Value Chain Analysis: Overview

value chain analysis Inbound Logistics Operations Marketing Service Outbound Logistics SAP , VCM SAP , CRM – DMS Strategic Alliances Transporters, Convoy Drivers Association Dealer Network, Marketing Research Firms, Vehicle Financing Regional Warehouses, Dealer Workshops, Distributors, TASS 9 Value Chain Analysis: Tata Motors Inbound Logistics Long term contract with service provider’s – transporters and agents Personnel at regional offices for over seeing the smooth transit of goods Transparency and monitoring through deployment of IT – all transactions through SAP DTL supplies for critical high value items.

Efficient storage facilities – easy storage and retrieval Operations Capital Equipment Manufacturing division – tooling development capabilities of global standard. Apprentice Trainee Course – ensuring stable source of skilled manpower. Kaizen & TPM team – continuous drive to improve efficiencies. Automated manufacturing processes. Distributed manufacturing – Assembly units at South Africa, Thailand, Bangladesh, Brazil etc Maintenance – technical competence Capacity Utilization – Mercedes Benz cars make use of Tata Motors paint shop facilities. Outbound Logistics

Stockyards, all across the country Long term contracts with transporters – higher volume of business to transporters ensures competitive price. Regional Sales Office and Vehicle Dispatch Section linked through SAP. Efficient security system for prevention of any kind of pilferage Marketing and Sales Structured approach to understanding the requirements of individual customers – QFD’s conducted at regular intervals. Clear identification of product requirements, leading to development of innovative products – Tata 207 DI, Tata Ace Pan India presence and global footprint.

Independent teams for addressing the requirements of institutional customers – Defense, State Transport Units Helping to augment the scarce resources – Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiat’s technology and unutilized capacity. Quick assessment of the changing market dynamics and consumer preferences – Tata 407 LCV Large network of dealers – use of technology : DMS. Service Easy availability of spare parts Efficient collection of data from field and communication to the respective plants Pan India presence, as well as global presence. Large network of workshops – Dealer workshops and TASS

Training facilities – for dealer end and TASS personnel Procurement E procurement initiative Global Sourcing Team – China, a key destination for sourcing essential items like tires, power steering units etc. , Steel procured from Belarus Long term relationships with a stable and loyal pool of suppliers Technology driven procurement – SAP and VCM Strategic subsidiaries & JV’s – TACO group of companies, Tata Cummins Centralized Strategic Sourcing for key components – FIP’s, Steel etc Group resources – Tata Steel and Tata International Localized supplier base at mfg. locations – low inventory levels