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TVS Motors a two-wheeler manufacturing company has been offering the Scooty range of Two-wheelers for the young generation. TVS, in its market research, found that color is the prominent way of self-expression among women consumers. Based in this finding, TVS recently introduced the 99 color campaign in selected cities with the intention of attracting young women. The customers can choose from the range of 99 shades, available for premium of Rs. 1000-1900/- . Offering 99 shades can be a supply chain nightmare. TVS has come-up with an innovative way of managing such a wide variety of offering. TVS stock unpainted panels at the retail outlets. These unpainted panels are sent to Asian paints who return the panel, painted in color chosen by customer, to the retail outlet within 24 hours. So TVS can manage product delivery in 48 hours without worrying about the large amount of finished stock at the retail outlet.
Questions:
A. Explain the SCM strategies of TVS Motors.
B. Do you think by taking premium of Rs. 1000-1900/- would have covered the transportation cost from TVS to Asian Paints and back? Suggest how this cost can be managed effectively?
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