Today, every organization is facing fierce competition in the market, because of short product cycle, rapidly changing technology, and economic conditions. Virtually, each major automobile company in the country is trying to make its presence felt in the new net-centric economy. The dealers are also focusing on getting to know their customer better, some on making their supply chain neat and transparent, some on creating electronic marketplace. Every organization is trying to improve their supply chain by enhancing the competitive or differential advantage of their firms through cost reduction and customer satisfaction. It can be obtained with information sharing, cooperation, risk and reward sharing among supply chain partners. In this scenario, only those organizations can survive which can compete on the basis of cost and quality. All these can be achieved through an effective supply chain. The present paper is an attempt to compare the supply chain effectiveness of the selected automobile companies and give them suggestions for improvement to get the competitive edge.

The working of the economic system by which goods and services are supplied to consumers involves four basic market functions: Production, distribution, exchange and consumption. Logistics assists in the efficient performance of each of these functions. Production transforms the raw material into finished goods. In doing so, a long and intricate logistical chain is activated to bring the material in the proper quality and quantity in the right time in support of the productive process. The function of distribution places the raw material in the hands of producers and finished goods in the hands of consumer when and where required. The supply chain as a whole can be considered a complete value system delivering products and services to end customer. Value can be created at many points along the chain by making the customer firm atthat point in the chain more effective in serving its markets, or more efficient and cost effective in its operations (Slater and Narver, 1994b).