Professional Documents
Culture Documents
Steel Symphony
AS IS Business Blueprint
SAP R/3
Logistics Kalmeshwar
ISPAT Group
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Process Name
Domestic
Sales
1.1
With
Indente
d
Material
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Process Description
1.3
Comments/Gaps
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made by Transporter.
1.1.14 Truck comes to gate and security checks the
material as per Invoice and gate out is done.
1.1.15 D.O. Cancellation: After making the delivery order, if it
is decided not to give the material to the party or to give the
material to some other party whose requirement is more
urgent or if there is a price change at the time of delivery due
to new price list or transporters problem or not getting
approval from accounts ,then D.O. cancellation is done.
In legacy there is option for Delivery cancellation and validity
extension. The D.O. Number is fed in the Cancellation screen
and the D.O. number is removed from the list of pending
D.O.The material is automatically posted back to stock list for
use by other D.O.s
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1.2
2.
without
indente
d
material
2.1
EXPORT
(BREAK
BULK)
AS IS Business Blueprint
BREAK BULK
In excel the soft copy of sales contract is sent from cmo through
lotus notes to logistic, PPIC , QC, Costing and plant logistic
PPIC gives the sales contract to production in excel format and
after production the material appears in stock report mentioning
the party, thickness, width, length, zinc coating, hard/annealed,
sales contract no.
Packing List
Plant logistic prepare the packing list in legacy as per sales
contract mentioning the sales contract no, date, port of
discharge, port of loading, consignee party code, buyer
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Excise challan contains DO No. IIL excise finds the challan for that
DO No and check the coil no, gross weight and net weight. Three
Sales and Distribution Module
Business Blueprint Version 1.0
/var/www/apps/conversion/tmp/scratch_1/256217818.doc
Prepared by
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ARE1 and Sample certificates are sent to Shipping line by the IIL
Excise Deptt.
2.2 EXPORT
BY
CONTAINERS
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3.
STOCK
TRANSFER TO
DEPOTS /
CONSIGNMEN
T AGENTS
per
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In such a case, CMO decides at what price depot should sell the material to the
customer. If the material is sold from Depot at a price which is higher or lower
then the transfer rate, accordingly excise duty has to be paid or refunded.
3.6 Stock transfer can take place by rail and also by container.
3.8.1 Stock transfer by rail
CMO decides whether the material should go by train or container. Accounts
(Trasnport) will book the wagon after finalising the freight with railways. More the
tonnage, more is the discount. Advance payment to be given to railways. The tonnage
of material to be trasnporting determines the number of rakes. Material is sent by local
transport upto the railway yard of Nagpur station. Transportation and loading rate (for
loading the material in wagons) are finalized by accounts (Transport). Trasnporter will
load the mateiral in wagons and railway will give details of coils numbers to the local
transporter who hands over the same to accounts (Transport. ). At destination railway
station, depot people will unload the rakes and arrange transportation of the material
from railway yard to depot.
3.8.2 Stock transfer by container
Accounts (Transport) book the container from CONCOR. On the basis of D.O.
containers are loaded. CONCOR gives railway receipt after the despatch of the
containers. The railway receipt is sent to the depot and on producing the same to the
CONCOR driver at the depot, the material is allowed to be unloaded from the container.
OEMs are the end users of IIL products. They order tailor made products for their
specific usages.
OEM/
PROJECT
SALES
4.
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takes place and then D.O. feeding is done in the same way as in domestic
sales.
4.5 Delivery schedule is very stringent is case of OEMs. If delivery schedule is not
met, OEM can take the material from other sources. The material prepared by
IIL can not be diverted to other party as their tailor made for a particular
customer. In such a case, the material prepared has to be sold at a very
cheap rate to other parties. In case of CC & CR, the material can also be
diverted to trade. QC determines on examining the grade, physical &
chemical properties whether the same material can go to some other OEM
customer. Logistics in such case informs QC in writing to divert the material
from one customer to another customer.
4.6 PROJECTS SALES
Only CCS material like profile sheets and accessories (including plain sheets)
as per the given dimensions are ordered by the party. The length, thickness
and colour of the sheet may vary within a particular order. P.O. is sent by the
customer to KLM or to Depot or CMO. Work order is prepared and pass on to
PPIC. PPIC advises production and accordingly material is prepared. OA is
prepared on the basis of work order and D.O. is made on basis of O.A.
Material is sent in the same way as in domestic sales either to depot or
directly to party. The ship to party may be different from the bill to party.
5.1.1
ON-LINE
AUCTION/
FILE NOTES
5.
In case of CGL, the rates for ON-Line auction are Prime2, S1, S2, S3, D,
Rejected and
Scrap. Rarely P1 & P2 material also goes for auction.
In case of CCL, A2, A3 and Defective are the grades for auction.
In case of CRM, D, DD, EDD, CQ (Commercial quality), CQ/O
(Hard/Skinpassed commercial quality) .
When material becomes arisings (Export diverted or Domestic diverted or
Mateiral return or OEM diverted or Depot diverted ) it goes for auction. All non
standard mateiral comes under arisings. They can be of any width, thickness,
hardness/annealed/medium, length, grade etc.
5.1.2
List of stock of such mateirals comes in stock report. In case of CR & CG a
separate stock report is created for auction material. In the list, quantity is
shown as gradewise, thicknesswise, agewise, coilwise, width/length/hardness.
No separate stock list exists for CCL.
5.1.3
The list is sent to STEELRX (Auctioner who works on commission basis). In
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the llist IIL sends the expected for a particular lot. This price is called the
reserved price. Each lot mentions the width range and thickness range of a
particular quality of mateiral. A lot can also be made on the basis of products
like coil , sheet etc.
5.1.4
STEELRX sends the lot wise list to all the customers link to it. On a particular
day he takes the bidding from all customers over internet.
5.1.5
Results are sent to KLM-Logistics. Pricing committee now decides which bid it
should accept. Normally the highest bid is taken. Now if some local customer
offers higher price , then also highest bidder is contacted. If he agrees to
increase his price, then lot is alloted to him otherwise the local customer is
given the lot.
5.1.6
On the basis of the decided price O.A. is made in the name of particular party.
The date of auction is taken as the reference in O.A. On the basis of O.A. the
D.O. is made and the material is sent to party in the same way as domestic
sales.
5.2 SALE THROUGH FILE NOTES
This is followed for CR, CC and CGL products. A note is made by KLM-lostistics
and put up to pricing committee for such sales when large quantity of sudden
arisings , diversions, material returns or rejections are there which should be sold
fast. Parties are contacted during giving details of material and offer are received
by them. Whichever is the highest offer, the material is allocated to him. Delivery
to the party is made in the same way as in domestic sales.
FREE SAMPLE
6.
JOB WORK
When a party approaches CMO or plant for free sample then GM (Marketing),
Sr.Vice President (Commercial) , DIC (Marketing ) decides whether the
sample should given. The Approval document is send to KLM-Logistic who
pass on to same to QC and one copy to PPIC. PPIC produces the sample and
QC confirms the quality. In case of small sample, it is sent by courier to the
customer after making gate pass by stores. In case of big sample, OA is
made and on the basis of that, D.O. is made and sample is sent to customer
either directly or through depot in the same way as domestic sales. The price
to be specified in the invoice for payment of excise duty is decided by CMO,
Costing, and Sr.Vice President (Commercial).
This is for value addition. Customer may buy the material and then give to IIL for job
work or may advice IIL to procure the material for job work. Normally Hot rolled coils
are given by customers for cold rolling or aluminium coils are given for colour coating.
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Intimation is sent by CMO to QC who studies the technical feasibility of value addition,
costing who studies the conversion cost following the conversion norms of IIL or if the
customers specifies his own conversion norms then the cost incurred. It finds out if the
conversion cost is as per IIL standards. Costing also calculates the generation of
arisings in conversion and the ownership of the arisings. Intimation is also sent to
excise.
7.
When there is approval from all the three deparmtents, then further processing takes
place. Work order is released by CMO, on advice of PPIC, MM purchases the material
on the basis of work order. When customer himself supplies the raw material, MM
intimates stores ,excise & commercial department. On receipt of material from
customer, stores intimates PPIC. When all the materials arrive then production starts .
Stores will release the material for production on advice of PPIC on getting clearance
from Excise. After production, the material appears in stock report as job work.
Despatching to customer follows the normal route as domestic sales.
Types of Job works
There are two types of job works. The first one is called sell purchase. In this case
only the raw material for. E.g. Aluminium/Galvalume coil is given by the customer
for colour coating. The colour, the thinner and other accessories are given by
Ispat. In such case modvat credit is taken by IIL. D.O. is made on the basis of
O.A. and excise invoice cum challan is prepared.
In second case customer himself supplies the accessories like colour, thinner etc. either
in full quantity required for job work or in part quantity. No modvat credit can be
claimed by IIL. So O.A. is not made. A manual O.A. is made on the basis of manual
D.O. is made and on the base of that manual invoice is made. The manual invoice
passed on to MSD for deleting the material quantity from the stock list manually.
CAPTIVE AND
HOME
CONSUMPTIO
N
In this case material is used for in-house consumption. Mostly civil department of IIL
uses the IIL material for home consumption. Civil deptt gives a letter to VP
(Commercial) mentioning the requirement for approval. After approval, letter comes to
IIL-Logistic. Indent is made by IIL-logistic and given to PPIC for production. . After
production material appears in stock report. O.A. is now created on the basis of
minimum standard price approved by VP (Commercial). On the basis of O.A. D.O. is
prepared and hard copy is handed over to Civil dept. Civil dept hand over D.O. to
despatch dept who will give the material to civil dept after entering the packet number
in the D.O. In this way the D.O. is feeded. D.O. copy is again handed over to civil dept.
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8.
8.2.2
CRM -> CGL. : QC certifies before production that material is suitable for
processing in CGL. At the time of processing material is marked as transfer
which indicates that it is a captive material to be used by other units. As per
PPIC plan given to CRM complex , this transfer marking is done.
8,2,2 After processing material appears in stock report as raw material for CGL or
CCL.
DEEMED
EXPORT
8.2.3
Separate D.O. called captive D.O. is made with D.O. No. , party code which in
this case is CGL or CCL and coil numbers. D.O. is made after transferring the
material to the processing plant. D.O. is made on the basis of actual transfer.
So if 100 MT is transferred then D.O. will be made for 100 MT only. Hard copy
of D.O. is taken out and given to excise deptt.
8.2.4
As per D.O. excise will raise the invoice on the processing plant. So If the D.O.
is made for transfer from CCL to CGL then invoice will be raised by CCL on
CGL. Pricing will be done as per costing department.
8.2.5
If the material which is sent for processing from CRM to CGL is not found OK
in CGL, then there is an option for returning the material in CRM. D.O. will be
prepared mentioning return and accordingly invoice will be prepared. On the
basis of invoice material will be posted back to stock of the CRM.
8.2.6
IIL trucks do the inter transfer. The despatch incharge calls the trucks and
load the coils and verbally ask to truck to go the next processing shop.
9.1 Work order or Sales contract is sent by CMO to PPIC , Logistic and Plant Logistics
& QC.
9.2 KLM-Excise department checks whether deemed exporter has transferred bond of
value equivalent to the excise duty of the goods in the name of IIL-KLM. It also
receives a blank ARE1 form signed by the deemed export. In case of containers, it
also receives a proforma invoice from deemed exporter.
9.3 Plant Logistics makes packing list mentioning original customers name, country of
final destination, Port of discharge, Place of delivery, Shipping Mark & Shipping
Sr.No. , coil number thickness, width, length, Zinc coating, Gross weight & Net
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weight.
9.4 Deemed exporter arranges the trucks/containers. He intimates KLM- logistics as to
the number of trucks/containers and their capacities that he is going to arrange.
Accordingly KLM-Logistics prepares D.O. as per truck/containers capacity. The
D.O. is given to the deemed exporters transporter.
9.5 As per D.O. loading of the containers/trucks takes place. In case of container, a
container packing list is made for each container mentioning the coil numbers
loaded in it.
9.6 On the basis of D.O. IIL-excise will make the invoice in the name of the deemed
exporter which is given to the transporter.
9.7 The transporter after final weightment gate out is done.
9.8 In the case of containers, KLM-Logistic prepares DEPB/Factory stuff on the back
side of the proforma invoice received from the deemed export. It is handed over
to IIL-excise who gets it signed by govt. excise and the signed proforma invoice
( Only in case of container) & ARE1 are handed over to the deemed exporter.
9.
RETURNS
AND
COMPLAINT
PROCESSING
10.
10.1 Maximum returns is for CCS & CR material in case of OEMs sales. Party
complaints to CMO or Depot . From Depot information pass to CMO & QC. If the
quantity of defective material is less Depot itself attends by contacting QC through EMail If the quantity of defects is much more then QC will go to customers site and
inspect the material. Minutes of the meeting will be made between IIL and Party
agreeing for lifting back the mateiral. Copies of the MOM will be given to CMO, Logistic,
Commercial Deptt and QC Chief. On the basis of MOM , the ,material will be returned.
10.2 The material may be returned either to the Depot or to the plant. In case of
Depot , Depot checks the excise invoice i.e. prepared by the party at the time of
returning the material, rejection advice of the party, IILs supply invoice
reference and LR copies of the transport.
10.3 When the material comes back the truck driver comes to logistic and hands over
all the documents which are checked by logistic. Documents are then sent to QC
deptt for acceptance.
10.4 After acceptance of QC, the documents come back to logistic, the excise invoice
will be sent to excise deptt with a covering letter. Then logistic advices despatch
deptt to unload the rejected material.
10.5 The vehicle is now allowed to enter the plant. Security enters the material
details, customer name and affixes the seal on the back side of document.
10.6 Truck will go to weighbridge for weighing and the weigh slip will be attached to
document and the truck with document will go to the despatch section.
10.7 Material will be unloaded by despatch deptt who prepares an IOM with dummy
coil/packet number. This number will be given by despatch deptt at the time of
unloading and the dummy number will be entered in legacy as return material.
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Now QC will give a new number for each coil/packet and the material will appear
in stock report with the new number given by QC. Before giving the number, QC
will physically check the material and in case particular coil or packet is found to
be alright then a separate number will be given to it and it will be sent to back to
the customer. Otherwise QC will give numbers to the defective coils or packets
which will go to trade market.
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