Case 3
Rem Chemicals
Cost Reduction Through Improved Material Procurement System
Rem Chemicals (RC) is a large manufacturing organization having 5 large-and 12 smaller-capacity plants in various locations. They are the leading market players and manufacturers of polyester, petrochemicals and polymer products in the country.
The regular store requirements like gaskets, valves, welding electrodes, fasteners, pipes and pipe fittings, and electrical and instrumentation consumables, were procured directly from various stores across the sites by raising POs after calling quotations from ‘registered’ regular suppliers and placing orders as and when required. The management observed that this procurement process caused inconsistency and variability in ...
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