Mahindra & Mahindra (M&M) will give its Scorpio project, set to be unveiled later this week, a preferred treatment over its existing range of products -- both at the vendors' and the dealers end -- right from the beginning.
The company, which has invested around Rs 600 crore on the Scorpio project, its single largest investment on any product till date, has put in place a much smaller vendor base of around 170 for the Scorpio. This is less than a third of the company's average vendor base of around 600-700 suppliers for the rest of its utility vehicles, including the Bolero.
Further, only about 45 of its dealerships, or around a fourth of its existing dealer network of 170, will be allowed to sell Scorpio in the first phase. These dealers have been asked to beef up their showrooms to portray a different image of the company, a breakover from the none-too-distant past when M&M was primarily known as a manufacturer of vehicles for rural usage.
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In the second phase, another 30-35 dealers will be allowed to sell the Scorpio, after they also give a face-lift to their dealerships, Rajesh Jejurikar, vice-president (marketing) said.
JM Mapgaonkar, vice president (vendor management), M&M said, "We have put in place a much smaller vendor base of 170 vendors, all of whom have been given a self-certification status, for the Scorpio. The Scorpio will be manufactured using the just-in-time concept, keeping inventories of less than 36 hours, against an inventory of 8-12 days so far."
Most of these vendors, who will be part of a hub-and-spoke arrangement, will supply the company with whole modules or sub-assemblies that will go directly to the company's new assembly line for the Scorpio. "Most of the vendors will also be our suppliers for all the new variants that we will launch at a later date, to give them economies of scale," Mapgaonkar added.