TVS Logistics - Building a Global Supply Chain*

Details

Case Code : CLSDM022
Publication date : 2005
Subject : Sales and Distribution
Industry : Auto Components
Length : 04 Pages
Price : Rs. 100

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Key words:

Logistics, TVS, Supply Chain, Distribution, India, Europe, US, Transportation, Warehouses, TVS Lanka, Outsource, Equity, Spain, Consultants, Managers

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet describes how TVS Logistics Services Ltd, a division of TVS group, has planned and built a global supply chain to meet the needs of automobile giants in the US and Europe, who sourced their automobile components from India and China. It also focuses on the different strategies adopted by the company in building and managing the supply chain.

Issues: » Opportunities in logistics management » Challenges in global logistics Introduction The US$2 billion TVS group had a spare parts distribution business that supplied spare parts to a number of automobile manufacturers in India. During the mid-nineties, the company planned to expand its spare parts business. However, the huge potential and opportunities in third party logistics made TVS open its logistics division, TVS Logistics, in 1997.

TVS Logistics (TVS) initially provided the warehousing facility to its clients, but expanded rapidly to provide inbound and outbound logistics to Indian automobile manufacturers such as Ashok Leyland, TVS Suzuki, Mahindra & Mahindra, General Motors, Ford India, etc...

Questions for Discussion:

1. The TVS group separated its logistics division as a wholly new subsidiary in November 2004 to start a global supply chain. Discuss the reasons behind the step taken by the company.

2. Explain the strategy followed by TVS to set up a full-fledged supply chain in foreign countries.