Problem: Indian auto OEMs have widely implemented Just-in-Time (JIT), but only within their own operations, leaving suppliers and dealers to absorb inventory and variability. This fragmented implementation leads to instability, frequent expediting, incomplete kits, forecast inaccuracies, and inventory pile-ups at suppliers and dealers. Solution: A practical pull-based system is proposed using decoupled buffers at key points (dealers, OEMs, suppliers), replenished based on actual consumption. A simple colour-coded priority mechanism guides production and inventory decisions to manage demand and supply variability. Benefits: The solution balances agility with efficiency, reduces firefighting, improves flow, and enables win-win inventory optimisation across OEMs, suppliers, and dealers, without increasing total inventory levels.

Key Takeaways

Our study of India's auto industry found no evidence of end-to-end JIT implementation across the supply chains of auto companies. We explore why and propose an alternative pull system with buffers and smart decoupling that overcomes the limitations of JIT while preserving its advantages.

Just-in-Time or just not there? Re-evaluating India's automotive supply chain dynamics

<h5>Just-in-Time or just not there? Re-evaluating India's automotive supply chain dynamics</h5>

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Explore why JIT creates instability in auto OEMs and Tier-1 suppliers. Discover how a strategic pull-based model helps decouple and maintain buffers.