Overview
A leading chemical and pharmaceutical company sought multiple vendors for a significant brownfield project in Bharuch. The project involved substantial civil work, including road construction, RCC structures, and multiple pre-fabricated structures (PFB). Read on to find out how we streamlined vendor selection for the project.
Challenges
The client had divided their project into two phases. While a vendor was already handling Phase 1, the client required additional vendors for Phase 2 due to the current vendor’s resource constraints. To overcome this challenge, they sought assistance from Venwiz.
- Vendor Experience: Identify vendors with specific experience in the chemical sector who can execute projects in Bharuch.
- Strict Timelines: Adhering to stringent project timelines in a stringent timeline of 6 months.
- Vendor Selection Criteria: Meeting stringent vendor qualification criteria as outlined in the detailed Project Qualification Requirements (PQR).
- Brownfield Site: Navigating the unique challenges associated with working on an operating chemical plant.
Vendor Attributes
The client had made a detailed Pre-Qualification Requirement (PQR) for the project.
- Industry Experience: Proven track record in industrial construction especially the chemical industry.
- Civil: Extensive experience in SEZ and chemical industry brownfield projects, with a strong emphasis on compliance and team capabilities.
- PFB: Minimum G+4 structural experience, with a proven track record of executing projects within operational chemical sites.
- Project Scale: Successful execution of at least one similar project exceeding 40 crores in the last three years.
- Financial Strength: Annual turnover exceeding 100 crores in the past three years.
- Geographical Fit: Based in Maharashtra, Gujarat, or Madhya Pradesh, and with substantial experience in Gujarat. (Bharuch area was a plus)
- Operational Capability: Ability to mobilize resources and execute projects in Bharuch.
Solution
To address these challenges, Venwiz implemented a multi-pronged approach:
- Project segmentation: Venwiz suggested segmenting the project into two key categories to streamline the vendor selection process:
- Civil Works: This included road construction, RCC structures, and other civil infrastructure.
- PFB Structures: This segment focused on the design, fabrication, and installation of multi-story pre-fabricated structures, which required specialized expertise and experience.
- Vendor Identification and Shortlisting: We initiated a rigorous vendor identification process, and leveraged Venwiz’s proprietary AI-powered platform and the client’s detailed PQR. This enabled the identification of 11 potential vendors meeting the stringent criteria.
- Vendor Assessment: A thorough evaluation process assessed vendors based on their compliance with industry standards, quality management systems, and site mobilization capabilities. We created a detailed comparison table to facilitate easier vendor evaluation, highlighting key differentiators such as experience, financial stability, and technical expertise. Two vendors for the civil works and two for the PFB were finally shortlisted for the final round.
- Vendor capability: We prepared detailed Vendor Capability Brochures (VCBs) for shortlisted vendors, highlighting their offerings, financial health, certifications, past projects, and salient features or key attributes.
- Quote Optimization: Venwiz worked closely with vendors to optimize their quotes, providing feedback and benchmarking against estimates prepared by in-house experts. Vendors provided multiple revisions based on this feedback. This ensured that all quotes were technically accurate and aligned with market standards.
- Quote Comparison: Venwiz utilized a proprietary quote comparison tool to compare hundreds of line items of vendor quotes efficiently and the final quote comparison report is in a user-friendly format.
Impact
Venwiz’s solution delivered significant benefits:
- Efficiency Gains: Reduced procurement timelines by 30%.
- Cost Savings: Achieved up to 5% cost savings across the two projects.
- Vendor Discovery: Successfully identified 11 new vendors and 4 vendors were shortlisted for the final negotiations.
By addressing the client’s specific needs and leveraging its expertise in vendor selection and project management, Venwiz contributed to the project’s success.
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