Lessons from an Indian Procurement Leader | Saurabh Palsania (Cement Industry)
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Speaker
Saurabh Palsania currently leads the strategic sourcing for India’s third-largest cement manufacturing organization. Previously, he was Executive Director at Dalmia Cement where he managed procurement spend of over ₹3,000+ Cr.
Where to find Saurabh Palsania:
• LinkedIn: https://www.linkedin.com/in/saurabh-palsania-51897821/
Brief introduction
Hi, I am Gaurav Baheti, Founder and CEO at Procol. Procol is a team of over 125 procurement enthusiasts and manages over ₹20,000+ Cr spend, which has been made possible only with the support of our team, customers, investors, and everyone who has believed in us. Ping me at gaurav@procol.in to chat or connect on LinkedIn.
• LinkedIn: https://www.linkedin.com/in/gbaheti/
• Twitter: https://twitter.com/gbaheti
Covered in this episode
00:27 Mr. Palsania's background and experience
03:25 The changes that have happened to the procurement industry in the past decades
04:11 The impact of COVID
05:26 The data-driven workplace
06:11 Why digital procurement has had slow penetration in India
08:04 Mr. Palsania's journey
10:19 The largest team and spend managed by Mr. Palsania
11:45 Dealing with single points of failure
14:36 Passion for sustainable procurement
22:27 The things that have not picked up pace
24:54 Other things that need change
27:46 ChatGPT in Procurement
31:30 Advice for young procurement leaders
35:47 How MSMEs can sell to large companies
Watch this episode
Transcript
Gaurav Baheti (00:09):
Hi, I'm Gaurav from Procol. Welcome to the Procol Podcast. We are just starting out today with our new series of procurement leaders in India. We want to talk about procurement, technology, business, and the future of procurement in the country. Today I have with me, Mr. Saurabh Palsania welcome to the show, sir. I would love it if you can share your background.
Saurabh Palsania (00:39):
So, Gaurav, as you know I'm a professionally chartered accountant and I started my career from finance and then to commercial. Then also I've been a plant head and then back to commercial.
Gaurav Baheti (00:54):
So, so where did the journey start?
Saurabh Palsania (00:56):
Okay. So I started my career from JK Cement, worked there for almost five to six years. Moved to Ambuja for a year, did a project there, and came back to do another project with JK. Remained there for around five years, took care of commercial activities, and was that, got opportunity to join Shree Cement. Worked there for 11 years, both in projects as well as operational commercial activities. And my last assignment there was to be a plant head of one of their branding units, and also simultaneously worked with their ex director for coordination of activities throughout the group. Okay.
(01:42):
In 2016, I got the opportunity to work with Mia, and I was there till 2023, almost two days back till two days back <laugh>. So it was a great experience there also. And it was a, it was coming from a city like Jao to Delhi and settling it down and creating a department there, bringing it up and took many challenges in waste management, green power, digitization of procurement, and innovative ways of procuring and getting long-term tups and all. Unfortunately, you can say that I have been able to connect with lot many people during this period in Delhi, in across the group as in, and Mia was I mean, there are 14 locations of Delmia across 10 states. So I got the opportunity to move around and meet a number of people there with that experience, I'm moving now to re from 1st of June. And the, it'll be a business transformation journey, although it's the third largest company, cement industry in India. And talent I can say that talent is unmatchable when we talk about Mann. And innovation is unmatchable. So, so look, look forward to innovate and procurement also. And it's my privilege that I'm here with you and being the first con contestant for this <laugh>.
Gaurav Baheti (03:11):
No contestant, sir. We'll keep it casual today.
Saurabh Palsania (03:14):
Okay.
Gaurav Baheti (03:15):
So happy to be here for sure. I think we moved into this new office just two months ago. So excited to host effort. This has always been something we wanted to do. So you mentioned about your past decades of experience in procurement when you had started in the last two decades. How have you seen procurement practises when they were, what, what, what you saw them when you had started and what they are today when you're a, a leader in the space?
Saurabh Palsania (03:46):
So I'll say that traditionally it was just like say meeting people, calling people, negotiating, and a lot of manual and paperwork. But things were moving, but it was very slow towards digitization. Fortunately, or unfortunately, the co covid period was the game changer. And where we started meeting people on screen and say, most of the negotiations were online or through auctions, and that was, you can say, partly compelled and partly forced for, for, oh, it was forced to us. And partly, I mean, that definitely we were transforming towards the new digitization practises, but I mean, that was the force.
Gaurav Baheti (04:36):
Forced transformation
Saurabh Palsania (04:39):
Towards this transformation. And then definitely we enjoyed it. We were saving the travelling cost of of our partners also. And secondly, when we are meeting one-to-one, it's more limited to the business. Absolutely. But we are meeting when, whenever you, we meet on screen 10, 15 minutes, definitely, we talk about what is happening around the world and what are the good practises and how we can better synergize what are the other areas of their business, because everybody has got some extra time since they are on the screen.
Gaurav Baheti (05:13):
Absolutely.
Saurabh Palsania (05:15):
I mean, I'll say that today that has become a way of life in, of procurement, in procurement. And
(05:24):
That's good for all of us because when we are away from papers we are more on the bang on the target, how to say say, spend more time on development activities.
Gaurav Baheti (05:38):
The more data driven
Saurabh Palsania (05:39):
Data driven. And people were say, always compiling the data and all, they, they come out of that tedious job and they find everything ready right from the RFQ to the, I mean, various offers and everything are listed directly on the screen. So they, they can, they can move around, they can meet the people. They can know what's, what's new happening and how they, it can contribute to optimise their cost of procurement.
Gaurav Baheti (06:11):
But sir, technology was there, right? E-Procurement, we know all the legacy players in the market who had started in the West. Why was digital penetration for such applications so low in this country?
Saurabh Palsania (06:25):
So I'll say that to be very transparent and to be very, I mean, honest digital procurement, like if we clearly spell it out, it is more from say C R F P to the payments. The bigger challenge, what I found in procurement is that a lot of CapEx procurement is happening. A lot of service procurement services, service contracts are being given. And that is basically based on manpower. And that is still a challenge to digitise this because it's, I mean labour is not constant apex. We do not know what we are going to buy. So, right. RF queues cannot be, RFPs cannot be floated here if a complete spent is not able, we are not able to cover in digitization. And I think a lot of companies like yours and others, they are working very hard how to integrate it into this, this digitised system. And once it is there, you will see that the adoption rate will be just three x or five x. Yeah. seamlessness should be there, but otherwise what happens? That part you are doing in the soft, this software has and part you are doing in sap. So in integration of both this spend is, I mean, little difficult, right? But I think what work is being done by many organisations like yours, and I foresee that in the next three years. I mean, definitely everything will be on the this platform.
Gaurav Baheti (08:03):
Wow. Okay. So with that journey and that in mind, you also built talent who was now building. So how did you go from doing everything yourself, negotiating yourself to now building up, managing a team, and then building an org of procurement? How was that journey like?
Saurabh Palsania (08:21):
So I'll say that the organisation structures of procurement across various of national activities earlier on it was a very sleek structure. Now it's spread out. Now there is a, you will find a procurement excellence team also.
Gaurav Baheti (08:38):
Yeah. I have seen that There's a procurement excellence and a digital transformation team separate.
Saurabh Palsania (08:43):
Spread in procurement Yes.
Gaurav Baheti (08:44):
Also divided by geographies. So I've seen Asia, Europe all.
Saurabh Palsania (08:49):
Separate. Yes. Yes. And that's, that's giving edge because see one man doing floating RFPs and working on digitization, also negotiating also, I mean, the bandwidth is reduced and you won't find, say breakthroughs happening in that. So specialisation now in India, earlier on, multitasking was a I mean, you can say it was a say Yeah. Something which everybody wanted to go ahead. But now, I mean, you'll find that excellence is in each field. We are trying to create a vertical with excellent peoples who are having a lot of experience. And they're working only on excellence, somebody working on only on digitization. And then I say MROs and services and CapEx team and <inaudible> procurement, which, which was not a early on part of procurement. It, it was always the in having a separate vertical for that. Now it's in the procurement alternate fuels Yeah. Fueling, which is a few, which is it, I mean, I mean, big task to do now for, to bring, say, India to net zero by 2070. So that's, that is having a separate, we are having a separate vertical. Many organisations are having separate vertical. Right. So with this excellence verticals Yeah. And people I mean concentrating on individual say task that is giving a good pace to new practises in procurement and also digitising everything on a fast track.
Gaurav Baheti (10:19):
Right. What was the largest team that you handled and largest procurement spend that you
Saurabh Palsania (10:25):
I was handling around spent of 2,800 to 3000 careers per and say it happened because with such a back bucket of procurement Yeah. Larges bucket of procurement, if you don't, and with a team of lot more than 30, 32 people. Wow. So it happened all because of the digitization be you don't have to now train people because everything is there on the screen. Yeah. So even the new come who joins the organisation, he can, within seven days, he can go through every ramp up. Oh. Otherwise he has to move from vertical to vertical to be trained. Yeah. Yeah. Now it's slightly and easier to train him on a single window where you can see how the things are happening and what is the spent in different categories, what are the number of items, how this negotiations are happening online, what are the results of auctions? And you can just chart out see how the you can say partners are behaving in auctions. Mm. And that can give you a trend line. Yeah. The how to deal with so those items where you have little number of low, low base of supplies, how you are mean how to deal where you have got a big base of supplies. Right. Right. Right. Absolutely. So all these things, I mean, the learning process has become easier.
Gaurav Baheti (11:45):
Which brings me to one more point, h? Earlier I have also seen buyers or procurement members. They, they, the company was dependent on these team members to manage the entire base. And without, because it was manual, there was no record of what was the thing. And once if this guy goes on a break, there's a break in supply chain. Yeah. How do you, do you think that's fixed? Now?
Saurabh Palsania (12:13):
See, now slowly and slowly, what I'm finding is that you hardly have to depend upon the leader. Okay.
(12:22):
See why, because there is no accumulation in the Excel sheets or emails. Everything is coming to the software portal, right? So whether it's RFP or RFQ or the, I mean, say offers, which are of all the comparison sheets, everything is on online. Yeah. Like, it's, it's hardly say the individuals efforts which are required especially of that particular guy. And now it's more important than how you interact, how much homework you have done. Yeah. The homework also, you will find it's there in the portrait itself. What was the last purchase prices? What were the quotes given by the other suppliers? What was your requirement in how many days it was delivered? Yeah. Who were the defaulters in quality and timelines? Yeah. Yeah. So, and then see another area which is reasonable now is what were the quotes received by the other companies? Right now, it's not very much a on the portal. Yeah. But definitely since the community procurement committee is now very clo working closely to each other. Right. The young generations are is more interactive. Yeah. They are when when existing beyond your offices, yeah. They are meeting beyond your offices, although, say, information sharing, definitely some, sometimes it is being looked as you are defaulting. But I don't feel like that more and more you share with your competitors or even not competitors than the partners
Gaurav Baheti (13:54):
Counterparts counterparts you will grow together. Right. So I mean nothing is now I mean with this and this digital word, which which is not visible to all. Yeah. Yeah. So that is giving you the good database that to do, to do your, do your homework before getting into a big contract. Right. Or a big supply contract. Right. So, homework is required to be done in a big, I mean, in a better way, where you should have your targets, you should have your, the visibility of rates, visibility of quality deliveries, visibility of timelines. And that is what makes you gives you a upper hand while getting into a contract. Right.
(14:38):
Absolutely. So we also talked in the middle that you managed biofuel. Then I think you have been into sustainable procurement for the last three years deep into this. Yes. I would love to hear about your journey in sustainability and procurement and main, main three probably initiatives that you took and its impact that you expect.
Saurabh Palsania (15:00):
Yeah. So we'll talk one by one on that and i's, it's, it's a topic which is very close to my heart, right. And I do it with, I'll just talk about it. So I do it as a passion and not as a job. Right. So, see, what inspires me is one of our leaders used to talk about it is lean and green is profitable and sustainable also, and I, I say profitable first because in India, we, what we narrated is that, which is any activity which gives you profit should be done, but the activity which is giving you profit and making you sustainable is above one. Right. So all it started with a call that what how Prime Minister also took that we have to be net zero by 2017. Yeah. There are a lot of good practises happening on waste management across the world.
(15:55):
And when we move around say you, you remember Swachh Sewa Abhiyan was started and everybody mean contributed in it across all the organisations or government organisations. Yeah. And we were also part of it. So from there, it all started and it was given and the task was given to the procurement teams to say arrange waste and go process it in kills and make the kills and to take a step towards decarbonization. And that was a journey. I say that, I mean where from one turn to one, like turn, we were able to source it out. But it more important was to connect with all other industries who were generating waste. And here I'll say that cement industry is the only industry, which, which never generates any waste. It co that there is whatever comes into the gate.
(16:53):
Yeah. It is being utilised a hundred percent. And that's why we call kin as neelkanth, which can absorb anything. Yeah. So we were looking for <laugh>. So we were just looking for such organisations which were suffering because of handling of waste. And it was either inherited or landfill. And that was also not good for the environment. And when we see that in our early days when we were young, that it was a clean sky. And today we just find out the day when it will keep clean. And similarly, we see that what we are creating this world now clearing this garbage coal processing, recovering energy out of it, and ensuring that we are not emitting say anything which is harmful to the environment. And this is all we are doing for the next generation. And to ensure that our world is mean, exist for a longer period of time with, I mean right.
(17:53):
Like quality of air and placed to work enable, do you measure the emission saved? Yes. Yes. Yes. that is, that is measurable. And that are the guidelines issued by the o f and the pollution control board that you have to operate your plants within these limits. And I think all the cement plants or all the other industries are operating it, it is being monitored online by the operation control board. They've installed cities when various systems across the plants. Oh, is it? Yes. That, that imaging levels are online being monitored, and it is being transmitted to the central pollution coal control board and CP CCB two. So that was the journey. So from work, I mean, we replaced a lot of fuel and coal process the waste and saved it to the landfill and <inaudible> in open.
(18:43):
Wow. How much was this? So it was all around you can say every cement industry is somewhere operating between they have replaced th the thermal substation rate is between three to 15%. And I think the target everybody's targeting to reach beyond 15% in last two, three years. And for that, they're investing almost a a good, good amount, a huge amount in each of their accounts to make them compatible to co-pro such waste. And now with the, you can say new technologies that are coming up I don't foresee that I mean, the coal bill will be reduced not less than by say 20% in next two years. Wow. For every cement organisation. Is it? Yeah. That fast. Yes. Wow. So target setting is good. People are, have a clear directions and clear targets. So achieving 20% in next two, three years will not be a big challenge 20% years.
(19:49):
And similarly, we talked about another sustainable practise. I think digitization was one. Yeah. where every organisation started digitising their procurement say practises. And then third was that how to I mean increase the share of renewable power. Yes. And replace the thermal power, which is out produced out of coal. And I don't find any industry which is not working on it. Right. So everybody's targeting somewhere. I mean, operating between 10 to four 60% replacement of thermal power by renewable power. And that's also a very big lever in any so organisation to optimise its cost. So with waste, also, you are optimising your cost. You're placing coal. So it's, again, profitable and sustainable with nimble power. Also, you're optimising cost. Yeah. From thermal power to your renewable power going green and I going green. And another last lever that we worked was replacing diesel by electric vehicles and LNG fuels. And that's getting a pace. And another three years or four years, you'll find that not only two wheelers, two wheelers are very much visible, but all heavy trucks will be replaced. I mean we will be replacing, I mean, all outward as well as inward logistics by electrical vehicles.
Gaurav Baheti (21:25):
It's
Saurabh Palsania (21:25):
Happening. That's happening. Wow. That's happening in, I mean, India is gaining pace. Indian OEMs are doing very well, and the government is also supporting in through various schemes. And people are, and I mean, they are now, it's, it's, it's, it's a it's a, it's, it has become a passion to do it, say it definitely will be optimising your cost, because accessories will be always cost clear than electric operation of trucks and civil lng, which is mean because of geopolitical issues. The cost of LNG is shot up in the last two years, but it is back to normal now. So there are companies in India which are manufacturing, also trans giving transportation services also, and setting up LNG pump also. And of government of India, I C H P C, they're also doing very good contributing very well. And I will see the population building up very soon.
Gaurav Baheti (22:26):
Interesting. Being
Saurabh Palsania (22:26):
Very visible. So
Gaurav Baheti (22:28):
I think you mentioned so many good things happening in the industry. Yeah. I would I would ask you one more thing here. What are the things that you felt would pick up pace but still haven't, and you really want them to pick a pace?
Saurabh Palsania (22:41):
So, one I mean one of the thing is that still organisations are working by downloading their debt data from their database and creating Excel sheets. And a lot of time is being wasted because in the last, say, few years almost Indian industries have also taken the best practises adopted the best practises, which is there in many in very, they are in the many European countries as well as many ncs are working in that way only. But everything is to be on straight for everything. There should be a dashboard. So that pe I mean, once you have a data, then through that data lake, you should have a data dashboard. And people should not say devote time on, say, getting downloads and preparing Excel sheets. So preparing PowerPoint sheets, but still it's happening. So my Isaac,
Gaurav Baheti (23:39):
You know, 2023.
Saurabh Palsania (23:40):
Yes. So my, I mean you can say dream is that how to ensure that the team, which is working day and night for preparing presentations and say they should come out of that tactic yeah. Work and
Gaurav Baheti (23:59):
Repetitive work,
Saurabh Palsania (24:00):
Aha. Repetitive work. And they should be able to assess and take actions and analyse the things more. That time should be devoted on analysis part where even you can do analysis through AI also. Now, that is, that is very, I mean, the way you type on the chat g, pt and get the solution <laugh>, similarly it should be here.
Gaurav Baheti (24:19):
I want to double click on that if I let go.
Saurabh Palsania (24:22):
So that, that should be here. Also, once you have a data leak, then you should just say it should be window you can say operations where you just put in four say inputs that you want this. Yeah. And you get the presentation, the right format. Wow. And it's happening in various big fours. They have a team and they have a very good software where, I mean, the people who are leading from the front, they don't have to get into all these Excel sheets and all whatever they want. They give their inputs and they get the data within say absolutely hours, few minutes.
Gaurav Baheti (24:55):
You mentioned that, you know, there are things that you think, for example, ai, you think data-driven dashboard. What other things you feel need change and as a industry, you want to promote or propagate that change?
Saurabh Palsania (25:10):
Yeah. So one of the thing is that certain things which we come to know at the end of the month, if they are there, or if they are, those triggers are there maybe on a weekly basis maybe in procurement or any other field, it'll give you upper hand to take right. Actions at right time. Now, what will be the, those triggers that you have to, because population is month is big. Yeah. You need to fi ask, filter out that I want triggers only on these five items. For
Gaurav Baheti (25:43):
Example,
Saurabh Palsania (25:43):
Like for procurement. If I say if there is a big price change that has happened or going to happen, if that trigger is there for any of the raw materials that are used in say maybe prices of various methods. And if the trend shows there is a trigger that this price is rising now, now you can take a decision. Elimina is rising. Yeah. Now you have to give the order for in factories. You give it in right time. Yeah. Otherwise see al cost, you'll have to pay it off to the supplier, maybe whether they have a inventory or not. Yeah. It's still everyone. Every, everyone will try to take the advantage of the rising prices from the supplier side. And if it's decreasing, then definitely you should know that the price trends are going down. So one is the price trends of various matters.
(26:32):
And then I can say that what is, I mean, are is your spend crossing your budgets? Oh. So even if you are, I mean, how to, I mean, if you are running in the second or third, first quarter of the month of the year, and your budget is crossing, say five months or four, six months, then it's, then it's good to get the input that your budget in this particular span is increasing so that you can take it up with your customers, all the stakeholders that why it's happening and what is the way to control it. And lastly, raw prices, if how to get trigger for that. I mean, at the end of the month, if you see that the transportation cost is increased, then that's why your cost is gone up or that there was a bad option for you which increased your, the cost of procurement. And if it's known well in time there may be certain actions which can take, you can take which can subside your cost increase, and you can devote more time on those levers, reducing the cost. So those are the things which you should, one should know.
Gaurav Baheti (27:46):
Now, coming back to AI and chat GT that you mentioned. So how have you used chat GT so far? And or what are the applications of three applications of that you see every procurement leader should be considering using?
Saurabh Palsania (28:01):
So, go. I mean, to be very transparent, I have been using it since last one month only. Okay. But then I tried doing every bit, and I mean, what I can do more prompts more prompts. And and I learned in not only to make myself more compatible with the software, but also I wanted to see people doing it. Because whenever, see, I was asking that, please this is what is required. So everybody has I mean, has means, has a reason that it'll take so much time.
Gaurav Baheti (28:38):
Yeah.
Saurabh Palsania (28:39):
I thought, why not to get it done through sanity. I just wrote that please prepare a RFP for me for these category of item. Okay. And these are the three suppliers, and this is the quantity, everything. So there is when you will find within few seconds it was, yeah. Now, similarly, I was about to say appoint a person when I give a requisition for appointing a person for whom a JD was required. So I just typed that I want a person with this qualification, with this much experience, and in this field I want to put him on these particular jobs. What type of SA could please prepare appropriate gd? And it, I got it. So I was running to be, I mean, more transplant. I was joining a new organisation. So what are the things to be taken care of in the first few months of Yeah. Yeah. I just type <laugh> and I got 10 important points. Yeah. These are the top 10 things you should ensure in the early months of your journey. So everything is visible. One of my colleagues asked me that his son was doing some business, I want to buy this particular product for he's searching for this particular material, but I was not dealing in that. So can you gimme certain sites of suppliers? Yeah. I just typed on it and
Gaurav Baheti (30:05):
You got suppliers,
Saurabh Palsania (30:07):
Suppliers, <laugh>. So the, I mean it's a wonderful tool and even if you have to subscribe for it mean there are subscriptions and I think why not to be it to be a part in your organisation as a, as you have Outlook express as you have Gmails Yeah. Organisations. Yeah. Make it check. G d also a part of it where the, the other subscription can have a easy I mean, lower cost, also an adoption by a number of people across the organisation will help it making the things faster than
Gaurav Baheti (30:42):
That's actually on our roadmap, integrating directly with tragedy so that companies and people in procurement can create RFP within seconds within Proco. Yeah. I think that would change the game of how these templates were created earlier and so on.
Saurabh Palsania (30:57):
I think, I mean, suppose you, I mean, your organisation can have a dashboard where in, in procure to pay also in auctions also, I think it'll be a good you can say service to the or you can say good lead for maybe advertising your software. Yeah. <laugh>
Gaurav Baheti (31:21):
For sure.
Saurabh Palsania (31:22):
And people like us will definitely I mean try to get on to such software. Yeah.
Gaurav Baheti (31:28):
Yeah. That makes sense. So now coming to your younger self, you, you mentioned, you know, you were on the ground, you were trying to do things on your own, and you broke into procurement because you had to for the future procurement leaders who are still working in many large organisations, what are the three things that you will give advice to these young future ambitious procurement leaders?
Saurabh Palsania (31:59):
So first is I always talk about innovation. So innovation is it should be part of your daily activities. And for that you need to know what are your bigger challenges, and if it's listed on your, on a screen in front of you, always. So at least I mean, I'm just correlating it with, when I was doing pursuing ca so there was certain subjects which had lot of formulas and remembering all, all the time was de figures. So I put a list of formulas in front of my study table. So whenever I was not willing to, I was or was willing to take a break, I used to go through those formulas. Similarly, I'll say that people, young procurement leaders should have a list of category of items which are a challenge for them to buy because maybe they don't have a big supplier base, or maybe that there are certain items which are too costly and they're not coming out of Yeah.
(33:03):
I mean, how to optimise it because it has a good spend. Also in a year, no such challenges, maybe three, four of them. If the young leaders keep always in front of them, I'm sure that they will take out time to innovate. Yeah. How to come out of that challenge. And so innovation. And secondly, I'll say that almost 30 40% of the cost present today goes into the transportation of motors. So suppose of how to come out or how to optimise that, because that is, that cost is being incurred by the partner also. Yeah. And it is being paid by you. Right. And neither he's receiving any revenue out of it, nor you are receiving. So how to optimise that 30% cost of transportation by innovative ways. Secondly, what is the ordering time that you're incurring with this digitization?
(34:01):
Definitely if the lead time reduces, you'll be building up lesser inventories at your plant because the plan team or the users, they think that your order may <inaudible> to, and, but after four months, he again, places order for it. Yeah. Being a crucial item for him because he knows, again, the life is, say, three months or six months. Right. So if that confidence is given to that user, that whatever you will order, you, whatever you will request, give a requisition for the buyer will be able to buy it in one maximum 15 days, and the supplier will supply it in one month or three months. I think you will be ending up building lesser inventories. Right. And for that, the lead time also goes in transportation. The lead time goes in say production lines and the how many, the capacity that the manufacturer has in spec.
(35:02):
Now, all these things have to be how to bring it on a digital plate form. If I know, or the stakeholder knows that manufacturing facility is now operating at 80% of that particular good, he can place better place order at that time so that the manufacturer also gets full load of his manufacturing capacity, right. Time of putting it into manufacturing. And the stakeholder or the user also gets the delivery in time. Maybe that he orders it when his lines are full. Right. So why not that visibility goes down the line? Of course. And that will help always the supplier to run his plants at full capacities and bring the economy of production and pass it on to the Yeah. Buyer. Right.
Gaurav Baheti (35:51):
No, that makes some complete sense. Finally, one last thing I'd like to address. Many startups or MSEs are trying to sell to large companies because as a small business owner, you don't get visibility on how procurement is done. What are the stages of done doing business with a large company? How do you think any organisation, what are the initiatives one can take to make it easier for smaller businesses to sell to large companies?
Saurabh Palsania (36:20):
Well, I mean this Yeah. What questions that New York brought to the, our communica, I mean, con say discussions. See, we were also facing this challenge almost three years back. Okay. And that was, there was a lot of push and from the various government organisations also and our organiz organisation also. And because is how to provide a easy approach or a platform for easy approach for MSEs. Yeah.
(36:51):
And I was there in the Fiki procurement committee and government has also brought, brought a online say, procurement practises. And that's operating in the, and I see. Has prepared that software and it's operating at a, I mean good volume also now. So I'll say in I mean, I'll share that every one in the procurement commod community organ, every organisation should have a supplier onboarding platform. And once it is there, it's easy for everybody to approach Yeah. To onboard themselves, to connect us. And that's a link where everybody can click on and get into in interactions with us or with any, any way. Right. And that also helps you filtering the Right. Absolutely. say partners to work with you. And now with the ESG compliances, it's important that you have to have that record. And if you have to have suppliers who are doing something on e esg, you can give them, I mean, bit of variety if you want, maybe after four or five years, you'll, everybody will be on a e ESG compliant company as I foresee. But then it's connecting with MSEs and startups is easier if you have a supplier onboarding plan.
Gaurav Baheti (38:07):
Right.
Saurabh Palsania (38:08):
No. And supplier can always put in what are, what, what more he has started doing. So you do not know you have onboarded one supplier and for five years you are not knowing that he, he is also expended. Right. But here you are, facility that's supplier can come up on the dashboard, on the portal and just upgrade him whatever additions he have done to his business. Right. So it's easy approach. And whenever anybody is getting into a digital procurement supplier, onboarding is a
Gaurav Baheti (38:39):
Must, must soft. Yeah, for sure. We have seen use cases growing phenomenally. Yes. We are exponentially onboarding new suppliers now every month. Yeah. I completely like, that's that's all, sir. Thank you. Thank you so much for taking the time today. I wish you very luck and all the best for the next leg of your journey. Thank you. Thank you, conne.
Saurabh Palsania (38:59):
Thank you Gaurav. And I'll also like to say that I mean, your organization's grown multifold with all your efforts. And I see the bubbling young team that you are working with and new ideas that you're bringing to the table. I wish that your company grows many force and you also keep smiling.
Gaurav Baheti (39:19):
Thank you.