Supply Chain of a Welding Arc Company
In case of Tawi Arc Welding Pvt. Ltd. there are in total 7 suppliers and they have been divided on the bases of the material that they supply to the company as strategic, leverage, non-critical and bottleneck suppliers. Since the company is an ISO certified company so all its suppliers are ISO certified and they have approved this list over the span of 25 years. The main thing that was considered in selection these supplier were their ISO certification and their past performance (based on the quality and delivery of the raw material).
1. Strategic Suppliers:- The suppliers that fall in this category are SAIL (Steel Authority of India Ltd.) & Indian Rare Earths Ltd. both the suppliers are government of India undertaking. The material that is being supplied by these suppliers is wire rod (EQ wire rod IS 2879) & Rutile sand, TiO2 respectively.
a. In case of SAIL they have their warehouse in Jammu near railway station and the raw material is always in shortage so every time that material is available with the depot the co. buys it and stores cause is availability and price is very uncertain also for buying you have to have the license. Tawi Acr is having the require documents and they have being buying the EQ wire rod from SAIL for the past 25 years. No IT integration is being used for this supplier and the procurement department has to make all the efforts of getting the information about the availability of the raw material. The supplier is having a very strong position cause of their monopoly as no other supplier is in the close proximity that supplies this material. All the payment for the raw material is done in advance and sometimes the company has to wait for the supply of the wire rod if the store is out of material.
b. For Rutile Sand the company is buying it from Indian Rare Earths Ltd. they are supplying the material 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 one of the most rare and important in the final product making process. For this material also you have to have the government approved license and all the payments are made in advance for procuring the material. Telephonic orders are booked in this case and you have to deposit demand draft or cash on the account before the material is dispatched from their warehouse.
2. Leverage Suppliers:- These suppliers are supplying the good that have high impact of the final product quality but their suppliers are more in number. But in due course of time these supplier have been selected by the company on the basis of their past performance and all these supplier are ISO certified. c. Apollo Extrusion (P) Ltd.:- They deal in Low Carbon Ferro Manganese powder. Their office is in Kanpur UP. The orders are made on telephones and the payment is often made after the material is received, since the position of the supplier is not that strong and the relation with the company of over 20 years allows the business transactions to be on credit. But the transport cost is beard by Tawi Acr Welding (P) Ltd. d. Noble Alchem (P) Ltd.:- they deal in Pot Silicate. They are situated in Bhiwani, Haryana they are the largest manufacture of pot silicate in the region. They also don’t have any IT integration for the order booking. And the relations are goods and mostly the business is done on credit basis.
3. Bottleneck Suppliers: – These suppliers are chosen only cause of their professional approach and the ISO certification as the material is not that scarce or complex to produce. All the suppliers are in the northern region and the material is kept in stock also the credit terms are there for the procurement of the materials, the cost of transportation is on the suppliers. All the orders are placed on telephone no special portal or line is there for communication. e. Vasundra Minerals: – The supplier is providing various mineral powders they are only used in a few products for better finishing and less fumes purpose. The supplier is situated in Bhilwara Rajasthan. f. Kandpal Chemicals: – The supplier is providing cellulose powder. The office is in Delhi.
4. Non-Critical Suppliers: – All these suppliers are in the Jammu region mostly in the Bari Brahmana industrial area. The order for the packing material is taken by the supplier on telephone, as the supplier is having information of the order that the company is working on. The supplier is responsible for the delivery of the packing material at the company premises that too with in time or has to bare the plenty that is mentioned in tha contract. Annapurna Packers are supplying the packing material for the past 15 years, and Mr. Anil Suri is a board member of this company. This is how the upstream supply chain of Tawi Acr Welding (P) Ltd. is functioning, since the industry to which this report is referring is not very vast and developed that is why the communication is mostly done on telephone.