Supply Chain in TataSteel by SK Arangi

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

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Obtain greater efficiency from labour 

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Obtain greater efficiency from equipment and space

TATA STEEL

INTRODUCTION 

TATA STEEL COMPANY ESTABLISHED IN 1907.

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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

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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 serv ices  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

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Assessment of the supply market

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Development of a sourcing strategy

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Identification of suitable suppliers

  Negotiation

with suppliers

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Implementation of new supply structure

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Track results and restart assessment

Dynamics of Order Flow

Supplier 

Plant

Warehouse

Logistics

Retailer  

Supply Chain Planning Processes Material Requirement Planning

Component Requirement

Supplier

Demand Forecasting

Demand Planning

Production Plan

Plant

Warehouse

Logistics

Order Managemen Managementt

Retailer 

…Strategies Environment... Environment ... ±

Certification of Steel Works to International Environmental Standard ISO-14001

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Use of oil sludge as fuel in power houses

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Use of rejected oil in Blast Furnaces

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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.

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i2 Solutions for Tata Steel has enabled best practices including :

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Improved delivery performance to customer 

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Reduced manufacturing and inventory costs

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Increased efficiency in supplier relationships

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Optimised product mix

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Reduced order lead time.

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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  Improved delivery reliability by 95-95%  Reduced outages to 0-5%  Reduced cycle time by 10-20%  Reduced transportation cost by 10-15%

Companies that utilized best-inclass SCM solutions have

Thank You !!!