Scribd
Upload
165 views

A Presentation ON The Operations & Supply Chain of Tata Steel

Tata Steel is Asia's first and India's largest integrated private sector steel company, established in 1907. It has multiple business units and produces a variety of steel products. Tata Steel uses strategic sourcing to reduce costs and is one of the lowest cost steel producers. It implemented SAP software across the company to integrate data sharing and improve efficiency. Tata Steel also uses i2 Technologies to enhance customer satisfaction and productivity through optimized asset usage and responsiveness in its supply chain.

Uploaded by

Jaspreet Singh Sekhon
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
165 views

A Presentation ON The Operations & Supply Chain of Tata Steel

Tata Steel is Asia's first and India's largest integrated private sector steel company, established in 1907. It has multiple business units and produces a variety of steel products. Tata Steel uses strategic sourcing to reduce costs and is one of the lowest cost steel producers. It implemented SAP software across the company to integrate data sharing and improve efficiency. Tata Steel also uses i2 Technologies to enhance customer satisfaction and productivity through optimized asset usage and responsiveness in its supply chain.

Uploaded by

Jaspreet Singh Sekhon
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 11

A

PRESENTATION
ON
THE OPERATIONS & SUPPLY CHAIN OF
TATA STEEL
By
Dewki Nandan
Company Profile
Established in 1907, Tata Steel is Asia's first and India's largest
integrated private sector steel company.
Tata Steel is the ranked sixth in the global steel sales.
Tata Steel with Corus is the fifth largest global steel producer with a
combined output of 23.5 MT.
Tata Steel is among the lowest cost producers of steel in the world.
Its sales mix today comprises approximately two thirds flat products
hot rolled, cold rolled and coatedand one third long productsvalue
added finished products such as wires, wire rods and merchant bars.
Over 9 MT production in FY 2006 IN 7 locations.
Green field expansion plan : In India: 12 MT in Jharkhand, 6MT in
Orissa & 5 MT in Chhattisgarh) and Overseas : Iran 3+2 MT and
Bangladesh: 2.4 MT
2005-06 Revenues : $4.64 bn, Profit : $842 million
Business Units
Apart from the main steel division, Tata Steel's
operations are grouped under the following
strategic business units :

Bearings Divisions
Ferro Alloys and Minerals Division
Rings and Agrico Division
Tata Agrico
Tata Growth Shop (TGS)
Tubes Division
Wire Division
Supply Chain
Suppliers
Tata Steel
- Raw materials - Manufacturing - Individuals
- Packaging material - Packaging - Industries
Distributors & company
owned retail outlets
Strategic Sourcing
At Tata Steel, Strategic Sourcing has delivered 80 million US $ over
last 5 years and these savings continue to grow every year. This has
played a key role in making Tata Steel the lowest cost producer of steel.
Cost comparison
Retail value management
Before
The managers were hardly aware of the market dynamics.
wholesalers controlled the market and dictated the prices.
Tata Steel failed to assess the quality of the retail network
in terms of its coverage and capacity to absorb volumes.
Lack of control led to unethical practices at retail points.
After
Reduce volatility in its revenue streams and consequently
stabilize profit margins for the distributors and retailers.
The marketing team was better positioned to appreciate the
nuances of retail marketing and to develop area-specific
initiatives.
This initiative has helped Tata Steel to gain number one
spot in term of sales of galvanised corrugated sheets.

Operations: Steel Manufacturing
(semi-finished steel)
Iron ore Fluxes Coal
LD 2
Sinter Plant Coke Plant
Blast Furnace
LD 1
Continuous Billet Caster Slab Caster
Billets
Wire Mills Merchant Mill
Slabs
Wire Rods Reinforced
bars
Cold Roll Mill Hot Strip Mill
Cold Rolled
Coils
Hot Rolled
Coils
Implementation of SAP
Before implementation Results of SAP implementation
The employees and management at Tata Steel
faced a cumbersome task exchanging and
retrieving information from the system.
The reliability of information obtained was
questionable because of inconsistency and
duplication of data from different departments.
There was no built-in integrity check for various
data sources.
Several times the information against certain
items was found missing.
The manpower cost has reduced from over $
200 per ton two years ago, to about $140 per ton
in 2000.
The overdue outstanding has been brought down
from Rs 5170 millions in 1999 to Rs 4033
millions by June 2000.
The inventory carrying cost has drastically
deflated from Rs 190 per ton to Rs 155 per ton.
With SAP's solution Tata Steel can now update
their customers on a daily basis and provide
seamless services across the country improving
customer management.
The availability of online information has
facilitated quicker and reliable trend analysis for
efficient decision-making.
Implementation of PHOENIX -- i2
Technologies
Reasons for chosing i2
- To improve productivity through the best possible use of its assets.
- To enhance customer satisfaction by identifying and delivering
products according to the needs of its specific customers.

Benefits
- Increase supply chain responsiveness through reduced manufacturing
lead time, which in turn can lead to improved performance delivery
and increased customer satisfaction.
-Better management of planned versus optimal product mix.

THANK YOU

You might also like