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R&M-Purchase - H A Goswami

R&M-Purchase - H A Goswami. Journey of Purchase Dept of Soda Ash. Established in 1984-85 at sutrapada location during plant commissioning stage Moved to Veraval office in 1986 Moved to Sutrapada Plant in 1987

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R&M-Purchase - H A Goswami

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  1. R&M-Purchase - H A Goswami

  2. Journey of Purchase Dept of Soda Ash • Established in 1984-85 at sutrapada location during plant commissioning stage • Moved to Veraval office in 1986 • Moved to Sutrapada Plant in 1987 • Moved from Sutrapada Plant to Ahmedabad Office in June,1992. • Moved from Ahmedabad to Sutrapada Plant in 1997. • Moved from Sutrapada Plant to Ahmedabad Office in June,2009 • BaaN ERP system was implemented in 1999 • BaaN ERP was upgraded from B2 to C4 in 2001 • SAP ERP system implemented from 01 Mar 2010

  3. Process Flow for R&M Items: Spend - 40 Crs

  4. R & M Procurement- Soda Ash Division • TYPES OF PR ( Purchase Requisition) • NB-2 : Engg & Spares…. ( Series: 120 & 100…… ) • NB-3 : External Services Capital ( Series : 130… ) • NB-4 : External Services Revenue ( Series : 140… ) • NB-5 : Imported Spares ( Series : 150…. ) • NB-6 : Capital Items ( Series : 160… ) • NB-7 : Project ( Series : 170… ) • NB-8 : Annual Shutdown Items ( Series : 180… ) • NB-9 : Rush Requirement ( Series : 190… ) • TYPES OF PURCHASE ORDERS • 451….. : Raw Material & Pkg material Pos • 452….. : Engg & Spares items Pos • 453….. : External service PO for Capital • 454….. : External service PO for Revenue • 455…. : Import Pos • 456…. : Capital Pos • 457…. : Project Pos • 458…. : Annual Shutdown Pos • 490….. : Rush Items POs

  5. R & M Items Procurement : Annual Shutdown • Total Plant Shutdown Activities: • Total plant shutdown date & duration are fixed in advance • All long lead time items are indented well in advance like high pressure valves, FRP pipes/fittings, Tower spares, Casting Items, CI/CS/MS pipes & fittings, Rollers & pulley, Conveyor Belts, Gear Boxes & general consumables. • Total shutdown requirement are approx 5 Crs. • Challenges : • Delay in long lead time items indenting. • Delay in delivery by Vendors. • Last minutes requirements. • Documentation/IBR certificate, excise invoice etc

  6. Rate Contracts/VMI for R&M Items

  7. Rate Contracts/VMI for R&M Items

  8. R & M Procurement- Soda Ash Division • Challenges in R&M Procurement • Frequent PRs • In-complete Specifications • In sufficient Lead time • Poor performance of Vendors in terms of delivery • Price , Delivery , Inco-terms & advance payment issues • Delay in PR to PO conversion • In-proper documentation • Area of Focus at Present : • PR to PO conversion in 15 days time : 80% Target : 90% • Delay in delivery of material: 20% Target : 0% • Advance payment : 6.25% ( nos of Pos) Target: 0% • Lead time reduction for A class • Maximize Rate contract & VMIs • Delivery Inco terms FOR veraval/sutrapada : 62% Target: 80%

  9. Import Substitutions - Case study

  10. Alternative Vendor Development

  11. Thank You

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