also operate three principal
automotive manufacturing facilities in the United Kingdom through our Jaguar Land
Rover business: at Solihull and Castle Bromwich in the West Midlands and at
Halewood in Liverpool. Jaguar Land Rover also manufactures its models in India
(in the Pune plant) and China with its joint venture partner, Chery Automobile
Company Ltd. Their Jaguar Land Rover business also includes an engine
manufacturing centre at Wolverhampton in the West Midlands, where, in Fiscal 2015,
it began to build the new family of Ingenium engines. Jaguar Land Rover also has two
advanced design and engineering facilities located at Pune, India, Whitley in Coventry
and at Gaydon in South Warwickshire, United Kingdom.

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Tata Motors produce a wide range of automotive products, including:

▪ Passenger Cars: Our range of Tata brand passenger cars include the Nano, a
micro, the Indica, the Vista, the Zest and the Bolt, which are compacts and the
Indigo eCS and the Manza, which are mid-sized, in the sedan category. We have
expanded our passenger car range with several variants and fuel options
designed to suit various customer preferences. Our Jaguar Land Rover brands
have an established presence in the premium passenger car category under the
Jaguar brand name. There are four car lines currently manufactured under the
Jaguar brand name, including the F-TYPE two-seater sports car coupe and
convertible (including all-wheel drive derivatives) the XF sedan (including the
Sportbrake and all-wheel drive derivatives), the XJ saloon, and the new XE
sports saloon, which commenced sales in May 2015.

▪ Utility Vehicles: We manufacture a range of Tata brand utility vehicles,

including the Sumo and the Safari, which are SUVs, the Xenon XT, a lifestyle
pickup, the Tata Aria, a crossover, and the Venture, a multipurpose utility
vehicle. We offer two variants of the Safari: the Dicor and the Storme. We also
offer a variant of the Sumo, the Sumo Gold, and launched the new Movus in
May 2014, which is an entry level UV. There are six car lines under the brands
of Range Rover and Land Rover in the premium all-terrain vehicles categories:
the Range Rover, Range Rover Sport, including the Range Rover Sport SVR,

10
 the Range Rover Evoque (available in 5-door and coupe versions), Land Rover
Discovery, including the Discovery 4 which features 7-seat capacity, the
Discovery Sport and the Defender, which will cease production in Fiscal 2016.

▪ Light Commercial Vehicles: We manufacture a variety of light commercial

vehicles, including pickup trucks and small commercial vehicles. This includes
the Tata Ace, India’s first indigenously developed mini-truck, with a 0.75 ton
payload with different fuel options, the Super Ace, with a 1-ton payload, the
Ace Zip, with a 0.6 ton payload, including a CNG variant launched in Fiscal
2015, the Magic and the Magic Iris, including an electric variant, both of which
are passenger variants for commercial transportation developed on the Tata Ace
platform, and the Winger. In addition, we introduced a new generation of Ultra
LCV trucks, including the Ultra narrow cab, in Fiscal 2015. We also offer the
City Ride and Starbus ranges of buses.

▪ Medium and Heavy Commercial Vehicles: We manufacture a variety of

medium and heavy commercial vehicles, which include trucks, tractors, buses,
tippers, and multi-axled vehicles, with GVWs (including payload) of between 8
tons and 49 tons. In addition, through Tata Daewoo Commercial Vehicles Co.
Ltd., or TDCV, we manufacture a wide array of trucks ranging from 215
horsepower to 560 horsepower, including dump trucks, tractor-trailers, mixers
and cargo vehicles. Our Prima line of trucks is aimed at its customers in India
and South Korea, and we have extended the Prima line by offering Prima LX
and multi-axle truck variants. We expect to gradually export our Prima products
to other countries such as South Africa, Russia, the other South Asian
Association for Regional Cooperation countries, the Middle East and various
countries in Africa. We also offer a range of buses, which includes the Divo
Coach, the Semi Deluxe Starbus Ultra Contract Bus and the new Starbus Ultra.

▪ Defence vehicles: Tata Group company whose relationship with India’s defence
and security forces is synonymous with that of the group is Tata Motors. India’s
largest automobile company (subsidiaries include Jaguar Land Rover), with
consolidated revenues of almost $35 billion in 2012-13, is strategically moving
from the logistics vehicle segment into the combat vehicle segment.

11
Market & Competitors:
Major Competitors:
● Honda
● Hyundai
● Maruti Suzuki
● Ashok Leyland
● Toyota

Tata Motors Market Share:

12
Tata Motor’s Transformation Model:

13
Manufacturing facility capabilities:

• Digital simulation and virtual planning

• Facility planning, installation and start up
• Development of jigs and fixtures
Digital tools to support such work are used, in particular:
• Delmia Quest (facility planning) -
14
Creation of conceptual layouts and simulations of throughput to establish capacity
constraints and process bottlenecks, based on initial volumes and estimated cycle
times
• Delmia DPE (process development) -
Process sequence creation - inputs of DMU
MBOM Output - developed from assigning EBOM to the process sequence
Process sheet creation
Prototype build and product manufacture capabilities
• Press panel feasibility
• Body In White (BIW) part sub assembly and BIW body assembly
• Paint technology
• Trim and final assembly techniques
• Powertrain manufacture
• Launch management
• Manufacturing leadership and management

Tata Motors' Testing Facilities :

Pune - India's first full vehicle crash test facility, capable of conducting all types of
frontal, side and rear impact tests. The facility is accredited by TUV (European
certification agency), as per European for conducting test as per European standards.

15
India's only pedestrian test facility capable of conducting all types of pedestrian tests.
Asia's first semi-anechoic chamber is based out of Tata Motors, Pune. The facility
provides accurate noise measurements of vehicles simulated under various speed and
road load conditions, in order to study the acoustic behaviour of vehicles and identify
noise sources.
India's only full vehicle climate test facility from small car to intercity bus. BSR
(Buzz, Squeak and Rattle) testing, to improve interior noise of vehicles, helping in
improvement of engine insulation, refinements in power train, body and suspension
design. Steering Robot to apply inputs to a vehicle's steering system for testing
transient handling behaviour on the test track, or for evaluating the steering system
itself, allowing wide range of steering inputs.
The Full Environment Test Facility (FVETF) provides year-round capability to carry
out vehicle development work from -40 to +56 degrees Celsius with humidity, solar,
wind speed and road load simulation. The Suspension Parameter Measuring Machine
(SPMM) measures the suspension characteristics that are used to define a vehicle's
ride and handling performance, helping an engineer to quantitatively understand the
various suspension parameters directly or indirectly influencing customers' perception
of the vehicle capabilities.

Automotive Industry Supply Chain:

Automobile companies have a complex supply chain. The automobile supply chains
can be broadly classified into - Direct Material Suppliers (auto components fitted on

16
vehicle) and Indirect Material Suppliers (consumables such as paint, pre-treatment
chemicals gases, etc. used in the manufacturing process as well as other materials
required for supporting processes).

The other key component of the automobile value chain includes sales & marketing
and after sales service to ensure a superior customer experience through dealers and
service touch points.

We engage with our channel partners as well as suppliers very closely. We believe
partnering with our suppliers and dealers for sharing knowledge and developing
capacity, will add to our cost efficiency and ensure an enhanced customer experience.

Tata Motor’s Supply Chain :

The general framework of Tata Motor's supply chain consists of tier 1, 2 and 3
suppliers and original equipment manufacturers (OEMs) representing the suppliers;
the design group, engine and transmission OEMs along with the assembly plant(s)
representing the automaker itself; and the third party dealers, representing the
distribution network. This is similar to the traditional automobile supply chain designs
of GM or Toyota.
17
For the Automotive organisation, 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 for manufacture some parts,
design, technology etc. TML mainly divide its component into two different types:
proprietary design and Tata Motors design. For proprietary design sector, TML use
established suppliers such as Bosch who supplies engine management system whereas
for in-house parts and system design TML choose supplier with strong process
capabilities who can give valuable suggestions as well as improve the designs. TML
use multiple source for their supply side as they have started work with 600 suppliers
and total 1800 supplier part combinations which were dropped down to 100 suppliers.
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.

Supply Chain Flow:

18
19
Primary activities:

Inbound Logistics:
● Long term contract with service provider’s – transporters and agents.
● Personnel at regional offices for overseeing the smooth transit of goods.
● Transparency and monitoring through deployment of IT – all transactions
through SAP.
● DTL (daily transport logistics) supplies for critical high value items.
● Efficient storage facilities – easy storage and retrieval.

Outbound Logistics:
● Stockyards, all across the country.
● Long term contracts with transporters – higher volume of business to
transporters ensures competitive price.
● Regional Sales Office and Vehicle Dispatch Section linked through SAP.
● Efficient security system for prevention of any kind of pilferage.

Support activities:
● E procurement initiative.
● Global Sourcing Team – China like tires, power steering units etc.
● Long term relationships with a stable and loyal pool of suppliers.
● Technology driven procurement – SAP.
● Group resources – Tata Steel and Tata International.
● Localized supplier base at mfg. locations – low inventory levels.

20
Value Chain Engagement:
With the launch of Tata Motors Integrated Supplier Quality Manual, the supply quality
process is further strengthened. The manual provides a common 16 step process to
ensure that TML requirements are complied with by all partners and highest quality
standards are achieved. TML have also established vendor councils in 4
regions-North, South, East and West of India. These councils provide a platform for
top level management and suppliers to interact. Periodic vendor meets are also held at
every location to communicate on key issues like supply schedules, quality and vendor
ratings.

21
Local Sourcing:
Procurement is a strategic function to help improve profitability. Our seven
manufacturing plants across India source material from hubs located in north, west and
south of the country and hence promote the local industry and community. To establish
the supply chain base at green-field locations, vendor parks were set up at Sanand and
Pantnagar. All these steps have resulted in the growth of the local economy, promote
local procurement, reduce logistic complexities and have minimized packaging and
transportation. In FY 2016-17, our manufacturing plants sourced 50.88% of materials
and services by suppliers based within the state where our plants are located.

22
Value System Of Tata Motors:

23
Environment of Supply chain – Tata Motors Ltd
Sourcing is very important and critical function for Tata Motors. Different agencies
participate during the entire product life cycle.  It starts as early as early vendor
introduction when the product is in concept stage. Strategically important sources with
a potential of developing relationship into strategic alliances are finalized during this
step. Quantum of outsourcing work and nature of technology to be developed decides
the corresponding development agency. After which specific nodal agency is
responsible for development of parts and aggregates till the product is brought to the
level of regular procurement. Further, on the nature parts/aggregate, either central
materials agency or the sourcing group attached to the respective factory (where the
part will be consumed) will initiate the process for regular procurement. 
Quality assurance plays an important role of establishing quality of new parts
developed. It also keeps vigilance for maintaining consistency in regular suppliers.
Cost is an important parameter of our business model. In recent past, Macro level
parameters such as commodity prices, oil prices, fluctuations in foreign exchange rates
and slacking domestic demand has resulted into tremendous pressure on product
costing as it is very difficult to TML to pass it to end customer. The matter of cost
increase or decrease is addressed by a separate agency that initiate and settle cost
saving activities. E sourcing tool is effectively used to reduce cost of procurement.
Tooling division provides necessary tooling as per the policy and planning done by
project planning team. Sourcing team co-ordinates with these different internal
agencies to smoothly execute the project and meet the project time lines. If insisted by
suppliers, productivity improvement cell plays an important role of helping vendors
for improving productivity by special task force, which works at supplier’s locations.
At appropriate phase, respective sourcing agency co-ordinates for fulfilling on field
spare part requirements, both local and overseas. Similarly a centralised import cell
co-ordinate all import related activates.

24
Tata’s distribution strategy?
(Direct to dealer or hub-and-stockyard approach?)

With geographically dispersed manufacturing bases, a comprehensive, diverse and

rapidly growing product range and an ever-widening network, it is essential for Tata
Motors to have a varied distribution strategy for its products. As we have one of the
widest ranges of products in the industry, our strategy revolves around balancing
service between factors like lead-time and inventory, demand patterns, order quantity
and frequency.

Passenger cars and utility vehicles (UVs) are billed directly from the plants and
transported to dealers directly, except for those moved through ‘transit warehouses’,
which are moved by milkrun to dealers (see box on p20).

Most heavy-and medium-sized commercial vehicles are routed through state

warehouses across the country called regional stockyards (RSOs), from which the
vehicles are billed to the dealers. This provides flexibility in the supply chain,
facilitates shorter lead times in order fulfilment and rationalises dealer inventory.
Small commercial vehicles (SCVs), such as the Ace and Magic family, are also billed
directly from the Pantnagar and Dharwad plants to dealers, except for a small portion
routed through RSOs.

25
Tata strategy of moving trucks on specialised trailers:
Tata Motors was the first to initiate this project in India in 2009. While at that time it
did not pick up the desired momentum, the company is switching the movement of
chassis on specialised carriers in a phased manner.
Tata has a very aggressive plan to use this mode of transport, however capacity
constraints at body builders could mean it will take another two years to shift the
entire volume on these trailers.

Light, medium and heavy commercial vehicles are traditionally moved by ‘own
power’ in India. This means that by the time a customer gets the ‘new’ vehicle it has
driven several hundred kilometres or more depending upon the distance between the
plant and distribution centre. Although all these vehicles go through the rigorous
process of checking and PDI at each stage, the customer still doesn’t get the feeling of
a brand new vehicle when he looks at the odometer showing 1,000km or so. But the
emerging trend is now to transport commercial vehicles through customised trailers.
This will not only improve the quality of the vehicle at the time of delivery, but also
ensure less congestion on roads and less pollution. There is also a shortage of skilled
and experienced drivers at the same time that demand for skilled drivers has gone up
substantially. This mode of chassis transportation will help contain the shortage to a
certain extent.

26
Tata motor’s Balanced Network:
TMLD was established in 2008. Since then, the company has taken over vehicle
logistics operations for passenger cars and soon after commercial vehicles at Tata
plants in Pune, in the state of Maharashtra. Later it took over outbound operations at
plants in Pantnagar, Uttarakhand; Sanand, Gujarat and, in March 2012, Dharwad,
Karnataka. Tata’s plants in Jamshedpur and Lucknow will be next, while TMLD also
plans to take over end-to-end distribution of exports, as well as distribution of spare
parts.

Along with outbound logistics operations at these plants, TMLD also manages
invoicing and yard management operations at Tata’s 23 commercial vehicle stockyards
across India, and four ‘transit warehouses’ for the passenger car business.

The latter are common stockyards for various dealers, from which vehicles are moved
for final delivery on demand. Besides helping to improve operational efficiency,
[transit warehouses] have also helped in reducing physical inventory at dealerships.

Tata now loads vehicles from plants in Pune, Sanand and Pantnagar, from where they
are sent on selected routes including to Guwahati, Hyderabad, Bangalore, Salem and
Chennai. While Verma admits there are more empty backhauls in eastern India since it
lacks factories, Tata has recently started using more rail to the region, including to
Kolkata and Bhubaneswar.

27
Is there a need for rail transport?
Capacity constraints and a lack of priority for the auto segment have confined the
movement of vehicles by the railways to some specific routes only, with a low share
compared to advanced economies. TMLD sees movement by rail more as a strategic
decision than a mere operational one.

The railways score very high on parameters such as reduced transit time and damages.
While unmatched by other modes in these areas, it needs to improve on many other
fronts to become the most efficient way of transportation. Other than its lack of
capacity for vehicles, the railways lack parking spaces with proper loading facilities,
and suffer from poor lead times and goods safety issues.

Tata Track and Trace:

Tata has thus developed a tracking system, called Portal, available to all supply chain
stakeholders including Tata’s dispatch team, dealers and logistics providers, allowing
each to plan according to the current status of vehicles in the supply chain. The system
provides a dashboard view with updated information on when exactly releases and
pickups occurred, trailers that are en route, expected delivery times and any delays or
disruptions. The system also includes information on the processing status of a
carrier’s invoice and any reasons for deductions.

Tata’s ERP system sends data and release information on invoiced vehicles to the
Portal. Once a carrier picks up the vehicle, it must update the system manually at key
stages of the journey, including reporting any delays. TMDL has currently decided to
maintain a manual system rather than use a satellite method such as GPS to track
location, in part for security reasons.

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Tata motors Logistics in Covid-19 situation:

Tata Motors rely on third parties for sourcing raw materials, parts and components
used in the manufacture of our products. Their ability to supply components to
manufacturing operations at the required time is key to achieving production
schedules. Further, in order to optimise market performance, our global sales and
service channels must be aligned with the consumer demand through the appropriate
mix of advanced and traditional methods.

Failure to deliver sales due to retailer capacity, poor service or capability will lead to
uncompetitiveness within particular markets. The COVID-19 pandemic has led to
significant disruptions in the supply chain and our distributors, dealers and retailers.
These disruptions, if not managed, could have an adverse effect on production volume,
sales, revenue, profitability, customer satisfaction and brand reputation.

Faced with declining sales figures and global political uncertainties and introduction
of emission norms in the Indian market, the on-going COVID-19 pandemic has added
to the challenges faced by the OEMs. The challenges brought in by the COVID-19
includes disruption of supply chain management, shut down of manufacturing units,
Liquidity issues, further decline in sales figures. Digital retail of cars, parts and
services, safety norms and personal hygiene, technology enabled working environment
away from normal office boundaries are few of the new normal which would emerge
from these challenging times and would change the course of business in coming
times. Auto manufacturers across the globe are establishing workforce safety
protocols, creating contingency plans and cash flow management, setting up quick
response teams, teams to focus on supply chain assessment and risk management.
Companies are maintaining stakeholder confidence and informing customers who will
be impacted, including providing financial flexibility and support to the entire
ecosystem of dealers, suppliers and customers.

29
TATA Motors on Post COVID World:

Over the past three months, our nation has been locked in a fierce battle with the
COVID-19 pandemic – a crisis that has changed the way businesses run and people
live. Several countries, including ours, have imposed nationwide lockdowns to
circumvent the pandemic and the process has dealt a crushing blow to many
professions and industries. In fact, several individuals, small business owners are
amongst the worst hit in such testing times as they move back to their native places to
avoid any further economic repercussions.

While the pandemic has brought a big chunk of people on their knees, it also sprouts
buds of opportunity to get back up and redefine the way things worked. Certain
sectors, like logistics, offer a slew of opportunities in the post-COVID India. One such
opportunity that’s yet to be fully explored to its true potential is that of last-mile
delivery. The dynamic nature of this role makes it a vital component of the supply
chain across industries. Today, many businesses are working towards integrating
seamless logistics solutions to ensure uninterrupted supply of products across the
country, and the rise of this demand provide a much needed silver lining for several
ingenious entrepreneurs.

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Protective Packaging For Vehicles:

New car in a bubble wrap? Tata Motors going extra mile to ensure safety Tata Motors
has taken initiative to deliver new cars inside a bubble, completely sanitized, before
handing over to owners. This initiative by TATA motors was taking during the crises
of COVID-19 and desires to continue the same policy of packaging further for better
customer satisfaction and product safety. The products include, air purifier, air filter
and sanitization kits. The air purifier can be easily fitted in the cup holder slot of all
Tata cars. The air filter on the other hand can be installed in the Nexon and the Harrier
as of now. Sanitization kit includes hand sanitizer, N95 masks, hand gloves, safety
touch key, tissue box, mist diffuser among others. This strategy and movement by tata
motors surely got attention from its consumers.
Another step which was taken previously by tata motors was the Tata Motors Ltd has
initiated actions to minimize the consumption of flexible plastic packaging in its
operations, the company said in its 2018-19 (Apr-Mar) annual report. The company
reduced plastic packaging used for dispatch of auto parts between plants and
warehouses. It is now working on sensitizing its suppliers towards reduction of plastic
packaging.
Tata Motors is also converting expendable (single-use) plastic packaging to returnable
(multiple-use) packaging, where possible, it said. The company employees saved more
than 1,100,000 m2 of plastics going to the environment, the report said. Among other
environment related initiatives, the company commenced ‘Value from Hazardous
Waste’ – an initiative across its plants during the reporting period. The initiative which
aims for ‘Zero Waste to Landfill’ status diverted hazardous waste from landfill /
incineration at approved sites to derive value from it.

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Conclusion:

Supply chain management has been defined as the "design, planning, execution,
control, and monitoring of supply chain activities with the objective of creating net
value, building a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance
The automobile industry is a pillar of the global economy, a main driver of
macro-economic growth and stability and technological advancement in both
developing and developed countries, spanning many adjacent industries.
In this study, we have taken India's leading automobile manufacturer, Tata Motors
Limit (TML) for analysing Supply Chain Management in Automobile Industry and
found out the following.
Tata Motors Limited products are sold and serviced through a network of authorized
dealers and service centres across the domestic market, and a network of distributors a.
local dealers in international markets.
The company monitors the performance of its dealers and distributors and provides
them with support to enable them to perform to the expectations. Any
under-performance by the dealers or distributors could adversely affect TML's sales
and results of operations.
The company relies on third parties to supply raw materials, parts and components
used in the manufacture of products. Furthermore, for some of these parts and
components, the company is dependent on a single source.
The company's ability to procure supplies in a cost effective and timely manner is
subject to various factors, some of which are not within its control. While the company
manages its supply chain as part of the vendor management process, any significant
problems with supply chain in the future could affect the results of operations.
Impact of natural disasters and man-made accidents, adverse economic conditions,
decline in automobile demand, lack of access to sufficient financing arrangements,

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could have a negative financial impact on the Company's suppliers and distributors, in
turn impairing timely availability of components, or increases in costs of components.
In managing a complex supply chain, the Company has developed close relationships
with both direct and indirect suppliers.
The Company continues to develop long-term strategic relationships with suppliers to
support the development of parts, technology and production facilities

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References:
1. https://www.tatamotors.com/investors/annual-reports/
2. https://www.tatamotors.com/about-us/company-profile/
3. https://www.thehindu.com/business/coronavirus-threat-tata-motors-eyes-alternative-supply-c
hain/article30803501.ece
4. Strategies for High Volume Supply Chains in India by Don J. Palathinkal
5. Textbook of Logistics and Supply Chain Management - Book by D. K. Agrawal
6. https://en.wikipedia.org/wiki/Tata_Motors#Tata_Motors_Cars
7. https://www.essay48.com/value-chain-analysis/15495-Tata-Motors-Ltd-Value-Chain-Analysis
8. Christopher Ludwig talks to Prem Verma interview
9. http://tatacars.blogspot.com/2008/01/tata-nano-oem-supplier-relationship.html

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