Overview
The client, a leading force in the EPC industry with a dynamic portfolio across solar, wind, oil and gas, and more, turned to us for a critical project requirement. They needed top-tier vendors to construct overhead tanks (OHTs) in some of the most remote areas of Madhya Pradesh for their Water BU projects. The challenge? Building OHTs with capacities ranging from 50 KL to 200 KL across multiple locations. Discover how we tackled this ambitious project head-on and delivered exceptional results. Dive into the full case study to see how we made it happen.
Challenges
- Specialised Shuttering: Overhead tanks require specialized shuttering, which is not readily available in the market.
- Cost and distribution: Although the overall PO value is high, the value of individual POs was relatively low. Additionally, the locations of these OHTs are spread across a large geographical area, leading to increased costs for vendors as they need to move resources across these locations.
- Localised vendors: The highly localised nature of the OHT project, required us to find vendors capable of servicing specific geographic areas.
Vendor Qualification Criteria
To address the project’s specific requirements, we established the following vendor qualification criteria:
- Proven Experience: The vendor should have executed multiple OHT projects in Madhya Pradesh or neighbouring states over the past two years.
- Turnkey Capabilities: Ability to provide comprehensive turnkey solutions encompassing all project aspects.
- Project Execution Capacity: Successfully executed at least three concurrent OHT projects valued at or above INR 1 crore within the preceding year.
- Rural Experience: Experience implementing projects in rural areas of Madhya Pradesh, Rajasthan, and Uttar Pradesh.
Venwiz Solutions
Venwiz developed a unique cluster-based approach for the project. We divided the geographical area into five zones and structured the Request for Quotation (RFQ) accordingly.
| Location Cluster | Cluster-wise OHT Capacity (KL) vs. Number | ||||||
|---|---|---|---|---|---|---|---|
| 50 | 75 | 100 | 125 | 180 | 200 | Total # | |
| A | 4 | 2 | 1 | 1 | 1 | 1 | 10 |
| B | 4 | 2 | 1 | 1 | 1 | 1 | 10 |
| C | 4 | 1 | 2 | 1 | 1 | 1 | 10 |
| D | 3 | 1 | 3 | 0 | 2 | 1 | 10 |
| E | 3 | 2 | 3 | 0 | 1 | 1 | 10 |
| Total | 18 | 8 | 10 | 3 | 6 | 5 | 50 |
Vendors had the opportunity to bid on one or multiple clusters of overhead tanks, with the critical requirement that each bid must cover every tank within the chosen cluster. Additionally, selected vendors needed the capability to operate across at least three locations simultaneously. Out of an initial pool of 240 vendors, we rigorously shortlisted 33 for the project, ensuring only the most capable were chosen.
Impact
The impact was twofold:
- Securing qualified vendors: Venwiz successfully identified and engaged suitable vendors for the project.
- Developing a strategic framework: The client gained valuable insights from Venwiz on effectively managing overhead tank (OHT) procurement for future projects.
This case study showcases Venwiz’s commitment to excellence in capital expenditure (capex) procurement. We partner with clients to help them achieve their business goals.
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