A STUDY ON BEST SUPPLY CHAIN MANAGEMENT AT SELECTED AUTO MOBILE INDUSTRY

CHAPTER – 01

INTRODUCTION

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1.1 INTRODUCTION TO THE TOPIC

Automobile is one of the largest industries in India as well as in the global market. Automobile sector
has emerged as sunrise sector in the Indian economy. This sector occupies a prominent place in the
fabric of Indian economy. This sector is consider as leader in product, process and technologies in
manufacturing sector. Automobile industry drives the economic growth and its performance is viewed
as a reflection of the economy’s health. Currently, automobile supply chain is facing various challenges
such as cost reduction pressure due to consumer expectation, produce global products at local price,
unblemished execution of finish product without line stoppage to avoid huge penalties, demand
management due to fluctuation in demand, integration and resources, issues in sharing confidential
information about the new product, supply chain visibility , supply chain accuracy in terms of document
and inventory.

Supply chain efficiency and the investments in the new upcoming technology in the supply chains. ICT
plays vital role in improvement of efficiency & effectiveness, visibilities , accuracy, and accuracy etc.
the use of information & communication technology (ICT) in different aspect of logistic and
distribution operation.

Examine the current state of the use IT and its impact on logistics service performance. Informed
that IT consists of hardware and software that captures analysis and provide information wherever it is
needed. Since the supply chain management is defined as network of organization, these organization
cannot form a through IT resulting into transparency in the supply chain and aligning the supply chains
activities towards customer. These systems are have been successfully applied to reduce theft, pinpoint
route tempering, provide equipment tracking, reduce delays in production and increase the security of
products and staff.
supply chain for automobiles The automotive industry has been observed to employ a wide range
of technological tools: software, barcodes, RFIDs, GPS, interfaces like EDI and the Internet, physical
tools, logistics, facility management (FM), outsourcing of non-core activities to third parties, cost
reduction initiatives through existing procedural changes, and regular reviews such as audits. However,
it is evident that pressure to reduce costs is present in order to support future demand. As a result,
emerging technologies that are revolutionizing the supply chain as a whole include blockchain, robotics,
artificial intelligence (AI) and machine learning, big data, data science, and the Internet of Things.

Automotive industry certainly find itself in a phase of major change. there are technologies forces
like autopilot cars, connectivity power train electrification. General forces like new entrants,
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digitalisation of the supply chain, & cost pressure and globalization which are carving the shape of the
future auto ecosystem, we could see that google has self-driven over 1 million miles

on Mountain View and Austin streets. Google unveiled the first official version of their friendly-faced
concept car in December 2014. Increased market, product, line, supplier, option, part, and
manufacturing site complexity has been recognized by OEMs; this complexity necessitates greater
automation and transparency. the incredibly intricate global supply chain network of today. With the
advancement of 3D printing technology, a new era in the automotive industry began. It will lead to the
opening of completely new inventories and manufacturing techniques. The future utilization of those
new technologies will greatly influence the cooperation between suppliers, developers, OEMs, third-
party LSPs, dealers, and customers. The aim of digitization projects and the Internet of Things is to
automate manual supply networks.
.

1.2 5 PHASES OF SUPPLY CHAIN MANAGEMENT

A supply chain manager's job is not only about traditional logistics and purchasing but finding ways to
increase efficiency and keep costs down while also avoiding shortages and preparing for unexpected
contingencies. Typically, the SCM process consists of these five phases

THEY ARE GIVEN BELOW

 PLANNING

Planning to match 4 supply with customer and manufacturing demands is typically the first step in the
supply chain management (SCM) process for optimal results. Enterprises must endeavour to predict
their forthcoming necessities and take appropriate measures; this encompasses evaluating the
components or raw materials required at every phase of production, the capability and constraints of
machinery, and the manpower demands. Large corporations frequently utilize enterprise resource
planning (ERP) software to aid with process coordination.

 SOURCING

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Good supplier connections are essential to the success of SCM procedures. Working with suppliers to
provide the materials required for the manufacturing process is known as sourcing. SCM sourcing
generally entails making sure that
• The prices paid to the vendor are in accordance with market expectations
• The raw materials or components meet the manufacturing parameters needed for the
manufacture of the goods. Various sectors will have various sourcing requirements.
• In the event of unanticipated circumstances, the vendor is flexible enough to deliver emergency
materials.
• The supplier has a track record of providing high-quality, on-time deliveries.
• Managing the supply chain is particularly important for producers who produce perishable items.
• Businesses should consider lead times and a supplier's level of equipment when sourcing goods.

 MANUFACTURING

The manufacturing process is the main component of the supply chain management process. It can be
further divided into smaller jobs like assembly, testing, inspection, and packing. In this stage, businesses
need to be mindful of waste and other elements that could lead to straying from their initial intentions.
For example, if a company's insufficient employee training is the reason for its overuse of raw materials,
it needs to address the problem or go back and review the previous stages of supply chain management.
In general, this process entails the corporation creating something new out of the raw materials or
components it has obtained from its suppliers by using its labour force and machines.

 DELIVERY

A business needs to get its products into the hands of its customers after manufacturing and sales are
completed. To guarantee fast, secure, and affordable delivery of its goods, a business with efficient
supply chain management will own strong transportation and distribution networks. In the event that
one mode of transportation becomes momentarily unsuitable, this entails having a backup plan or a
variety of distribution options. How may record snowfall in distribution center areas, for instance, affect
a company's delivery process
 RETURNS

The supply chain management process' primary component is the manufacturing process. Smaller tasks
like assembling, testing, inspection, and packing might be included in it as well. Businesses need to be
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aware of waste and other factors at this point that could cause them to deviate from their original goals.
For instance, a business must either remedy the issue or go back and examine earlier supply chain
management phases if excessive raw material consumption is the result of inadequate employee
training. Generally speaking, the company uses both humans and machines in this process to make
something new from the parts or raw materials it has purchased from its suppliers.
designed products and to make whatever changes are necessary. But without addressing the underlying
cause of a customer return, the supply chain management process will have failed, and future returns
will likely persist.

1.3 OVERVIEW OF GENERAL SUPPLY CHAIN MANAGEMENT

In addition to explaining strategic and interorganizational issues and challenges, the term "supply chain
management" has been used to describe logistics activities, planning, organizing, and controlling the
flow of materials and related information across the supply chain pipeline (Chopra, Meindl, & Kalra,
Supply Chain Management Strategy Planning and Operation, 2016). As previously said, the "goal of the
supply chain" is to optimize the total value created, which is the difference between the finished
product's worth to the customer and the expenses incurred by the supply chain to satisfy the customer's
demands. Supply Chain Cost - Customer Value Equals Supply Chain Surplus. You can use the remaining
portion of the supply chain for different things.

Between the customer's revenue and the total cost incurred throughout the supply chain. A supply chain
is more successful if its profitability is higher. The supply chain excess and profits will typically have
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a strong correlation for the majority of profit-making supply chains. "Decisions in supply chain
planning, design, and operation have a big impact on a company's success or failure. The supply chain
needs to change with the times to meet evolving customer demands and technological advancements.
Developed and validated a scale measurement of supply chain operations reference (SCOR)-related
performance indicators and proposed constructs, SCOR-related performance indicators as practices
within the Indian manufacturing [Link], Meindl, & Kalra, Supply Chain Management: Strategy,
Planning, and Operation, 2016) state that supply chain management (SRM), internal supply chain
management (ISCM), and customer relationship management (CRM) are used to manage the effective
flow of goods, information, and money among the supply chain partners and provide greater value to
the end customers. The fundamental building block of supply chain management was the coordination
and integration of several processes both upstream and downstream in the supply chain. The concepts
of purchasing and supply management and transportation and logistics management served as the two
knowledge bases that formed the basis for the SCM concept.

A structured production process and economic, social, and environmental sustainability can be achieved
with the help of the suggested supply chain integration. Reduced bullwhip effect, increased activity
efficiency along the supply chain, reduced inventory along the supply chain, reduced cycle times along
the supply chain, and attaining a satisfactory degree of quality along the supply chain are some of the
benefits of supply chain integration (SCI) that have been proposed. SCM was widely understood to
mean streamlining the supply chain and including suppliers into the process of developing new products
and producing goods.
.

A crucial element of supply chain management plans for businesses is vendor-managed inventory, or
VMI, which has seen tremendous growth in popularity. Large and small businesses in India have started
using VMI to improve company performance; nevertheless, the findings indicate that adoption factors
vary depending on the industry. Beyond conventional cost-cutting measures, integrated supply chains
should search for fresh and creative approaches to methodically support the company while simplifying
processes and boosting openness between buyers and sellers.

1.4 OVERVIEW OF AUTOMOBILE INDUSTRY IN INDIA

The automotive industry has been observed to employ a wide range of technological tools: software,
barcodes, RFIDs, GPS, interfaces like EDI and the Internet, physical tools like barcodes, RFIDs, and
GPS; procedural tools like outsourcing noncore activities to third parties like logistics, facility
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management (FM), and VMI; cost reduction initiatives through existing procedural changes; and
periodic reviews, such as audits and VSMs.

The need to reduce costs in order to increase demand in the future is still evident, which is why new
technologies like blockchain, robotics, IoT, big data, data science, artificial intelligence (AI) and
machine learning, robotics, and robotics are emerging quickly to transform the supply chain as a whole.
Without a doubt, the automotive sector is going through a significant transition.

There are technological forces like autopilot cars, connectivity or power train electrification.
General forces like new entrants, digitization of the supply chain, & cost pressure and globalization
which are carving the shape of the future auto ecosystem. We could see that Google has self-driven
over 1 million miles on the streets of Mountain View and Austin. Google (December’2014) has
revealed the first real build of their prototype vehicle with the friendly face. OEMs have accepted
increasing complexities in markets, products, product lines, suppliers, options, parts, and
manufacturing sites. Such complexity drives the need for a higher level.

In today's immensely intricate global supply chain networks, automation and transparency are essential.
For the automotive sector, the advent of 3D printing technology has ushered in a new era by creating
entirely new avenues for manufacturing and inventory control. The synchronization of collaboration
between suppliers, developers, OEMs, third-party LSPs, dealers, and customers will be significantly
impacted in the future by the employment of these new technologies. Automating manual supply chains
and manufacturing processes is the aim of Internet of Things (IoT) or digitalization initiatives.

The two-wheeler, truck, vehicle, bus, and three-wheeler industries in India are vital to the expansion of
the country's economy. After South Korea, Thailand, and Japan, India is now the fourth-largest
automobile exporter in Asia. By 2050, the nation is predicted to have 611 million cars on its roads,
leading the globe in automotive volume. The amount of goods and services produced, which enable
mobility and increase the sale of automobiles, is a good indicator of the economic success of this
business. The demand for several raw materials, including steel, rubber, plastics, glass, paint,
electronics, and services, is indirectly rising due to the significant increase in automotive production.
India is now widely recognized as a possible developing auto market, and employment in the sector is
growing. By 2026, the volume of the Indian automobile market is predicted to rank third in the globe.
Over the past few months, a number of automakers have been making significant investments in various
industry segments in an effort to meet the increasing demand.

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as per the Department for Promotion of Industry and Internal Trade's (DPIIT) data. The sector has
experienced significant expansion due to factors such as increasing income and increased accessibility
to credit and financing choices. Furthermore, growth has been facilitated by the high level of activity in
the infrastructure sector, which has increased demand for commercial vehicles. The well-established
auto auxiliary business in India also offers the necessary backing to accelerate the sector's expansion.
To cut pollution, the Indian auto sector is gradually turning its attention to electric vehicles. Given this
context, the article provides an overview of the Indian automobile industry's production, sales, and
export tendency over the course of several years.

AUTOMOBILE INDUSTRY – ADVANTAGE IN INDIA

 Supply Chain Diversification

By investigating collaborative partnerships with Indian businesses and gaining access to local resources,
contacts, and experience, India offers international corporations the chance to expand their supply
chains.

 Export-Oriented Production Base

International businesses can capitalize on India's export-oriented production base and contribute
technological know-how to the electric vehicle market by offering incentives and a supportive
regulatory environment to electric vehicle producers.

 Low Labour Costs

India has competitive labour costs, which attracts multinational businesses looking to locate their
manufacturing operations there.

 Technically Trained Workforce

India offers a talented labour pool for the automotive industry thanks to its technically trained workforce,
which is continuously upskilling.  Geopolitical Stability

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India offers a stable environment for foreign investments in the automobile sector 2 because it poses
less geopolitical risk than other nations.

 Government Support

To promote a climate that is favourable for automotive manufacture and innovation, the Indian
government offers financial incentives, tax breaks, and subsidies to consumers who purchase electric
vehicles.

 Expanding Market

With one of the world's biggest and fastest-growing automotive sectors, India presents enormous growth
opportunity for international firms.

1.5 FRAME WORK OF AUTOMOBILE SUPPLY CHAIN MANAGEMENT

The academic knowledge and manufacturing industries experiences, supply chain framework for
automobile industry is prepared which could be extended further for many manufacturing sectors such
as Automotive, Consumer Durables, Capital Goods and Engineering, Electronic etc.

“The automobile supply chain framework shows that there is an integration of the activities from
supplier’s supplier to the end customer through supplier, manufacturing/assembling operation, dealer,
including logistics management activities, information & communication technology, and finance flow
followed by coordination & communication among the internal (within organization) and external
(outside organization) stakeholders. This considered as a modern definition of supply chain
management.

Understanding the key players in the supply chain, such as suppliers, OEMs, distribution hubs, dealers,
and customers, is essential for developing a strategic supply chain framework for the automotive sector.
Advances in computer-aided design, computer-aided process planning, computer-assisted
manufacturing, computer-aided engineering, concurrent engineering, product data management,
business process engineering, and other technologies are necessary for automotive manufacturers to
increase their capacity for innovation.

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To reduce waste and pollution, maintain product and material life, and restore natural systems, autos
must operate within a circular economy framework. This framework includes planning for
process/facilities layout, inventory control and material handling procedures, end-of-life management,
material flows, energy efficiency measures, renewable utilities, water-use reduction, and designing for
optimal longevity.

1.6 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT):

The study acknowledged the significance of new ICTs, which are very helpful in the automotive supply
chain and all other sectors. Advanced economies' economy are growing more and more dependent on
the information and communication technology (ICT) sector and the innovation it fosters in other
sectors and services. Over the past ten years, India's IT sector has grown dramatically. India's low
operating costs, abundance of skilled labour, and remote delivery strategy have made it a global leader
in the ICT business. The benefits of e-Valuing information communication technologies (ICTs), like as
computer terminals, email, and the Internet and their applications, have been steadily acknowledged by
small and medium-sized enterprises (SMEs).

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Email and online communication can enhance external communication in business-to-business (B2C)
and B2C settings. It can also lower transaction costs, boost transaction speed and dependability, and
maximize value extraction from each value chain transaction. ICTs eventually reduce costs by putting
the supplier in direct customer. However, they also have an effect on employment because ICT
equipment needs to be maintained. ICT development has additionally resulted in ICT can be divided
into two different segments: Information Technology (IT) and Communication. India boasts of a rapidly
growing global IT market. Through new technology and social and economic ratings (e.g., social media
platforms like Facebook, Twitter, and blogs), customers have the ability to share information and
research ratings on destination, quality of services, etc. The right information communications
technology tool selection is hard to match the customer requirements with service dimensions. A higher
demand for flexible, unique options and quality of information has personalized leisure and tourism
behaviour, a result of increased ICT use.

The three main growth drivers in the Indian ICT sector are now e-commerce, cloud computing, and
online retailing. The India Brand Equity Foundation claims that with 75% of the world's digital talent
employed there, India has emerged as the global center for digital capabilities. The impression of India
has shifted from one of bureaucratic, slow economies to one of rational, dedicated countries, mostly due
to the unexpected growth of the country's IT sector.

Here, how can be referred as design/model to achieve the desired benefits. This model explains the role
of information and communication technology in automobile supply chain. All necessary functions
must be integrated through ICT from left to right and top to bottom to improve visibility, efficiency,
flexibility, and accuracy among the stakeholders. It leads transparency, collaboration, strong
relationship, and operational performance for inclusive growth.

Proposed model is as below :

FIGURE1

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1.7 FUTURE IMPROVEMENTS AND TECHNOLOGICAL ADVANCEMENT TRENDS

The review indicates that the traditional approach to gradually eroding due to competition and
customers' exceeding expectations as well as a lack of visibility, flexibility, accuracy, and efficiency,
among other reasons. It also finds that technologically advanced systems are evolving as a part of
information & communication technology (ICT), which may be considered as disruption in future ways
of working or organizations not only in supply chain areas but also other ones.
Sustainable supply chain management is becoming more and more important to the automobile sector.
In order to attain long-term survival and lower the industry's carbon footprint, businesses are attempting
to develop more environmentally friendly supply chains, incorporate green practices, and solve
environmental issues.

New technologies, like the Internet of Things (IoT), Big Data, Data Science, Artificial Intelligence (AI),
robotics, machine learning, and blockchain, are emerging quickly to revolutionize the supply chain as a
whole. Despite this, it is clear that cost reduction pressure exists to boost future demand.
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CHAPTER -02
RESEARCH METHODOLOGY

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2.1 STATEMENT OF THE PROBLEM

The supply chain network in the automobile sector is extremely intricate and worldwide, and any
disruptions can have a major effect on the profitability and entire business plan. The COVID-19
epidemic and other recent socioeconomic and geopolitical shocks have disrupted procurement
procedures, increased costs, and created material scarcity. These factors have also had an impact on the
industry's R&D, manufacturing, and logistics processes.

In the face of macroeconomic and geopolitical shocks, how can the automobile sector handle supply
chain risks and disruptions in an agile and effective way, while guaranteeing material availability,
minimizing reliance on outside parties, and preserving total profitability? The problem statement
emphasizes the necessity of supply chain management techniques that can support the automobile sector
in overcoming present difficulties and preparing for upcoming disruptions. This entails getting
components from other suppliers, deciding whether to buy or sell, localizing value chain processes, and
outsourcing supply chain steps to reduce reliance on outside parties. Furthermore, recalls can be managed
or prevented with the use of sophisticated predictive and prescriptive analytics technologies, which can
also be used to determine demand for particular brands in particular areas and maintain inventories
throughout the global supply chain.

To know the various limitations which are encountered in managing a Supply Chain Management and
the impacts of GSCM on environment. The above stated topic “A STUDY ON BEST SUPLLY
CHAIN MANAGEMENT PRACTICES AT SELECTED AUTOMOBILES INDUSTRY” has been
chosen for the study.

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2.2 SCOPE OF THE STUDY

The automobile industry can cover various aspects, including supply chain evaluation, supply chain
resilience, risk management, and sustainable supply chain management. A literature study on risk
management addresses the automobile industry's supply chain risk detection, assessment, and
management. The report emphasizes the significance of supply chain risk management, the complexity
of automotive supply systems, and the growing susceptibility of global supply chains to interruptions.
Lean manufacturing, green supply chain management, supplier consolidation, and other facets of
sustainable supply chain management are examined in this research, which also emphasizes the
importance of sustainable practices in the automobile industry. Supply chain management in the
automobile industry encompasses resilience, supply chain evaluation, supply chain management that is
sustainable, and risk reduction. To improve the durability and effectiveness of the initially complex
automotive supply networks, it is necessary to understand these components.

2.3 NEED OF THE STUDY

Supply chain management, or SCM, is crucial to the profitability of automakers and suppliers in the
automotive industry. Handling the production and distribution of auto components and complete cars
involves a number of duties, including planning, procurement, manufacturing, and delivery. In order to
ensure that every link in the supply chain functions as intended, effective supply chain management
requires cooperation and communication between all of the many diverse stakeholders in the dynamic
and complex automotive industry.
The Indian auto industry, in particular, has been looking for cutting edge lead times and inventory
management strategies in order to sustain its growth in the market. The industry has been integrating
with its foreign rivals, and OEMs and producers of car components are still quite concerned about
handling the logistics of arriving goods. This article seeks to identify the primary barriers to supply chain
integration and execution, describe the innovative supply chain techniques employed in the Indian auto
industry, and provide solutions to these issues for optimal impact.

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2.4 OBJECTIVES OF THE STUDY

 To study the benefits of implementing supply chain management practices on selected

automobile industry.
 To controlling and reducing costs and avoiding supply shortages.

 To know the products and services offered by Tata Motors to its customers.

2.5 RESEARCH METHODOLOGY EMPLOYED

It has been possible to extract useful conclusions and recommendations from a thorough analysis of the
SCM at AMI initiatives of multiple firms. Reviewing prior studies that were printed in journals,
publications, research papers, magazines, etc. provided the data for this investigation. Numerous
sustainability ideas from a variety of business sectors, industries, and corporate functional areas were
evaluated along with the advantages generated.
.

2.6 DATA COLLECTION SOURCE

The database consists of sources of data used for the study. The database includes secondary data.

Secondary data:

The secondary data is organized data and was collected from magazines, research papers, publications,

journals etc.

2.7 LIMITATIONS OF THE STUDY

 The study is based on information gathered from secondary data sources.

 The study provides only theoretical foundations.

 The study is specifically on TATA Motors co. on Supply Chain Management at selected

automobile industry.

 The study only concentrates on supply chain management ignores other aspects.

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CHAPTERN – 03
PROFILE OF THE ORGANIZATION

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3.1 INTRODUCTION TO TATA MOTORS

As a member of the Tata Group, Tata Motors Limited is an Indian multinational automobile manufacturer
with its headquarters located in Mumbai, India. The company manufactures luxury automobiles, sports
cars, trucks, vans, coaches, buses, passenger cars, and construction equipment. Originally established in
1945 as a locomotive maker, the company was once known as Tata Engineering and Locomotive
Company (TELCO). In a partnership with Daimler-Benz AG, the business produced its first commercial
car in 1954 and continued to do so until 1969. With the introduction of the Tata Mobile in 1988 and the
Tata Sierra in 1991, Tata Motors entered the passenger vehicle industry and became the first Indian
manufacturer to build a competitive domestic car. Tata introduced the first passenger car made entirely
of Indian materials in 1998. In 2004 Tata Motors purchased Daewoo Commercial Vehicles Company, a
South Korean truck manufacturer.

Since its founding in 2008 to acquire Land Rover and Jaguar vehicles from Ford, Tata Motors has served
the company's parent. The two primary divisions of Tata Motors are the British luxury car maker Jaguar
Land Rover, which creates both Jaguar and Land Rover vehicles, and the South Korean commercial
vehicle manufacturer Tata Daewoo. A joint venture between Tata Motors and Hitachi produces cars under
the Fiat Chrysler and Tata brands, as well as construction equipment (Tata Hitachi Construction
Machinery) and auto parts. On October 12, 2021, a private equity fund invested $1 billion in the Tata
Motors electric vehicle segment.

Tata Motors is an auto manufacturer with plants in India, including Jamshedpur, Patan Nagar, Lucknow,
Sanand, Dharwad, and Pune; it is also listed on the BSE (Bombay Stock Exchange), the National Stock
Exchange of India, the New York Stock Exchange, and Thailand. It is a constituent of the BSE SENSEX
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index. Additionally, it maintains research and development facilities in South Korea and in the Indian
cities of Pune, Jamshedpur, Lucknow, and Dharwad. The United Kingdom and Spain. In 2019, Fortune
Global 500, a list of the largest companies worldwide, placed it at position 265.

At ₹100,000 (US$1,500) at launch, the car garnered a lot of interest due to its affordable price.
Nevertheless, Cyrus Mistry, the chairman of the Tata Group, referred to the Nano as a failed project in
2018 due to its extremely low safety rating. The 2009 launch of the Nano was aimed at appealing to the
segment of the Indian population that owns motorcycles and hasn't purchased a first automobile by
offering a cheap alternative.

3.2 PRODUCTS OF TATA

Industry Focus: Produces buses, vans, sedans, trucks, and luxury and commercial automobiles.

Corporate Office: Mumbai, Maharashtra, India

Global Presence: Thailand, Argentina, South Africa, the UK, and India are home to auto factories.
R&D facilities located in Spain, the UK, South Korea, and India.

India's Tata Motors is an automotive company that makes buses, lorries, and cars. It is a branch of the
large Indian corporation Tata Group. Founded in 1945, Tata Motors has a rich history within the Indian
automobile sector. It started off making locomotives and then, in 1954, moved into the commercial
vehicle industry. With the introduction of the Tata Sierra, a multipurpose vehicle, Tata Motors did not
join the passenger vehicle market until 1991. The 1992 introduction of the Tata Estate, a station wagon
based on the Tata Mobile light commercial vehicle, came next. India's first entirely domestic passenger
automobile, the Indica, was introduced by Tata Motors in 1998.

Producing automobiles under the Tata Motors name is Tata Motors Cars, a branch of Tata Motors. After
Maruti Suzuki and Hyundai 3, it is currently the third-largest automobile manufacturer in India in terms
of sales. Tata Motors Automobiles manufactures a variety of vehicles, such as SUVs, sedans, and
hatchbacks. The Tata Punch, Tata Punch EV, Tata Altroz, Tata Harrier, Tata Tiago EV, Tata Nexon EV,
Tata Nexon, and Tata Tigor EV are a few of the well-known Tata vehicles in India.
With several production sites spread across Pune, Jamshedpur, Pantnagar, Dharwad, Lucknow, and
Sanand, Tata Motors Cars is a major player in the Indian industry. Its 416 dealerships are spread out over

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266 Indian cities. In addition to exporting automobiles to South Africa, Tata Motors Automobiles has
grown throughout Southeast Asia, now operating in the Philippines and Vietnam.

Tata Motors has been concentrating more on electric cars lately; the [Link] will be released in 2022,
and the Tigor EV will be introduced in 2019. Additionally, it disclosed intentions to introduce the
[Link] in 2024 and the Nexon EV in 2020 3. To increase its market share and better meet the demands
and expectations of its consumers, Tata Motors Cars has also been working to improve its dealer network,
product line, cost, features, design, and style.

3.3 ORGANISATION STRUCTURE

The Local Advisory Committee (LAC) structure of the corporation is multitiered and comprises senior
officials from several departments within the organization. The LACs are involved in the management
of the organization in three ways 2. Furthermore, Tata Motors is dedicated to training and development,
as evidenced by its comprehensive human resource strategy, which covers important areas including
talent development, performance management, fair business practices, and performance-based
incentive packages.

With car assembly facilities in South Korea, Thailand, South Africa, the United Kingdom, India, and
Spain, Tata Motors is a global company. It intends to open plants in Eastern Europe 4, Turkey, and
Indonesia. The company's passenger car division, Tata Motors Cars, offers a variety of products in the
compact, midsize, and utility vehicle classes and is among the top five passenger vehicle brands in
India.

Organization Effectiveness, or OE, is a new flat organizational structure that Tata Motors launched in
2017. Its goals were to improve functional leadership, remove layers of middle management, and
provide business units clear accountability. The company undertook this restructure as part of its
attempts to increase efficiency, agility, and speed in order to meet its goals of becoming one of the top
three automobile manufacturers in India and the top three manufacturers of commercial vehicles
worldwide in three years.

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Every company has a standard management structure that establishes and regulates the relationships
between its employees, the tasks they complete, and the roles, duties, and authority granted to them to
carry out those tasks. Effective coordination is achieved by a well-structured organization because it
establishes formal channels of communication and explains the connections between the various actions
of its members.

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An organization's organizational structure outlines how tasks, authority, and power are delegated
and managed. It also shows how information is shared throughout the many tiers of the hierarchy. This
shown graphically in an organizational chart. Therefore, it is crucial that a business create its
organizational structure with the utmost care. The authority flow and reporting lines should be made
clearly noticeable in the structure because this will facilitate excellent communication, which will lead
to an effective and efficient work process flow. The company additionally purchased an Italian design
company, in October 2010 is currently a member of the Tata Motors Design group and has worked with
the company on multiple projects. The company founded TMETC, a wholly owned subsidiary, in 2006
to improve the capabilities of its Engineering Research Centre and gain access to cutting-edge
technology.

Tata Motors has a flat organizational structure, a multitiered LAC structure, and an intense focus on
training and talent development. The organization has a thorough human resource plan that covers
important areas including talent development, fair business practices, performance management, and a
code of conduct. The human resources department of the business has been asked to implement this
system in other Tata Companies. Additionally, the organization employs a "Talent Management Scheme"
that identifies great performers and high potentials and gives them difficult projects to accelerate their
development.

3.4 CORPORATE SOCIAL RESPONSIBILITY

Global manufacturer Tata Motors Limited is conscious of its history and works hard to fulfill the
needs and aspirations of the society while assisting others in progressing in their own development. Their
sixpronged approach to corporate social responsibility (CSR) helps with professional and high school
courses that lead to job and employability, as well as addressing a variety of societal needs, from
education to maternal healthcare. Our corporate social responsibility initiatives benefited 830300 people
in FY 2019–20, with 41% of those individuals belonging to the SC and ST groups. This helps us achieve
our Sustainable Development Goals (SDGs). We have been providing assistance in many different fields,
including healthcare and sanitation issues, social uplift and environmental transformation, raising
household income, enabling women to become self-sufficient, and sustainability projects through
With the goal of achieving larger benefits through prudent resource use and investment, as well
as stakeholder collaborations for increased outreach, Toyota Motors' CSR initiatives are in line with the
tenets of "More from Less for More." To capitalize on core strengths and capabilities for CSR initiatives,
the company maintains a strong volunteer culture and pays milestone-linked incentives to CSR
implementing partners.
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Through its CSR activities, Tata Motors has improved millions of lives over the years, with a
particular emphasis on the areas of health, education, employability, and the environment. Through the
company's efforts, community development initiatives, environmentally friendly livelihoods, and
environmental conservation have all positively impacted society. Addressing India's pressing
developmental issues and promoting equitable growth for long-term sustainability and nation-building
are among Tata Motors' top CSR initiatives.

The company's CSR activities follow sustainable development principles, engage communities actively,
and prioritize the needs of disadvantaged groups. Tata Motors emphasizes long-term sustainability,
partnerships with local institutions, and volunteer opportunities for its employees as part of its CSR
strategy. The company's CSR initiatives go beyond simple compliance with laws, focusing on impactful
interventions that benefit communities while aligning with national and local contexts.

3.5 VISION AND MISSION

VISSION

Our goal is to become the most aspired-to Indian car brand by FY 2024, continuously outperforming our
competitors in terms of financial returns.
• Operating sustainable transportation systems.
• Beyond what the client expects.
• Establishing a highly motivated workforce.

MISSION

We passionately develop innovative mobility solutions to improve people's quality of life.

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CHAPTER – 04

DATA ANALYSIS

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4.1 TATA MOTORS BUSINESS MODEL CONVAS

KEY ACTIVITIES VALUE PROPOSITIONS

 Design and  For individual:

Development Affordability and

KEY PARTNERS  Manufacturing Reliability

 For families: Reliable
 Automotive companies
service and maintenance and
 Financial Institutions
long warranty periods
 Logistics companies KEY RESOURCES
 For business:
 Human Capital Green technology,
 Intellectual Innovation and Brand
reputation
Property

CHANNELS

CUSTOMER  Direct marketing

RELATIONSHIP  Social media

 Customer support
CUSTOMER SEGMENTS
 Loyalty Programs
 Individuals
 Families
COST STRUCTURE REVENUE
 Businesses

 Administrative Expenses STREAMS

 R&D Expenses  Vehicle sales

 After sales
 Cost of goods sold
service
 Licensing and
Royalties

NOTE: This is rough outline of TATA MOTORS business model canvas, and some may be subject
to change or additional information.

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ANALYSIS OF BUSINESS MODEL CANVAS

TATA Cos Business model canvas (BMC) elements are interconnected, and the company has

integrated environmental sustainability into each of these elements.

• CUSTOMER SEGMENTS

Tata Motors, a company formally known to have established the offering of an affordable product
range, appears. The company now manufactures vehicles for Value Plus, Premium, and High-end
segments in the passenger Vehicle category for medium middle, Upper Middle Class, and Affluent
income classes. There is no product available for lower and Elite class income class, two income group
customers could increase Tata Motor’s market share by 5 to 7%.
The Medium income Middle-class customer segment owns 67% of sales of cars, SUVs, and MUV

shares and significant segments in the Indian PV segment. At present, Maruti regulates this segment with

12 models while Tata has only 4 models.

• VALUE PROPOSITION

Value Proposition is, in simple terms, a unique combination of products and services that offer
value to the customer. In other words, it is a satisfactory solution to a consumer problem. This problem
may be an immediate or recurring identifiable customer need that needs healing, but it could new need
that The value proposition, therefore, becomes the motive that drives a person to acquire a particular
product or service, choosing a name among all the competition.

The same product or service may have one or more value propositions. Each of them
encompasses a set of benefits developed for previously identified customer segments. Some value
propositions involve an innovative offer, Others are similar to existing offers, but with new and/or
added attributes. What characteristics, then, should be observed in order to develop a unique value
proposition that is capable of attracting your customer.

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• CHANNELS

Distribution channels establish how an organization communicates with its pre-identified customer
segments and are the way to deliver the value propositions it has to offer. for the customer experience.
Channels can varied, and for different customer segments. If before the 1990s the channels were limited
to the stores that sold the products, today, with the advent of the internet, the reality is much more
promising. As a point of contact between the company and the public, the channels serve several
functions, include:

Expansion of knowledge by customers about products and services offered by the company Delivery of the
value proposition developed by the company. Assistance to clients in evaluating the value proposition
delivered by the company;

• CUSTOMER RELATIONSHIP

Tata Motors company, uses a customer-centric CRM (Customer Relationship Management) strategy to
enhance customer engagement and improve customer experience.

Some key components of Tata Motors' CRM strategy include: Tata Motors segments its based on their
demographic, geographic, and behavioural characteristics to understand their better.
 Personalization:
Tata Motors focuses on personalized communication with its customers, leveraging data
analytics to offer customized solutions and tailored experiences.
 Omni-channel experience:
Tata Motors provides a seamless and including online, mobile, and physical touchpoints.
 Feedback management:
Tata Motors regularly solicits feedback from its customers to understand their satisfaction levels
and areas for improvement, and takes action to address any issues raised.
 Loyalty programs
Tata Motors offers loyalty programs and incentives to its customers to encourage repeat business
and strengthen customer loyalty.

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• KEY RESOURCES

Steel sheets and plates (for in-house stampings), iron and steel castings and forgings, alloy wheels, tires,
fuel injection systems, batteries, electrical wiring systems, electronic information systems and displays,
interiors, etc. are the main materials and components needed for use in Tata and other brand vehicles
Tata Motors’ key resources include:

 Human capital

 Intellectual Property

 Financial resources

 Brand reputation

 Manufacturing facilities

 Distribution network

 Technology

 Partnerships

• KEY ACTIVITIES

An automobile manufacturer that manufactures and buses. Its joint ventures and Stellantis

Automotive, vehicle parts for Fiat Chrysler and Tata-branded vehicles, include South Korean Tata
Daewoo and British

Tata Motors’ key activities include

 Design and development

 Manufacturing

 Sales and Marketing

 After-sales service

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 Research and Development

 Logistics

 Finances

 Customer service

Key Activities vary according to the organization’s Business Model. A product-oriented company, for
example, includes research among main activities. A company whose income is based on thirdparty
contracts must prioritize the management of channels.

• KEY PARTNER

The key partners include the pre-owned vehicle brand limited. It has formed multiple Joint Ventures
over the years. It formed strategic partnership Alliance with Fiat since 2006 knowledge exchange and
product portfolio.
On February Samsung formed partnership to provide customers with best in-class vehicle infotainment.
Tata Motors used Samsung Electronics ‘Drive Link’ technology for improved vehicle experience. It
provided integrated application for navigation, Driver Information System (DIS), Driver assistance
system, rear-seat entertainment and more.

On February 2017, Tata Motors and Microsoft India collaborated to enhance the connect experience for
its vehicles. It formed that manufacturers automotive components and Fiat Chrysler and Tata branded
vehicles.
Tata Motors assured is also one of its key partners that includes pre-owned vehicle brand from Tata
Motors limited.

• COST STRUCTURE

The element of a business model is the cost structure, which compiles the the entire operation
from the beginning It is the last block precisely because we need to have all the preceding elements
defined in order to estimate the costs of each one. This is because developing a revenue stream, sustaining
a customer relationship, and creating a value proposition all result in costs, just as the Key, Resources,
Activities, and Partners demand their own expenses cost driven than others, so let's learn more about the
function and significance of the cost structure for your business model.

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Tata Motors’ cost structure includes:

• Administrative expenses
• R & D expenses
• Cost of goods sold
• Depreciation and amortization expenses

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CHAPTER – 05
FINDING AND CONCLUSIONS

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5.1 FINDINGS

As part of the Tata Group, Tata Motors is a global manufacturer of automobiles with headquarters in
India. In addition to passenger cars, the company produces a wide range of vehicles, including trucks,
vans, coaches, buses, sports cars, construction equipment, and military vehicles. Tata Motors is a major
player in the Indian automotive market because of its wide range of products that cater to various industry
segments. Its products are sold throughout Asia, Africa, Europe, and South America.

In response to the constantly shifting auto industry market, which is marked by constantly
evolving trends, Tata Motors has been actively for new technologies in recent years, with a focus on
electric and natural gas vehicles The company is also working to improve production efficiency and
embrace an innovation culture by constructing state-of-the-art manufacturing facilities. Tata Motors's
financial performance in 2020 was ₹ 264,041 crore (US$ 37 billion) in revenue, with total assets of ₹
322,121.26 crore (US$ 45 billion)1. Key executives like Mitsuhiko Yamashita, O P Bhatt, Hanne
Sorensen, Vedika Bhandarkar, and Kosaraju Veerayya Chowdar are part of the company's management
team.
Founded Co. Ltd. (TELCO) Tata Motors has a rich and distinguished past. The business has
experienced remarkable growth and diversification over the years, and in 2003 it changed its name to
Tata Motors to better represent its concentration on the automotive industry 2. With a major presence in
the production of tractors, buses, and heavy trucks, Tata Motors has been an important player in te Indian
automotive sector.

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5.2 SUGGETIONS

To increase visibility and traceability throughout the supply chain, invest in digital technologies like
blockchain, IoT, and artificial intelligence. By using sophisticated analytics, inventory levels may be
optimized, demand can be predicted more precisely, and cost-saving opportunities can be found. By
working together on forecasting and planning projects, you may encourage stronger supplier
collaboration. Through the exchange of demand estimates and production schedules, both sides can
improve operational alignment, shorten lead times, and save the expense of keeping inventory.

Create effective risk management plans to lessen any supply chain interruptions. This entails
broadening the pool of suppliers, carrying out in-depth risk analyses, and putting emergency plans in
place for handling crises like natural catastrophes or world events. Include sustainability standards in
the procedures used to choose and assess suppliers. Collaborate with vendors who respect the
environment, uphold moral workplace conduct, and show a dedication to cutting waste and carbon
emissions.

Create redundant sourcing choices for essential materials and components to strengthen the
supply chain's resilience. To lessen dependency on a single supplier and lessen the effect of geopolitical
concerns, think about using multiple sourcing techniques or localizing production for essential
components. skills and output of important suppliers, fund. Offer suppliers incentives, assistance, and
training to help them innovate in product design and production methods, save lead times, and enhance
quality.

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5.3 LEARNING EXPERIENCE

The automotive industry plays a pivotal role in the evolution of modern supply chain management
(SCM).Henry Ford's mass production innovations revolutionized industrial processes and laid the
groundwork for modern supply chain management (SCM). Because of its intricate supply chain
structures and the crucial role SCM plays in controlling the flow of cash, information, and materials to
prevent expensive production stoppages and shortages, the automotive industry continues to be a major
source of inspiration for SCM practices.

SCM is essential in the automotive sector since there are so many components involved in the
production of a car. SCM is crucial for averting interruptions and preserving production efficiency
because it guarantees the smooth transfer of goods, information, money, and demand from suppliers to
customers. The industry's shift to electric vehicles and the growing emphasis on sustainability highlight
to adjusting to emerging technologies and consumer preferences
.
Moreover, the implementation of Lean Supply Chain Management (Lean SCM) principles in the
automotive industry offers benefits such as cost reduction, improved efficiency, and flexibility in
meeting customer needs. Lean SCM focuses on eliminating waste, improving processes, and enhancing
responsiveness to market demands, making it a valuable approach for optimizing production and
distribution processes in the automotive sector.

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5.4 CONCLUSION

Based on the information from the sources provided, the conclusion on (SCM) emphasizes the
critical role of SCM in ensuring a streamlined flow of materials, information, and finances. SCM in
the automotive sector is pivotal for efficiency, cost reduction, and maintaining an optimal balance in
stock levels. It involves embracing solutions like automotive inventory and ERP systems, staying
updated on industry trends, and preparing for the future to achieve sustained success. The industry
copes with volatility in consumer demand through robust forecasting models and agile supply chain
strategies. SCM professionals in the automotive sector must adapt to technological advancements and
play a key role in creating resilient and flexible supply chains. Addressing regulatory challenges
requires meticulous planning and compliance adherence. To tackle the talent shortage in SCM,
investing in education, training programs, and industry collaboration is essential. Overall, adapting to
the evolving landscape of SCM in the automobile industry is crucial for long-term success and
improved cost control.
Globalization and outsourcing opportunities have led to the involvement of thousands of suppliers
from various countries, which comes with significant risks like differences in culture and language,
foreign exchange rate fluctuation, duty and customs regulations, quality problems, and political and
economic stability. changes in its supply chains in recent years, with OEMs feeling pressured by
competition to improve quality, reduce product development time, and lower costs.

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