supply chain in tatasteel by sk arangi

Presented by:

Group iv

Introduction…

Indian companies have started looking Indian companies have started looking beyond traditional sources for raw material beyond traditional sources for raw material and manpowerand manpower

The result: a new supply chainThe result: a new supply chain

What is a Supply Chain ?

The facilities, functions, and activities The facilities, functions, and activities involved in producing and delivering a involved in producing and delivering a product or service, from suppliers to product or service, from suppliers to customerscustomers

Objectives of Global Supply chain Optimize pre and post-production inventory Optimize pre and post-production inventory

levelslevels Obtain greater efficiency from labourObtain greater efficiency from labour Obtain greater efficiency from equipment Obtain greater efficiency from equipment

and space and space

TATA STEEL

INTRODUCTION

TATA STEEL COMPANY ESTABLISHED IN TATA STEEL COMPANY ESTABLISHED IN 1907.1907.

BACKED BY 100 GLORIOUS YEARS OF BACKED BY 100 GLORIOUS YEARS OF EXPERIENCE IN STEEL MAKING, TATA EXPERIENCE IN STEEL MAKING, TATA STEEL IS THE WORLD’S 6TH LARGEST STEEL IS THE WORLD’S 6TH LARGEST STEEL COMPANY WITH AN EXISTING STEEL COMPANY WITH AN EXISTING ANNUAL CRUDE. STEEL PRODUCTION ANNUAL CRUDE. STEEL PRODUCTION CAPACITY OF 30 MILLION TONNES PER CAPACITY OF 30 MILLION TONNES PER ANNUM (MTPA). ANNUM (MTPA).

SOURCING RAW MATERIALSOURCING RAW MATERIAL

Tata Steel, Ispat and JSW Steel are eyeing Tata Steel, Ispat and JSW Steel are eyeing the rich coal deposits of South Africa, the rich coal deposits of South Africa, Nigeria and Mozambique for securing hard Nigeria and Mozambique for securing hard coking coal to run their plants in Indiacoking coal to run their plants in India

Tata Steel already sources its coke Tata Steel already sources its coke requirements from Australia as Indian coke requirements from Australia as Indian coke has a very high ash contenthas a very high ash content

Definitions

SourcingSourcing refers to a number of procurement refers to a number of procurement practices , aimed at finding, evaluating and practices , aimed at finding, evaluating and engaging suppliers of goods and servicesengaging suppliers of goods and services

Low-cost country sourcingLow-cost country sourcing: a procurement : a procurement strategy for acquiring materials from countries strategy for acquiring materials from countries with lower labour and production costs in order to with lower labour and production costs in order to cut operating expensescut operating expenses

Strategic sourcingStrategic sourcing is a procurement process that is a procurement process that continuously improves and re-evaluates the continuously improves and re-evaluates the purchasing activities of a company purchasing activities of a company

Steps in Strategic Sourcing

Assessment of a company's current spendAssessment of a company's current spend Assessment of the supply market Assessment of the supply market Development of a sourcing strategyDevelopment of a sourcing strategy Identification of suitable suppliers Identification of suitable suppliers Negotiation with suppliersNegotiation with suppliers Implementation of new supply structure Implementation of new supply structure Track results and restart assessment Track results and restart assessment

Dynamics of Order Flow

Supplier Plant Warehouse Logistics Retailer

Supply Chain Planning Processes

Demand PlanningMaterial Requirement PlanningDemand Forecasting

Supplier Plant Warehouse Logistics Retailer

ProductionPlan

ComponentRequirement

Order Management

…Strategies Environment...

Certification of Steel Works to International Certification of Steel Works to International Environmental Standard ISO-14001Environmental Standard ISO-14001

Use of oil sludge as fuel in power housesUse of oil sludge as fuel in power houses Use of rejected oil in Blast FurnacesUse of rejected oil in Blast Furnaces Investment of RS 12.00 Crores on Pollution Investment of RS 12.00 Crores on Pollution

Control facilities during the yearControl facilities during the year Investment of Rs 22.50 Crores on operation Investment of Rs 22.50 Crores on operation

and maintenance of pollution control facilities.and maintenance of pollution control facilities.

i2 Solutions for Tata Steel has enabled best i2 Solutions for Tata Steel has enabled best practices including :practices including :

Improved delivery performance to customerImproved delivery performance to customer Reduced manufacturing and inventory costsReduced manufacturing and inventory costs Increased efficiency in supplier relationshipsIncreased efficiency in supplier relationships Optimised product mixOptimised product mix Reduced order lead time.Reduced order lead time. ProcessProcess

…...Strategies

OUT BOUND SUPPLY CHAINOUT BOUND SUPPLY CHAIN Outbound supply chain was completely Outbound supply chain was completely

revamped.revamped. New Distribution Network was set up to New Distribution Network was set up to

cater mainly to rebars and GP/GC sheets, cater mainly to rebars and GP/GC sheets, enhanced the reach for our products.enhanced the reach for our products.

Sales of Tata TISCON through this system Sales of Tata TISCON through this system was almost thrice compared to previous was almost thrice compared to previous year.year.

Total Productive Maintenance

TPM is an innovative approach to TPM is an innovative approach to maintenance that maintenance that maximizes equipment effectiveness,maximizes equipment effectiveness, eliminates breakdowns, eliminates breakdowns, and promotes autonomous and promotes autonomous

maintenance through day-to-day maintenance through day-to-day activities involving the total workforceactivities involving the total workforce

Results

Companies that

utilized best-in-

class SCM solutions

have

Reduced inventory levels by 10-15%

Reduced markdown & scrap by 10-15%

Improved delivery reliability by 95-95%

Used resources10-20% more efficiently

Reduced transportation cost by 10-15%

Reduced cycle time by 10-20%

Reduced outages to 0-5%

Thank You !!!Thank You !!!