Report on

Supply Chain
Management
of Pak Suzuki
Motor Pvt
Ltd.

A Project
Conducted By
Students Of
Supply Chain
Management.
 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

April 25

SCM
Report 2011
Submitted to Mr Asad Nizamani

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 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

Contents
Group Members.........................................................................................................................6

SUPPLY CHAIN RIVER AND LADDER................................................................................................7

Sourcing raw material:................................................................................................................7

PROCESS OF SUPPLY CHAIN MANAGEMENT..............................................................................7

Vendors (Supplier) Network.......................................................................................................8

SECTIONS / FUNCTIONS OF IPP DEPARTMENT...........................................................................9

REGULAR / PERIODIC ACTIVITIES............................................................................................9

TARGETS.................................................................................................................................9

OPERATIONS SECTION..............................................................................................................10

REGULAR / PERIODIC ACTIVITIES..........................................................................................10

Cost Down:...........................................................................................................................11

System Improvement:..........................................................................................................11

OTHER RELATED INFORMATION OF IPP DEPARTMENT............................................................12

MODE OF PAYMENT:............................................................................................................12

MODE OF SHIPMENT:...........................................................................................................12

PORT OF DISCHARGE:...........................................................................................................12

Major Shipping Line:.............................................................................................................12

Clearing & Forwarding Agent:...............................................................................................13

Inland Transporter:...............................................................................................................13

Insurance Company:.............................................................................................................13

REGULAR / PERIODIC ACTIVITIES..............................................................................................13

MAIN OBJECTIVES.....................................................................................................................14

DEPARTMENTAL FUNCTIONS....................................................................................................14

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 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

REGULAR / PERIODIC ACTIVITIES..........................................................................................14

COSTING...............................................................................................................................15

Price revision........................................................................................................................16

SCHEDULING SECTION..............................................................................................................16

REGULAR/PERIODICAL ACTIVITIES........................................................................................16

TARGETS...............................................................................................................................17

FUNCTIONS OF GP DEPARTMENT.............................................................................................19

Plant Procurement................................................................................................................19

Administrative Procurement.................................................................................................19

Vendor Consolidation...............................................................................................................20

COST CONTROL.....................................................................................................................20

Advantages of single source.................................................................................................20

Advantages of multiple source.............................................................................................21

SWOT analysis with reference to supply chain.........................................................................22

Push versus pull........................................................................................................................23

• JIT objective......................................................................................................................23

Planning process through ERP..................................................................................................24

Advantages of ERP................................................................................................................24

FLOW OF MANAFACTURING PROCESS.....................................................................................25

PRESS SHOP..........................................................................................................................25

WELDING SHOP.....................................................................................................................25

Paint shop.............................................................................................................................25

VFA...........................................................................................................................................26

Material Handling Department (MHD).....................................................................................28

Integrates Management System (IMS) Coordinator.................................................................29

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 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

ISSUANCE OF PARTS TO OTHER DEPARTMENT.........................................................................29

SUPPLY OF PARTS TO PRODUCTION LINE.................................................................................30

CRITICAL PARTS.........................................................................................................................30

STORAGE AREAS.......................................................................................................................31

MAJOR PROBLEMS FACES BY MHD...........................................................................................31

RETENTION PERIOD..................................................................................................................32

MATERIAL HANDLING CUSTOMERS:.....................................................................................32

MATERIAL HANDLING FACILITIES..........................................................................................32

GARBAGE DISPOSAL..............................................................................................................32

SAFETY......................................................................................................................................33

Safety Manuals.....................................................................................................................33

SHUT DOWN ACTIVITIES...........................................................................................................34

Dealer (Customer) Network......................................................................................................34

Government Regulation:..........................................................................................................35

Law and order situation:...........................................................................................................35

Recommendations....................................................................................................................36

SCM Process Definition:............................................................................................................36

MRP System:.............................................................................................................................36

Alternate Vendors’ Pool:...........................................................................................................36

Develop Vendors Society:.........................................................................................................36

Market Intelligence:..................................................................................................................37

The E-Supply Chain...................................................................................................................37

Conclusion................................................................................................................................38

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 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

Group Members

1. Muhammad Irfan Boota (53123)

2. Sheraz Khamisani (52887)

3. Summaya Masood (52917)

4. Waqas Imtiaz Ahmed (53000)

5. Zeeshan Latif (52999)

SUPPLY CHAIN RIVER AND LADDER

Sourcing raw material:
Paksuzuki sourcing raw material from different countries like, Japan, Korea , Thailand
but most of the components are source from Japan SMC i.e. Suzuki motor company.

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 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

Further more Paksuzuki importing components from SMC Japan as CKD that means
(completely knock down) it is complete assembly imported from Japan and KD as buffer.

There are three department they involving for procuring components from vendor that
are as follows.

1. IPP (imports part purchasing)

2. LPP (local parts purchasing)

3. GP (general purchasing)

PROCESS OF SUPPLY CHAIN MANAGEMENT

• Demand planning and forecasting

• Procurement

• Manufacturing and assembly

• Distribution

• Return

Vendors (Supplier) Network

• Pak Suzuki has played an impetus role in the engineering sector by promoting
and encouraging the downstream vendor industries in the private sector.

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• Currently there are about 143 local vendors for difference parts whereas there
are more than 10 foreign suppliers for some major components.

IPP

• Deals in Procurement of Components (CKD, KD, Spares), CNG Cylinders, Raw

Materials (Steel Sheet, Plastic Resins, CED Paint), PMEs and their Spares from
foreign sources

• LPP

• (Deals in Procurement of locally developed Components from local Vendors)

• GP

• (Deals in Procurement of Plant Consumables (Paint, Industrial Gases,

Lubricants, etc.), PMEs and their Spares, Administrative Procurement
(Computers, Mobile Phone, Stationery, etc.) from local suppliers.

Objective of IPP department

• TO ENSURE CONTINUOUS SUPPLY OF ALL THE IMPORTED INPUTS TO

THE END USER TO KEEP RUNNING THE PRODUCTION WITHOUT ANY
INTERRUPTION, WHICH ENSURES THAT:

• THE RIGHT MATERIALS ARE AVAILABLE

• AT THE RIGHT PLACE

• AT THE RIGHTTIME

• THE RIGHT QUANTITY & QUALITY AND

• AT THE COMPETITIVE COST.

SECTIONS / FUNCTIONS OF IPP DEPARTMENT

 Planning

 Operations

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 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

 Exports

PLANNING SECTION

REGULAR / PERIODIC ACTIVITIES

 Inventory Planning

 Ordering

 L/C, DP Contracting

 Price Negotiation

PLANNING SECTION

TARGETS
 Inventory Control:

 To Maintain the Inventories at the desired optimum levels.

 Improvement in Supply Chain:

 Lead Time Reduction

 Increase the No. of Shipments

 Consolidation of Shipments

 Thailand : Head Lamps, Plastic Resins

 Italy: CNG Cylinders

OPERATIONS SECTION

REGULAR / PERIODIC ACTIVITIES

 Shipment Monitoring & Control

 Customs Clearance

 In-Bound Logistics

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 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

 Insurance

 Marine Insurance

 Motor Insurance

 Fire & Allied Insurance

 Miscellaneous Insurance

 Custom Matters

 Legal Matters (Customs)

 Interaction with Different Govt. Agencies for;

 Import / Export Policies

 Proposals for Trade Policy (Coordination with PAMA)

 Coordination with Ministry of Commerce and EDB

 Coordination with FBR in respect of Custom Laws and import /

export related notifications and rules.

Payment through TT Remittance

OPERATIONS SECTION

Cost Down:
 Custom duty

 Chemical & Consumable

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 CKD Cargoes

 Insurance cost

 Premium on all insurance policies

 Premium on container transit policy

 Freight cost

 To switch over from C&F to FOB other than CKD cargoes

System Improvement:
 Shipment Monitoring & Control Procedures

 Switch over from Manual Database system to AS 400 system

 Customs Clearance

 Reduction of Custom Clearance Time from 5 days to 3 days

 To build good relationship with Custom Officials for

improvement in Custom related activities.

OTHER RELATED INFORMATION OF IPP DEPARTMENT

MODE OF PAYMENT:
• LETTER OF CREDIT

• DP CONTRACT

• T/T REMITTANCE

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MODE OF SHIPMENT:
• By Sea

• By Air

PORT OF DISCHARGE:
• Port Qasim ( 99% cargo comes at Port Qasim)

• Karachi Port

OTHER RELATED INFORMATION OF IPP DEPARTMENT

Major Shipping Line:

• MAERSK LINE

• NYK

Clearing & Forwarding Agent:

• EXPRESS SERVICES

• A. SHAKOOR BROTHERS

Inland Transporter:
• AL HAMMAS FREIGHT LINER

Insurance Company:
• EFU GENERAL INSURANCE

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EXPORTS SECTION

REGULAR / PERIODIC ACTIVITIES

 Commercial Exports

 Spare Parts Exports

 SF410 In-house assembled parts to MSC, Hungary.

 SB308 & RA410 In-house assembled parts to SMC, Japan.

 CBU Exports

 ST 308R & RH 413 Lxi to Uttara Motors, Bangladesh

 Export of Hardware for CNG Fitments

 To Myanmar, Burma.

 Non-Commercial Exports

 Returnable Racks Export

 To SMC-Japan.

 Duty Draw Back

 On Export of Imported parts

 CBU

Spare Parts

MAIN OBJECTIVES
Arranging components from vendors at competitive prices , in right quantity and
at right time

Order local components at competitive prices & look out for all possible ways to
reduce cost of vendorized parts

DEPARTMENTAL FUNCTIONS
 Costing & Cost control

 Scheduling

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 Parts Follow up

COSTING SECTION

REGULAR / PERIODIC ACTIVITIES

 Cost assessment of new developing parts.

 Re-assessment of cost of developed parts for

Price revision.

COSTING
 Cost assessment of new developing parts.

(activity)

• Landed Cost

• FOB

• Material cost

• Labor cost

• Tooling cost

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• Over Heads

• Transportation cost

• Financial Cost

• Profit margin

• Price negotiation

 Re-assessment of cost of developed parts for

Price revision.
(activity)

• Landed Cost

• FOB

• Material cost

• Labor cost

• Tooling cost

• Over Heads

• Transportation cost

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• Financial Cost

• Profit margin

SCHEDULING SECTION

REGULAR/PERIODICAL ACTIVITIES
 Issuance of LOI.

 Issuance of schedule against short supplies.

 Issuance of Price Revision Letter.

 Issuance of Trial/Mass production schedule.

 Issuance of Monthly schedule.

Issuance of additional schedule

SCHEDULING SECTION

TARGETS
 Stock Reduction

 Sending Monthly Schedules Electronically

 Ensuring all supplies in defined (returnable) packing mode.

 Data consolidation & management for Pre ERP activities

 Standardization of packing mode for multi source components

SCHEDULING SECTION

Stock reduction.

(Target)

. ABC INVENTORY TECHNIQUE

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• High value items

• Medium value items

• Low value items

2. Safety Stock

3. Increase in no. of Deliveries

4. Day wise schedule

SCHEDULING SECTION

. Elimination of manual work.

6. To update vendors profile timely.

7. To update item master timely.

8. To update schedule master before issuance of schedule.

9. Define packing quantity before issuance of schedule.

PARTS FOLLOW UP

REGULAR /PERIODICAL 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.

 Maintain CKD Stock status of vendors.

 Maintain stock status of imported parts by vendors.

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FOLLOW UP

TARGETS

 FTP (First Time Pass)

 Zero Production Loss

 In- Time Supply

 Improvement of Problematic Vendors

FUNCTIONS OF GP DEPARTMENT
• Planning

• Ordering

• Follow Up

• Price Negotiation

• Market Sourcing

Plant Procurement
 Paint & Allied Materials

 Consumables

 Packaging Materials

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 PMEs Spares

Administrative Procurement
 Computer Peripherals

 Mobile Phones

 Stationery items

 Janitorial items

 Capital Procurement

 PMEs

Computer, Printers, Scanners

Vendor Consolidation
(Target)

COST CONTROL
• Elimination of Bad performing vendors

• Merger of sister concerns & uni - group companies under one name

• To efficiently manage Vendorized procurement through minimum in qty & better

in performance vendors

• Creating chain of Tier-2 vendors to make the procurement cycle efficient

Advantages of single source

• Only those vendors whose quality and services are outstanding.

• In time deliveries

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• 100% PPM level

• Opportunity for discounts

• Lower freight cost

• Concession on other products even quantity is no issue.

• Easier to schedule deliveries. lot size, delivery date,packing,etc)

• Reducing inventory & stockless buying.

Less risk in case of rejection.

Advantages of multiple source.

• Always in bargaining position.

• Lot of options resulting cost saving.

• Good quality.

• Availability will not be an issue.

• Abnormal volume requirement not an issue.

• Lot of market info. Through multiple suppliers.

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SWOT analysis with reference to supply chain

Strengths

Production capacity

Large vendor industry

Market goodwill

Weaknesses

Warehousing

Forecast Methods

Quality

Opportunities

ERP

R&D Computerization

Threats

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Competitors

Innovations

Variables

JIT stockless buying advantages

Push versus pull

• Push system: material is pushed into downstream workstations regardless of
weather resources are available.

• Pull system: material is pulled to a workstation just as it is needed.

INVENTORY

• Traditional : inventory exists in case problems arise.

• JIT objective: eliminate inventory

• JIT requires

• Small lot sizes

• Slow setup time

• Containers for fixed numbers of parts

• JIT inventory: minimum inventory to keep system running

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Lower inventory reduces waste

• Work in progress inventory level (hides problems).

• Unreliable vendors.

• Scrap.

• Capacity imbalances

• Lowering inventory reduces waste

• Reducing inventory reveals problems so they can be solved

Planning process through ERP

Local parts purchasing department (LPP):

Lpp sent delivery order to vendors which is monthly basis and also known as firm
orders, delivery order contains order quantity, delivery dates, packing size,
minimum lot size, and starting date.

Ordering process through ERP in PSMCL

Lpp issue delivery order and part tags to vender, delivery order shows all DI’s slip
detail and part tags to vender through e-mail and vender is liable to paste part
tags and delivery instruction letter along with supplier in order to generate GRINS
(goods receivable inspection notes).

DI’s and part tags explores all the relevant information about location, quantity.

Advantages of ERP
• Better scheduling and control .

• Effective delivery order through DI Slip & Part Tag.

• No mistake in required documents for making GIRN.

• Effective application of FIFO.

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• Better control on supply over delivery order quantity.

Easy handling of received materials in standard packing with Part Tag

Production planning, shop floor planning & capacity planning

Production planning of all production models under specified

time frame by considering the factors such as plant capacity,

manpower, available working time,e.t.c

Yearly activity plan

Departmental head of production control prepares YEARLY

ACITVITY PLAN in consultation with all the sectional heads

of the department and takes approval from divisional head.

In the yearly plan, the basic activities of production control are

described. Additional assignments from management, other

than the basic jobs stated in the yearly plan, are performed

as when required.

FLOW OF MANAFACTURING PROCESS

As long as welding shop enters DPP into the system, version and

color is allocated to each chassis number into the system, which has

to be followed by the all concern shops.

PRESS SHOP manufactures sheet metal parts as per WPP.

WELDING SHOP records cowl-ok (chassis number punching

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status) and WB-OK (transfer of body shells from white body line)

into the system. After that the bodies are transferred to paint shop.

WB-OK is treated as production of press and welding shop.

Paint shop records PB-ON (loading of white body shells from

welding shop) and PB-OK (transfer of painted body shells to VFA)

into the system. PB-OK is treated as production of paint shop

VFA records AB-on (loading of painted body shells i.e., PBS on

conveyor), AB-OF (off-loading vehicles from conveyer) and AB-OK

(transfer of OK vehicles to tester line) into the system. AB-OK is

treated as production of VFA, E&T,MHD and plastic shops.

Engine & Transmission (E&T) shop and plastic shop synchronizes

their production with VFA production using information received from

AB-ON.

• E & T shop uses WPP to produce engine number into the

system. it records, EG-OF (off loading of engines from

conveyor) ,EG-OK (OFF-loading of OK engines after firing test line)

and EG-TRF (transfer of engine to VFA) into the system.

• PLASTIC SHOP uses the information of AB-ON and transfer

the required sub-assemblies to VFA lines for smooth production.

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• MHD keeps close keeps close liaison with LPP (local parts

purchasing) ,IPP and production control .it uses WPP as well as

DPP to supply parts on all production lines in all departments for

smooth flow of production

• VID records FC-ON, (entrance of vehicle on tester line) and FC-OK

(reporting as complete OK vehicle) into the system.

• PRODUCTION MONITORING & REPORTING

• loading sequence report

• monthly standard takt time report

• color wise & version wise takt time report

• color wise & version-wise production follow up

• monthly reports

• monthly activity report

• CKD stock position

• Production division manpower status

• PRODUCTION LOSS ANALYSIS REPORT

Planning section take information from ANDON system to prepare

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and maintain the summarized production loss analysis report, which

describes the reasons of production losses during the whole month.

• MONTHLY ATTENDENCE RESULTS

Planning section collects the daily attendance results from all

departments of production division and compiled these results in

daily plant attendance report.

• MONTHLY PRODUCTION RESULTS

Planning section prepares the monthly production results report for

review of DMD. this report includes production results of AB-OK &

FC-OK, reasons of

Material Handling Department (MHD)

FUNCTIONS

• Receiving

• Storage

• Supply to the Production Line

RESPONSIBILITIES

• Head of Department

Head of department is responsible for monitoring / supervising overall operations of

Material Handling Department .

• Section In-charge

Section In-charges of department are responsible for conducting smooth production

operation. He is responsible for carrying out all activities in respect of safety, quality,
productivity and resolve administrative affair.

• Shift In-charge

Shift In-charge is responsible for shift production and to resolve abnormalities related to
production.

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RESPONSIBILITIES

• Department Coordinators

Integrates Management System (IMS) Coordinator

IMS Coordinator of department is responsible for conducting all concerned departmental
activities according to IMS

Quality Coordinator

Quality coordinator assures and co-ordinate the production of desired quality process.

Safety Coordinator

Safety Coordinator is responsible for conducting all departmental activities and operation
in safe and healthy working environment

Kaizen Coordinator:

Kaizen coordinator of department is responsible for achieving kaizen targets of shop and
motivate worker for it.

ISSUANCE OF PARTS TO OTHER DEPARTMENT

1. The MHD receives requisition called TV (Transfer Voucher) from the demanding
Department. Then after checking of stock level it approves to deliver the parts.

2. The same TV goes to the CKD receiving section for adjustment of stocks.

3. All delivered parts compiled in the end of the month to place the order for
replenishment of stock.

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SUPPLY OF PARTS TO PRODUCTION LINE

1. Material Handling department ensure FIFO (first in first out) of the parts.

2. The shop wise staff have deployed for the supply of parts.

3. Material Handling Department has the separate staff for the supply of Local parts
and the CKD parts for each shop.

4. Parts wise distribution has done amongst the workers so that every body knows
which vehicle and line part he has to supply.

5. There are specified and general trolleys have been designed in order to carry
more parts in less time.

6. Parts filled in trolleys & bin at un-boxing area and then push it to the desired
place.

7. Bins system also introduces by MHD for small parts either it is local or CKD.

8. Waste generated during un-boxing properly disposed off in trolleys by workers of

MH department.

CRITICAL PARTS
The Local parts which are not sufficiently present in the stock, or in other words their
stock is going to be empty in one or two days (depend on their need) are subjected as
Critical Parts.

• Each and every day the list of Critical parts made by the MHD and
then sends to the concern departments such as: PID (Parts
inspection department), VPS (Vendor parts supply).

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• It is done in order to ensure the proper supply from the vendors

This list depends upon the Vendor also either it is the vicinity of
Karachi or outside Karachi.

• There are some parts that get received every day because the
vendor is quite stable they can give us daily supply and secondly
these parts are in big size and acquire a lot of space that’s why we
do not put them in Critical List.

• The Up Country vendors take more time to supply their parts,

that’s why their stock level taken more than the Karachi vendors.

STORAGE AREAS
• The storage areas are properly defined to allow orderly and safely storage for
various categories of parts such as CKD, KD and Local parts.

• The storage areas of all the respected shops have been defined.

• The CKD and Local parts have their separate designation areas.

• The parts information tags have displayed according to the parts setting on the
storage areas. Each part has its separate location as well. All parts in these
areas are clearly identified and arrange in groups according to their type.

The storage areas need proper cleaning and maintenance in order to prevent damages
and deterioration of stored items.

MAJOR PROBLEMS FACES BY MHD

LINE REJECTION

It causes by the mishandling of worker (unskilled), or the manufacturing fault should be

one case.

DEFECTED & SHORT SUPPLY

Some times MHD gets defected supply or the quantity you are getting is not up to the
specification. It also causes the shortage.

PARTS ISSUANCE TO OTHER DEPARTMENT

Parts issued to the other departments because of some unavoidable situations.

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MATERIAL HANDLING DOCUMENTATION

Various records generated in the MH Department during the normal activities. The
details are documented on the “Master Document List”. Such as

RETENTION PERIOD

MATERIAL HANDLING CUSTOMERS:

VFA (Vehicle Final Assembly Area).

Welding Shop.

Engine Shop.

Paint Shop.

Plastic Molding Shop.

Marketing Department (Delivery Yard).

MATERIAL HANDLING FACILITIES

Fork Lifters.

Erica.

Tow Truck (Stacker).

Specified Trolleys.

General Trolleys.

Racks.

Flow Racks.

Gravity Base Roller Conveyor.

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TYPE OF WASTE / GARBAGE

GARBAGE DISPOSAL

SAFETY

Safety Manuals

Bolts

Tin Boxes

Cartons

Polythene Sheets

Polythene Bags

Thermo pole

Papers

Wooden Boxes

Wooden Ply

Nails

Rubber Boots

Cotton Gloves

Card Board

Damaged Bins

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Damaged Trolleys

Damaged Racks

SHUT DOWN ACTIVITIES

• Stock Taking (Audit)

• Maintenance

• Special Assignments & Projects

ROLE OF QUALITY ASSURANCE

PARTS INPECTIONS DEPARTMENT:

PID checks the quality of those components which are delivered by vendor or
supplier through JIGS and FIXTURE in order to ensure PSMCL standard.

Dealer (Customer) Network

The dealers of Pak Suzuki are situated across the country to cater all the
important areas. These provide sales, service and genuine Suzuki spare parts.

At present there are 69 dealers of Pak Suzuki stretched in all major cities of
Pakistan. These dealerships make up the countries

largest vehicle after sales service and genuine spare part network.

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Government Regulation:
Monetary policy of the government effect the automobile market because of the
money supply and the exchange rate directly effects to the leasing and financing
sector.

With out any prior notice or discussion with the automobile assemblers
government has changed the duty structure that will alter the cost of the product.
Government’s Tax policies are not consistent which causes uncertainty in
market. This results in turbulence in actual demands levels.

Law and order situation:

Law and order situation is not good as compared to the previous years. The
incident 27th December compelled us to think about the change in planning to
keep buffer in the parts order that also increase in carrying cost.

Transportation of the parts suppliers and distributors has problems. Two

distributors have located at Front road in Korangi Industrial area totally burnout
by the miscreants.

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Recommendations
Lobbying with Policy Makers:

Should focus on important government officials and policy makers to achieve

following goals...

• Know upcoming policy

• Mold policies in own favor

SCM Process Definition:

Pak Suzuki should adopt the concept of suppliers’ supplier to customers’
customer and this will be possible when company expand their SOP for more
parts of Supply chain processes.

MRP System:
Pak Suzuki is practicing MRP (Material Resources Planning) system and they
are maintaining their material planning on excel. In our opinion Pak Suzuki
should consider more advance software for their facility and it is being informed
us that they are about to introduce ERP (Enterprise resource planning which will
be based on AS-400.

Alternate Vendors’ Pool:

Some times company face shortage of supply due to non availability of materials.
Several times single source vendor create this problem to increase cost of
materials therefore PAKSUZUKI try to minimize vendors monopoly by introducing
new vendor for same parts.

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Develop Vendors Society:

In the consideration of the law and order situation especially in Karachi Pak
Suzuki is also emphasizing to develop a vendor’s society for the purpose they
are lending land to their vendors (importantly critical parts’ vendors). Pak Suzuki
offer land on the basis of lease.

Market Intelligence:
Pak Suzuki not having the Market Intelligence department which provides the
information about the market changes, competitors activities and Government
policies which also effect the entire planning of the organization.

The E-Supply Chain

• High speed, low cost, communication and collaboration with your

customers and suppliers are critical success factors to more

effectively manage your supply chain. Then, the e-Supply Chain is

very likely in your future. The very essence of Supply Chain

Management is effective information and material flow throughout a

network of customers and suppliers.

• Good supply chain practitioners know that information should be

passed on only to those who need to know it, in the form they need

to have it.

• Demand information, inventory positions, order-fulfillment, supply

management and a whole host of other information exchange

activities will change how we sell products, supply products and

make and receive payments for goods and services.

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 Supply Chain Management in Pak Suzuki Motor Pvt Ltd, Pakistan

Conclusion

SCM is now a days one of the greatest emerging technological

implication. Supply chain management (SCM) is a concept that has

flourished in manufacturing, originating from Just-In-Time (JIT)

production and logistics. Today, SCM represents an autonomous

managerial concept, although still largely dominated by logistics.

SCM endeavors to observe the entire scope of the supply chain. All

issues are viewed and resolved in a supply chain perspective, taking

into account the interdependency in the supply chain.

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