Scribd
Upload
158 views16 pages

Supply Chain Management Project

Millat Tractors has a complex global supply chain involving thousands of vendors supplying raw materials and components that Millat assembles into tractors and agricultural equipment. To improve profitability and reduce costs, Millat analyzed procurement data for 14 key components and mapped them on a portfolio model based on their impact and supply risk. This identified strategic, bottleneck, leveraged, and non-critical items requiring different recommendations around contracts, supplier relationships, and inventory management.

Uploaded by

mehar noor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
158 views16 pages

Supply Chain Management Project

Millat Tractors has a complex global supply chain involving thousands of vendors supplying raw materials and components that Millat assembles into tractors and agricultural equipment. To improve profitability and reduce costs, Millat analyzed procurement data for 14 key components and mapped them on a portfolio model based on their impact and supply risk. This identified strategic, bottleneck, leveraged, and non-critical items requiring different recommendations around contracts, supplier relationships, and inventory management.

Uploaded by

mehar noor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Disc-333

Supply Chain And Logistics


About the Company

 Millat Tractors is a global group of companies,


recognized for a range of quality products with
innovative design capabilities.
 The company is mainly engaged in assembly of
agricultural Tractors, Implements and
Multi-application products.
 Date of Incorporation——----————– June 08, 1964
Market share

 Market leader
Supply Chain:

Assembler/M
Raw End
Vendors anufacturer- Dealers
Material consumer
Millat
Complex Supply Chain

 Take picture from internet of a complex supply


chain.
 Vendors buy raw material from suppliers
 vendors manufacture different components
 Components are bought by Millat, which assembles
them
 Final tractors and agriculture products are delivered
to dealers- 1000’s, spread across Pakistan.
 Final consumer- farmers, builders, purchase from
dealers
More About Millat

 Batch production:
Different types of batches:
-Tractors (varieties)
-Forklift trucks
-Batteries
 Aim = minimize inventory levels
 Mostly operate on Just in time
Problem

 Thousands of vendors- purchase different


components
 Price vary each time an order is made
 Cost of sales and Profitability fluctuates
 There is uncertainty
Steps Taken

 Took procurement data of 50 different components-


prices, time of purchase quantity of purchase
 Chose 14 components
 Asked questions for each type of component related
to the profit impact and supply risk
 Plotted the 14 components on Portfolio Purchasing
Model to suggest possible action plans to solve
Millat’s problem
Strategic Items

• High impact on
overall quality of the
product
• Availability issues
• Delivery issues
Bottleneck Items

• Low impact on overall


quality of the product
• Frequent shortage
• Availability issues
• Delivery issues
Leveraged Items

• High impact on overall


quality of the product
• Large number of
suppliers
• Easy access
N0n-Critical Items

• Low impact on overall


quality of the product
• Standardized
products
• Large number of
suppliers
Recommendations: Strategic Items

 Balanced Power
 Establish long-term supply relationship- fixed price
contract
 Mean while- find other suppliers, consider in-house
purchases
 Planning and contingencies
Recommendations: Bottleneck Items

 Supplier have higher power


 Diversify
 Find alternative suppliers
 Maintain buffer stock
 Volume insurance contract
Recommendations: Leveraged Items

 Millat have higher power


 Exploit
 High volume orders
 Long-term contracts
 Blanket agreement
 Tender
Recommendations: Non-Critical Items

 Balanced power
 Optimize inventory levels-keep the current method

You might also like