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1 WELCOME TO “GHCL PURCHASE TEAM”. 2 Procurement - Soda Ash Division PANKAJ KUMAR Date : 20.06.14.

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Presentation on theme: "1 WELCOME TO “GHCL PURCHASE TEAM”. 2 Procurement - Soda Ash Division PANKAJ KUMAR Date : 20.06.14."— Presentation transcript:

1 1 WELCOME TO “GHCL PURCHASE TEAM”

2 2 Procurement - Soda Ash Division PANKAJ KUMAR Date :

3 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 4 Spend Details  Repair and Maintenance items (Materials) Rs 40 Crore  Services ProcurementRs 20 Crore(Approx) (Include Bagging contract, plant related services)  HDPE Bags procurementRs 25 crore  Project PurchasesRs 75 Crore (Approx)  Fuel and Chemicals Procurement Rs 160 Crore (Approx) (Ammonia,Binder,Coke Breeze, Coke etc)  Import of Coal and LimestoneRs 150 crore Other Procurements include :  Outbound Material handling of Lignite Mines and Salt fields  Raw material Procurement- DomesticLimestone,Salt etc

5 5 Organisation Chart

6 6 Best Practices -KPIs

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

8 8 Strategic sourcing methodology

9 9 Abhilasha Initiatives – FY Area of Operation InitiativeAreas / RemarkTarget 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 / mgmtWhite paper to be ready by May end250 vendors Waste disposal - Obsolete inventory & Scrap disposal Disposal of balance Obsolete inventory worth Rs. 94 L By Aug 2014 Increase ARC‘s30% to 50%By Aug 2014 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 JumboBy Nov 2014 Weight reduction in Jumbo & 50 kg bag 50 kg by May ‘14 Jumbo bag by Nov ’14 Other Strategic areas Industry interactionIndustry meet with neighbouring industries Create platform for industry interaction - Nov ‘14

10 10

11 11 Average PR-PO Conversion within 15 days: 78.7% PR-PO (within 15 days) Apr/13May/13Jun/13Jul/13Aug/13Sep/13Oct/13Nov/13Dec/13Jan/14Feb/14Mar/14Grand Total Total No of PRs

12 12 Average Cases of Delay/Undelivered: 20.7% –Material Delivery AprMayJunJulAugSepOctNovDecJanFebMar Grand Total Delay/Undelivered Cases –Delay means material delivery beyond 8 days of contractual delivery

13 13 –Note: Cases depict price rise more than 5 % CASES OF PRICE INCREASE Type of VendorsNo of Material Impact (Rs in Lakhs) Purchase Order Value (Rs in Lakhs) Regular Vendors IMPORT OEM Single Party Grand Total %age of OEM, SP, Import Cases33.31%77.65%74.83% Price Variance

14 14 PURCHASE ORDER VALUE (Rs in Cr.) CHANGE STATUSAPRMAYJUNJULAUGSEPOCTNOVDECJANFEBGrand Total Increase Decrease No Rise Nil History Total Order Value Price Impact

15 15 APRMAYJUNJULAUGSEPOCTNOVDECJANFEBMAR Total Materials Received –* Average RR-GRN Converted within 5 days: 93.9% GRN Status

16 16 Average Cases of Advance Payment: 6.37% 61% of Total Advance Cases due to OEM & Single Party Vendors Payment Terms: Advance Cases Pay TermsDescriptionGrand Total%age ADO100% AGNST EXCHANGE OF DISP.DOCUMENTS31.3% ADV100% ADVANCE ALONG WITH PURCHASE ORDER114.6% API100% AGAINST SUBMISSION OF PROFORMA INVOICE % ATT100% ADVANCE TT10.4% BBB100%AGNST DISPATCH DOCS THRU DENA BANK,VRL93.8% CADCASH AGAINST DOCUMENTS62.5% LC1100% AGNST IRREVOCABLE L/C PAYABLE AT SIGHT20.8% P1C10% ADV BAL WITHIN 15 FROM THE DATE OF DES/REC20.8% P2P20% ADVANCE BALANCE AGAINST PROFORMA INVOICE10.4% P3C30% ADV BAL WITHIN 15 FROM THE DATE OF DES/REC20.8% P3P30% ADVANCE BALANCE AGAINST PROFORMA INVOICE20.8% PYT220% AGNST PROF.INV, 80% AGNST DEL. AFTER 30 DAYS10.4% Total No of Cases238

17 17 Thank You


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