4. AL BUYING BEHAVIOURrce of about 9,600 persons and a countrywide
distribution network of over 9,000t companies in India to include
commitment to environmental protectionves, the company installed
sophisticated pollution controllitation, water management techniques and
‘greening’ activities. The companyt e ma n a g e me n t i n c l u d i n g t e s t i n g ,
s u g g e s t i o n s f o r r e u s e , r e c yc l i n g a n d c o -
RAW MATERIAL REQUIRED
A C C h a s a c o u n tr yw i d e s p r e a d o f 1 4 mo d e r n c e me n t p l a n t s . Th i s
l a r g e n e t wo r k o f manufacturing units consumes a wide spectrum of inputs –
about 60,000 different itemsr a n g i n g f r om C o a l , G yp s u m, S l a g ,
P a c k a g i n g ma t e r i a l ( b a g s ) , R e f r a c t o r i e s , S t e e l , Gr i n d i n g M e d i a ,
E l e c t r o d e s , C a b l e s , B e a r i n g s , C o n v e yo r B e l t s , S p a r e s o f
v a r i o u s me c h a n i c a l , e l e c t r i c a l a n d i n s t r u me n t a t i o n e q u i p me n t ,
M i n i n g Eq u i p me n t a n d t h e i r spares and explosives. The main raw materials
required are limestone and coal.
SUPPLIERS OF RAW MATERIALLimestone
ACC has rich experience in mining, being the largest user of limestone.
It has access tolimestone mines from where it extracts limestone required for
their cement factories.A C C a c q u i r e d 10 0 p e r c e n t o f t h e e q u i t y o f
L u c k y M i n ma t P r i v a t e Li mi t e d . Th i s company holds limestone mines in
the Sikar district of Rajasthan, and helps supplementlimestone supply to its cement
plants.
Coal

5. ACC Mineral Resources Limited has already entered into Joint Venture
arrangements for prospecting, exploration and mining coal from the coal
blocks in Madhya Pradesh andWest Bengal. The company is also exploring
other opportunities for securing additionalcoal and gypsum resources in India and
abroad. As the largest cement producer in India,it is one of the biggest customers
of the domestic coal industry.For its
other
materials,
ACC has a vendor base of more than 6000 suppliers spread acrossthe country. A
team of professionals at Corporate, Regions and Plant Level manages
the procurement function. The function is organized so as to derive
maximum value for thecompany through economies of scale from central
pooling and procurement of someinputs at the corporate level and thus
meeting individual operational requirements at plant level.
They have implemented a SAP based Enterprise Resource Planning (ERP) system
for the procurement function. Central procurement is divided into the following
major groups:
•
Raw materials
•
Energy, Fuels and Gases
•
Maintenance spares
•
Wearing parts, Consumable materials
•
Administrative & office supplies
•
Services
•
PackingThe structure provides for procurement managers at regional level and
plants. There is aseparate projects head for procurement of capital equipment and
purchases.
TRANSPORTATION

6. ACC is the biggest consumer of Indian Railways, and a
c o n s i d e r a b l e u s e r o f t h e country’s road transport network services for
inward and outward movement of materialsand products.
PROCUREMENT MANUAL
The procurement manual describes the processes and sequential and
procedures to bef o l l o w e d i n p r o c u r e me n t i n c l u d i n g v e n d o r
registration and appraisal, indenting and t e n d e r i n g . T h e r e a r e
detailed guidelines for negotiation, order acceptance,
o r d e r processing and execution and payment.
FACTORS AFFECTING VENDOR SELECTION

Their vendors should be technically and financially sound.

They should have the intrinsic capacity to serve the demand of ACC on time.

Preference is given to vendors with with ISO (Quality &
E n v i r o n m e n t a l ) certification.

They also consider factors such as environmental
p e r f o r m a n c e , s o c i a l responsibility initiatives and employment practices
implemented by the vendors.

Care is taken to ascertain that vendors and contractors, who operate
within thec o m p a n y ’ s p r e m i s e s , o b s e r v e a n d c o n f o r m t o f a i r
l a b o u r p r a c t i c e s . T h e engagement of children and adolescent labour is not
permitted.There is no specific policy for preferring local suppliers. In 2007 as
many as 70 per centof their suppliers were regionally based and they
supplied 30 per cent of total purchasevolume.

7. Any prospective vendor who wishes to do business with ACC must sincerely fill
thefollowing vendor registration form.