Supply Chain Management
AREL works on a very robust Supply Chain Management System which combines the power of Information Technology, best Industry practices and is driven by the experience of seasoned professionals. We help our customers deliver high-quality products in time to the market and manage fluctuations in demand during the product life cycle. Following are the building blocks of the Supply Chain Management System.
Demand Management, Planning and Forecasting
AREL deploys SAP S4 HANA as the backbone of our operations. The forecast and orders from customers are transpired into requirement schedules through a process of demand management and production planning to meet customer needs within a given timeline. While projects with long term reliable forecast bring less challenges, we also operate in markets where forecasting remain a challenge. Our systems are robust as well as flexible to offer the best solutions to our customers to manage business in these markets.
Sourcing & Buying Policy
AREL abides by certain basic principles for sourcing and buying, which are as follows:
- AREL buys only from manufacturers or distributors who are authorized line cardholders
- COC is mandatory in identified categories
- Non-disclosure agreement and supply agreement with all suppliers
- A formal process of vendor performance review and feedback
- Approved vendor list locked in ERP for each item
Vendor Development & Audits
We believe that vendors are an integral part of our success and hence AREL has a progressive policy on vendor development, evaluation and sustenance. We have dedicated SQE’s working with our entire vendor base on tactical as well as strategic directions of the organization. Real-time feedbacks are provided to all suppliers and 8D reports are mandatory in case deviations are observed.
Electronic Interface Mode (EIM)
AREL is aggressively moving to an “Electronic Interface Mode” (EIM) of sharing information electronically with its suppliers. Everything from requesting quotes, sharing forecast, fluctuation management, purchase order placement, invoice management and payments are done through AREL’s enhanced IT systems which enables a complete electronic procurement process. This system eliminates time spent on non-productive processes at both ends, reduces errors and accelerates end to end processing, thereby delivering value to our customers.
AREL buys material and delivery products globally. We currently operate with more than 250 suppliers from across the globe and this calls for a very efficient EXIM and Logistics team. Blessed with the proximity to the prominent port of Chennai and also to two of India’s largest and busiest International Airports (Chennai & Bangalore), AREL has seamless connectivity to the world for both imports and exports. As part of the Amara Raja Group, we have a dedicated team working from Chennai Seaport for day to day EXIM activity which speeds up the entire process. We also have established relationships with major C&F companies having a global presence and also with the major fast track logistics service providers, enabling the quickest and most reliable solutions on a long term basis.