Supply Chain Management in the Automotive Industry

Guide Name Present By

Miss. Mona Ma’am Narendra Singh Rathore
 CONTENT

 INTRODUCTION
 HISTORY AND HERITAGE
 ORGANISATIONS THOUGHT
 PRODUCTS
 OBJECTIVE
 SUPPLY CHAIN MAGEMENT ADVANTAGE
 SUPPLY CHAIN MAGEMENT GOALS
 ROLE OF PURCHASE DEPARTMENT
 COMPANY PROFILE

Force Motors Limited is the part of the Dr. Abhay Firodia Group of companies, one of India's
Industrial houses focusing exclusively in the automotive domain. The company introduced
brands to India such as Tempo, Matador and Traveller.

Force Motors is a fully, vertically integrated automobile company, with expertise in design,
development and manufacture of the full spectrum of automotive components, aggregates and
vehicles. 
Its range includes Small Commercial Vehicles, Multi-Utility Vehicles (MUV), Light Commercial
Vehicles (LCV), Sports Utility Vehicles (SUV) and Agricultural Tractors. So no matter what the
need be. Force has a solution to offer.
 
Force provides appropriate solutions for transport - both goods as well as passenger - rugged,
reliable and efficient transport solutions for every need- Rural or urban, long distance or local,
over good roads or bad tracks.
 
The company continues in the founder's vision of providing efficient, utilitarian vehicles that
empower the individual entrepreneur to meet his and the country's ever changing needs.
HISTORY AND HERITAGE
 ORGANISATION’S THOUGHT AND PROCESS

 Design Inspiration – Endeavour to focus on each customer's requirements and deliver accordingly. R&D canter
is equipped with most advanced CAD center and computer engineering environment .The centre with its well
equipped computer engineering environment, gives us an ample opportunities to develop novel product designs
for most modern vehicles.

 Engineering Expertise – The new range of products has been fully engineered and developed in-house by
experts at the Force Motors ' R&D center which is considered to be among the most advanced in the country. The
engines designed by force motors are fully checked for emission and fuel emission and fuel efficiency. An
elaborate and state-of-the-art tool room with the latest high-precision and versatile machines for manufacturing
is created solely for proficient engine.

 Evolving Utility – Focus on the utility of products and evolve with the times to deliver the unsurpassed. Force
Motor have a formidable product range in all segments - from Small Commercial Vehicles, Multi-Utility Vehicles
and Light Commercial Vehicles to agricultural tractors, showcase some innovative and exclusive products
appropriately custom designed for the discerning Indian as well as the international market.

  Performance Driven - committed to cultivating a performance-driven culture that rewards results. Developed
great expertise in design, development and manufacturing of automobiles with the help of global partners.
 As a fully vertically integrated and complete automobile company, focus on high quality, utility and
technology through superior product design, production engineering, hi-tech manufacturing and
innovative marketing.
 PRODUCTS

Force Motors manufactures a range of vehicles

including Small Commercial Vehicles (SCV), Light
Commercial Vehicles (LCV) MUM Utility Vehicles
(MUV), Special Cross Country Vehicles and Agricultural
tractors.
 OBJECTIVE

The main goal of the company is to produce a Force Motor branded vehicle. The process of making the a

vehicle is very complex and completed in various steps and various departments namely the Engine
Assembly Dept, Rear Axle Dept, Front-Axle Dept, Body Assembly Dept and Paint Shop.

 In any Automobile Industry there are ample quantities of different hardware which are used daily by
different departments. The Purchase Department looks after all the various hardware which is required in
the final product and the hardware which is used in the production of the final product also.
 All the parts used in the production of the vehicles are also not made in the same industry. Such parts are

needed to be purchased from other various vendors. Purchase of such parts is also the look out of
Purchase Department.
 Purchase Department thus needs to be on its toes to see that all the parts required in the production are

available every time so that the production never stops.
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 Supply Chain Management - Advantages

Develop better customer relations service.

Create better delivery mechanisms for products and
service in demand with minimum delay.
Improve productivity and business functions.
Minimizes warehouse and transportation cost.
Minimizes direct cost and indirect cost.
Assist in achieving shipping of right products to the
right place at the right time.
 Supply Chain Management -Goals

Minimization of SCM is very essential especially

when there are economic uncertain in companies
regarding their wish to conserve capital.
Cost efficient and cheep products are necessary ,but
supply chain manager need to concentrate on value
creation for their customers.
Exceeding the customers expectations on a regular
basis is the best way to satisfy them.
Value chain & Value System of Force Motors
 ROLE OF PURCHASE DEPARTMENT

Supply Sourcing :One of the main roles of the purchasing department is to source supplies and parts, and then purchases them. Purchasing

departments may use trade publications to source suppliers, or go straight to the manufacturer. Finding the correct item at the correct price can
be difficult, and purchasing departments may also work to assist suppliers in manufacturing the item needed. This can involve providing
considerable assistance to the supplier.
Bidding :For items needed in bulk, or specialist items, purchasing departments often use competitive bidding to chose a supplier. The department

will then be responsible for all aspects of the bidding process. For example, when the purchasing department of the Port of Houston chooses a
supplier, it publishes a public notice, writes detailed instructions on the bidding process, accepts companies onto the approved list of bidders,
handles bid security money, opens and reads the bids publicly and makes a recommendation on which bid to accept.
Supplier Management: In addition to finding supplies and negotiating contracts for the supplies, purchasing departments are also responsible

for monitoring the supplier's performance. Purchasing departments must evaluate the supplier's performance and quality control. This can
include monitoring delivery times, quality, cost and performance. For suppliers in other countries, this can also mean monitoring working
conditions and workers rights. Large firms and public organizations often certify suppliers once they are shown to meet performance targets. This
may involve a training and education program, and detailed inspection of suppliers.
Cost Control : Purchasing departments, especially in government agencies, may also be responsible for maintaining strict cost control. This can be done
by increasing delivery size, paying on time , ordering online and making sure suppliers use the best practice.
Legal Controls : Purchasing departments must also be aware of the laws applying to purchasing. For private companies, this is primarily contract law, but

for government bodies, there may be state and federal laws regulating purchasing.

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 ROLE OF PURCHASE DEPARTMENT

  OPERATING EQUIPEMENT/DIRECT PURCHASE :This department of purchase is concerned

with the purchase of materials which will be directly used in the final product.
  GENERAL PURCHASE/ INDIRECT PURCHASE :
 The focus of this department of purchase is the purchase of those materials which will be
used indirectly in the manufacturing of the final product. These materials are not sold
with the final product either, but these materials rather help in easy, smooth and fast
manufacturing of the final product. These types can be further distinguished in two types
 Capax (Capital Item):- These is the types of material which are one time buy for a long
term. Example like a computer system.
 Revenue: - These type of material is general material, spares, consumable material &
these type also consist all the service charges labour charges are all included in it.