The Smart List: Major automotive company plans to double production with multi-vendor support

Modernized support fuels high-availability IT operations and productivity for Volvo Eicher's supply chain

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With over 94 locations and 11,000 employees across India, Volvo Eicher needed multi-vendor support to fuel high-availability IT operations and user productivity for its entire supply chain — not a simple task. Now, with modernized support in place, Volvo Eicher aims for the future and plans to double vehicle production. Rajesh Mishra, Volvo Eicher’s Senior VP Process & IT and Chief Digital Officer, and Rakesh Tewari, IBM Technology Support Services’ Country Sales Manager, discuss Volvo Eicher’s IT transformation.

Tell us about Volvo Eicher.

Rajesh: Volvo Eicher is a joint venture with Volvo Group established in 2008 with the purpose of modernizing the trucking industry [in India]. Today we produce almost 70,000 vehicles and plan to increase that capacity to 140,000 within the next five to 10 years.

What’s involved in your supply chain?

Rajesh: The automotive industry is a fairly complex supply chain. We have over 300 suppliers, dealers and distributors, and we manage back end to front end, including more than 1,000 businesses. We manage all of them with the goal of delivering a quality truck product, day in and day out.

How does reducing multi-vendor support complexity help Volvo Eicher innovate?

Read more about Volvo Eicher's transformation

Rajesh: When I joined Volvo Eicher, outsourcing comprehensive multi-vendor support services was the first thing I decided on in order to focus on transformation versus day-to-day operations. We had up to 50 different vendors we were dealing with. We brought all of them together under one umbrella, IBM, to help us improve infrastructure uptime and proactively manage capacity and scalability issues.

Rakesh: IBM saw this an opportunity to help Volvo Eicher with operational efficiency and cost optimization. The availability of Volvo Eicher’s infrastructure is crucial to their business. We’re taking care of all of their infrastructure multi-vendor support and hardware warranty and maintenance needs.

We also provide digital workplace support designed to help Volvo Eicher’s workforce maintain peak performance levels.

What’s next for Volvo Eicher?

Rajesh: In terms of innovation, we are working on multiple things. One is telematics. We are building use cases with cloud and analytics for our customers and for internal use. A second area is manufacturing IoT; we see tremendous opportunity to apply it to not only manufacturing quality and processes but also to energy management, asset maintenance and other scenarios. The third area involves developing analytics-based predictive modeling for pricing discounts for our end-product vehicles and parts. We are working with IBM Services on small PoCs to see how we can take this forward.

Watch Volvo Eicher’s full story.