Question

In: Finance

Pick a company you know and discuss how efficiently or .effectively is has designed the procurement,,...

Pick a company you know and discuss how efficiently or .effectively is has designed the procurement,, production and transportation .aspects of its business.

Solutions

Expert Solution

Rajasthan Rajya Vidyut Utpadan Ltd. (RVUNL):

RVUNL is a State Government holding Public Sector Undertaking and situated in Rajasthan State of India. It's business is to produce the electricity and supply it to Electricity Distribution Company. The company has various plants where the Electricity is being generated. The main raw material of company is Coal which required for generation of Electricity.

As desired in question, the company procure its raw material i.e Coal from coal mines of Coal India Limited. The RVUNL has contractual agreement with Coal India Limited for procurement of Coals, with Indian Railway for transportation of Coal and with Rajasthan Electricity Distribution Company for supplying the generated electricity.

As the company has various contracts with various companies for procurement of Goods, supply of produced electricity and Transportation of Raw Material so it can say that the company has well defined and effective procedures.

The company has its set target that how much electricity is to be generated in a month. Accordingly, the company communicates its order to Coal India Limited and the ordered Raw Material is transported through Indian Railway.


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