Lucas Indian Service partners with Vector Consulting Group to revamp its supply chain

Mumbai, October 15, 2012: Consulting firm Vector Consulting Group has entered into a multi-year engagement with Lucas Indian Service (LIS) to build an agile supply chain using principles of Theory of Constraints (TOC). Through the Theory of Constraints, Lucas Indian Service intends to provide a high availability in supply chain while reducing overall inventory. This will be achieved by switching from forecast-based inventory movement to consumption-based inventory movement.

"Most automotive supply chains in the spare parts distribution are based on forecast-based push methodology that result in very high stocks while having stockouts. Consequently, distributors have low inventory turns and as a result the distributors restrict range and reach, resulting in a lose-lose situation for both distributor and supplier,” said Kiran Kothekar, founding director, Vector Consulting Group.

“Lucas Indian Service is one of the few pioneers in the auto supply chain which has taken the step to transform itself into a true pull-based agile supply chain and build on principles of a real win-win partnership with channel partners."

According to Sandeep Abbi, president at Lucas Indian Service Ltd, "Vector Consulting Group will be the implementation partner for transforming the supply chain of Lucas Indian Service using the TOC principles. The solution will help Lucas Indian Service (LIS) to improve supply chain responsiveness by maintaining inventory levels in line with actual consumption levels. The solution will result in substantial improvements in availability of spare parts offered by Lucas Indian Service (LIS) at the point of sale while reducing inventory in the system significantly."

Lucas Indian Service, which is engaged in sales and service of Lucas-TVS auto electricals and Delphi-TVS diesel fuel injection equipment, also manufactures the Lucas brand of ignition coils and solenoid switches. The company aims to become India's dominant service provider in its area of specialisation by 2013.