Mahindra & Mahindra restructures sourcing unit to ensure faster supply

economictimes.indiatimes.com:

strategic sourcing unit (SSU) to ensure faster supplies of parts to its automobile and tractor businesses with a heightened focus on electrical, electronic components and software, the company said in an internal circular to its employees. «The re-organisation will help the firm streamline the sourcing function and service each of the business units better,» said a person privy to the restructuring declining to be identified.

The move comes at a time when the manufacturer of XUV700 and Thar has been struggling to align production with demand amid shortage of critical parts. Robust demand for its range of newly launched SUVs swelled the company's order book to 292,000 units as of May 1, 2023.

Vinod Sahay, chief purchase officer, auto and farm sector, M&M, said, «At the auto and farm sector of M&M, we are witnessing rapid growth across our business divisions. We have embarked on an ambitious plan of creating a new product range across all our divisions including born-EV range of e-SUVs, a brand new SCV (small commercial vehicle) platform and new lightweight tractors.» The re-organisation will enable the company to leverage common AFS (adaptive front-lighting system) sourcing scale and also provide proactive and collaborative sourcing support to each of the business units for their future growth.

This will allow the company to manage the requirements of the businesses proactively while being agile and delivering enhanced value, he added. As part of the changes the company has created three separate divisions — one for sourcing of common commodities for auto and farm sectors, another one dedicated for the auto sector and the third one for sourcing electrical and electronic parts and software for all the businesses, i.e.,