Procurement Model of ACC Ltd.

Presented by: Group 8Atul PandeyBhushan SoniJoy MukharjeeTushar ShahSameeksha RastogiVishal Sharma

Introduction

Established in 1936, ACC is a pioneer & trend setter in Cement & concrete technology.ACC is India’s foremost cement manufacturer.ACC has 14 modern cement plants across the country & has a vendor base of more than 6000 suppliers.ACC is among one of the first companies in India to initiate commitment to environmental protection as a corporate objective & including it in the practices of the company.

Central Procurement The huge network of manufacturing units consume a wide

spectrum of raw materials like – Coal, Gypsum, Slag, Packaging material (Bags), Refractories, Steel, Grinding media, Electrodes, Cables, Bearings, Conveyer belts, Spares of various Electrical, Mechanical & Instrumentation equipment, Mining equipment & explosives.

The procurement function comprises a Central Procurement Team at the corporate office for the procurement of major inputs for the operation of plants.

A team of expert professionals at various levels manage the procurement function.

Procurement is organized such as to derive efficiency & effectiveness for the company through economies of scale from Central pooling & procurement.

Procurement Framework

CPOACC+ACL

Operations

Coal & fuel

Raw Material Bags MRO Services

Capex

Normal Projects

e- Procurement Technology

e- Procurement or Electronic Procurement is the process of procuring material electronically extensively by using internet & various other software.

ACC uses the renowned ARIBA software. e- Procurement is being extensively used &

recommended because it is- Very Transparent. Quick. Hassel free. Efficient. Cost Effective.

e- Procurement Process- Reverse Auction1. Specifications & requirements are sent to the

perspective bidders/suppliers.2. Standard terms & conditions are iterated to the

bidders/suppliers.3. RFQ (Request For Quotation) is sent to

bidders/suppliers.4. Submission of tentative quotations by

bidders/suppliers.5. Creation of Comparative Statement by ACC

Ltd.6. Interaction with Vendors for clarifications.

e- Procurement Contd.

7. Creation of Training Event in the ARIBA software facilitated by dummy values.

8. Intimation about Training as well as Main Event is sent to the vendors.

9. Creation of main event in ARIBA.10.Actual Live Auction proceeds.11.Contracting Process with the auction winning

vendor takes place.12.Following up the vendor for delivery.

Conclusion

ACC Ltd. Model of e- procurement is highly efficient & cost effective.

It’s a transparent method with no undue advantages to any particular vendor & buyer.

Discourages unethical practices. Integration of CSR & OHS (Occupational

Health & Safety) in procurement process by ACC Ltd. shows Social & Environmental responsibility awareness in the company.

References

http://www.acclimited.com/newsite/csr_web_update_2008/sd_issues_contian.asp?issue_id=15 (Accessed on 5th Feb’10, 3.30 pm)http://www.acclimited.com/newsite/centralprocurement.asp (Accessed on 5th Feb’10, 3.30 pm)