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3

June, 2013

With the blistering heat on, the Indian meteorological department has given another forecast for a normal monsoon.While the agri front does not look too good, on manufacturing and industry numbers continue to be bleak. Not only are IIP numbers low, the Markit PMI for April has reported the lowest index since November 2011. The RBI credit data also does not show any pick up in credit for all sectors. Auto sales for the past year posted the first decline in a decade and the numbers for April also show lower sales compared to last year. Governance to stimulate investment has been listed as a critical factor for revival in growth. RBI not set to accommodategovt on dramatic rate cuts, slow steady drop expected this year and stress continues in consumer prices, especially food. Government is waging a war with inflation. Commodities prices are falling. Free trade agreements are being signed. Competition commission of India is preventing companies from fixing selling prices. This will put a lot of pressure on domestic industry to maintain market share and top line prices. They will have to tighten their belts and become even more cost competitive. Though government is announcing incentives and measures to boost exports companies need to be competitive by controlling their costs.

Vinaya Varma Vice President, buyjunction

To survive and to register growth and profit, an increasing number of businesses are now looking at optimising their operations to achieve maximum efficiency on continual basis by outsourcing certain functions to specialist organisations. buyjunction’s array of procurement services aim at delivering immediate, measurable results that can lead to guaranteed savings, reduction in cycle time and significant positive impact on profitability by freeing up the client’s bandwidth. With the third issue of buyjunction connect we try and bring to you a synopsis of current economic scenario, industry trends, market analysis. The issue offers tactical advice which should help you understand the key focus areas for your procurement needs, given the existing market situation. The newsletter captures a few of buyjunction’s success stories in some of the core procurement categories that we specialise in. We have provided the list of the various categories we cater for our 100 plus clients. We hope that this newsletter will help you understand how we add value to our client’s businesses through innovation and in-depth analysis of their requirements. We only strive to create win-win deals for you. Regards,

Vinaya Varma, Vice President, buyjunction 1


Indian Economy GDP Growth to see Modest Improvement Growth is expected to revive gradually going into the next fiscal; with an estimate for GDP growth of 5.9% – 6.0% in FY14. This expectation would ride on the back of normal monsoons giving a good harvest, increase in investments in a favourable interest rate regime and gradual recovery in industrial production. Above all it is assumed that the

government will expedite projects that have been held up and also start spending on capital projects, which has hitherto been held up on account of fiscal constraints. This will also be supported by affirmative action by the RBI, though the timing could be more during the second half of the year.

Exhibit 1: GDP Growth (%) 12.0

12.0

7.0

9.3

8.6

9.0

9.0

6.7

7.0

6.2

6.0

5.0

5.0

5.0 3.0

3.0

FY 09

FY 10

FY 11

FY 12

FY 13(e)

FY 14(f)

Source: CSO, CARE (e) - Estimate, (f)- Forecast

3.17.1 GDP Growth by sector (%) 12.0

12.0 9.0

9.3

9.3

8.6

9.0

6.2

6.7

6.0

6.0

5.0

3.0

3.0 0.0

0.0

2007

2008

2009

2010

2011

2012

Agriculture Industry Services GDP Source: CIEC Data Comapny (accessed 23 March 2013)

3.17.1 Fixed Invesment Growth (%) 18

18

12

12

6

6

0

0

2005

2006

2007

2008

2009

2010

2011

2012

Source: CIEC Data Comapny (accessed 23 March 2013)

2


Agriculture to Revert to Normal Trajectory With several measures taken by the government to improve flow of agri-credit, there is an expectation of more pro-active sowing that could boost growth in agricultural sector to 3.0% in FY14. However, this growth remains contingent upon normal monsoons that impacts both sowing and harvest during the year.

The Indian economy GDP growth slowed to 5.3% for the third quarter in 2012. Despite the instability, HSBC has forecasted the GDP growth at 5.4% in FY’13 (up from 5.1% projected earlier) and 6.2% (unchanged) in FY’14.

Exhibit 2: Growth in Agriculture and Allied Sector (%) 10.0

10.0

7.9

8.0

8.0 6.0

6.0 4.0

3.6

2.0

0.1

0.0

FY 09

4.0

3.0 1.8

0.8

2.0 0.0

FY 10

FY 12

FY 11

FY 13(e)

FY 14(f)

Source: Ministry of Agriculture, CARE (e) - Estimate, (f)- Forecast

Industrial Sector to Revive Industrial activity is expected to pick up in FY14 and grow by 4.0 – 5.0% with mining projected to grow by about 2.0%, electricity by 7.0% and manufacturing activities in the range of 4.0 – 5.0%. This improvement

in industrial sector would be aided by an increase in government approvals for project investments that are currently in the pipeline and recovery in exports as global demand picks.

Table 1: Growth Industry (%) %

FY 09

FY 10

FY 11

FY 12

4.1

10.2

8.7

Industry

FY 13(e)

FY 14(f)

2.7

2.0

4.0-5.0

of which Mining & Quarrying -469.01 Manufacturing Jan/ 11 Electricity

2.1

5.9

4.9

-0.6

0.4

2.0

4.3

11.3

9.7

2.7

1.9

4.0-5.0

4.6

6.2

5.2

6.5

4.9

7.0

Source: CSO, CARE (e) - Estimate, (f)- Forecast

3


Moderation in Inflation to continue in FY14 Overall inflation is expected to moderate in FY14, although countervailing forces from an increase in minimum support price (MSP) shall restrict the decline.

WPI is expected to settle in the range of 6.0% – 6.5% (average) and CPI inflation to 8.0% – 9.0% (average) during the year.

Exhibit 3: Annual Trends WPI & CPI (%)

12.4

13.0 11.0

10.5

9.0

9.0

13.0

9.6

7.0

10

11.0

9

8.4 8.9

8.1

7.0

7.5

5.0

9.0

6.8 2012

3.8

5.0

3.0

FY 09

FY 10

FY 11

FY 12

FY 13(e)

3.0

FY 14(f)

CPI WPI

Source: CSO, CARE (e) - Estimate, (f)- Forecast

The annual rate of inflation, based on monthly WPI, stood at 4.89% for the month of April 2013 (over April 2012) as compared to 5.96% for the previous month and 7.50% during the corresponding month of

the previous year. Build up inflation rate in the financial year so far was 0.53% compared to a build-up rate of 1.55% in the corresponding period of the previous year.

India Inflation Rate - Annual change on Consumer Price Index 8.5

8.5

8

8

7.5

7.5

7

7

6.5

6.5

6

6

5.5

5.5

5

5

4.5

4.5

Jul/12

Oct/12

Jan/13

Apr/13

Source: tradingeconomics.com | Ministry of Commerce & Industry

4


The Prime Minister's Economic Advisory Council (PMEAC) projected the economy to grow at 6.4% in the new financial year that began on April 1. Controlling the current account deficit (CAD) remains the main concern now, although he estimated it to narrow down to 4.7% of GDP in 2013-14 compared to 5.1% of GDP in the previous year. As inflation comes down, it will create more

space for monetary policy to support growth. Achieving the production and capacity creation targets in the key infrastructure sectors such as coal, power, roads, railways and ports, which are largely in the public sector or on public-private partnership domain, will act as a great stimulus to private investment and faster growth.

57.4

7.2

Free Trade Agreements

The Indian government will enter into free trade agreements with countries to fight domestic inflation. They have signed with Korea and Japan and are planning to sign up with Europe. Thailand and 15 Asia-Pacific partners will start talks in May 2013 on a free trade zone that would cover more than half the world's population. One could look forward to the broadening and deepen8 of existing free trade agreements and envision the ing 8.2 Regional Comprehensive Economic Partnership (RCEP) to be a platform for future trade and investment integration in Asia and the rest of the world.RCEP covers ASEAN's

7.2

10 member countries - Thailand, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore and Vietnam - as well as Australia, New Zealand, India, China, Japan and South Korea. The RCEP provides an important platform for building trade liberalisation within the Asia-Pacific, which is the world's fastest growing region. The initiative will be very important as it includes the three major drivers of emerging markets growth - China, India and ASEAN.This will put a lot of pressure on domestic industry to maintain market share and top line prices.

7.8

7.6

57.4

India Balance of Trade

7.2

India’s trade deficit rose in April from the same month a year earlier as imports of gold and silver increased more than twice, underlying an improvement in exports. India's exports rose 1.6% from a year earlier to INR 1314 billion, while imports rose 10.9% from a year earlier to

7.2

INR 2281 billion leaving a trade deficit of INR 967.2 billion, according to trade ministry data. Though government is announcing incentives and measures to boost exports,companies need to be competitive by controlling their costs.

5


India Balance of Trade - Balance of trade (INR Billion)

-561.19

-577.3

-727.5

-802.43

-886.05

-859.79

-867.98

-987.29 -1111.46

-1056.48

60000 50000

-965.73

-967.2

40000

-1086.12

30000

Apr/ 12

Oct/ 12

Jul/ 12

Apr/ 2000013

Jan/ 13

10000

Source: tradingeconomics.com | Ministry of Commerce And Industry

0

India Exports - Exports by Months (INR Billion) 1678.36

1389.82

1390.13

1412.06

1359.5

1347.53

1302.14

1232.37

1261.53

1314 1215.63

1215.4

1221.48

Oct/ 12

Jul/ 12

Apr/ 13

Jan/ 13

Source: tradingeconomics.com | Director General of Commerce

India Imports - Imports by Months (INR Billion)

2475.94

2377.59 2218.14

2282.61

2250.8

2004.53

2277.96

2325.24 2281.1

2214.49 2239.55

2078.59

1958.9

Jul/ 12

Oct/ 12

Jan/ 13

Apr/ 13

Source: tradingeconomics.com | Director General of Commerce

6


Optimism Rises for consecutive Third Quarter – Business Confidence Survey The financial year that just ended was tumultuous for the economy, but business is now slowly taking a turn for the better. A government trying hard to revive the economy, moderating headline inflation, and softening interest rates have helped improve business sentiment for the third successive quarter. The Business Confidence Survey for the January-toMarch quarter of 2013 found that economic conditions

-1400

are picking up thanks to higher demand. On a scale of 100, the confidence level is at 54.5 in the first quarter of 2013, up from 53.8 in the October-to-December period and 52.4 in the three months before that. Market research agency C fore quizzed 500 CEOs and CFOs across 12 cities for the survey. The outlook for the second quarter of 2013 also looks encouraging with more than a third of the respondents expecting better prospects.

IN GOOD SPRITS

Business Environment has improved for the third quarter Apr/ 12 in a row.

-1200

-2200

53.8

54.5

Oct-Dec 2012

Jan-Mar 2013

Services

52.4 Jul-Sep 2012

57.7

-2600

Jan-Mar 2013

-2400 -1700

Light Industry

-1500 -200060000

-1800

Apr/ 12 -1300 58

55.5 | 56.8

Jul-Sep ‘12

-2200 -1600

49.3 Apr-Jun 2012

BCI by Sector

There is steady improvement in sentiment across all sectors

Oct-Dec ‘12

54.2

Jan-Mar 2013

51.9 | 52.3

Jul-Sep ‘12

Oct-Dec ‘12

Heavy Engineering

50.6

Jan-Mar 2013

49.5 | 50.2

Jul-Sep ‘12

Oct-Dec ‘12

20000 -2600

7


BCI by Size

The Optimism is shared by businesses of all sizes.

Jul-Sep 2012

Oct-Dec 2012

50 50.3

Big Business

Medium Business

Jan-Mar 2013

50.9 MONTH

53.2 53.4

54.4 MONTH

54.4 Small Business

55.6

56.7 52.3 53.7

Micro Business

54.9 Business Confidence Index on a scale of 100

According to the business confidence survey, 45% respondents feel the Budget will have a positive impact on their companies in the current quarter. Only 17% say the Budget will hurt them.The survey shows that while 29% expect their business prospects to worsen during the quarter through June compared with the previous three months, 39% expect an improvement.

The March 19 rate cut by RBI has also enthused companies. Nearly a third of the respondents of the survey expect to benefit from the reduction in rates.

8


ROAD TO RECOVERY

A Majority saw no change in availability of funds.

The Business Scenario improved in the January-March 2013 period over the previous quarter.

Overall Economic Conditions

53

Finance Availability

47

17

11 14

5

Nearly half felt conditions stayed the same during Jan-March

Demand Conditions

24

23

Over a third said demand improved

Same/No Change

Moderately Better

Substantially Better

Moderately Worse

Substantially Worse

3

Hiring Conditions More than quater said hiring conditions improved Substantially Worse

7

17 Moderately Worse Substantially Better

5

23

Moderately Better

6

Substantially Worse

19

Moderately Worse

8

Substantially Better

26

Moderately Better

41

Same/No Change

Profit Margins A majority felt profit margin stayed the same.

5

Substantially Worse

6

Substantially Better

16

Moderately Worse

21

Moderately Better

52

Same/No Change

48 Same/No Change Figures indicate percentage of respondents

The survey shows also that about a third of the respondents feel demand conditions will get better. Not everyone is hopeful. In the absence of any major

investment plans, hiring activity is expected to be muted. The survey shows that 51% respondents expect no major change in recruitment trends in the current quarter. 9


THE AUDACITY OF HOPE Companies look forward to a better April-to-June quarter.

32

Economic Prospects

22

Same/no change

Substantially worse

7

Nearly two in five expect economic prospects to improve

Moderately worse

10

29

Substantially Better

Moderately Better

Overall Financial Situation

More than a third expect improvement

33

30

Same/No Change

Moderately Better

Productions Levels

24

7 Substantially Better

6

Moderately Worse

Substantially Worse

A third expect output to increase

37 8 25 19 11

Same/No Change Substantially Better Moderately Better Moderately Worse Substantially Worse

Availability of Finance Substantially Worse

Moderately ......... Better

......... Same/No Change

.....

Moderately Worse .....

A majority expect no change

54

12 4

14

16 .....

Substantially Better 10


The survey shows that 51% respondents expect no major change in recruitment trends in the current quarter.

Hiring in retail, telecommunications, power and infrastructure industries will take time to recover due to sector-specific problems.

Order book

Investments

A Quarter of respondents feel order books will be healthier

Two in five do not expect any change

47

Substantially Better

Substantially Worse

8 Moderately Worse

24

Sales Pickup Over three-fourths expect sales to rise or stay stable

27

Moderately Better

Change

Same/No

Worse

Moderately

Worse

Substantially

Better

Moderately

Better

Substantially

3

Same/No Change

40

20

17 9

5

5 19 7 22 47

Substantially Worse Moderately Worse Substantially Better Moderately Better Same/No Change

8

Substantially Better

26

Moderately Worse

Cost of raw material

49

Nearly half expect input costs to stay almost the same

13 4

Substantially Worse

Same/No Change

Moderately Better Figures indicate percentage of respondents

11


Almost three-fourths feel profit will rise or stay stable

12

Same/No Change

Moderately Worse

58

Substantially Worse

Change

Same/No

Worse

Moderately

8 Better

23

18

Moderately Better

25

13 Moderately

Better

Substantially

Worse

Substantially

5

51

Substantially Better

The majority expects no uptick in hiring activity

6

39

Profit Pickup

Hiring Pickup

Impact of Union Budget on corporate performance

16

10

11

6 Substantially Worse

Most feel selling prices will be unchanged

Moderately Better

Same/No Change

38 35

Moderately Worse

Selling Prices Pickup

Substantially Better

More than two in five expect to benefit from the budget

Impact of RBI’s monetary policy

10

9

Nearly a third of respondents expect to benefit from rate cuts

7

47

Same/No Change

30

Moderately Better Substantially Better

2 17

Better

Substantially

Worse

Substantially

Better

Moderately

Worse

Moderately

Change

Same/No

Moderately Worse Substantially Worse

4

Figures indicate percentage of respondents

12


Big Boost for Infrastructure Development The Infrastructure is one of the key determinants of economic growth: good public infrastructure spurs productivity and growth, while its absence poses a bottleneck to economic growth. The current Plan has high stakes in terms of consultations and the public funds being promised for expenditure. By far, the most debated and consulted Plan: some 900 civil society groups gave inputs while 165 steering and working groups deliberated over its details for over two years. A key area of growth under the new Plan, private sector will be an equal partner with governments in implementing infrastructure projects. Indian govern-

Infrastructure

ment has taken several steps to accelerate implementation of major infrastructure projects making it clear that India remains open and welcoming to foreign investment. India will require $1 trillion investment in infrastructure during the 12th Plan period (April 2012 to March 2017) to sustain over 8% GDP growth. The 11th Plan spent INR 23,85,980 crore on infrastructure. The new plan proposes to spend INR 56,31,692 crore. Private sector will contribute INR 27,13,853 crore of the proposed amount. It will create new opportunities for competitive companies.

Eleventh Plan Projected*

Achieved*

Twelfth Plan (%) Achievement

Projection**

Grand Total (` Lac Crores)

20.56

19.08

93

56.32

Grand Total (US $ Billions)

514@

477@

93

1126@@

*` Lakh Crore at 2006 - 07 Prices; **` Lakh Crore at Current Prices

@40` = 1US$;

@@50` = 1US$

Source: Planning Commission - 12th Plan Document

13


ROADS & BRIDGES

79 91

BUDGET ALLOCATIONS

ACHIEVED

194

PROJECTED

IRRIGATION

ELECTRICITY

RAILWAYS

63 49

167 155

66 49

PROJECTED

PROJECTED

PROJECTED

ACHIEVED

ACHIEVED

ACHIEVED

101

300

104

PROJECTED

PROJECTED

PROJECTED WATER SUPPLY & SANITATION

TELECOMMUNICATION

PORTS

36 24

22 9

PROJECTED

PROJECTED

65 77

PROJECTED

PROJECTED

PROJECTED

ACHIEVED

ACHIEVED

ACHIEVED

40

51

STORAGE

189

PROJECTED

OIL AND GAS

AIRPORTS

8 6

ACHIEVED

8 7

ACHIEVED

ACHIEVED

PROJECTED

PROJECTED

PROJECTED

PROJECTED

18

PROJECTED

4 13

PROJECTED

PROJECTED

11

17

30

12

6

0

TOTAL

FIGS IN $ BILLION

th

12 Plan

1126

PROJECTED

th

11 Plan

514 447

PROJECTED ACHIEVED

14


Procurement Focuses on Innovation in 2013 Procurement teams expect to spend more time on innovation and activities that support new-product development this year. Of the key procurement performance-related issues identified by organizations participating in the Hackett Group study, 2013 Procurement Key Issues: Going Deeper and Broader to Deliver Borderless Procurement Services, more organizations report that participating in innovation activities now is critical. In fact 76% cite innovation as a major issue in the 2013 Procurement Key Issues study. The figure a year earlier was 44%. Reducing or avoiding purchased costs remains the most critical issue, according to 90% of participating organizations. Expanding procurement’s scope and influence is also critical. “Procurement is going to be more focused on innovation and other areas that support top-line line growth,” Chris Sawchuk, The Hackett Group's Global Procurement Advisory Practice Leader and Principal, “These types of things have become more prevalent as key issues or focus areas for procurement, and it’s not relegated only to manufacturing businesses.” Participating in the study are a cross section of organizations in both manufacturing and service industries in North America, Europe and other regions.

The study also outlines four imperatives for procurement in 2013. 1) The procurement has to be more flexible to handle the uncertainty that drives volatility in the marketplace. At the same time, procurement is expected to add a lot more value to the organization. 2) The procurement is not as “globalized” as it could be to support the organization’s worldwide operation. Globalized means it is “to have a consistent standard worldwide and to manage it well.” 3) Identifying the trend toward integrating other aspects of the procure-to-pay process within the procurement function. That can mean having procurement oversee accounts payable (AP) within the function or having AP report to procurement. “Either way, someone has to have end-to-end accountability for the performance of the end-to-end process,” 4) Demonstrate that procurement is beginning to focus on and build capability around data generated by procurement, i.e., supplier market intelligence. Sawchuk suggests procurement create Centers of Excellence for this expertise so that it can be shared among the team’s category managers.

The buyjunction Solution Due to the increasing pressure on profit margins, it is necessary for organizations to cut costs and optimise their processes to increase efficiency. While organisations cannot directly impact macro18 economic or external factors, they must bring control where they can. This includes: 12

• Streamlining existing processes • 6Outsourcing functions/processes and free bandwidth • 0Bandwidth management- Improving productivity •

and re-allocating resources where necessary Taking help of consultants/experts to learn best practices

• Taking help of consultants/experts to learn best practices • Reducing cycle time • Ensuring the best deal to ensure savings buyjunction has been helping many organisations save considerable cost, improve cash flow, gain efficiency in operations and inventory and achieve flexibility by shortening cycle times. With its services like Category Management, Assisted Sourcing, Reverse Auctions, Managed Sourcing, buyjunction has handled over INR 21,710 Crores of procurements in FY13, a total in excess of INR 58,000 Crores since inception. 15


Categories We Sourced

CATEGORY

DESCRIPTION

Projects engineering /Capex Item

Engineering & Designing , Civil , Mechanical, Electrical, Infrastructure Projects,Material Handling Equipment, Capital Goods, etc.

Steel & Scraps

Flat , Long, Semi Finished, Alloy, All Ferrous & Non Ferrous Scraps etc.

MRO- Process Consumable

All Mechanical Consumables, Spares, Assembly, Pipes, Fabrication, Castings, Forging, Electrodes, Valves etc .

Ferro Alloys & Non Ferrous Metal

Ferro Alloys & Non Ferrous Metal

Packaging

All kinds of Packaging related items, Bags, Cartons, Seals, Straps, Wooden Box etc.

Mineral's & Chemical

organic & inorganic chemicals, Gases,Refractory raw materials & All type of Minerals etc.

Logistics

Surface, Sea, Air, Freight Forwarding etc.

Refractory

All types of refractories.

Electricals

Cables, Motors , Electrical Consumables, Electrical Testing Equipment's ,Switches ,panels etc.

Service Contract

Annual Maintenance Contracts etc.

Coal & Coke

Coking & Non Coking Coal, CPC etc.

IT, Travel & Office

Computer, Servers, Office Equipment's , Stationary, Travels etc.

16


Ferro Alloys

Coal and Coke

Electrical Equipment

Contract Services

Refractories

Projects

Fabrication Items

Logistics Transportation

Items for Construction

Mechanical Equipment

Packaging

Electrical Spares &..

Gases

Refractories

Mechanical Consurables and Spares

Minerals and Byproducts

Logistics Transportation Services

Contract Services

Coal and Coke

Projects

Ferro Alloys

Electrical Equipment

Top 10 Categories sourced in the Quarter Jan'13- Mar'13

450

400

350

300

250

200

150

100

50

0

Total Spend values in INR Crores

Top 10 Average % Savings Achieved in the Quarter Jan'13 - Mar'13

30%

25%

20%

15%

10%

5%

0%

Average Savings in Percentage

17


Category Management Services PR to PO Activity

Jan-13

Feb-13

Mar-13

Q4 Total

Total No.of PR processed

1877

2033

1814

5724

PR Values(in lakhs)

9254.28

11267.45

7708.45

28230.18

Case Studies Procurement of CNC roll turning lathes by BSP Bhilai Steel Plant of SAIL mandated buyjunction to procure CNC roll turning lathes for universal rail mill under their modernisation and expansion scheme. The client expected buyjunction to get the highest possible savings for them.

Key challenges •

Only three bidders were eligible to participate in the event and it was a challenge to instil the sense of competition in them;

The start bid price, which was provided by the client, was way lower than the L-1 online sealed bid price which was arrived at by the vendors.

Our approach •

We gave the bidders in-depth training regarding modalities of the evaluation and bidding in online events;

Since it was a high-value order, it was a challenge to make the bidders comfortable with bidding online.

Benefits The client achieved a savings of 8.2% on the estimated value of the product. 18

.....................................................................................................................................................................................................

12

Procuring ferro vanadium for JSPL

6

0

JSPL Raigarh mandated buyjunction to procure 60 tons of ferro vanadium, a type of ferro alloy used as a raw material for crude steel production. The client expected buyjunction to ensure timely delivery of required quality of material.

18


Business challenges •

JSPL's payment terms, price validity and arbitration clauses were such that it was a challenge to explain them to the suppliers and convince them to participate in the auction.

Negotiate with the vendors so that despite huge supplies required by SAIL, they are still able to supply the best quality material of the required quantity.

Our approach •

The service delivery team along with the CRM followed up regularly with the suppliers, going to great lengths to explain all terms and conditions so that there is no scope of any confusion;

The team also followed up and kept in touch regularly with the vendors so that there is no quantity hiccup.

Benefits •

Five bidders participated in the reverse auction, which resulted in a savings of 9.14% on the estimated value of the material.

Client Testimonials “We convey our thanks over excellent services and co-operation extended by the MSS team from the date of commencement to make MSS project stabilize. We observed that there was significant improvement in the areas of Lead Time, Delivery Compliance and maximum vendor participation in the last quarter (Jan’13 – Mar’13).” P. K. Jha GM, MM SAIL, IISCO Steel Plant, Burnpur ..................................................................................................................................................................................................... “7 of the 8 allowed vendors participated actively in the RA and 35 bids were received, resulting in a savings of 2.31% over the last procurement price of Urea in April 2012 in spite of Diesel price increase. We appreciate the effort put in by your operation teams in Kolkata and Chennai to increase the vendor base and achieve this saving.” A. K. Roy DGM I/c (MM) SAIL, Salem Steel Plant ..................................................................................................................................................................................................... “The involvement of your senior associate posted at Bokaro has helped increase the vendor participation by 91% reduction in lead time by 26.15 days.” Anil Kumar AGM SAIL, Bokaro Steel Plant

19


mjunction is the largest ecommerce company in India. It is a 50:50 venture promoted by the Steel Authority of India Limited (SAIL) and TATA Steel.

anirban.sarkar@mjunction.in tapas.chakraborty@mjunction.in

www.mjunction.in www.buyjunction.in

corporate office mjunction Services Limited Godrej Waterside Tower – I, 3rd Floor, Plot No. 5, Block – DP Sector – V, Salt Lake City, Kolkata – 700091, WB, India Tel: +91 33 6610 6100 Fax: +91 33 6610 6187/ 6179 / +91 33 6601 1719 / 1720

registered office TATA Centre, 43 Jawaharlal Nehru Road, Kolkata 700 071 Tel: +91 33 6610 6100, 2288 2606 Fax: +91 33 2288 2078

20

Buyjunction connect June 2013  

Connect is the quarterly newsletter of the Sourcing and Procurement Practice at mjunction viz., buyjunction. Connect offers a high level vi...

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