Handling of Contracts –

- Manpower &
- Job Work

(Portfolio Value: ?27 Crore)
- Issue of Contracts
- Preparation and issuance of manpower and job work contracts in line with approved scope, rates, and commercial terms.
- Coordination with user departments, IR, finance, and HR to ensure contractual correctness.
- Verification of:

oScope of work (SOW) oContract tenure and extensions oRate structures and escalation clauses oStatutory and compliance requirements
- Ensuring timely contract issuance to avoid operational disruptions.

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- Contract Amendments
- Handling contract amendments arising due to:

oChange in scope or quantities oRate revisions oTenure extensions oStatutory changes
- Ensuring all amendments are:

oReviewed, approved, and documented oDigitally and physically archived oCommunicated to all stakeholders ________________________________________
- Performance Feedback –
- VPRS
- Monitoring contractor performance through VPRS (Vendor Performance Rating System).
- Collection and consolidation of performance inputs from:

oUser departments oSafety oQuality and compliance teams oIR
- Evaluation parameters include:

oManpower availability and productivity oJob work quality and turnaround time oSafety adherence and discipline oCompliance behaviour
- Sharing performance feedback with contractors and initiating corrective actions where required.

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- Grievances &
- Compliance
- Addressing contractor grievances related to:

oBilling and payments oDeployment issues oWork conditions and coordination
- Ensuring full compliance with:

oLabour laws (PF, ESI, minimum wages, bonus, etc.) oStatutory documentation and renewals oCompany EHS policies
- Coordination with IR, finance, and compliance teams to resolve issues proactively.
- Supporting internal and external audits related to manpower and job work contracts.

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- Overall Control &
- Governance
- End-to-end control of manpower and job work contracts with focus on:

oCost optimization oRisk mitigation oCompliance assurance
- Maintaining contract records, trackers,



and MIS for management review.
- Supporting strategic decisions related to contractor consolidation, renewal, or exit.

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Handling of Consumables

(Annual Procurement Value: ~?25 Crore)
- RFQ (Request for Quotation)
- Preparation and floating of RFQs for consumables based on:

oApproved BOM / consumption norms oTechnical specifications and quality requirements oDemand forecasts and inventory policies
- Identification and communication with approved and potential suppliers.
- Ensuring competitive sourcing while adhering to procurement timelines.

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- BID TAB (Bid Tabulation &
- Commercial Evaluation)
- Comparative analysis of received quotations through Bid Tabulation (BID TAB).
- Evaluation parameters include:

oPrice competitiveness oDelivery lead time oPayment terms oQuality consistency and past performance
- Coordination with technical/user departments for techno-commercial evaluation.
- Recommendation of best-value supplier through transparent and auditable processes.

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- Approval Process
- Ensuring statutory and internal approvals as per DOA (Delegation of Authority).
- Alignment with finance, management, and budget controls.
- Maintaining complete documentation to support audit and compliance requirements.

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- Purchase Order (PO) Issuance
- Timely issuance of Purchase Orders with defined:

oSpecifications oQuantity and delivery schedules oPrice and tax structure oTerms & conditions
- Ensuring PO accuracy to prevent disputes, rework, or supply delays.
- Maintaining PO records and system updates for traceability.

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- Delivery Chase-Up




- Proactive follow-up with suppliers to ensure on-time deliveries.
- Coordination with stores and production teams to align deliveries with consumption.
- Mitigation of risks related to:

oDelayed supplies oProduction stoppages oEmergency purchases ________________________________________
- Supplier Performance Record
- Monitoring and maintaining supplier performance metrics, including:

oOn-time delivery (OTD) oQuality acceptance rate oResponsiveness and service levels
- Periodic performance reviews and corrective action implementation.
- Input to supplier continuation, development, or rationalization decisions.

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- Application of DBM (Dynamic Buffer Management)
- Implementation of Dynamic Buffer Management (DBM) to:

oOptimize inventory levels oReduce excess stock and obsolescence oImprove service levels
- Continuous monitoring of consumption trends and buffer adjustments.

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- Application of VMI (Vendor Managed Inventory)
- Implementation and monitoring of VMI models for selected high-consumption or critical consumables.
- Defining VMI parameters such as:

oMinimum and maximum stock levels oReplenishment triggers oConsumption visibility
- Reduction of working capital and improvement in material availability.

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- Source Development
- Identification and development of current and alternate suppliers to:

oReduce dependency risks oImprove competitiveness oEnhance supply continuity
- Supplier onboarding including:

oTechnical assessment oQuality validation oCommercial negotiation
- Supporting localization and cost optimization initiatives.

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- Overall Procurement Control &
- Governance
- End-to-end ownership of consumable procurement with focus on:

oCost optimization oSupply assurance oInventory optimization oCompliance and audit readiness
- Maintenance of MIS, trackers, and dashboards for management review.
- Continuous improvement initiatives aligned with operational excellence.

📌 Supply Chain Management - LTSSHF (Badayla Chorasi)
🏢 Larsen u0026 Toubro
📍 Badayla Chorasi