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Tata Motors

Tata Motors sources automobile parts from suppliers for its manufacturing. It divides components into proprietary design parts, for which it uses established suppliers like Bosch, and parts for its own in-house designs. Its supply chain includes three tiers - first tier suppliers provide completed modules, second tier suppliers provide parts for first tier modules, and third tier suppliers provide raw materials. Tata Motors follows a "pull" strategy where it spends on advertising to build consumer demand, as seen when popular vehicles like the Sumo and Ace were introduced with no direct competitors.

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Laxmi Priya
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843 views11 pages

Tata Motors

Tata Motors sources automobile parts from suppliers for its manufacturing. It divides components into proprietary design parts, for which it uses established suppliers like Bosch, and parts for its own in-house designs. Its supply chain includes three tiers - first tier suppliers provide completed modules, second tier suppliers provide parts for first tier modules, and third tier suppliers provide raw materials. Tata Motors follows a "pull" strategy where it spends on advertising to build consumer demand, as seen when popular vehicles like the Sumo and Ace were introduced with no direct competitors.

Uploaded by

Laxmi Priya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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TATA MOTORS

o SUPPLY CHAIN ANALYSIS


o LOCATION OF PUSH/ PULL BOUNDARY
SUPPLY CHAIN ANALYSIS
– TATA MOTORS
 For the Automotive organization, the main products provided by their
suppliers are different automobile parts such as radiators, heat
exchangers, seating system, gear boxes etc., raw materials like
steel, iron, plastic required for manufacture some parts, design,
technology etc.

 TML mainly divide its component into two different types:

o Proprietary Design and

o Tata Motors Design


 For proprietary design sector, TML use
Proprietary
Design established suppliers such as Bosch who
supplies engine management system

 whereas for in-house parts and system


TATA Motors design TML choose supplier with strong
Design
process capabilities who can give
valuable suggestions as well as improve
the designs.
Tata Motor’s Supply Chain
Structure
Supply Chain in automotive production may include components or
modules suppliers (Tier 1 - 3), OEMs (car manufacturers),
distributors, dealers (retailers).

Hierarchical network of suppliers is divided generally into 3 levels:


- 1st tier suppliers
- 2nd tier suppliers
- Tier 3 suppliers
1st tier suppliers

 are global located world producers of completed modules (e.g.


dashboard, engine, seating etc.) with own manufacturing or assembly
capacities establish mainly near to automakers plant considering to
logistics way in condition of just-in-sequence or just-in-time delivery
specifications;

 they are incorporated into the OEMs product development projects and
innovation process - this means that they make their own engineering
decisions and designing solutions with establishing local engineering or
development centre.
2nd tier suppliers

 Tier 1 suppliers have their own 2nd tier suppliers who procured parts for
these modules (assembly units, e.g. welded framework of seating); they
are the companies with own production or assembly plants establish
near to 1-Tier suppliers (global or regional players).
Tier 3 suppliers

 are raw material producers and companies of manufacturing capacities


for small simple parts and individual components (e.g. plastic parts,
metal parts, aluminium parts), which fulfil mainly quality and volume
conditions of 2-Tier suppliers, some delivers for 1-Tier suppliers (e.g.
coiled sheet).
DETERMINE PUSH/ PULL
BOUNDARIES

 Push Strategy: A”PUSH” strategy make use of a company’s sales force


and trade promotion activities to Create Consumer Demand for a
product.

 Pull Strategy: A “PULL” strategy is one that requires high spending on


advertising and consumer promotion to build up consumer demand for a
product
Example:

 Tata motors follows the “customer pull strategy”. For example when
they have introduced TATA - SUMO in the year 1994, there is no 8+1
seating cars in luxury cars segments, except some public transportation
jeeps. Tata - sumo has been big success, when they have introduced
TATA - Ace, there is no other light commercial goods transportation
vehicle, except some old generation three wheeler Bajaj vehicles. As an
improvement to TATA - Ace, they introduced Tata-magic for public
transportation for semi-urban and rural areas.
THANK YOU

By:
LAKSHMI PRIYA
MBA 5th Module
Roll No.: 1853364

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