Thursday, October 8, 2009

Workshop on Supply Chain in Marketing - Oct 10th '09

COMPANY PROFILE: STEEL AUTHORITY OF INDIA LIMITED

Steel is used as a measure of the industrial development for any country as it plays an important role in the infrastructure development. Understanding this, the Indian Government setup the first steel plant in Rourkela on 19 January 1954, under the banner of Hindustan Steel Limited. Later on the control of Bhilai and Durgapur Steel Plants, that were initially setup by the Iron and Steel Ministry, were transferred to Hindustan Steel Limited.

Hindustan Steel Limited was incorporated into Steel Authority of India Limited (SAIL) on 24 January 1973. Steel Authority of India Limited (SAIL) is now one of the leading steel-making companies in India. It is ranked amongst the top ten public sector companies in India in terms of turnover. It is a fully integrated iron and steel producer, making both basic and special steels for domestic consumption and for sale in export markets. Other than the three plants mentioned above, SAIL also had Salem Steel Plant and Bokaro Steel Plant under its banner.

There is much in demand in the domestic as well as the international market for SAIL's wide range of long and flat steel products. SAIL's Central Marketing Organisation (CMO) that transacts business through its network of 37 Branch Sales Offices spread across the four regions, 65 Warehouses and 26 Customer Contact Offices carries out this vital responsibility. SAIL also has a network of rural dealers who meet the demands of the smallest customers in the remotest corners of the country and they support the marketing effort of CMO. With the total number of dealers crossing 2000, SAIL's wide marketing spread ensures availability of quality steel in virtually all the districts of the country. SAIL's International Trade Division (ITD), in New Delhi - an ISO 9001:2000 accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAIL’s five integrated steel plants.

Workshop on Supply Chain in Marketing by Mr. Pritam S. Purkayasth

Mr. Purkayastha is a distinguished alumnus of XIMB (1997-2000 batch). He has a background in Economics and has more than 15 years of experience in the steel industry and public sector. He has been working with Steel Authority of India Ltd (SAIL) since 1993 and posted in the Central Marketing Organisation (CMO). He has held key positions such as Pricing Manager (SAIL) and Staff Officer to the Executive Director (Marketing).

In February 2006 he was chosen for the task of initiating SAIL’s marketing activities in the newly created state of Uttaranchal, now Uttarakhand. He has also been associated with global management consultant, McKinsey, during their study of SAIL’s marketing systems & organization structure, as well as SAP, Germany for implementation of ERP system in the company.

Supply Chain Management

Harland describes supply chain management as “the management of a network of interconnected businesses involved in the ultimate provision of business/product and Service (economics) packages required by end customers.” In effect it ranges movement and storage of raw materials, work-in-progress inventory, and finished goods from origin to consumption.
The idea of supply chain management is to encompass the planning and management of all activities in procurement of raw-materials, value-addition and final product management. It involves the co-ordination with suppliers, distributors, third party service providers and most importantly the customers.
The issues that are to be addressed by supply chain management are follows:
  • Distribution Network configuration
  • Distribution Strategy
  • Trade-off in logistics
  • Inventory management
  • Cash-flow
  • Today softwares are extensively used in supply chain management.



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