OREANDA-NEWS. January 21, 2013. Marking a significant step forward in their long standing partnership, Tata Steel and mjunction signed an agreement for a new framework for processing and controlling Tata Steel’s purchase requisitions (PR). This framework has been designed with the objective of ensuring better satisfaction for the internal customers of Tata Steel's procurement division, improving compliances to processes and ensuring clear quantification of value created by mjunction for Tata Steel through its procurement division.

The agreement was signed in January 2013, by Amitava Bakshi, chief procurement, Tata Steel, and Vinaya Varma, vice president, buyjunction. Under the agreement, mjunction will now be responsible for end-to-end process of procurement, starting from collecting end user indent to delivery of material / service by the vendor. In order to create a high performing and well balanced procurement system, clear segment-wise objectives will now be assigned to each segment of procurement. The different objectives for different value segments of PR have been identified as reduction of cycle time for low-value PRs, achieving negotiated savings for mid-value PRs and achieving strategic savings for high-value PRs.

The following are some of the benefits that are expected to accrue out of this strategy of focusing separately on PRs of different value segments:

Improving the efficiency and quality of service.

Additional areas of attention for high-value PRs.

Improvement in process governance.

Freeing up bandwidth of Tata Steel commodity managers.