SUPPLY CHAIN MANAGEMENT OF

ASHOK LEYLAND

Presented By:
Diksha(2018pbm5247)
Anushka
Pragati
Ankit
Anish
 Ashok Leyland is an Indian automobile manufacturing
company based in Chennai, India. Founded in 1948,
and it is the second largest commercial vehicle
manufacturers of commercial vehicles, such as trucks
and buses, as well as emergency and military vehicles.
 Operating six plants, Ashok Leyland also makes spare
parts and engines for industrial and marine
applications. It sells about 60,000 vehicles and about
7,000 engines annually. It is the second largest
commercial vehicle company in India in the medium
and heavy commercial vehicle (M&HCV) segment
with a market share of 35%.
 Ashok Leyland was founded in 1948 by Raghunandan
Saran, a freedom fighter from Punjab. Thus Ashok
Motors was incorporated in 1948 as a company to
assemble and manufacture Austin cars from England.
 In 1949, an agreement was reached between Ashok
Motors & Leyland, UK and Ashok Motors got sole
rights to import, assemble and progressively
manufacture Leyland trucks for seven years.
 In 1990, Ashok Leyland was First Indian auto
company to receive ISO 9002 certification.
 In 2007, the Hinduja Group also bought out 51%
shares of Ashok Leyland. Today the company is the
flagship of the Hinduja Group.
Ashok Leyland, flagship of the Hinduja group, is the 2nd
largest manufacturer of commercial vehicles in India, the 4th
largest manufacturer of buses in the world, and the 10th largest
manufacturers of trucks.
A US $ 4.2 billion (2018-19) company, and a footprint that
extends across 50 countries, we are one of the most fully-
integrated manufacturing companies this side of the globe.
The Company’s wide-spread customer base is served through
an all-India sales and service network, supplemented by close to
3000 touch points.
People, Planet and Profit for all stakeholders especially our
customers is at the core of Ashok Leyland which resonates with
our Philosophy of ‘AAPKI JEET, HAMARI JEET’.
 Inter-City Ecomet 912
Deluxe Bus

Titan Tusker
Double Decker Twin Axle Lorry
bus
 Manufacturing Units
 India:
Ennore, Tamil nadu in North Chennai [estb. 1948] – Trucks,
Buses, Engines, Axles etc.
Hosur, Tamil nadu in Krishnagiri District - [estb.-1980] -Has Two
plants adjacent for Trucks, Special Vehicles and Power Units.
Alwar, Rajasthan – [estb.-1982] - Bus Manufacturing Unit
Bandara, Maharashtra – [estb.-1982] – Gearbox Unit
Pantnagar, Uttarakhand – [etsb.-2010] – 75,000 annual
capacity greenfield Unit for new generation Platforms and
Cabs.
Sengadu, Kanchipuram District in Tamil Nadu - [etsb.-2008] -
Technical and Production facility for Ashok Leyland Defence
Systems.
 Manufacturing Units
 Europe
Sherburn-in-Elmet, Great Britain – Optare Bus.
Letnany in Prague, Czech – Avia plant.
 Middle East
Ras Al Khaimah, UAE – estb. 2011 – Bus manufacturing
facility – Joint Venture between Ashok Leyland and Ras Al
Khaimah Investment Authority (RAKIA) in UAE
 Technical Centre
Ashok Leyland's Technical Centre, at Vellivoyalchavadi (VVC)
in the outskirts of North Chennai near Minjur, is a state-of-
the-art product development facility, that apart from modern test
tracks and component test labs, also houses India's one and only
Six Poster testing equipment.
 Lanka Ashok Leyland
-Lanka Ashok Leyland (LAL) in Sri Lanka was formed in
1982 and started its operations in 1983 as a Joint venture
between Lanka Leyland Ltd and Ashok Leyland Ltd India.
LAL imports commercial vehicles in both knock down kits or
fully built and carry out assembly operations, repair and
service, body building on chassis.
 Avia
-In October 2006, Ashok Leyland bought a large stake in
the Czech based-Avia, later renaming as Avia Ashok
Leyland Motors, to gain entry into the competitive
European market.
 Optare
-In 2010 Ashok Leyland acquired a 26% stake in the
British bus manufacturer Optare, a company based on the
premises of a former British Leyland subsidiary C.H. Roe.
In December 2011 Ashok Leyland increased its stake in
Optare to 75.1%.
A capable, agile and responsive supply chain is critical for our
business as we source more than 70% of the components for
our vehicles from our suppliers. Our relationship with
suppliers is very critical in meeting our market requirements. It
is the responsibility of our Sourcing and Supply Chain function
to evolve sourcing strategies aligned to our corporate vision,
manage a competitive global supply base and set up inbound
logistics for all manufacturing locations in India.
The function is divided into domains based on technology,
namely Proprietary, Sheet Metal, Non Metallic, Castings,
Forgings, Fasteners & Bar-machining, Steel and Corporate
Logistics. It operates from its offices in Chennai, Gurgaon, Ras
al-Khaimah and Shanghai.
Our key focus areas are:
Partnering with best-in-class suppliers
Conducting rigorous evaluation
Objective measurement and monitoring of supplier
performance based on Quality, Cost, Logistics, Development and
Management (QCLDM)
Inculcating TQM culture and driving continuous improvement
Engagement with suppliers for capability improvement through
various initiatives
Joint development of parts
Deciding share of business on the basis of performance
Optimizing supplies in coordination with third party logistics
(3PL) providers
The Supplier management process involves engaging suppliers
and exchanging real time information with them. This is enabled
through our web portals:
Supplier Performance Dashboard: Launched in Feb’15, the
Supplier Performance Dashboard gives the latest data on
individual supplier’s performance on Quality and Delivery
parameters. Each supplier can view their performance on a
daily/monthly basis and take necessary measures to improve the
performance.
Supplier Relationship Management (SRM): Launched in May ’11
the SRM portal enables bi-directional exchange of information,
facilitating better material planning for suppliers and Ashok
Leyland.
The revamp of the out-bound supply chain h a d the twin objectives
of the customer satisfaction a n d reducing finished goods
inventories”. Discuss how Ashok Leyland re- engineered its out-
bound supply chain.
• The promise was that the age of vehicle when delivered wouldbe
maximum 90 days.
• Tight pipeline inventory norms were set for differentmodels and
markets and were met through a new three tierdistribution network.
• In the new structure , Plant sales yards acted as national pools to holdrare
models and excess of regional requirements.
• To understand customer needs and assimilate the knowledge, AL
adopted “4P” programme.
> Probe , Prioritize, Plan and Position.
• The CFT’s worked towards continuous improvement in the products
and marketing.
• AL also built a “ Marketing Information System ( MIS )” to monitor
the trends an forecast demand from input dealers an field
executives.
 Ashok Leyland with an aim to reduce costs
improved the in-bound supply chain through
several important strategic revamping
measures. Explain.
 To reduce costs and to improve the in-bound supply
chain take following outline:
 In 1999 Ashok Leyland launched project OSCARS (
Optimizing supply chain and Rationalizing Sourcing).
The basic initiatives of OSCARS was:
 * Single Window System
 The Strategic Sourcing and Corporate Quality
Engineering (CQE) teams jointly formed the single window
vendor management agency, bringing with them
specialized commercial and technical knowledge.
 For the suppliers, this had created a convenient
single-point contact with AL, for sharing drawings, for
negotiating prices and long- term business volumes, and
for assistance and consultancy on quality to management
issues.