The Hindu : Business : Tata effects 25 % saving through group buying

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Friday, Jun 10, 2011
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Tata effects 25 % saving through group buying

Special Correspondent

KOLKATA: The Tata Group has effected a savings of around 25 per cent in the cost of its desktop and laptop purchases by bringing 30 group companies on a single-platform.

Besides the savings in cost, this enabled the group to streamline the entire process, achieve better price discovery and make its monitoring more effective. The project was handled by buyjunction, an arm of mjunction services. buyjunction aims at leveraging group buying power to finalise rate contract for group companies. mjunction is a 50:50 joint venture of Steel Authority of India Ltd and Tata Steel.

Even as mjunction entered its tenth year in 2011, buyjunction is being seen as the main growth driver of the e-commerce company and it is currently growing at over 60 per cent annually and is expected to help mjunction achieve in two years what it has achieved over the last decade.

It said the Tatas' aggregate buying was one of its success stories as were the implementation of electronic procurement system at Ordnance Factory Board (OFB) which placed one of the largest e-governance orders of eastern India for procuring over a five-and-half years the task of procurement of goods and services for over 50 locations of OFB across the country.

Viresh Oberoi, Managing Director of mjunction said that the company's business volume in terms of transaction value had increased from Rs.94.35 crore in 2001-02 to Rs.24,854 crore in 2010-11.

Its arms include coaljunction for e-sales of coal, value junction for asset sale, auto junction and straightline for online retail business.

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