This document summarizes Pak Suzuki's supply chain management processes. It discusses that Pak Suzuki operates vehicle manufacturing plants in Karachi and uses a Just-In-Time manufacturing approach. It also describes Pak Suzuki's vision, procurement of raw materials from local and international suppliers, opportunities to source more components locally like filters and tires to reduce costs and improve efficiency, and areas for improvement in material handling like reducing defects during supply.

1. Pak Suzuki Supply Chain
Presented by
Mr. Hammad Rasheed

2. 2
Introduction
• Pak Suzuki motor company limited (PSMCL) is a public limited company
• The company was formed in 1983 with the joint venture of the Pakistan
automobile corporation limited and Suzuki motor corporation
• In 1984 The company started its production
• The company operates the two manufacturing plants
• Cars plant
• Motorcycle plant
• Both are situated in Karachi

3. 3
Vision & mission
• Vision:
To be recognized as a leading that values customer need and
provide motoring solutions with strong customer care.
• Mission:
1. Strive to market value packed vehicles that meet
customer’s expectations.
2. Provide a platform where our stakeholders passionately
contribute, invest and excel.
3. Make valuable contribution to Social development of
Pakistan.

4. 4
Manufacturing environment
&
manufacturing schema
• The company works on the make to order environment on pull
strategy
• The company used the JUST-IN-TIME manufacturing schema
• just because to reduce its wastage and to carry the minimum
required inventory .
• And its require the small lot sizes and low setup time

5. 5
SWOT ANALYSIS
Strength
• Highest market share
• Easily available spare parts
• Production capacity
• Market goodwill
Weakness
• Scarcity of Raw material
• Imported Vehicles
• Less focus on looks & design
• Less technical training institute

6. 6
SWOT ANALYSIS
Opportunities
• R&D
• Increasing Demand for Cars
Threats
• Strong competitors
• Competitors will copy the design
• Possibilities not to increase sales
• Possibility to lose their position and customer

7. 7
Process of Supply
Chain Management
1-2
• Demand planning & forecasting
• Procurement
3-4
• Manufacturing and assembly
• Distribution
5
• Return

8. 8
Sourcing of Raw
Material (procurement )
There are three department which involving for procuring
components from vendor that are as follows.
1. IPP (Imports Part Purchasing): Pak Suzuki also imports the
products from different countries like japan , Korea , Thailand
but mostly items are from the japan.
2.LPP (Local Parts Purchasing):Deals in Procurement of locally
developed Components from local Vendors
3.GP (General Purchasing):Plant consumable like industrial
gases, chemicals and administrative procurement from local
suppliers

9. 9
Area for improvement
(AFI)
Pak Suzuki imports the different parts such as tyres, air filter,
oil filters for his most selling hatchback Swift Car from Japan
while the car is local assembled and manufactured in
Pakistan.
Process has following AFI
1. Long shipment time
2. More expensive
3. Increase the lead time of the production
4. Shortage of the goods in case of defective piece
5. advance order and production and then shipment
increase the delivery time of the product
6. Custom duties also effect on the price of the product
7. Other taxes also impact on the price of the product
8. Direct impact on the profit of the company

10. Opportunity
10
• We suggest that the company should get these products from
the local manufacturers according to their specification and
needs, which can be be done by following ways:
• Through contract or tender with 3P.
• By investing in manufacturing and production & export these
products under the company standards.
• Company can also import these products from different
Chinese OEM suppliers

11. 11
Available local Supplier
for Tyres
Service Group: (HIT, HMC, HONDA, YAMAHA, MILLAT)
General Tyre: (TOYOTA, HUNDAI, FUSO, HINO)
Ghauri Tyre: (ZXMCO, ROAD PRINCE, METRO BIKE,PAK HERO,
SOHRAB, UNIQUE)
Panther Tyre: (SUZUKI, DYL MOTORCYCLE, ASIA HERO)
HKB Enterprises: (PEL, QINGQI, FAW,HIT)

12. 12

13. 13

14. 14
Available local Supplier
for Air Filter & Oil Filter
Guard Filters are ISO certified & prime in quality which is
making Filters for following companies.
• Honda
• Toyota
• Nissan
• Millat
• Alghazi

15. 15
Material handling
department (MHD)
After procuring the raw material the MHD performs the
following functions:
• Receiving
• Storage
• Supply to production line
By the integration of these departments

16. 16
Area of
Improvement(AFI)
The MHD also facing some of the major issues which are as
following:
Line Rejection: (Mishandling by unskilled workers which cause
manufacturing defects)
Defected Supply: (Defected supply also cause of shortage
which is not up to the specification)

17. 17
Opportunity
• Provide the suitable & proper training to the unskilled
labor and also take the practical examination from them
and strictly supervise their work.
• Prefer the procurement from local suppliers or vendors
which can reduce the warranty claims and duration.
• Every lot should be inspected before delivery by the
supervisor or represented of the company.
• Do not compromise on company standards.
• Low the bargaining power of suppliers to reduce the
switching cost.

18. 18
Thank You !