Lucas Indian Service enters into contract with Vector Consulting Group
Lucas Indian Service along with Vector Consulting Group have come together in a new alliance which will enhance the availability of spare parts while also reducing the overall supply chain inventory. Lucas India Service was set up in 1930 and are specialists in sales and service of Lucas TVS and Delphi IVS diesel fuel injection equipment. The company provides quality sales and after sales services to a large number of vehicle manufactures in the country. It is their endeavor to become the foremost service providers in this sector by 2013.
The two companies, through this joint venture will be using principles of Theory of Constraints wherein they will provide a very efficient supply chain which will also help in lowering inventory and associated costs thereby adding to the profits of the company. The system to be followed in the supply of spares and ancillary equipment will be more consumption based rather than on forecast based.
Auto companies across India generally follow a forecast based system which results in either a very high and sometimes unnecessary inventory of stocks or on the other hand restricted supply which leads to shortages. This kind of system does not benefit either distributor or supplier while the new system is expected to be more profitable and advantageous.
India auto news release: Lucas Indian Service Partners with Vector Consulting Group to revamp its Supply Chain
Vector Consulting Group, the largest consulting firm in the space of Theory of Constraints consulting in India, has entered into a multi-year engagement with Lucas Indian Service (LIS) to build an agile supply chain using principles of Theory of Constraints.
Through Theory of Constraints, Lucas Indian Service intends to provide a high availability in supply chain while reducing overall inventory. This will be achieved by switching from forecast based inventory movement to consumption based inventory movement.
“Most auto supply chain in the spare parts distribution is based on forecast based push methodology which result in very high stocks while having stock outs. Consequently, distributers have low inventory turns as a result the distributers restrict range and reach resulting in lose-lose situation for both distributer and supplier, said Kiran Kothekar, Founding Director, Vector Consulting Group. Lucas Indian Service (LIS) is one of the few pioneers in the auto supply chain which has taken the step to transform itself into a true pull based agile supply chain and build on principles of real win-win partnership with channel partners.”
According to Sandeep Abbi, President at Lucas Indian Service Ltd, “Vector Consulting Group will be the implementation partner for transforming the supply chain of Lucas Indian Service using the TOC principles. The solution will help Lucas Indian Service (LIS) to improve supply chain responsiveness by maintaining inventory levels in line with actual consumption levels. The solution will result in substantial improvements in availability of spare parts offered by Lucas Indian Service (LIS) at the point of sale while reducing inventory in the system significantly.”
About Lucas Indian Service:
Lucas Indian Service (LIS) established in 1930, is a specialist organization in sales and service of “Lucas-TVS” auto electricals and “Delphi-TVS” diesel fuel injection equipment. Lucas Indian Service (LIS) also manufactures “Lucas” brand of ignition coils and solenoid switches. The mission of LIS is to provide high quality proactive sales and after sales service to vehicle makers and users in electricals and diesel systems. The vision of Lucas Indian Service (LIS) is to become India’s dominant and the most respected service providers in its area of specialization by 2013.
About Vector Consulting Group:
Vector Consulting Group is the largest consulting firm in the space of Theory of Constraints consulting in India. It engages with organizations to bring about quantum improvements in sales and bottom -line using the supply chain as the key leverage. Vector Consulting Group is engaged with India’s most renowned industrial houses such as Tata, Godrej, Bajaj Electricals, Trident Group, Cummins Group, Liberty, Raymond, and Kirloskar Oil Engines etc.