Implementation of a Horizontal Supply Chain Model for MSME Vendors-A Case Study

Abstract

in the Automobile industry. In 2020, India emerged as the fifth-largest automotive market with around 3.5 million units combined sold in the passenger and commercial vehicles’ categories. One of the most important challenges presently faced by the Auto sector is in the area of Supply chain. A number of Automotive OEM’s rely heavily on the Tier1 and Tier 2 suppliers for their components and Sub Systems. Their contribution is vital for the success of these large companies towards achieving the goals of High Quality, Reliability and reduced costs of products and services.

Over the year, we have studied more than thirty such MSME companies who are in the automotive sector. The expectation from these MSME Companies are efficiency in product costs with no compromising Quality and delivery commitments. This Case study pertains to an important arm of the activity of large OEM enterprise with regard to their needs and challenges for Efficient supply Chain Management. The results of the study from the various studied parameters brought out interesting factors. The confidence that the vendors are treated as Partners in the Development cycle has created a very positive vibe in the relationship. A very transparent system of interaction and Objective evaluation Metrix ensured elimination of perception of bias in the system. Since the suppliers are part of the full cycle involvement right from initiation their understanding of the Requirement definition was high.   With early supplier involvement, the developmental cycle time got significantly reduced and the various bottle necks were eliminated in time for smooth delivery of the products.