Hero's Supply Chain


Hero is one of the world’s biggest 2 wheeler manufacturer.Its sales has touched nearly 46lakh in 2009-10 fiscal year.Now I always wondered what has contributed to the success of 2 wheeler.There may be numerous factors that contribute to the success .It may be first mover advantage that it had.It was able to connect with indian consumers and was a motorcycle was synonymous to Hero Honda.Models like Splendor,Passion was a blockbuster which contributed to the growth of company.Secondly,the technology back up that it had with Honda working with technology and tailoring or producing customized motorcycles for the Indian market.Thirdly,the most important and strong factor which I believe is the efficient and strong distribution network whether it be in terms of dealers,spare parts,authorized distributors.



Supply chain network is one of the key strengths which contributed to the success of Hero.Companies manufacturing plants are supplied raw materials and components by more than 250 suppliers and partners located in India.Hero has manufacturing plants are located at North India.Dealers located in metro cities provides sales and support to customers.While in non metro cities cater to the demand of direct consumers make products available to rural customers through rural sales representative.Rural sales representative is responsible for product supply in a number of identified villages.Supply chain network of Hero moto corp both are integrated downward(suppliers,rawmaterialsuppliers) and upward(distributors,wholesalers,retailers) by SAP.


Company’s production plan is aligned with the supply of Hero.Flexible production techniques have been implemented across various manufacturing plants to reduce change over time and increase efficiency.Hero mantains a customer portal which dealers place orders every month.Every Friday the company recieves orders and consolidates them on Saturday.Monday morning the suppliers receive delivery schedules directly from production planning system.Online automation has increased responsiveness to its dealers.Endless integration and automation has formed a strong supply chain network among suppliers,distributors,wholesalers retailers etc.It will be interesting to see after the corporate divorce with Honda will it able to hold its brand value.After the break up Hero has seen consistent fall in its market share  

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