Supply Chain of a Welding Arc Company

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Tawi Acr Electrodes
The company was started in the year 1987 by a budding entrepreneur Mr. Anil Suri who by qualification is an engineer. Completed his engineering from PEC (Punjab Engineering College Chandigarh) in electrical stream and got a job in the state government department but he soon realized that his interests are different from this. So in the year 1987 he started this little venture with involvement of the family members. After all these years the unit is still in manufacturing and doing well in the competitive market with many close competitors like Nair Electrodes the biggest of all. Below are the tables of upstream and downstream suppliers of the company Upstream Suppliers| Supplier Name| Material Supplied|
1| Steel Authority Of India (SAIL), Jammu| EQ wire rod IS 2879| 2| Indian Rare Earths Ltd., Ganjam Orissa| Rutile sand, TiO2| 3| Apollo Extrusion (P) Ltd., Kanpur , UP| Low carbon Ferro Manganese powder| 4| Kandpal Chemicals, Delhi| Cellulose powder|

5| Vasundra Minerals, Bhilware| Various mineral powder|
6| Noble Alchem (P) Ltd., Bhiwani| Pot silicate|
7| Local Manufacturers, Jammu| Packing Materials|
Downstream Supply chain| Buyers| Location|
1| Indian Railways| Luckhnow, Kapurthala |
2| Government Departments| Jammu &Srinagar|
3| Industries in Jammu| Jammu|
4| Local Fabricators| Jammu|
5| Hardware Stores| Jammu, Srinagar|
Kraljic Matrix of Raw Material

Bottleneck Items 1. Various minerals 2. Cellulose powder | Strategic Items 1. EQ wire rod IS2879 2. Rutile sand| Non-Critical Items 1. Packing material| Leverage Items 1. Pot silicate 2. Low carbon Ferro Manganese powder|

Working of the supply chain on the Upstream Side
In case of Tawi Arc Welding Pvt. Ltd. there are in total 7 suppliers and they have been divided on the bases of the material that they supply to the company as strategic, leverage, non-critical and bottleneck suppliers. Since the company is an ISO certified company so all its suppliers are ISO certified and they have approved this list over the span of 25 years. The main thing that was considered in selection these supplier were their ISO certification and their past performance (based on the quality and delivery of the raw material).

1. Strategic Suppliers:-
The suppliers that fall in this category are SAIL (Steel Authority of India Ltd.) & Indian Rare Earths Ltd. both the suppliers are government of India undertaking. The material that is being supplied by these suppliers is wire rod (EQ wire rod IS 2879) & Rutile sand, TiO2 respectively. a. In case of SAIL they have their warehouse in Jammu near railway station and the raw material is always in shortage so every time that material is available with the depot the co. buys it and stores cause is availability and price is very uncertain also for buying you have to have the license. Tawi Acr is having the require documents and they have being buying the EQ wire rod from SAIL for the past 25 years. No IT integration is being used for this supplier and the procurement department has to make all the efforts of getting the information about the availability of the raw material. The supplier is having a very strong position cause of their monopoly as no other supplier is in the close proximity that supplies this material. All the payment for the raw material is done in advance and sometimes the company has to wait for the supply of the wire rod if the store is out of material. b. For Rutile Sand the company is buying it from Indian Rare Earths Ltd. they are supplying the material from Ganjam, Orrissa. After becoming a full fledged Central Government Undertaking in 1963 under the administrative control of Department of Atomic Energy (DAE). This raw material is one of the most rare and important in the final product making process. For this material also you have to have the government approved license and...
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