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Scm Benchmarking

SUPPLY CHAIN MANAGEMENT BENCHMARKING

INTRODUCTION

In today’s competitive business environment, automobile companies worldwide are shifting their attention towards understanding and implementing extended supply chain management that integrates the product, process and information flows within and across organizational boundaries.
In such a scenario, there is a pertinent need to understand and evaluate existing supply chain metrics followed by Auto Industries in India, and benchmark them with the best practices within the industry to bring in improvements in the existing system.

The document covers all metrics in the extended supply chain of an organization, both inbound and outbound supply chain. The relevant parameters were categorized under four broad heads, namely,
• Cycle time metrics
• Cost metrics
• Service quality metrics and
• Asset metrics

The various practices followed by the leader industries were identified and grouped under the following broad heads:
• Strategy
• Marketing
• Procurement
• Manufacturing
• Quality
• Logistics
• Information technology

Note :- 11 players of the Auto OEMs were taken as a sample and identified as leaders across different supply chain activities.

Best in Class - Automobile OEMs

Cars & Utility Vehicles
Cycle Time Metrics
SR.no. Parameters Mean Median BIC
(Best In Class)
1 Procurement time (no. of days) 13.07 10 1
2 Production cycle time (no. of days) 3.5 3 1
3 Delivery time (no. of days) 4.5 4 1
4 Total cycle time (no. of days) 28.9 27.5 10
5 Cash to cash time (no. of days) 41.9 37.5 13
6 Supply chain flexibility (% of original order) 15.3 15 30

Cost Metrics
7 Total supply chain cost(% of sales) 6.6 6.5 3
8 In-bound transportation cost(% of total supply chain cost) 1.7 1.5 0.8
9 Out-bound transportation cost(% of total supply chain cost) 2.9 3 1
10 Warehousing cost (% of total supply chain cost) 1.1 1 0.5
11 Inventory carrying cost (% of total supply chain cost) 1.9 2...