Date post: | 25-Jan-2017 |
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Automotive |
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Auto IndustryUnresolved Conflicts
Copyright © 2015 Vector Consulting Group. All rights reserved.
A typical company in the auto industry deals with following chronic conflicts
But at same time suffer from frequent stock outs
Dealers frequently complain of high FG stocks
(30 to 60 days)
despite having excess capacity
Plants struggle with high overtime
at month end
Copyright © 2015 Vector Consulting Group. All rights reserved.
Copyright © 2015 Vector Consulting Group. All rights reserved.
Manufacturing ends up producing what sales do not want immediately.
Despite all kinds of project control
systems and reviews, most
projects of NPD are grossly
delayed.
Assembly plants are continually
rescheduled despite having
parts inventory for about 20 to 30 days in plant
and vendor warehouses.
?
Copyright © 2015 Vector Consulting Group. All rights reserved.
Some organizations in Indian auto sector have resolved the chronic conflicts and created a harmonious supply chain where demand and supply is synchronized almost perfectly.
Case Studies1. Fleetguard Filters Pvt. Ltd.
2. JK Fenner (India) Ltd.
3. Lucas TVS
Copyright © 2015 Vector Consulting Group. All rights reserved.
Fleetguard Filters Pvt. Ltd.Leader in manufacturing and distribution of automotive filters to commercial vehicle segment.
Part of the Cummins group and over 400 SKUs, it is a major supplier to renowned OEMs. The Company has an extensive pan-India presence through its 125+ distributors and 20000+ retailers.
Fleetguard Filters has implemented TOC company wide to achieve significant improvements in financial and operational results.
In the 5 years of engagement with Vector, the sales have
Increased 4 times and profit 8 times.
Copyright © 2015 Vector Consulting Group. All rights reserved.
ResultsFleetguard Filters Pvt. Ltd.
15%The growth
is inspite of the commercial vehicles
industry growing at about
CAGR.
100%It
provides near
availability to its OEMs
The new product
development is half the previous lead times. The
output of the new product development has increased 5 times
in last 3 years.
Copyright © 2015 Vector Consulting Group. All rights reserved.
With five manufacturing facilities in Tamil Nadu and Andhra Pradesh and an undisputed market leader in Power Transmission Products, it exports to over 50 countries and is progressing towards a stronger global presence.
JK Fenner (India) Ltd.J K Fenner manufactures Industrial and Automotive V-Belts, Oil seals, Engineering Products providing total Mechanical Power Transmission and Sealing Solutions. It’s name is synonymous with transmitting mechanical power, in vehicles and industries.
Copyright © 2015 Vector Consulting Group. All rights reserved.
ResultsJK Fenner (India) Ltd.
Industrial & Automotive Belts
34%increase in the bottleneck
operation leading to increase in average
plant output
Sales & ProfitsThe above actions
has led to significant increase in both topline
and bottomline YOY in Q1 2015-16
23%Oilseals
increase in the bottleneckoperation leading toincrease in average
plant output
Copyright © 2015 Vector Consulting Group. All rights reserved.
Established in 1930, Lucas Indian Service (LIS) is aftermarket arm of Lucas TVS. It manufactures and/or distributes a wide range of auto parts including auto electricals, fuel injection equipment, ignition coils, solenoid switches, Lamps, horns and automotive batteries.
Lucas TVSLucas TVS a joint venture between Lucas (UK)and TVS (India )to manufacture Automotive Electrical Systems is the Leader in Auto Electricals design and manufacturing.
Copyright © 2015 Vector Consulting Group. All rights reserved.
Same-day order fill rate has improved from
50% to 80%
Sales from regular
dealers converted as TOC distributors are growing
by an avg.
45%(when compared Apr Vs
Aug of 13 Vs 14)
Overall inventory has
reduced by
25%
ResultsLucas TVS Ltd.