Hero Motocorp

Advanced technologies like just-in-time (JIT) and flexible manufacturing system (FMS) have increased the importance of supply chain optimisation. Hero MotoCorp has successfully used direct-on-line supplies system for managing efficiently its advanced manufacturing system of different components, parts supplies at different units. The supplies system used by company shows high level of efficiency all around. It also helps the company alleviate the problem of managing high level of outsourcing with low level of inventories. And this system has also helped eliminate the complexity of managing large numbers of vendors with the help of Enterprise Resource Planning (ERP) and IT integration in SCM.

The company’s SCM function is built on three planks: Cost, quality, and sustainability. As the market leader and a global automotive major, Hero MotoCorp takes the lead in many areas that benefit the environment, customer and the industry. Adoption of environment-friendly fuel is a priority for Hero MotoCorp, as is propagating sustainable manufacturing through green facilities. Hero MotoCorp is investing Rs 5,000 crore ($734 million) in five manufacturing facilities across India, Colombia and Bangladesh, to increase its annual production capacity to 12 million units by 2020.

As for sustainability practices within the company, there are many well-thought-out initiatives. For example, it started focusing on ‘green manufacturing’ many years ago and have been consistently focusing on reducing carbon footprint. Its production processes have eliminated harmful substances like asbestos, hexavalent chromium, and other phenol substances. All its units have effluent- and  sewage-treatment plants, oil conversation and paints conservation methodologies, and a systemised water-management system.