Handling of Contracts – Manpower & Job Work

(Portfolio Value: ?27 Crore)

1. 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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2. 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

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3. 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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4. 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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5. 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)

1. 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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2. 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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3. 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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4. 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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5. 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

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6. 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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7. Application of DBM (Dynamic Buffer Management)

•Implementation of Agile 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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8. 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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9. Source Development

•Identification and development of new 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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10. 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 (India)
🏢 Larsen and Toubro
📍 India