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GROUP ASSIGNMENTGROUP ASSIGNMENT -- II

BUYING SERVICES OF LOGISTICSBUYING SERVICES OF LOGISTICSCOMPANYCOMPANY

Submitted By : - Group III

Amit Pandit

Mittal Shah

RaviKumar

RamachandranShaman Singh

Saleem Ali

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LogisticsLogistics

Having the right thing, at the right place, at the right time

Logistics is defined as a business planning framework forthe management of material, service, information and

capital flows. It includes the increasingly complex

information, communication and control systems required

in today's business environment.

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Stages in BusinessStages in Business -- toto BusinessBusiness

Buying ProcessBuying Process

y Problem Recognition

y General Need Description

y

Product Specificationy Supplier Search

y Proposal Solicitation

y Supplier Selection

y Order Routine Specificationy Performance Review

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Problem RecognitionProblem Recognition

Logistics services required for transporting a 270 MVA

Single Phase Generator Transformer (GT), of Hyundai

Heavy Industries Ltd. South Korea make to Adani

Powers Super Critical TPP based at Tiroda,

Maharashtra.

Scope :-

Source : Mumbai Port

Destination :Tiroda,Maharashtra

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General Need DescriptionGeneral Need Description

Adani Power Ltd. Purchased a 270 MVA Single Phase

Generator Transformer (GT), from Hyundai Heavy

Industries(HHI) Ltd. South Korea, which was

transported to Mumbai Port by HHI.

The same GT needs to be received at Mumbai Port and

transported to Tiroda, Maharashtra, hence Logistics

Services were required.

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Product SpecificationProduct Specification

Looking for a Logistics Company whose Scope of Work

includes

y Receiving of GT at Mumbai Porty Custom Clearances

y Port Handling

y Inland Transportation to Site

y Transit Insurance

y Receiving GT at site & Unloading

y Value added Services

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Supplier SearchSupplier Search

y Existing Database of Company.

y Past Experiences

y

Suggestions from the OEM (Original EquipmentManufacturer)

y Media such Internet, e-Hubs etc.

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Proposal SolicitationProposal Solicitation

y RFQ (Request for Quotation) were sent to various

Logistics Services providers finalized through the above

process.

y Offers were invited by floating a Tender which included

the Price Break-up & Scope of Services.

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SupplierSupplier SelectionSelection

y Offers were received from ABC Logistics Ltd,Caterpillar Logistics, A2Z Logistics

y According to the below mentioned criteria offers were

evaluated: Price Delivery performance

Range of services provided

IT capability

Speed & punctuality

Finance status Past experiences

Expertise technology

Product reliability

The quality of service

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OrderOrder Routine SpecificationRoutine Specification

y Negotiations for the final Order included the following : Price Negotiations

Time Schedule Terms of Transit Insurance

Custom Clearances

Penalties

Miscellaneous Documents required such as Bank Guarantees, LD (Liquidated

Damages) etc.

y Finally based on the above Selection Criteria A2ZLogistics were selected and was awarded the Order.

y After the Order was awarded, Kick-Off Meeting washeld between Officials of Adani Power Ltd and A2ZLogistics.

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Performance ReviewPerformance Review

y Based on the services offered the job was

satisfactorily completed on the expected

norms.

y Financial Settlements were done.

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Weighted Chart AnalysisWeighted Chart Analysis

Attirbute Rating Scale

ImportanceWeights

Poor(1) Fair(2) Good(3) Excellent(4)

Price .50 X

ServiceReliability .30 X

Flexibility .20 X

Total Score:

.5(4) +.3(3)+.2(4) = 3.5

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?

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Thank

You

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