We are lagging behind as most of the time procurements are being done only on few aspects like cost, demo and market reviews.
Sadbhav Engineering Ltd., established in 1988, is counted among the leading infrastructure companies of India. Its business currently focuses on infrastructure projects which include construction of roads and highways, bridges, irrigation supporting infrastructure and mining.
Rakshak Singhvi suggests taking more factors into consideration while choosing correct procurement options.
Consider more factors“It is always important to implement correct procurement to achieve correct results in time,” observes Mr Singhvi. Many factors affect the decisions regarding procurement. However, he said, procurement professionals need to wisely choose the right options.
“We are lagging behind as most of the time procurements are being done only on few aspects like cost, demo and market reviews,” says Mr Singhvi. “Other analysis regarding the long-term investment, productivity after economic age, total cost incurred for thorough overhauling, safety and facilities of manpower i.e. aesthetic and ergonomic concerns are hardly measured.”
Challenges“Due to massive competition and fast growing population of new vendors in the market; quality of material as well as capital equipment are getting deteriorated,” says Mr Singhvi. “In addition, timely availability of material is also a major issue resulting into prolonged delays. There is vacuum in organised sourcing solution. Trusted web-portal could be a nice option and they need to be welcomed.”Every time there is the need is to prepare a huge inventory of materials and other consumables to avoid prolonged delays of projects. Capital impact of such inventory, requirement of huge manpower to manage these inventories, large store area requirement and wastages put considerable impact on project cost. Mr Singhvi adds to this, “Projects require some extra machinery to be procured to meet any sudden requirement of machineries due to unavailability of spares or consumables putting a contrary economic impact on the projects.”
Supply chainSadbhav has designed an effective supply chain for transportation of intra transfer of required materials, machineries resulting into on time delivery. It has also developed some organised transporters delivering our requirements as and when requested.
ERP systemSadbhav has an ERP system in function which keeps records of all suppliers and transactions made. The system also keeps track of all the spends happening in the company for various purposes.
Future outlookSadbhav had incorporated Sadbhav Infrastructure Project Limited (SIPL), as a subsidiary, back in 2007 as an asset holding company for road and other infrastructure BOT projects. SIPL currently has 12 BOT projects under its control. It is also looking forward to participate in SARDP-NE, which would establish road connectivity to the state capitals, district headquarters and remote areas on North-Eastern region of India.
– Rakshak Singhvi, Procurement Head, Sadbhav Engineering Ltd.
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