Steel prices in India have been on the rise over the last few weeks, driven by a rise in global prices and global sanctions. As for market participants in the steel sector, there are grounds for cautious optimism. That said, fingers are crossed in anticipation of moves by procurement managers across this sector.
The task of managing expectations in the procurement function has seldom been an easy one and that’s the case across sectors. A procurement manager at a steel based MSME represents the primary contact point between steel suppliers and their business. Multiple factors, and often conflicting ones, need to be factored in before the procurement function can hope to firm up a deal. Supply-side challenges Identifying qualified suppliers, who can match quality with cost, is not the least of a procurement manager’s challenges. An MSME can ill-afford a major supply chain disruption, so it takes a reliable supplier to maintain business as usual. Procurement processes must also keep a close watch on supplier performance and make sure suppliers meet the company’s established procurement policies.
Fewer vendors the better Procurement teams make great efforts to ensure their companies benefit from volume discounts. To this end, prudent buyers prefer to buy steel in large quantities from a small pool of efficient vendors. This also means reduced shipping and logistics costs and trouble-free vendor management, apart from better supplier quality. This is where JSW One MSME plays a big role, preventing any stop-gaps to make procurement a more seamless task for online steel buyers through our well executed, user-friendly online platform for the best steel products. Tough pricing decisions Procurement departments are responsible for negotiating with suppliers and deciding prices that are fair for all supply chain participants. In the prevailing steel market scenario, an upward adjustment in the steel price is anticipated. This will set the procurement process in motion and will likely form the baseline for specialists to negotiate favorable terms. From a procurement standpoint, pricing decision is a key consideration, but procurement decisions must balance price points with the other critical chip in this bargain, i.e., quality. Need for just-in-time inventory Procurement experts in MSMEs need to make sure their inventories are nearly exhausted before they can place fresh orders. Many buyers for steel products have modest stock at hand, and when it comes to replenishing their steel stock, procurement managers may choose to wait a little longer until they are done with the current inventory and consider only the most flexible of steel suppliers. Complicated compliance mandates Procurement managers also carry the responsibility of ensuring all of their buying decisions are in accordance with the company’s policies on anti-bribery, environmental compliance, etc. It is nearly impossible to tackle this work using manual means or legacy technologies. The best way is the automated supplier exchange with dependable steel suppliers.
A one-stop supplier exchange – it’s about time A web-based system, capable of automating every single activity from supplier evaluation, order placement, tracking, payment, and procurement compliance management is the need of the hour. It establishes a simpler working method and straightens out difficult transactions. In the process, it serves a consistent, flexible, and trusted solution, answering the raw material needs of online steel buyers, and most of all, MSMEs. This exchange works across categories – like slitting, cut-to-length, and baby coils in the steel industry. With a web-enabled supplier exchange, procurement specialists can manage myriad transactions in one place. It significantly shrinks timelines and there is far more visibility to be gained into the vendor performance/landscape. As for vendors, this supplier exchange is arguably their best in terms of access and pricing, and there is equal opportunity for all. An automated procurement system increases transparency, trust, and ease-of-business, so nothing gets in the way of an MSME’s vision. Register now to become a member of JSW One MSME and unlock our extensive network of customisable steel products.
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