Hero MotoCorp’s Quest for Efficiency and Effectiveness in Supply Chain Management: A Case Study of Direct On-Line Supplies System
Article Details
Pub. Date
:
May, 2016
Product Name
:
The IUP Journal of Operations Management
Product Type
:
Article
Product Code
:
IJOM41605
Author Name
:
Mahendra Singh
Availability
:
YES
Subject/Domain
:
Management
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:
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of Pages
:
17
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Abstract
Efficiency in Supply Chain Management (SCM) has emerged as a challenge for manufacturing organizations. The case becomes more important where most of the materials are to be outsourced. The advanced technologies like Just-in-Time (JIT) and Flexible Manufacturing System (FMS) have increased the importance of supply chain optimization. The case is about Direct-On-Line (DOL) supplies system used by Hero MotoCorp (HMC) (India’s No.1 twowheeler manufacturing company) for managing efficiently their advanced manufacturing system of different components, parts supplies at different units. The study shows how HMC managed their suppliers system by DOL supplies to the different lines of production. The company is known for high quality product variety offerings in two-wheeler market. The supplies system used by company shows high level of efficiency all around. The case discusses the problem of managing high level of outsourcing with low level of inventories at manufacture’s end. The case shows a way out of the complexity of managing large numbers of vendors with the help of Enterprise Resource Planning (ERP) and Information Technology (IT) integration in SCM. The basic objectives covered are: understanding what DOL system is and how it functions.
Description
Achieving efficiency and effectiveness in Supply Chain Management (SCM) has
emerged as a challenge for manufacturing organizations. The case becomes more
important where most of the materials are to be outsourced. The advanced technologies
like Just-In-Time (JIT) and Flexible Manufacturing System (FMS) have increased the
importance of supply chain optimization. The case is about Direct-On-Line (DOL) supplies system used by Hero MotoCorp (HMC) (India’s No. 1 two-wheeler
manufacturing company) for managing efficiently their advanced manufacturing system
of different components, parts supplies at different units. The study shows how HMC
managed their suppliers system by DOL supplies to the different lines of production.
The company is known for high quality product variety offerings in two-wheeler market.
The supplies system used by the company shows high level of efficiency all around.
The case discusses the problem of managing high level of outsourcing with low level
of inventories at manufacturer’s end. The case shows a way out of the complexity of
managing large numbers of vendors with the help of Enterprise Resource Planning
(ERP) and Information Technology (IT) integration in SCM. The basic objectives
covered are: Understanding wahat DOL system is and how it functions.