Strategic Supply Chain Management: A Detailed Report on CEAT Tyres

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This report provides a strategic analysis of CEAT Tyres' supply chain management, including an audit of relevant links, integration descriptions, and a strategic logistic plan. It identifies issues such as inventory management, transportation, marketing, information flow, and on-time delivery challenges. The report uses qualitative research methodology, including data collected through questionnaires and literature analysis. It also addresses customer order-winning criteria and qualifiers, emphasizing the need for CEAT to adapt strategies to changing market needs. The analysis includes CEAT's organizational structure and recommendations for improvement, focusing on implementing an end-to-end PULL model across the value chain. The report concludes by highlighting the importance of aligning order winners and qualifiers with customer perceptions to maintain competitiveness.
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Supply Chain Management Report
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Synopsis Report
Purpose: The report will discuss the strategic supply chain management plan of one of the
leading tyre manufacturer, that is, CEAT. The purpose of this report is to investigate all the links
in an integrated supply chain and implementation of supply chain management practices from a
strategic viewpoint. The literature will also discuss strategic supply chain & logistic plan of the
business and its supply chain partners.
Design/methodology/approach: The literature in the report is examined in the following
manner. Firstly, an audit covering of a major component of all relevant links in the supply chain
including information, physical storage, management, leadership, movements and
up/downstream integration is provided. Secondly, a description of the integration and links in the
supply chain by a suitable diagram and an explanation with the written description with all the
relevant theoretical concepts are provided. Thirdly, a strategic supply chain and logistic plan
covering the problems identified in the audit, the organization's strategic vision which will form
the basis of developing a strategic operations plan, customer's requirements and their order
winning and at last a time frame of execution of the recommendation is provided. The data is
collected by contacting the personals within the company, using internet sources and by referring
some of the elite journals and relevant data from the company website.
Findings: A vital new subject from the writing is the significance of taking an all-encompassing
perspective, and the foundational idea of communications between the members. In the
meantime, it is likewise evident that this necessity to take such an all-encompassing and
foundational perspective of the production network goes about as an obstruction to more broad
execution. The key idea of receiving a store network-wide point of view, from one perspective
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gives a huge potential advantage, and on alternate requires exchanging accomplices to think and
act deliberately. This is less demanding said than done inside a standalone association, let alone
over a different and scattered gathering of exchanging accomplices.
Research limitations/implications: The extent of this survey is by configuration constrained to a
crosssection of the writing here. All things considered, it can't, and does not, endeavour to be an
examination of the full scope of the writing, however a testing of critical and persuasive works.
Practical Implications: This audit of the writing serves to feature the interdependence between
joining (innovations, coordination, and associations), a vital perspective of production network
frameworks, and execution approach. Every one of the three needs to illuminate and support
each other all together for the administration of supply chains to have the capacity to convey on
the guarantee of advantages for all exchanging accomplices.
Originality/value: This examination surveys an example of later and exemplary writing in this
field, and in doing as such gives some reasonable rules to the lead of future research. To the best
of the knowledge, this project report is the self-work while it has considerations and researchers
taken from some of the scholarly articles.
Report
Introduction
The globalization of business and the undeniably aggressive weights have driven numerous
assembling firms to build up a viable production network intending to limit the inventory
network cost; store network arranging is turning into the vital component of organization
administration. Supply chains have customarily been divided, neglecting to coordinate the
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business works in calculated chain process(Ashby, Leat, and Hudson-Smith, 2012). Numerous
issues, for example, expanded stock conveying costs, longer request lead times, and trouble in
reacting proactively to continuous changes, have diminished benefits and debilitated client
generosity, which can be settled by coordinating store network administration frameworks for
warehousing and transportation.
Supply chain management is defined as the process flow of any product within the organization
which requires an intensive study and integration of planning, research, control and execution. It
is the most important process in the organization as this helps in the delivery of the product to the
customer at the right time and organizes the company's work process(Stadtler, 2015). Supply
chain management incorporates the coordinated arranging and execution of procedures required
to enhance the stream of materials, data and money related capital in the territories that
comprehensively incorporate request arranging, sourcing, generation, stock administration and
capacity, transportation - or coordination - and return for abundance or deficient items(Seuring,
2013). Both business procedure and specific programming are utilized as a part of these
undertakings to make an upper hand.
The literature in this essay is going to discuss about the supply chain management of one of the
leading manufacturing company that is CEAT who deals in the manufacturing tyres of the
vehicles. The report will discuss the supply chain management procedure in the company and the
need to improve on the management process while giving out an audit covering of a major
component of all relevant links in the supply chain including information, physical storage,
management, leadership, movements and up/downstream integration is provided. a description of
the integration and links in the supply chain by a suitable diagram and an explanation with
written description with all the relevant theoretical concepts are provided. Further, a strategic
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supply chain and logistic plan covering the problems identified in the audit, the organization's
strategic vision which will form the basis of developing a strategic operations plan, customer's
requirements and their order winning and at last a time frame of execution of the
recommendation is provided
Discussions
Audits/ issues:
Considering the history of the company in relation to the supply chain management within the
organization has come a long way in developing a structure that is very inapt to meet the
requirements of the customers in the time frame that is set. But with the advancements that have
taken place and the vision of the company to implement an end to end PULL model across the
value chain there are still many areas where they need to work upon. Firstly, they need to work
upon the Inventory and transportation management on specific fields. Second is the marketing.
Networking is one of the main components in supply chain. Pricing, endorsement, and guide
supervision are the three most important areas in this regard. The other issue can be a visionary
one and can be related as a future step that is the development of the green logistics. There are
issues related to the flow of information within the organization. Only improvement they can do
in this domain is the management of the data using some high tech management tools. The next
issue is inability to commit on-time delivery due to long production planning cycles. The
leadership issues related to the supply chain management is not there as this can be seen from the
organization structure. There are no issues pertaining to management.
Figure 1 CEAT organizational structure
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Methodology:
Research is the most important and essential activity for critically analysing a case or for
recognizing the factors affecting the work within the organisation or an industry. In this study,
various methods of research have been used to draw an impactful conclusion to process and
supply chain management in the manufacturing company CEAT.
The various methods used for preparing this literature are discussed in the following
subsections(Neuman, 2013). The subsections primarily discuss the project method, secondly the
methods used for collecting conclusive data and, thirdly describes the ethics that are considered
for this project.
The Qualitative research methodology has been used in this project which enabled us to frame
this report in form of single case study. Due to qualitative method implication, the case study
involves detailed and precise knowledge about the topic(Petty, Thomson, and Stew, 2012). The
case study further covers topics specifying retention methods, process implied and various issues
faced by CEAT in real life setting.
Qualitative data is collected by collecting information through in-depth interviews with officials
and employees working in supply chain department as managers and engineers in CEAT plants
and offices in India. The qualitative method of research has enabled us to generate questionnaire
that was effective in producing data providing us with careful insight to supply chain practices
used by the organization.
DATA COLLECTION
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Several techniques of collecting data are available to be used by researchers for collecting
efficient data. However, the collection method depends upon different variables such as time,
place, cost, and availability of resources. For the case study, primary data was collected by
mailing questionnaires to the employees of CEAT in India.
As discussed primary data was collected through mailed questionnaire, therefore the first step
towards data collection was drafting of interview questionnaire. Followed by questionnaire was
literature analysis for the collection of secondary data which involved studying in-depth
interviews. Several officials and employees were mailed for the collection of primary data but
only a few people replied on the condition of maintaining anonymity. However, the contacted
people had great knowledge about supply chain management techniques and procedures within
the organization. The questionnaire was designed to take a minimum amount of time and efforts
for the employees to go through it and for us to collect maximum data out of it. Some of the
questions that were asked were:
The questionnaire was:
How does supply chain management works in the organization?
What do you feel is lacking when it comes to the information flow in the organization?
What changes do you feel can be done in order to improve the supply change management?
Moreover, extensive data related to the subject of supply chain management was seared and
studied to recognize the problems in existing policies of CEAT, India and suggest best
recommendations to overcome those problems. For the same, extensive journals, reports,
published bibliographies and books were referred, and studied.
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The most important feature of the good research is to adopt flexibility, efficiency and
adaptability while following an ethical code of conduct. Therefore this case study has been
designed to minimize the biased result and bring out the most accurate and reliable and
generalized results.
The project is compiled with most reliable journal studies and subject learning material to justify
the practice ethical code of conduct. All data used in this report are being permitted to be used, in
case if not permitted the data is only being mentioned and not completely revealed in the study.
Moreover, the data collected through questionnaires also maintains anonymity and are presented
with names only in case if consent is given to us by the officials or the person himself.
CUSTOMER WINNING
A company's capacity to win orders available relies upon its aggressiveness. A focused firm wins
orders available, which positively affects its business execution. Orderwinning criteria are those
criteria that have any kind of effect to the client when he chooses qualified offered items.
An order winner is a trademark that will win the offer or client's buy. Accordingly, firms must
give the qualifiers with a specific end goal to get into or remain in a market. To give order
winners, they require just to be in the same class as their rivals. Inability to do as such may bring
about lost deals. Notwithstanding, to give order winners, firms must be superior to their rivals.
Note that request qualifiers are not less vital than arranging champs; they are simply unique.
CEAT should likewise practice some alert when settling on choices in light of request order
winners and qualifiers.
Order winners and qualifiers are both market-particular and time-particular. They work in
various mixes in various routes on various markets and with various clients. While some broad
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patterns exist crosswise over business sectors, these may not be steady after some time. For
instance, conveyance speed and item customization were visit arrange champs, while item
quality and value, which beforehand were visited arrange victors, had a tendency to arrange
qualifiers. Henceforth, CEAT need to create distinctive procedures to help diverse advertising
needs, and these methodologies will change after some time. Likewise, since clients' expressed
needs don't generally mirror their purchasing propensities. At the point when a company's view
of Order winners and qualifiers coordinates the client's impression of the same, there exists a fit
between the two viewpoints. At the point when a fit exists one would expect a positive deals
execution.
The data were acquired in an accompanying way. We solicited the chief from the firm to
characterize the qualifying and request winning criteria of every group of items, as per his
conclusion. He depicted the request champs and qualifiers as answers to open finished inquiries.
We broke down and re-coded, or made an interpretation of, his answers into an encoded
rundown of criteria. The result was not specific. It is hard to specifically look at order winners
picked by the trough and his customer's. The trough discusses what he, in his aggregate offer, see
have any kind of effect to the client; why the client purchases his item. The client's choice, then
again, is in view of the result of a sane choice process where offers from various firms are looked
at.
Theory Concepts and Implementation.
Supply network is generally described by a forward stream of materials and a retrogressive
stream of data and frequently involved an arrangement of topographically scattered offices where
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crude materials, middle of the road items, or wrapped up items are procured, changed, put away,
or sold. This store network is frequently spoken to as a system.
A supply chain management framework is an arrangement of programming arrangements that
oversees and supervises the stream of merchandise, information, and funds as an item or
administration moves from purpose of cause to its last goal. Store network exercises incorporate
everything from item improvement to coordination, including creation and assembling, sourcing,
transportation, stock and stockroom administration, and delivery(Christopher, 2016). They also
want to further reduce3 the inventory related to the export. They want to integrate a system that
would allow them to control the flow of any information within the company and also they
would like to track the recent working files that are currently in operations.
CEAT has a way forward to improve its supply chain management and complete its orders in
time. Creation of the container wise estimated time of dispatch. The other plans that company
have is the linking of the estimated time of dispatch with the production plan. This would help in
the flow of the information from the research and development department of the company to the
production plant in a précised and proper manner and also this would help in the better
management of the batches created and thus it will help in delivering the projects on time.
Theories related to supply chain management
Supply chains include connections among key firms, who might be in a key cooperation or
another type of relationship. Solid production network connections empower firms to respond to
changes in the market: changes in what clients esteem and how contenders move. Supply chains
can likewise be viewed as a more reliant arrangement of firms, which has prompt the
improvement of more shared, accomplice like connections. Several specialists have made
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research about business connections(Hugos, 2018). This writing does not give analysts or
professionals adequate course about the organization. In the production network administration
system the operational procedure incorporates client incorporation, inward coordination and
provider joining. Inside client incorporation, you can assemble. These can be incorporated in the
CEAT.
Figure 2Supply chain management framework
up collaboration with clients of the decision. Inward incorporation joins performed work to client
necessities lastly provider combination joins outside work with inner work process. This is very
important in linking the supply chain management with the customer needs and this would
integrate the theories of the supply chain management with the integrated structure.
To enhance the dispatch permeability, CEAT has presented Estimated Time of Dispatch. The
organization has done various changes to mechanize the framework. A further change of
incorporating an estimated time of dispatch with generation arranging is in progress.
Simple supply chain methodology which can be followed by CEAT
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The system has four levels, items spill out of providers to plants, the plants to conveyance
focuses (DC), lastly DC to clients. This is a straightforward inventory network framework in
light of coordinations chain, and calculated esteem is reflected in the framework. Actually, the
production network arranging framework in an assembling firm is extremely good. (Ptak, and
Schragenheim, 2016). It needs to manage not just within administration framework including
deals, generation, buy and coordinations arranging, yet in addition the outside inventory network
framework. The arranging framework examination requires the expansion of extensive insights
about arrangement made process. An incorporated inventory network arranging framework for
assembling firms is intended to depict the arranging process in detail in this paper
Suggested strategic supply chain management plan for CEAT:
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Figure 3 Optimised supply chain management
This advanced production network arranging framework incorporates two sections: inside
administration framework and outside production network framework. In inside firm
administration framework, deal, creation, buy and coordinations arranging are made in light of
market data. Market data, (for example, request amount, time, area, etc.)Gathered from clients,
chooses deal designs while deal designs apply impact on generation designs which frames buy
designs. In this data stream process, coordinations arranging is incorporated with deal,
generation and by arranging(Pishvaee, Razmi, and Torabi, 2012). In the outside store network
framework, data stream begins from client to make and after that to provider, while
coordinations stream begins from provider to maker and afterward to client. The blend of within
administration framework and the outside store network framework is done by advertising data,
acquiring data and coordination data.
The recommendations for CEAT for the supply chain management system with the integration of
all the aspects of the management system is:
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Figure 4 Integrated supply chain management plan
Explanation:
The recommended display comprises of five main components:
1) Market request forecast segment. In this segment, showcase information from clients, for
example, amount, area, request time and cost, are connected to estimate advertise request, and
give showcase request data to making deal coordinations arranging.
2) Sale-coordinations arranging segment. Given the market request data, the deal designs can be
resolved and the related coordination designs ought to be resolved at the same time. The
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incorporation of offer and coordinations arranging can fulfill clients' request well and diminish
the expenses of offer.
3) Production-logistics planning part. Hypothetically generation designs are made in light of
offer designs and creation capacity. Anyway work-in-process stock can impact creation costs.
Thus, the material stock conveying costs must be considered so as to decrease arrange lead time
and creation expenses, and generation choices need to consider coordinations designs. The
combination of generation and coordinations arranging can diminish the expenses of generation
adequately.
4) Purchase-coordinations arranging segment. At the point when creation choices are made, the
related buy designs ought to be made at the same time. Notwithstanding, buy amount and time
apply an effect on crude material stock and transportation cost, as it were, and the blend of
procurement and coordination can diminish crude material stock what's more, transportation
costs incredibly.
5) Cost investigation segment. This segment is connected to assess the arranging impacts as
indicated by the contrasting consequence of the aggregate arranging cost and the foreseen cost;
the last is controlled by chiefs ahead of time in view of their information and experience. On the
off chance that the contrasting outcome infers that the arranging cost is not as much as the
foreseen cost, at that point the arranging is plausible, or else the arranging should be altered.
In this incorporated store network arranging process, the deal coordinations arranging sub-
demonstrate, the creation coordinations sub-model (Talib, Rahman, and Qureshi, 2011) and buy
coordinations sub-show, are generally consecutive, i.e., thusly, the deal coordinations, the
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generation coordinations and buy coordinations, and this succession of steps is alleged three-
organize arranging model.
Information flow network in supply chain management integrated with other aspects.
For an effective inventory network, the general association is important between the maker and
the shopper. In numerous occasions, we can see that different accomplices like wholesalers,
merchants, retailers, calculated specialist co-ops take an interest in the data arrange(Prajogo, and
Olhager, 2012). What's more, a few offices at the maker and purchaser side are additionally a
piece of the data circle. Here we have to take note of that the inside data stream with the client
for in-house fabricate is extraordinary.
Figure 5 Information flow in supply chain management
Recommendations and conclusions:
The enhanced supply chain model is at long last conceivable inferable from progress in its data
innovation. The three-arrange incorporated inventory network arranging model proposed in this
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paper will help to fabricate organizations to comprehend the complex arranging procedure of
inventory network and investigate the principal components of cost-push in firm operations. The
execution of coordination as administrative idea and practices in assembling organizations is the
most essential marker for the improvement of coordination in the economy as the entirety. In the
three-arrange arranging model, coordinations arranging assumes a vital part in decreasing the
cost of a supply chain. The proceeding with a procedure of three-organize arranging guarantees
that the production network designs will react to the market requests that are always showing
signs of change, and the level of exertion associated with the arranging procedure will rely upon
the measure of clients' market and the many-sided quality of its issues.
References
Ashby, A., Leat, M. and Hudson-Smith, M., 2012. Making connections: a review of supply chain
management and sustainability literature. Supply Chain Management: An International
Journal, 17(5), pp.497-516.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Neuman, W.L., 2013. Social research methods: Qualitative and quantitative approaches.
Pearson education.
Petty, N.J., Thomson, O.P. and Stew, G., 2012. Ready for a paradigm shift? Part 2: Introducing
qualitative research methodologies and methods. Manual therapy, 17(5), pp.378-384.
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Pishvaee, M.S., Razmi, J. and Torabi, S.A., 2012. Robust possibilistic programming for socially
responsible supply chain network design: A new approach. Fuzzy sets and systems, 206,
pp.1-20.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics
integration. International Journal of Production Economics, 135(1), pp.514-522.
Ptak, C.A. and Schragenheim, E., 2016. ERP: tools, techniques, and applications for integrating
the supply chain. CRC Press.
Seuring, S., 2013. A review of modelling approaches for sustainable supply chain management.
Decision support systems, 54(4), pp.1513-1520.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.
Talib, F., Rahman, Z. and Qureshi, M.N., 2011. A study of total quality management and supply
chain management practices. International Journal of Productivity and Performance
Management, 60(3), pp.268-288.
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