Page 80 - Chambal SR_2015-16

Sustainability in Supply Chain have to follow the highest standards during
manufacturing and also exercise controls with
respect to occupational health, safety, environment
There are numerous reasons why companies start and legal considerations. A special document
a supply chain sustainability journey. Primary with respect to supplier conduct principles is
among them is to ensure compliance with laws attached with each order wherein guidelines
and regulations and to adhere to and support are provided to the supplier with regards to
international principles for sustainable business labour laws, child labour, wages, working hours,
conduct. non-discrimination, health/safety, environment
protection, ethical dealings, etc. The vendors
Though a supply chain sustainability policy is yet to are also advised to maintain documentation to
be formulated by the government, we have taken demonstrate compliance(s) as and when requested
the lead in defining and documenting it. The focus by Chambal. It is also ensured that payments are
is to ensure quality, timely procurement, and lowest released to vendors as per contractual terms so that
price as well adherence to all statutory norms and long term relations are maintained.
guidelines. Our procurement policy encourages
open and fair competition. The following documents Chambal is very concerned about safety, labour
provide guidelines as well as financial limits for laws and all statutory / legal compliances while
all activities related to procurement and material awarding contracts for services to be executed
handling, while emphasizing on economic, social at Gadepan. These are specified clearly in
and environmental integrity throughout the chain. Annexure-A and B of each contract. The performance
of contractors is evaluated on a periodic basis, and
• Purchase Procedure
This document clearly defines the process to be regular meetings are held with them to give them
both positive and negative feedback, so that they
followed for procurement of material/ services. can focus on rectifying their weaknesses.
This includes vendor selection/registration,
floating of enquiries, placement of orders and It is thus our endeavour to ensure optimal
vendor(s) rating, etc.
sourcing in a cost-efficient manner without
• Stores Procedure compromising on quality and compliance to
This document outlines the process to be statutory compliances. A similar vigilant process
followed after receipt of material at Gadepan and principles of sustainability are followed at
which includes documentation of inward every stage in the life-cycle of raw material/
receipt, inspection, and issue of material, sale of product sourcing, including packaging, dispatch,
scrap/surplus material, inventory control, and warehousing and transportation. The total number
sending material for repair/refurbishment and of vendors engaged during FY 2015-16 were
preservation of inventory. 1039, with a total contract value of approximately

• Limits of Authority Manual ` 500 crore, excluding the gas cost and the traded
This manual defines financial limits/delegations products.
which are to be followed while procurement of
material/services. For us, our vendors and contractors are members
of Team Chambal - our partners in progress.
All the above processes are integrated, and SAP They have played a key role in our success.
is used for seamless functioning of the materials On many occasions, we have also found their inputs
department. The Purchase Order communicated to be invaluable - leading to technical improvements,
the fact that Chambal is certified for ISO 9001, higher machine efficiencies, and even a reduction
14001 and OHSAS 18001, and that all vendors in costs.

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