Sourcing of 6.6 KV Cables

A Steel Major mandated buyjunction for the procurement of 6.6 KV 300 Sq mm Cables for consumption over a period of 6-8 months.

Business challenges

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Market trend had shown that:
  • The price of this particular type of cable was increasing steadily
  • Suppliers were quoting for smaller quantity
  • High supply lead times (12-14 weeks) were mentioned in the initial offers solicited

The initial assumption was that Aluminium (Al) & Copper (Cu) prices has increased and that the scarcity of raw material was due to price escalation.

Our approach

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  • buyjunction's Category Management team decided to analyze the Price trend of individual components (raw materials) of the cable and also the current market dynamics.
  • The price trend analysis revealed that all individual components were displaying downward price trend during that period. On digging deeper, it was realized that all major suppliers with whom the client and buyjunction were interacting were overbooked with the orders from the Commonwealth Games Village project.
  • Considering these conditions, buyjunction decided to go for the "Spot Purchase" approach.

Benefits

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  • High bidding customer participation, with 12 international and domestic suppliers
  • Price savings of around INR 3.00 Crores
  • Faster delivery and execution of full order