Suppliers Corner

Strong, capable and reliable supply chain partners are critical as we source more than 70% of the components for our vehicles. It is the responsibility of our ‘Sourcing and Supply Chain’ department to evolve sourcing strategies that are aligned to our corporate mission, manage a competitive global supply base and inbound logistics apart from handling sourcing, parts development, supplier relationship management and setting up of inbound logistics for all manufacturing locations in India. In addition, there are purchase departments at each plant.

Structured into domains based on technology, namely Proprietary, Sheet Metal, Castings, Forgings, Steel, Non Metallic, Fasteners, Bar machining, Imports, Fully Built Vehicle Solutions (FBVS) and Corporate Logistics, the department operates from its offices in Chennai, Gurgaon and Shanghai

To maintain a highly capable and competitive supply base, focus is on:

  • Partnering best-in-class suppliers
  • Conducting rigorous evaluation and improving supplier performance - measured on Quality, Cost, Logistics, Development and Management (QCLDM)
  • Deciding share of business on the basis of performance
  • Optimizing supplies in coordination with third party logistics (3PL) providers

The Supplier management process involves engaging suppliers and exchanging real time information with the suppliers. This is enabled through our web portals:

  • Supplier Performance Management (SPM): gives the latest data on individual supplier’s performance on various parameters like quality, cost, logistics, development and management. Each supplier can view their own score on a monthly basis and take necessary measures to improve the performance.
  • Supply Chain Management (SCM): allows the suppliers access to day-to-day transactional data like receipts, rejections, production schedule lines, payment status etc. This enables better planning of business for our suppliers.
  • Supplier Relationship Management (SRM): has been launched in May ’11 along with SAP implementation at our Hosur 2 and CPPS plants. This portal replaces the SCM portal for these plants, and will subsequently cover all plants. In addition to the available facilities The SRM portal enables bi-directional exchange of information, facilitating better material planning for suppliers and Ashok Leyland.

To be a supplier of Ashok Leyland, just give us a call.