LOGISTICS AND SUPPLY CHAIN MANAGEMENT OF

Hero MotoCorp

MINI PROJECT DONE AS PART OF THE LOGISTICS AND SUPPLY CHAIN MANAGEMENT

SUBMITTED TO: BRIG (DR) RAJ KUMAR PROGRAMME DIRECTOR-SMS/SENIOR PROFESSOR SMS, JNTUK.

SUBMITTED BY: M.Vishnu Sri Harsha 11021E0120

Page | 1

INDEX

Page no

1. Introduction 2. Company profile 3. Manufacturing Process 4. Supply chain management 5. Conclusion 6. Bibliography

3 4 6 7 9 9

INTRODUCTION
Page | 2

Supply Chain Management practices may be defined as a set of activities undertaken to promote effective and efficient management of supply chains .These include supplier partnership, physical movement of goods, meeting customer demands and information sharing throughout the supply chain. Some of the key logistics and SCM practices that impact performance are related to estimation of customer needs, efficient and effective delivery, integration and collaboration throughout the supply chain, sharing of information and vision using Information Technology as well as informal methods and use of specialists for performing specific jobs across the supply chain. All of these practices impact logistics and supply chain performance of companies. The supply chain management in automobile sector plays pivotal role in managing cost and efficiency. The two wheelers sector supply chain is much more critical in nature, as customers are spread across the nation and managing the reach of supply chain into rural and semi-urban locations is challenging for two wheelers manufacturer. A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable

HERO MOTO CROP

Company Profile
Page | 3

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two wheelers, based in India. In 2001, the Company achieved the coveted position of being the largest two-wheeler manufacturing Company in India and also, the World No.1 two-wheeler Company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till date. Registered and corporate office - 34, Community Centre, BasantLok , VasantVihar , New Delhi
Zonal and regional office North Zonal office Regional office New Delhi Chandigarh , dehradun , jaipur , lucknow , varanasi South zone Bangalore Chennai , cochin , Coimbatore , hubli , Hyderabad , vijayawada East zone Kolkata Bhubaneswar, Ranchi ,Patna West zone pune Baroda , Bhopal , Mumbai , Nagpur , Raipur , Rajkot

Manufacturing plant
Hero Honda bikes are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar, in the hill state of Uttarakhand Total no of employee- 6106

Vision & Mission Vision The story began with a simple vision the vision of a mobile and an empowered India, powered by its bikes. Hero MotoCorp Ltd., companys new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding companys footprint in the global arena. Mission Hero MotoCorps mission is to become a global enterprise fulfilling its customers needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The Company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners Hero Group aspires to deliver the best and the most cost-effective products & solutions empowered by superior technologies. The Group is committed to ensure value for money by developing high-quality, environment-friendly and efficient solutions that fulfill the diverse needs of customers.
Page | 4

At Hero Motors, we are committed to give our best and achieve the highest standards in Performance, Quality, Systems, Care and Relationships. And then we want to beat these high standards and go furtherbecause anything that can be done, can be done better. -PankajMunjal- Managing Director, Hero Motors Ltd. The Hero Group has been evolving with the passage of time. The best quality and competitive prices of the products have empowered the group to have an edge over its competitors and win the trust of the customs. With local stocking and logistical hubs in all the main markets, the Group is in a position to cater to the needs of the customers from around the world. Customized service part as well as customized documentation has enabled it to efficiently meet the diverse needs of the customers. Effective use of skilled labor and cutting-edge technologies has resulted in the unprecedented growth of the Group. Keeping abreast of the trends in the automotive industry and the changing needs of the customers, Hero Group is continuously launching innovative products in the market. The Group is advancing, building long-term relationship with the clients and expanding its business empire. Product of the company
NEW Product Launches 2011-12 Launched Impulse the first Hero branded bikes an entirely new segment in the Indian two-wheeler market, the off-road on-road segment. Moreover the Company launched a new 110cc scooter Maestro, further strengthening its steadily growing presence in the gearless scooter segment. The Company also launched Ignitor a thrilling new 125cc bike.

Market Share of the company (Last 3 years)

2009-10 Two wheeler industry Motorcycle segment Scooter segment 48% 59% Nil 2010-11 44.5% 54.6% 15.5% 2011-12 45% 56% 17%

MANUFACTURING PROCESS

Raw materials
Page | 5

Raw material is procured from various vendors which are 117 in number. These vendors provide them all the necessary components starting from a nut or bolt to large parts as well. The companies which provide them with the various parts are: LUCAS Industries TVS Fasteners Ltd MRF Tyres LUMAX, A .G. Industries Private Limited Munjal Showa Limited Sunbeam Auto Limited Rockman Industries Limited Satyam Auto Components Limited Highway Industries Limited

Control policy of HERO MOTOCORP LTD

Consistently meet specified environmental performance criterion among the participants of the supply chain.
Page | 6

 Ensures more consistent corporate environmental behavior among all players in the chain of products and services. Greener production is leaner production-do more with less. Increases market acceptability and reach. Reduces all round liability & long-term risk. Improves inventory control. Reduces packaging costs and improves recycling & reuse. Improves status with regulatory agencies. Improves public relations and corporate image Improves supplier relations and productivity.

Supply chain Management

Role of SCM
From the viewpoint of a manufacturing or distribution company, Supply Chain Management can be thought of as the Pull of raw materials or products into a company from suppliers and Vendor Compliance as the Push of manufactured finished goods or products to customers who then sell to consumers. The goal of supply chain management is to bring the most efficiency to the movement of goods. Having all vendors operate in the same manner, utilizing standards such as barcode labels and EDI (Electronic Data Interchange), helps to a huge extent in keeping costs down. The customer, supplier and consumer all benefit from supply chain management. The costs saved by the customer can translate to lower retail prices, ensuring suppliers products are selling off and more money can be spent on opening retail locations. This increases the sales by the consumer and thus purchases by the customer of the supplier's goods.

Page | 7

Page | 8

CONCLUSION
Supply chain management in automobile industry is always challenging in vast country like India, the two wheelers companies not exception to this. Hero Honda Auto companies are making innovative ways to reach rural India with their supply chains. Both the companies are practicing Lean manufacturing, vendors management, JIT system and out sourcing of logistic operations, which are prominent supply chain practices in the world. Still these companies can innovate their supply chains to reach all segments of Indian customers.

REFERENCES
www.heromotocorp.com
http://www.scribd.com/

Page | 9