Materials

Management
AGENDA

• Materials Objectives

• Purchase Process and Process Flow

• SAP Ariba Process Flow

• Team Materials

• Team Materials Operating Locations

• Procurement & Contract Overview

• Online System in HPL-MM Functions

• Stores Overview

• Thank You
Materials : Objectives :

Right Source
Requirement

Right Quality
Issue
Right Time Materials

Right Price

Right Quantity
Purchase Process
Requirement Procurement Request for Offer
Dept.
User TBA
Submits offer Vendor

Negotiation
Issue by Entire
stores Process
executed in
SAP
Approval from
Management

Order
Placement by
Storage Transport
procurement
dept
 PROCESS FLOW DIAGRAM-MM Dept. Roles
All Associated
Units
Logistics Support by MM Benzene
Butadiene Engineering
Equipments,
LPG
C4 Mix C4 Raffinate
Chemicals,
Catalysts,
Pygas Service Job,
Raw material Purchase Cyclopentane Manpower
Butene-1 Contracts,
Storage
NAPHTHA Solutions
NAPHTHA CRACKER
STORAGE UNIT Pyrolysis
Gasoline
Hydrogenation

(Benzene)
Engineering Equipments, Spares Up-keeping, Manpower Contracts, Service Jobs, Benzene
Chemicals Catalysts Extraction Logistics
Support

High Density Linear Low Density Polypropylene C5

Polyethylene Polyethylene MS
(HDPE) (LLDPE) (PP)
C6
Bagging & Loading Contract,Logistics Contract Raff
SAP-Ariba: Process Enhancement

Ariba Sourcing implemented in 2019

All Purchasing activity (Enquiry to

Approval): Through Online Portal

PO is pushed automatically to SAP for GR &

Payment process

SLP has been implemented in 2021

Another module, CA has been initiated

 SAP Ariba Sourcing
Collaborate better and source smarter

Sourcing program
and category
management

Network

Decision Supplier
support qualification
and and
analysis Search,
identification
report, and
track
savings
Ariba Network
Support and
= >1.8 million
services
suppliers

RFx, auction
events, and
templates
The Basic Teams
Inbound
Purchase:
Logistics:
Buys Arranging
the
Materials
Materials from Supplier
to HPL
Team
Procurement

Stores: Customs :
Keeping Clearance
Materials of Materials
Safely from
Customs
Team Materials

EA (HR & OP)

Sr.GM – Materials (HOD)

Engg. Engg. Inbound Logistics Chemical &

Procurement & Procurement & & Customs Catalyst
Contracts Contracts Clearance Procurement
(Operated from (Operated from (Operated from (Operated from
Kolkata) Haldia) Kolkata) Kolkata)

Engineering Store Chemical Store

(at Haldia) (at Haldia)
Materials :Operating Locations

Haldia Kolkata
At a Glance

▪ MM Operates from Two Locations (Haldia & Kolkata)

▪ Main Functions (except Naphtha) are :

▪ Engineering Procurement & Contracts,

▪ Chemicals and Catalysts Procurement & Contracts,
▪ Stores Operations,
▪ Inbound Import Logistics & Custom Clearance etc.
▪ Master Data & Vendor Management,

▪ Total Strength : 29 Nos (Officer : 20 & Assistant : 9)

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 Procurement & Contract Overview

Snap Shots in Engineering Procurement & Contracts

(FY : 2020-21)
• Total Nos. of Orders : 2660 Nos
(Supply : 2122 Nos & Service : 505 Nos)

• Total Value : Rs. 979 Cr.

(Supply : Rs. 290 Cr. )
(Service : Rs. 689 Cr.)

Snap Shots in Chemicals & Catalysts Procurement (FY : 2020-21)

• Total Nos. of Orders : 182 Nos (Supply : 177 Nos & Service : 5 Nos)
• Total Value : Rs. 204 Crs.

12
Procurement & Contract Overview

Procurement Types :
• Rate Contract (MRP Items, some Chemicals, Stationeries, Fast Moving M/c spares, etc)
• Repeat Order (Same material being procured from the same vendor repeatedly)
• Order on the basis of Price List (Bearing, Lubricants etc.)
• Order on the basis of competitive bidding
• Order on OEMs
• Scheduling Agreement
• Cash Purchase (Sundry items)
• Crash Purchase
• Emergency Purchase / Confirmatory order
• Release Order against ARC

13
Procurement & Contract Overview

Contracts are broadly classified in the following areas:

• Engineering: (a) Mechanical (b) Electrical (c) Instrumentation (d) Civil

• Administrative Contracts
• HSEF Contracts
• Information Technology
• Material Handling at ware house
• Finished Goods Handling
• Laboratory Contracts
• Stationary Requirements
• Scrap Disposal
• Material Handling Equipments (AMC)
• Service of Experts / Consultants
• Emergency Purchase/confirmatory contract
• Transportation Contract
• CHA Contract
• Contract for HREL
14
Online System in MM – Overview
• Online Recommendation (For Procurement Value More than Rs. 5 Lakhs)

• Plant Online Recommendation (for Procurement Value Less than Rs. 5

Lakhs)

• Registration of New Vendors (through SLP)

• Online Vendor Performance Evaluation

• Holiday Listing of Vendors

• Online Material Gate Pass System (For returnable materials)

• In Principle Management System

(For Single Vendor Nomination, Emergency procurement & Other than L1 Vendor)

15
 Materials : Stores
Stores basic FunctionFunction
Supplier

Materials

Receiving
Store

If not OK

Rejection Inspection

If OK

Stocking/ Acceptance
16Binning of Materials
Thank You

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