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Inward and Outward Supply Chain of Industry

The document discusses the inward and outward supply chains of an industry that produces M.S. Billets. The inward supply chain involves procuring main raw materials like sponge iron, steel scrap, and silico manganese from local and distant suppliers. These materials are quality checked and stored until production. The outward supply chain involves selecting finished billets for customer orders, arranging transportation via company or customer trucks, loading trucks in 2-3 hours, and delivering orders typically within 2 days with confirmation sent back to the factory.

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Shubham Tiwari
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228 views3 pages

Inward and Outward Supply Chain of Industry

The document discusses the inward and outward supply chains of an industry that produces M.S. Billets. The inward supply chain involves procuring main raw materials like sponge iron, steel scrap, and silico manganese from local and distant suppliers. These materials are quality checked and stored until production. The outward supply chain involves selecting finished billets for customer orders, arranging transportation via company or customer trucks, loading trucks in 2-3 hours, and delivering orders typically within 2 days with confirmation sent back to the factory.

Uploaded by

Shubham Tiwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

INWARD AND OUTWARD SUPPLY CHAIN OF INDUSTRY

INWARD SUPPLY CHAIN

The main raw materials used to make M.S. Billets are Sponge iron, Steel Scrap
and Silico Manganese among other raw materials and this constitutes the
inward supply chain of the industry.

Sponge Iron - It is usually procured from Rourkela in Orissa and the usual order
quantity is in multiples of 25-30 MT once the order is placed the trucks are
loaded usually on the next day depending on the availability of trucks and
availability of Sponge Iron with the manufacturer. It takes around 2 days for
the Sponge Iron to arrive in Nagpur from Rourkela as the distance is around
735 Kms. Once the truck arrives in the factory the quality checks of the
material is done in the lab and if found suitable the material is unloaded in the
storage yard. It takes 1-1:30 hours to unload if there are no issues with the
material.
Steel Scrap – It is procured from areas around Nagpur and there is no
minimum order quantity as this is a very unorganized sector. Order is not
placed to procure scrap the suppliers send scrap based on the availability of
scrap with them so usually there is a constant supply of scrap but sometimes
there is excess scrap and sometimes very less. There are around 8 different
qualities of scarp depending on the thickness and many trucks usually have 3-4
different qualities because of this the time to unload the trucks is around 3
hours and more when there is a bad quality material or many different
qualities.

Silico Manganese – It is required in small quantities and is procured from


factories around Nagpur. The order quantity is 25-30 MT. Quality check of the
material is done before unloading the truck in the storage area.

All these raw materials along with others are stored in the storage yards and
after the Steel Melting and Casting process (in the CCM i.e. continuous casting
machine) the Billets are casted in different sizes and then stored in the finished
goods storage area.
OUTWARD SUPPLY CHAIN

Once the order is received from the customer the details of the order are fed
in the EPR software and the order is processed, the availability of the size is
checked and the appropriate material is selected and then the transporters are
called to arrange for trucks to transport the material. Either the customer
arranges for the transportation or the factory arranges the transportation,
based on the availability of truck and M.S. Billets the material is sent to
Mumbai. The material is dispatched usually the next day or within two days.
Although the Billets are supplied to many states and cities but we studied
delivery of materials to Mumbai which takes around 2 days to reach to
Mumbai and the loading time for the truck is around 2-3 hours in the factory.
After the delivery is received by the customer a conformation is sent to the
Dispatch Head in the factory.

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