Erp Doc

KEY WORDS: - (RC) Rate contract, (ERP) Enterprise Resource Planning, (ICE) Information Consolidation for Efficiency, (OEM) original equipment manufacturers, (EPC) executive purchase committee, (MM) materials management, (PR) Purchase Requisition, (PO) Purchase Order, (LOI) Letter of Intent, (EMD) Earnest Money Deposit, (BEC) Bid Evaluation Criteria, (NIT) Notice Inviting Tender,(TC) Tender Committee,( E&P) Exploration and Production, (MTOE) Million Metric Tons of Oil Equivalent, (PSU) Public Sector Unit, (SCADA) Supervisory Control and Data Acquisition, (RFQ) Request for Quotation, (T-code) Transaction code, (GR) Goods Receipt, (SRM) Supplier Relationship Management, (SAP) Systems, Applications and Products.

Abstract:-Rate Contracts have been initiated by Suppliers GROUP in Oil and Gas companies for Supply of Spares, Services and Overhauls. Executive Purchase Committee deliberated the proposals of Supplier and observed that, contrary to the benefits envisaged there has been an increase in the inventory of certain items and desired that a special study may be carried out on all the suppliers Rate Contracts. I was required to examine and review the Stock Levels of Materials vis-a-vis consumption where Rate Contracts were entered and to find its impact on inventory, lead time and price. It required an in depth analysis of all the purchases which were entered under rate contracts

From the study which I conducted, I found that there is a positive impact on the price of the material and the lead time where Rate Contracts have been entered by suppliers Group; there is a substantial decrease in the price and the lead time except in a few cases where there are delays in delivery of the Material. However there is no decrease in the stock levels of Material where Rate Contracts were entered, instead in many cases there is a considerable increase in the Stock Levels without any increase in the consumption of the Material.

Based on the study work performed it