Maruti starts performance audit of vendors to assess R&D ability
Maruti Suzuki India Ltd has started its maiden performance audit of vendors and also introduced a so-called ‘purple band for the most-efficient suppliers as it seeks to ensure its goal of keeping leadership of the domestic market by producing up to five million vehicles by 2030, said three people directly aware of the development.
The company expects the exercise spanning its entire vendor base including Tier 2 and Tier 3 suppliers to help improve product quality and sustainability of its vendors, said the people, who did not wish to be named.
“Maruti already has an established mechanism for judging its vendors and this announcement of introducing this purple band was made since it wants to encourage some of it vendors to invest more in line with the com- pany’s expectations,” said the first person cited above. “There are almost 11 parameters and companies which will be able to meet 85% to 90% of the parameters will be put in the purple band,” the person said.
According to the people cited above, the initiative has been taken to boost synergy between the vendors and the company as the management feels the vendors are crucial partners and will act as a catalyst to growth in the future.
The exercise is also being initiated to urge vendors especially Tier 1 to invest more in research & development, which will enable Maruti to develop and design more vehicles in India, they said.
NEW DELHI: