To achieve faster supply, Mahindra & Mahindra restructures its sourcing department

26 Jul 2023 , 11:06 AM

Mahindra & Mahindra stated in an internal circular to its staff that it has reorganized its strategic sourcing unit (SSU) to ensure quicker deliveries of parts to its tractor and vehicle divisions, with a specific focus on electrical, electronic components, and software.

According to news reports, this reform will ‘help the firm streamline the sourcing function and better serve each of the business units.’ This action comes at a time when the maker of XUV700 and Thar is facing challenges in matching supply and demand due to a scarcity of essential components. As of May 1, 2023, the company’s order book stood at 292,000 units, owing to the strong demand for its recently introduced SUVs.

With the reorganization, the company will benefit from a shared AFS (auto and farm sector) sourcing scale and will also provide proactive and collaborative sourcing support to each of the business divisions to prepare for future expansion. This move is expected to enhance the organization’s ability to deliver greater value, adaptability, and effectively manage the businesses’ requirements.

As a result of these changes, the company will have three distinct divisions: one for sourcing common commodities for the auto and farm sectors, another specifically for the auto sector, and a third dedicated to sourcing electrical and electronic parts and software for all businesses, including auto, farm, and last-mile mobility.

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