Supply Chain of a Welding Arc Company Essay Example
Supply Chain of a Welding Arc Company Essay Example

Supply Chain of a Welding Arc Company Essay Example

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  • Pages: 3 (705 words)
  • Published: May 16, 2017
  • Type: Essay
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There are seven suppliers for Tawi Arc Welding Pvt. Ltd. who have been categorized into four types based on the material they supply: strategic, leverage, non-critical, and bottleneck.

All of the company's suppliers are ISO certified, as the company itself holds the certification. The selection process of these suppliers was based on ISO certification and past performance, specifically the quality and delivery of raw materials. This list of approved suppliers has been curated over a span of 25 years. Among these suppliers are those categorized as Strategic Suppliers, including Steel Authority of India Ltd. (SAIL).

Both the suppliers of wire rod (EQ wire rod IS 2879) and rutile sand, TiO2 are government of India undertakings - Hindustan Copper Limited (HCL) and Indian Rare Earths Ltd.

SAIL operates a warehouse near the railway station in Jam

...

mu where they store raw materials that are often in short supply. To ensure availability, the company purchases and stockpiles raw materials whenever they become available at the depot. However, the price of the materials is uncertain and purchasing requires a license. Tawi Acr has all the necessary documents and has been purchasing EQ wire rod from SAIL for 25 years; however, there is no IT integration for this supplier, and the procurement department must obtain information about raw material availability through their own efforts. The supplier holds a dominant position due to their monopoly in supplying this material in the area. Payment for the raw materials is made in advance, and sometimes the company must wait for delivery if there is no stock available in the warehouse.

The company purchases Rutile Sand from Indian Rare Earths Ltd. who supplies it

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from Ganjam, Orrissa, after becoming a full-fledged Central Government Undertaking in 1963 under the administrative control of Department of Atomic Energy (DAE). This raw material is rare and crucial for the final product making process. A government approved license is necessary to procure this material and all payments must be made in advance.

In this case, orders taken over the phone require a deposit via demand draft or cash prior to dispatch of the material from the warehouse. Another type of supplier, referred to as "Leverage Suppliers," provides goods that greatly affect the quality of the final product but have multiple suppliers. However, the company has selected these suppliers based on their past performance and all are ISO certified.

Apollo Extrusion (P) Ltd. operates from Kanpur UP, and specializes in the sale of Low Carbon Ferro Manganese powder. Business transactions are typically conducted over the phone, and payment is usually made after the material has been received. This arrangement is made possible due to the strong business relationship between the supplier and the company, which has lasted for over 20 years.

However, Tawi Acr Welding (P) Ltd. bears the transportation cost for Noble Alchem (P) Ltd., a company based in Bhiwani, Haryana and the largest manufacturer of Pot Silicate in the region. Despite their status, they currently lack any IT integration for order booking.

Goods are acquired through suppliers primarily on credit. There are bottleneck suppliers who are selected based on their professional approach and ISO certification. These suppliers are located in the northern region and the materials are readily available in stock. The procurement of materials is subject to credit terms, and transportation costs are

borne by the suppliers.

There is no specific online portal or communication line for placing orders. The supplier, e. Vasundra Minerals located in Bhilwara Rajasthan, offers various mineral powders that enhance finishing and reduce fumes in a few products.

Kandpal Chemicals supplies cellulose powder from their office located in Delhi. Non-critical suppliers, all situated in the Jammu region with most based in the Bari Brahmana industrial area, receive orders for packing materials via telephone as they are already aware of the company's current order.

The delivery of packing material to the company premises must be timely, under the supplier's responsibility, as specified in the contract. Annapurna Packers, with Mr. Anil Suri as a board member, have been supplying packing material for 15 years, forming Tawi Acr Welding (P) Ltd.'s upstream supply chain.

Telephone communication is the primary mode of communication within the industry being discussed in this report, likely due to its relatively small and underdeveloped nature.

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