Presentation is loading. Please wait.

Presentation is loading. Please wait.

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

Similar presentations


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 : 20.06.14

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 14-15 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 PRs63569057188625884563192975093404584868235

12 12 Average Cases of Delay/Undelivered: 20.7% –Material Delivery AprMayJunJulAugSepOctNovDecJanFebMar Grand Total Delay/Undelivered Cases 1932282241583014731111801291241001222343 –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 Vendors120528.40208.37 IMPORT1517.55118.76 OEM56379.57495.43 Single Party241.555.36 Grand Total1807127.07827.91 %age of OEM, SP, Import Cases33.31%77.65%74.83% Price Variance

14 14 PURCHASE ORDER VALUE (Rs in Cr.) CHANGE STATUSAPRMAYJUNJULAUGSEPOCTNOVDECJANFEBGrand Total Increase1.61.40.90.51.10.90.61.70.91.11.612.2 Decrease1.01.90.60.51.00.60.20.50.80.70.48.2 No Rise0.50.90.80.50.60.40.20.3 0.40.25.1 Nil History0.51.10.80.50.60.50.30.20.51.00.66.6 Total Order Value3.65.33.02.03.32.31.32.82.43.22.832.1 Price Impact

15 15 APRMAYJUNJULAUGSEPOCTNOVDECJANFEBMAR Total Materials Received963126910171011173725598356028727541013964 –* 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 INVOICE19883.2% 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


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

Similar presentations


Ads by Google