Series - Making of Jamnagar Refinery - 2nd Article - "That vendor is blacklisted by our competitors. Call him for a meeting" - Sh. DHA
Virendra Kumar Singh Sisodia CIPM, MTech, MBA (Mktg/Finance)
Management Consultant in Energy Sector. J1 - FCC Residual Engg. till startup, VMP, JERP - Concept to Startup, J3-ROGC PM, C2 Complex-EP Contract Manager. Adjunct-Prof @VIMR, Pursuing PhD under Prof. D S Chauhan.
"Sir, I want to talk to you about bringing in a new vendor."
"Sure, is he good?"
"He is, but he is blacklisted by our competitors"
"What was the problem? Is it because he is not good or is there some other reason for it?"
"No sir, he is very good. He was blacklisted because of some admin related issues."
"What about his integrity?"
"He is good sir."
"So what do you suggest we do?"
"Sir I want to call him for a meeting and I would like you to meet him."
"What do you want to do in this meeting? What do you want achieved"
"Sir, you need to tell him that we are willing to give him a try. That is like a second lease of life for him. Once people know he is working for Reliance his marketability will go up. He must meet us more than halfway to make the relationship work."
"What do you have in mind?"
"We will make his unit a captive production unit for the next 12 months. We supply the material, the design and supervise quality, even train his people. We pay conversion costs that will ensure that he is profitable. We will not pay him market rates. He delivers the goods on time according to our programme, no matter what."
"Will he buy it?"
"This is his only chance to keep the business afloat."
"Good. Call him then."
Result: Not only was a new and competent vendor, added to the list, but Reliance also benefits in several ways - Quality, Cost & Delivery.
Source: From my archives of 1999
Senior / Lead INSTRUMENT & CONTROL Systems / Package Manager / Dubai Petroleum (2018-2020)/ TECHNIP-MALAYSIA (2005-16)/Samsung Heavy Industries-South Korea (2001-05)-
1 年super Article, Viren, this is some thing Great about Reliance, we All saw while working for the Phase 1 Project in 1998. All the very best for Your Team.
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1 年Wow, looking forward to learning more about the Jamnagar Refinery! It's great to see detailed articles about such significant projects.
Freelancer
1 年We can look at nature and say it is a dog eat dog world or rather it is a marvel of cooperation and collaboration if you look deeply to see how the ecosystem achieves balance. Humans however are very capable of destroying the eco system eg, cultivating cotton in the fields of Uzbekistan and drying up the Amur river, man's destructive tendencies are sad to behold. Gladly your specific story is about how to help a vendor grow and achieve excellence through client vendor collaborations and it is a delight to know such experiments were pursued to victory. Vendor wins can also mean client wins. I made about a dozen trips on behalf of exxon to a world class compressor manufacturing facility in mt vernon Ohio and sadly today the factory is gone and the name Cooper Rolls is buried in history. In EPC game many EPC players have bitten the dust, making donations to oil rich companies. The path of collaboration is a way to ensure EPC contractors are still around to deliver the goods.