Presented by:

Group iv
Introduction…
 Indian companies have started looking
beyond traditional sources for raw material
and manpower

The result: a new supply chain

What is a Supply Chain ?
 The facilities, functions, and activities
involved in producing and delivering a
product or service, from suppliers to
customers
Objectives of Global Supply
chain
 Optimize pre and post-production inventory
levels
 Obtain greater efficiency from labour
 Obtain greater efficiency from equipment
and space
TATA STEEL
 INTRODUCTION
 TATA STEEL COMPANY ESTABLISHED IN
1907.
 BACKED BY 100 GLORIOUS YEARS OF
EXPERIENCE IN STEEL MAKING, TATA
STEEL IS THE WORLD’S 6TH LARGEST
STEEL COMPANY WITH AN EXISTING
ANNUAL CRUDE. STEEL PRODUCTION
CAPACITY OF 30 MILLION TONNES PER
ANNUM (MTPA).
 SOURCING RAW MATERIAL

 Tata Steel, Ispat and JSW Steel are eyeing

the rich coal deposits of South Africa,
Nigeria and Mozambique for securing hard
coking coal to run their plants in India
 Tata Steel already sources its coke
requirements from Australia as Indian coke
has a very high ash content
Definitions
 Sourcing refers to a number of procurement
practices , aimed at finding, evaluating and
engaging suppliers of goods and services
 Low-cost country sourcing: a procurement
strategy for acquiring materials from countries
with lower labour and production costs in order to
cut operating expenses
 Strategic sourcing is a procurement process that
continuously improves and re-evaluates the
purchasing activities of a company
Steps in Strategic Sourcing
 Assessment of a company's current spend
 Assessment of the supply market
 Development of a sourcing strategy
 Identification of suitable suppliers
 Negotiation with suppliers
 Implementation of new supply structure
 Track results and restart assessment
 Dynamics of Order Flow

Supplier Plant Warehouse Logistics Retailer

 Supply Chain Planning Processes
Demand Forecasting
Material Requirement Planning Demand Planning

Component Production
Requirement Plan

Supplier Plant Warehouse Logistics Retailer

Order Management
…Strategies
Environment...
➧ Certification of Steel Works to International
Environmental Standard ISO-14001
➧ Use of oil sludge as fuel in power houses
➧ Use of rejected oil in Blast Furnaces
➧ Investment of RS 12.00 Crores on Pollution
Control facilities during the year
➧ Investment of Rs 22.50 Crores on operation
and maintenance of pollution control facilities.
 i2 Solutions for Tata Steel has enabled best
practices including :
 Improved delivery performance to customer
 Reduced manufacturing and inventory costs
 Increased efficiency in supplier relationships
 Optimised product mix
 Reduced order lead time.
 Process
…...Strategies
OUT BOUND SUPPLY CHAIN
 Outbound supply chain was completely
revamped.
 New Distribution Network was set up to
cater mainly to rebars and GP/GC sheets,
enhanced the reach for our products.
 Sales of Tata TISCON through this system
was almost thrice compared to previous
year.
Total Productive Maintenance
 TPM is an innovative approach to
maintenance that
 maximizes equipment effectiveness,

 eliminates breakdowns,
 and promotes autonomous

maintenance through day-to-day

activities involving the total workforce
 Results
 Reduced inventory levels by 10-15%

 Reduced markdown & scrap by 10-15%

 Used resources10-20% more efficiently Companies that

utilized best-in-
 Improved delivery reliability by 95-95%
class SCM solutions
 Reduced outages to 0-5% have

 Reduced cycle time by 10-20%

 Reduced transportation cost by 10-15%

Thank You !!!