Increasing cost of raw materials and rising rates of interest have affected many auto companies bottom line figure. According to recent reports, utility manufacturer, Mahindra & Mahindra has asked their suppliers for focusing on reducing cost and emphasizing on proper time delivery. M&M recently held a conference with 150 suppliers present from abroad and India, in Korea in May.
At the conference M&M asked the suppliers to build capability and capacity for the future. A spokesperson from the company said that they asked suppliers to participate actively to reduce cost, to build capability and capacity for the future and deliver on-time. Others issues discussed with the vendors included designing capability based on performance specification, improving capability and control of Tier II regions and supply chain sustainability.
M&M’s farm equipment & auto sectors Chief Executive, Sourcing and Tech Product Development, Rajan Wadhera, said that this meet was a great opportunity for them to discuss the difficulties faced by the auto industry in India like the affect of input prices, rise in interest rates as well as rising prices of commodities.
Wadhera also added that they discussed regarding opting for areas which were more cost effective in regards to new processes and new technology. The meeting was also a great place to share the efforts undertaken by their suppliers for the changing the face of the Indian auto industry.
This was M&M’s second successive year of organizing a joint supplier meeting for both their farm and auto divisions. The common suppliers of the Swaraj division that are Mahindra Reva and Mahindra Navistar were present at this meeting with 30 SsangYong suppliers.