Report on Supply Chain Management in Pak Suzuki Motor

Company Ltd.

Group MembersSheraz Khamisani (52887)Summaya Masood (52917)Muhammad Irfan Boota (53123)Waqas Imtiaz Ahmed (53000)Zeeshan Latif (52999)

Vision :

Excellence in all respects.

Mission to realize this vision is :

• To provide automobile of international quality at competitive price.To improve skills of valued employees via training inculcating them in the sense of participation.• To achieve maximum indigenization and promote Pakistan`s automobile vending industry.• To make valuable contribution to social development of Pakistan thorough development of industry in general and automobile industry in particular.

Suzuki has the only OEM in Pakistan, which deals in 7 different models.

• Suzuki Mehran (800 cc)

• Suzuki Alto(1000 cc)

• Suzuki Cultus(1000 cc)

• Suzuki Swift (1300 cc)

• Suzuki Liana Rxi (1300 cc)

• Suzuki Bolan (800 cc)

• Suzuki Ravi (800 cc)

Competitions

ScheduleFollow upCosting

Legends

RECIEPT OF PRICE NEGOTIATION

FORM OR PRICE REVISION REQUEST

COST ASSESSMENT(on the basis of

drawing, CKD sample, Vendor part)

PRICE NEGOTIATIONRINGI FOR

MANAGEMENT APPROVAL

ISSUANCE OF DEVELOPMENT P.O OR PRICE

REVISION LETTER

ISSUANCE OF TRIAL

SCHEDULE (new order only)

ISSUANCE OF REGULAR

SCHEDULE (new order only)

ISSUANCE OF REPEAT P.O (on

completion of Development Order Qty.)

ISSUANCE OF REPEAT P.O

(EVERY YEAR)

RECEIPT OF SCHEDULE

CONFIRMATION FROM VENDOR.

ADVANCE FOLLOW UP3-DAYS FOR KARACHI

BASED5- DAYS FOR OUT

STATION VENDORS

CHECK FOR ACTUAL ACTUAL

ARRIVAL OF DELIVERIES

AGAINST SCHEDULE

FOLLOW UP WITH DELAYED VENDORS

ARRANGEMENT OF PARTS URGENTLY

REQUIRED FOR PRODUCTION

CHECK FOR SHORTFALLS

AGAINST SCHEDULE DURING THE MONTH

ISSUANCE OF DELIVERY

PERFORMANCE REPORT TO VENDORS

VENDOR EVALUATION (on

monthly basis)

REVIEW SAFETY STOCK LEVEL

(as & when required)

ISSUANCE OF ADDITIONAL

SCHEDULE AGAINST LAST MONTH SHORT FALL

COUNTERMEASURES FOR BAD

PERFORMING VENDORS

Supply Chain Division

•LPP(Local Parts Purchasing)

•TMC(Tariff Monitoring & Control)

•IPP(Import Parts Purchasing)

• IP&O(Inventory Planning and Ordering)

• GP(General Purchasing)

LPP(Local Parts Purchasing)

• Filtering suppliers.• 250 vendors in 2008.• Currently 112 Vendors(25 in Karachi, Rest Upcountry).

Quality Measurements• Pricing• Management Skills• Quality• Market Credibility

Standard Processing time for supplier selection is One Month.

LPP(Local Parts Purchasing) Contd..

Regular/Periodic Activities

Receipt of schedule confirmation. Advance follow up by 3 & 5 days for local and upcountry vendors respectively. Check actual arrival against schedule. Follow up with delayed vendors Arrangement of parts urgently required by Production Dept. Coordinate with Production Dept.

TMC(Tariff Monitoring & Control)

• Monitors Prices• Designs Tariff Plan according to the Costs and Projected Profits.• Make sure appropriate profits are earned.

IPP(Import Parts Purchasing)

Receipt of schedule confirmation. Check actual arrival against schedule. Follow up with delayed vendors Arrangement of parts urgently required by Production Dept. Coordinate with Production Dept. Lead Time 4 Months Approx. Maintain CKD Stock status of vendors. Maintain stock status of importing parts by vendors.

IPP(Import Parts Purchasing)

Port of Discharge: Port Qasim 99% Cargo, 1% Air Freight.

Logistic Partners

IPP(Import Parts Purchasing)

Clearing Partners

•Shakoor & Brothers.

•Express Services.

IP&O(Inventory Planning and Ordering)

• Forecast of required inventory levels. • Planning and making sure inventory levels are achieved.• Proper Ordering according to forecast

GP(General Purchasing)

Admin Procurement

• Office Supplies• Stationary• General Items• Computers• Packaging Material• Paint• Photo Copiers

Plant Procurement

• Machinery• Equipments

Capital Procurement

• Land• Shades• Yards• Warehouses

Organizational Chart

Sr.Mgr 1

Mgr 1

DM 4AM 8JE 4Total Officers 18Grand Total 23

Officers 18PWs 0JCWs 5Grand Total 23

Sectional HeadSyed Ahmed Abbas

Naqvi

PG-5Anis Ahmed Khan Aftab Awan

PG-1

Anita Ashfaq Lodhi

Sarfaraz Ahmed

PG-2Mustafa Siddiqui

Muhammad Abid Zia

Total 0 1 1 4

Departmental Head Sectional Head

PG-4Muhammad

Zubair

Sectional Head

LPP

M.Imran Afghani

Sectional Head

Salman Shahid

Departmental TotalJunior ExecutiveAsst. Manager

Syed Arsalan Ahmed

M.Amir Shakeel

Sufyan

Faizan Ahmed

Sectional Head

PG-3Anila Sajid

8 4

Uzair Ahmed

Sr.GM/GM/SGM Senior Manager Manager Deputy Manager

Tanzeem Sarwar

LPP

Syed Hamid Ali

Divisional Head Director Deputy Managing Director Managing DirectorDate Date Date Date

ERP Implementation• Operation Management• Production Planning• Supply Chain Division• Warehousing

Advantages of ERP

• Better scheduling and control .

• Effective delivery order.

• No mistake in required documents.

• Effective application of FIFO.

• Better control on supply over delivery order quantity.

• Easy handling of received materials in standard packing with Part Tag

Targets

Zero Production Loss

Problematic Vendors improvement

Suzuki Production Office