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WELCOME TO “GHCL PURCHASE TEAM”.

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Presentation on theme: "WELCOME TO “GHCL PURCHASE TEAM”."— Presentation transcript:

1 WELCOME TO “GHCL PURCHASE TEAM”

2 Procurement - Soda Ash Division
PANKAJ KUMAR Date :

3 Agenda Have Fun alongwith Knowledge Sharing
Know each other and respective functions/responsibilities Learn from each other Express your challenges and share experiences Sharing best practices

4 Spend Details Repair and Maintenance items (Materials) Rs 40 Crore
Services Procurement Rs 20 Crore(Approx) (Include Bagging contract, plant related services) HDPE Bags procurement Rs 25 crore Project Purchases Rs 75 Crore (Approx) Fuel and Chemicals Procurement Rs 160 Crore (Approx) (Ammonia,Binder,Coke Breeze, Coke etc) Import of Coal and Limestone Rs 150 crore Other Procurements include : Outbound Material handling of Lignite Mines and Salt fields Raw material Procurement- DomesticLimestone,Salt etc

5 Organisation Chart

6 Best Practices -KPIs

7 Transforming Purchase process
Knowledge based Purchasing Total Cost of Ownership Consolidate and leverage volume buy Skills: Professional, Team Building Style: Cross-Functional Transaction based Purchasing Negotiation based buying Prime motive: avoid stock outs Skills: Commercial, follow-up Style: Individualistic

8 Strategic sourcing methodology

9 Abhilasha Initiatives – FY 14-15
Area of Operation Initiative Areas / Remark Target Strategic Sourcing Study of High value purchased items / services Coke & Coke Breeze Rs. 100 L Matl Handling - Lignite mines & Salt works Engineering Spares Casting, Fabrication and Machined items Gear Box / Valves / FRP items Refractory Bricks Electrical / Instrumentation items Services Reviewing existing SOR & its optimization Study of high value service procurement Procurement Transactions Vendor consolidation / mgmt White paper to be ready by May end 250 vendors Waste disposal - Obsolete inventory & Scrap disposal Disposal of balance Obsolete inventory worth Rs. 94 L By Aug 2014 Increase ARC‘s 30% to 50% Increase cases of VMI Import Substitution & Alternate Vendor development Rs. 50 L Minimize advance cases & matl. del overdue cases 7% to 2% By Mar 2015 Packaging Introduction of new suppliers  Add 2 vendors in 50 kg and Jumbo By Nov 2014 Weight reduction in Jumbo & 50 kg bag 50 kg by May ‘14 Jumbo bag by Nov ’14 Other Strategic areas Industry interaction Industry meet with neighbouring industries Create platform for industry interaction - Nov ‘14

10

11 PR-PO (within 15 days) Apr/13 May/13 Jun/13 Jul/13 Aug/13 Sep/13
Oct/13 Nov/13 Dec/13 Jan/14 Feb/14 Mar/14 Grand Total Total No of PRs 635 690 571 886 2588 456 319 297 509 340 458 486 8235 Average PR-PO Conversion within 15 days: 78.7%

12 Material Delivery Delay means material delivery beyond 8 days of contractual delivery Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Grand Total Delay/Undelivered Cases 193 228 224 158 301 473 111 180 129 124 100 122 2343 Average Cases of Delay/Undelivered: 20.7%

13 Price Variance CASES OF PRICE INCREASE Type of Vendors No of Material
Note: Cases depict price rise more than 5 % CASES OF PRICE INCREASE Type of Vendors No of Material Impact (Rs in Lakhs) Purchase Order Value (Rs in Lakhs) Regular Vendors 1205 28.40 208.37 IMPORT 15 17.55 118.76 OEM 563 79.57 495.43 Single Party 24 1.55 5.36 Grand Total 1807 127.07 827.91 %age of OEM, SP, Import Cases 33.31% 77.65% 74.83%

14 PURCHASE ORDER VALUE (Rs in Cr.)
Price Impact PURCHASE ORDER VALUE (Rs in Cr.) CHANGE STATUS APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB Grand Total Increase 1.6 1.4 0.9 0.5 1.1 0.6 1.7 12.2 Decrease 1.0 1.9 0.2 0.8 0.7 0.4 8.2 No Rise 0.3 5.1 Nil History 6.6 Total Order Value 3.6 5.3 3.0 2.0 3.3 2.3 1.3 2.8 2.4 3.2 32.1

15 GRN Status * Average RR-GRN Converted within 5 days: 93.9% APR MAY JUN
JUL AUG SEP OCT NOV DEC JAN FEB MAR Total Materials Received 963 1269 1017 1011 1737 2559 835 602 872 754 1013 964 * Average RR-GRN Converted within 5 days: 93.9%

16 Payment Terms: Advance Cases
Average Cases of Advance Payment: 6.37% 61% of Total Advance Cases due to OEM & Single Party Vendors Pay Terms Description Grand Total %age ADO 100% AGNST EXCHANGE OF DISP.DOCUMENTS 3 1.3% ADV 100% ADVANCE ALONG WITH PURCHASE ORDER 11 4.6% API 100% AGAINST SUBMISSION OF PROFORMA INVOICE 198 83.2% ATT 100% ADVANCE TT 1 0.4% BBB 100%AGNST DISPATCH DOCS THRU DENA BANK,VRL 9 3.8% CAD CASH AGAINST DOCUMENTS 6 2.5% LC1 100% AGNST IRREVOCABLE L/C PAYABLE AT SIGHT 2 0.8% P1C 10% ADV BAL WITHIN 15 FROM THE DATE OF DES/REC P2P 20% ADVANCE BALANCE AGAINST PROFORMA INVOICE P3C 30% ADV BAL WITHIN 15 FROM THE DATE OF DES/REC P3P 30% ADVANCE BALANCE AGAINST PROFORMA INVOICE PYT2 20% AGNST PROF.INV, 80% AGNST DEL. AFTER 30 DAYS Total No of Cases 238

17 Thank You


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