EXECUTIVE PROJECT SUMMARY

The following executive summary provides an overview of the inventory

management project implemented at Maruti Suzuki India Limited, highlighting its
objectives, key findings, and recommended actions. The project aimed to optimize
inventory levels, enhance operational efficiency, and reduce costs within the
organization's supply chain.

Objective: The primary objective of the inventory management project at Maruti

Suzuki India Limited was to streamline the inventory management process to ensure
optimal inventory levels, reduce stock-outs, minimize holding costs, and improve
overall supply chain performance.

Key Findings:

1. Demand Forecasting: Through extensive analysis and data-driven forecasting

techniques, the project identified opportunities to improve demand
forecasting accuracy. By leveraging historical data, market trends, and
customer insights, the company can enhance its ability to predict demand
patterns, resulting in better inventory planning and reduced stock-outs.
2. Supplier Relationship Management: The project highlighted the importance of
strengthening relationships with suppliers. Establishing collaborative
partnerships, sharing demand forecasts, and implementing vendor-managed
inventory systems can help ensure timely delivery, reduce lead times, and
optimize inventory levels.
3. Inventory Optimization: By implementing advanced inventory optimization
techniques, including safety stock analysis, economic order quantity
calculations, and just-in-time inventory management, Maruti Suzuki India
Limited can minimize excess inventory while maintaining adequate stock
levels to meet customer demand.
4. Technology Integration: The project recommended the integration of modern
inventory management technologies, such as inventory management
software, data analytics tools, and supply chain automation systems. This
integration can enhance visibility, tracking, and monitoring capabilities,
enabling real-time inventory management and facilitating informed decision-
making
Recommended Actions

1. Develop and implement an improved demand forecasting methodology that

incorporates historical data, market insights, and customer feedback.
2. Strengthen supplier relationships by fostering collaboration, sharing demand
forecasts, and exploring vendor-managed inventory arrangements.
3. Utilize advanced inventory optimization techniques to identify optimal safety
stock levels, economic order quantities, and replenishment strategies
4. Invest in inventory management technologies to enhance visibility,
automation, and data-driven decision-making capabilities within the supply
chain
5. Establish key performance indicators (KPIs) and regularly monitor inventory
metrics such as inventory turnover, stock-out rates, and carrying costs to track
progress and identify areas for continuous improvement

Conclusion: The inventory management project at Maruti Suzuki India Limited

provides a comprehensive roadmap for optimizing inventory levels, enhancing
operational efficiency, and reducing costs. By implementing the recommended
actions, Maruti Suzuki can improve customer satisfaction, reduce stock-outs, and
achieve a leaner and more efficient supply chain. Successful execution of these
strategies will position the company for long-term growth and competitive
advantage in the automotive industry