AGM – Strategic Procurement / Head – Strategic Procurement

GM Operations

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AGM: Strategic Procurement

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Purchase Controller   Manager – EPC Purchase   Manager – Plant Purchase

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EPC Buyers                                 Plant Buyers / Stores

Key Responsibilities

1. Strategic Procurement Leadership

Develop and implement long-term procurement strategies that support the company’s growth and profitability objectives.

Responsibilities include:

• Establish category-wise sourcing strategies
• Identify cost optimization opportunities
• Evaluate global vs domestic sourcing options
• Standardize procurement practices across plants

2. Vendor Strategy & Development

Define and implement a structured vendor ecosystem for key procurement categories.

Key activities:

• Identify and onboard strategic suppliers
• Develop vendor capability for critical components
• Maintain supplier performance evaluation system
• Reduce supplier dependency risks

Vendor development focus areas include:

• Boilers & pressure parts
• Fabrication vendors
• Electrical and control components
• EPC project supply chain items

3. Annual Rate Contracts (ARC)

Lead the development and management of annual rate contracts for major procurement categories.

Responsibilities include:

• Identify repeat procurement categories suitable for ARC
• Negotiate long-term pricing agreements
• Ensure volume leverage across plants and projects
• Maintain price stability and reduce purchase price variance

4. Credit Terms & Commercial Negotiations

Lead commercial negotiations with major suppliers to optimize working capital.

Key focus areas:

• Extended credit terms
• Payment milestone structuring
• Price-volume negotiation
• Risk-sharing agreements

This responsibility significantly impacts working capital and EBITDA.

5. Major Supplier Relationship Management

Develop strategic relationships with key suppliers.

Responsibilities include:

• Conduct periodic supplier review meetings
• Address escalation issues with major vendors
• Ensure supply reliability for critical components
• Build long-term supplier partnerships

6. Procurement Cost Reduction

Drive systematic procurement cost optimization across the organization.

Key focus areas:

• Value engineering initiatives
• Alternative supplier sourcing
• Bulk procurement strategies
• Standardization of components

Expected outcome:

Annual procurement cost reduction targets aligned with company EBITDA goals.

7. Cross-Plant Procurement Standardization

Ensure procurement alignment across all plants and projects.

Responsibilities include:

• Standardizing vendor lists across plants
• Aligning specifications where possible
• Eliminating duplicate supplier ecosystems
• Leveraging combined purchasing volumes

8. Procurement Budget Governance

Oversee procurement budgeting discipline.

Responsibilities include:

• Approve major purchase budgets before release
• Monitor procurement spend vs budget
• Ensure cost discipline across projects and production

Note: Operational PO issuance handled by procurement managers.

9. Supply Chain Risk Management

Identify and mitigate supply chain risks.

Focus areas include:

• Critical supplier dependency
• Price volatility in raw materials
• Supply disruptions
• Vendor financial health

10. Procurement Governance & Controls

Establish disciplined procurement processes.

Responsibilities include:

• Procurement SOP design and enforcement
• Supplier evaluation frameworks
• Approval matrix compliance
• Audit-ready documentation

Key Performance Indicators (KPIs)

Primary focus: cost reduction and supply reliability

Typical KPIs 

• Annual procurement cost reduction %
• Supplier on-time delivery performance
• Vendor base optimization
• ARC coverage of repeat procurement categories
• Working capital improvement via credit terms
• Procurement budget adherence

Experience Requirements

Education:

• Engineering (Mechanical preferred)
• MBA in Operations (not compulsory) 

Experience:

• 10-15 years in procurement 
• Experience in industrial manufacturing or EPC environment
• Proven vendor negotiation and cost reduction experience

Key Competencies

Strategic sourcing mindset
Strong commercial negotiation capability
Supplier relationship management
Cost engineering awareness
Cross-functional leadership

Ideal Candidate Background

Ideal candidate would have experience in industries such as:

• Boiler manufacturing
• Heavy engineering
• EPC contracting
• Industrial equipment manufacturing

Compensation

• CTC: ₹15 LPA