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Supply Chain Management by Vinod V. Sople

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Case 13

Zico

Suoolv Chain Initiative—Localization

ZICO was established in 1951 and today is one of the leading manufacturers of diesel fuel injection equipment in the world. In India, ZICO is having manufacturing facilities at three places. ZICO undertook SCM initiatives to achieve the overall profitability of the business by reducing the cost. Through the SC initiatives, ZICO integrated the three individual business processes of procurement, manufacturing and distribution.

Procurement

Procurment is one of the major cost drivers in ZICO's supply chain. The procurement cost is influenced by the following factors:

  • The way procurement decisions are made
  • Procedures adopted in the procurement process
  • Relationship with the suppliers
  • The firm's credibility ...

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