Hero MotorCorp signs up Accenture to develop future-ready supply chain

Two-wheeler manufacturer Hero MotorCorp announced a programme on Wednesday to digitise its supply chain, for which it has selected Accenture as the technology partner.

The programme will include supply chain strategy, planning optimisation, logistics cost optimisation, and development of an end-to-end digital supply chain suite, Hero MotorCorp stated in a stock-exchange filing. This will enable the OEM to manage the increasing complexity in products, markets, and supply chain networks, while driving cost-reduction in an inflationary environment.

“As we expand our global footprint and foray into electric vehicles, navigating the complex global supply chain network will be crucial in driving our future growth," said Ram Kuppuswamy, chief procurement and supply chain officer, Hero MotoCorp.

"Simplifying our operations and improving profitability will be key to creating the capacity we need to expand our products portfolio, and enter new markets,” Kuppuswamy added.

Accenture plans to use its zero-based supply chain (ZBSC) approach to facilitate Hero MotoCorp’s cost-optimisation efforts across its supply chain.

It will deploy a supply chain control tower, powered by data and analytics, to enable better supply chain and logistics planning. Using artificial intelligence and machine learning capabilities, the digital supply chain platform will provide Hero MotoCorp’s business decision-makers deeper visibility across operations.

Accenture also seeks to help Hero MotoCorp train its workforce, and build the right capabilities across supply chain planning and logistics functions, as well as in data and analytics.

“The need for resilient supply chains has never been more important," said Manish Chandra, lead - supply chain and operations, Accenture India.

"Our programme will provide Hero MotoCorp with improved visibility across its supply chain, enabling the company to better meet its customer requirements, and quickly respond to ongoing disruption while significantly optimising supply chain costs."

In its annual report for fiscal year 2022, Hero MotorCorp said it expects 30 percent of its sales to come from digital channels. Towards this end, it has launched a sales and after-sales services platform on WhatsApp. Currently, 5 percent of its sales happen through digital channels.

Further, it has unveiled seven 'Phygital Hero 2.0' stores across the country, which have the infrastructure for digital engagement. "In the year ahead, we plan to re-energise our dealership network across the country by opening a large number of these stores," said Pawan Munjal, chairman and CEO, Hero MotoCorp.

"The digital ecosystem with data insights, integrated value chains for efficient demand-fulfilment, smart manufacturing setups and online product availability have become imperative for efficient operations," the company stated in its annual report.

Hero MotorCorp has also cited Quality 4.0 as an objective, to use data and available technologies to optimise supply chains by implementing analytical solutions that provide actionable insights in real-time.

The Quality 4.0 programme is currently under development in close coordination with the information systems teams, and will soon be rolled out across the organisation.