Ashok Leyland – flagship of the Hinduja group – is the 4th largest manufacturer of MHCV buses and the 10th largest manufacturer of MHCV trucks in the world. Ashok Leyland vehicles are designed for performance levels that have reshaped the commercial vehicle industry. The company also takes pride in ensuring higher uptime, greater efficiency, and operational performance of its vehicles. As part of this quest, Ashok Leyland strives to make all the spare parts readily available to the customers through their all-India sales and service network. But since they have a huge variety of parts under the brand LEYPARTS® (over 90,000 parts!), the company, like most large players in this segment, was finding it an enormous challenge, in spite of operating with very high inventory and long lead times.
Ashok Leyland partnered with Vector Consulting Group in order to implement the TOC distribution model in its Spares business to build supply chain capabilities that can deliver excellent availability of their enormous range of parts. And by migrating from the conventional forecast-based model and implementing the ‘pull’ replenishment model of TOC with 500+ vendors, 6 Ashok Leyland Plants and 540+ outlets for 20,000+ SKUs that account for 95% of the sale, it transformed its operations within 15 months of implementation. Consequently, the spares business has continued to grow at over 25% year on year.
The following were some of the major benefits realised: