Kolkata, July 27, 2018: A major chemical manufacturer had to procure CFL light and light fittings for his plant illumination requirements. Light fittings fell under his organisation’s non-core material category and was choking his procurement bandwidth as the process involved a significant number of vendors. At this juncture, mjunction services limited, India’s largest B2B e-commerce company,stepped in tosource these items by using the power and principles of bulk buying, and passed on the final price advantages to the chemical manufacturer.
For the manufacturer, this eliminated transactional hassles with numerous vendors as mjunction became the single window for purchase of this non-core item.
mjunction based its service based on the super aggregation model, which entails mjunction acting as a single vendor for all non-strategic and indirect items for manufacturing units. mjunction leverages its power of aggregation and connection of IT systems with vendors’ and manufacturers’ systems and optimum warehousing facility to pass on multiple benefits to its clients – among them also reduction in operations and inventory carrying cost.
mjunction ventured into this business three years ago and the trigger was the need of large organisations to streamline its supply chain of MRO items.
Today, its procurement aggregation business, which is called the Super Aggregator Services, spans across thirty categories such as luminaries, welding electrodes, fasteners and industrial packaging.
This model creates a win-win situation for all stakeholders. For vendors too, it brings around assured and increased business volumes and improves the working capital utilisation.
mjunction CEO Mr Vinaya Varma said, “This concept of appointing a single ‘super’ aggregator for tail-end supplies is expected to be the future of indirect procurement for all large corporates in India.”
Recently,mjunction has acquired clients like Vedanta Aluminium Limited- Jharsuguda& Lanjigarh and BALCO-Korba units, among other clients. Working ona technologically driven vendor managed inventory model, the primary objective is reduction of vendors by 70 percent for Vedanta. This will invariably lead to reduction in transaction cost and clearing of procurement bandwidth for the client. The hassles faced by purchase teams of clients due to transaction with numerous vendors is eliminated as mjunction becomes the single window for purchase of all MRO and indirect items.
mjunction is also working for Vedanta Ironore (SesaGoa), aggregating their MRO category items, C-class consumables and indirect purchases.
mjunction has the capabilities to build an end-to-end automated supply chain system with the client. It therefore plans to have an anchor customer in a select area and then build other clients and the supply chain around it. mjunction will focus on Vendor managed inventory services for large corporate and regional warehouses are being set up at strategic locations across India to ensure the mutually agreed delivery compliances. This also results in improvement of delivery cycles.