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  1. 1. AL BUYING BEHAVIOURrce of about 9,600 persons and a countrywidedistribution network of over 9,000t companies in India to includecommitment to environmental protectionves, the company installedsophisticated pollution controllitation, water management techniques and‘greening’ activities. The companyt e ma n a g e me n t i n c l u d i n g t e s t i n g ,s u g g e s t i o n s f o r r e u s e , r e c yc l i n g a n d c o -RAW MATERIAL REQUIREDA C C h a s a c o u n tr yw i d e s p r e a d o f 1 4 mo d e r n c e me n t p l a n t s . Th i sl a r g e n e t wo r k o f manufacturing units consumes a wide spectrum of inputs –about 60,000 different itemsr a n g i n g f r om C o a l , G yp s u m, S l a g ,P a c k a g i n g ma t e r i a l ( b a g s ) , R e f r a c t o r i e s , S t e e l , Gr i n d i n g M e d i a ,E l e c t r o d e s , C a b l e s , B e a r i n g s , C o n v e yo r B e l t s , S p a r e s o fv a r i o u s me c h a n i c a l , e l e c t r i c a l a n d i n s t r u me n t a t i o n e q u i p me n t ,M i n i n g Eq u i p me n t a n d t h e i r spares and explosives. The main raw materialsrequired are limestone and coal.SUPPLIERS OF RAW MATERIALLimestoneACC has rich experience in mining, being the largest user of limestone.It has access tolimestone mines from where it extracts limestone required fortheir cement factories.A C C a c q u i r e d 10 0 p e r c e n t o f t h e e q u i t y o fL u c k y M i n ma t P r i v a t e Li mi t e d . Th i s company holds limestone mines inthe Sikar district of Rajasthan, and helps supplementlimestone supply to its cementplants.Coal
  2. 2. ACC Mineral Resources Limited has already entered into Joint Venturearrangements for prospecting, exploration and mining coal from the coalblocks in Madhya Pradesh andWest Bengal. The company is also exploringother opportunities for securing additionalcoal and gypsum resources in India andabroad. As the largest cement producer in India,it is one of the biggest customersof the domestic coal industry.For itsothermaterials,ACC has a vendor base of more than 6000 suppliers spread acrossthe country. Ateam of professionals at Corporate, Regions and Plant Level managesthe procurement function. The function is organized so as to derivemaximum value for thecompany through economies of scale from centralpooling and procurement of someinputs at the corporate level and thusmeeting individual operational requirements at plant level.They have implemented a SAP based Enterprise Resource Planning (ERP) systemfor the procurement function. Central procurement is divided into the followingmajor groups:•Raw materials•Energy, Fuels and Gases•Maintenance spares•Wearing parts, Consumable materials•Administrative & office supplies•Services•PackingThe structure provides for procurement managers at regional level andplants. There is aseparate projects head for procurement of capital equipment andpurchases.TRANSPORTATION
  3. 3. ACC is the biggest consumer of Indian Railways, and ac o n s i d e r a b l e u s e r o f t h e country’s road transport network services forinward and outward movement of materialsand products.PROCUREMENT MANUALThe procurement manual describes the processes and sequential andprocedures to bef o l l o w e d i n p r o c u r e me n t i n c l u d i n g v e n d o rregistration and appraisal, indenting and t e n d e r i n g . T h e r e a r edetailed guidelines for negotiation, order acceptance,o r d e r processing and execution and payment.FACTORS AFFECTING VENDOR SELECTIONTheir vendors should be technically and financially sound.They should have the intrinsic capacity to serve the demand of ACC on time.Preference is given to vendors with with ISO (Quality &E n v i r o n m e n t a l ) certification.They also consider factors such as environmentalp e r f o r m a n c e , s o c i a l responsibility initiatives and employment practicesimplemented by the vendors.Care is taken to ascertain that vendors and contractors, who operatewithin thec o m p a n y ’ s p r e m i s e s , o b s e r v e a n d c o n f o r m t o f a i rl a b o u r p r a c t i c e s . T h e engagement of children and adolescent labour is notpermitted.There is no specific policy for preferring local suppliers. In 2007 asmany as 70 per centof their suppliers were regionally based and theysupplied 30 per cent of total purchasevolume.
  4. 4. Any prospective vendor who wishes to do business with ACC must sincerely fillthefollowing vendor registration form.