Engineering, Construction, Power and
Projects
 Textiles, Steel and Cement
 FMCG, Pharmacy and Chemicals
 Automobiles

Too many verticals
 Absence of structured process flow
charts
 Risk of negative cash flows, LD and
retention
 Absence of back to back clauses with
vendors
 Projects of different value and gestation
period

Procurement
of Raw
Materials
Conversion
of Raw
Materials in
Finished
Product
Sales and
Distribution
Procurement
Inventory
Logistics
Sourcing &
Budgeting
•
•
•
Develop
procurement
plan and
budget
Match needs
to supply
capabilities
Analyze
company
spend profile
•
•
•
•
•
Sourcing
Strategy
Purchase
Requisition
Supplier
Management
Gather
market and
supplier
intelligence
Technical
and financial
due
diligence
Vendor
selection
Vendor
masters
Vendor
evaluation
Vendor
Management
•
•
•
Prepare and
process
requisitions
Review and
approve
requisitions
Demand
management
Purchase
Orders
•
•
•
•
Solicit and
track vendor
quotes
Comparative
analysis
Approvals
Create
vendor orders
Receiving
and Payable
•
•
•
•
•
•
Requisitioning
Purchasing
Delivery
acceptance
Record
receipts
Research /
resolve
expectations
3 way
matching
Debit / credit
notes
Payment
Receipt and
Payment
Key Issues
Good Practices
Open Purchase orders
Cross Functional Team
Quotations
Rate Agreement
Cost Drivers
Data Analysis
Controls over SOD
Reverse Auction
Duplicate Vendors
Automation
Source of Procurement
Vendor Masters
RM Inventory
•
•
•
•
Receipt of
materials
Quality
control of
material
receipt
Physical
storage of
inventory
Outside
storages
Inventory
Turnover
FG Inventory
&
Despatches
Production
•
•
•
•
Issues to
production
Booking of
consumption
Production
compliance
Technical
efficiency
Work in
Progress
•
•
•
•
Stock holding •
Quality control
Management •
of sales prices •
Direct
despatches
Sales &
Distribution
Material
Job-workers
Management
Reconciliation
of inventory
Stock in transit
Access
controls over
stock
movement
Reconciliation
•
•
•
•
•
Stock holding
Booking of
production
Assets
Scrap
management
Contract
management
SubContracting
Key Issues
Good Practices
Job Work / Process Loss
Rotation of Teams
Inventory Warranty / Free
Spares
Perpetual Inventory
Quantity Errors
Minimum, Maximum & ReOrder Level
Inventory Adjustment
Stacking of Inventory &
Storage Locations
Classification of Inventory
Calibration of Scales
Insurance
Automation (Gate Entry,
GRN)
Transporter
Management
•
•
•
•
•
Transporter
appointment
Transporter
agreements
Transporter
efficiency
Bank
guarantees /
security
deposits
Performance
management
Performance
Review
Planning &
Despatch
Masters
Maintenance
•
•
•
•
Distance
mapping
Rate & route
mapping
Truck
definitions
Transit time
definitions
Requirements
•
•
•
•
•
Route planning •
& scheduling
Truck utilisation •
TAT monitoring
Load
•
scheduling
Reverse
logistics
Utilisations
Bill
Processing &
Payments
Insurance
Insurance
coverage
Lodging
claims
Receipt of
claim
amount
Claim
monitoring
•
•
•
Invoice
accounting
Payment
processing
Payment
authorisations
Invoice &
Payments
Key Issues
Good Practices
Contracting for losses
Turnaround Time Monitoring
Route optimization & Rates
Automated Weighment &
Trip Reconciliation
Truck Turnaround Time
Partnership Approach /
Company Financed Fleet
Complexity in invoices /
Quantity Tracking
Contract Terms
Truck Loads / Non Availability
Calibration of Scales
Demurrage Charges
Automation (Gate Entry,
GRN)