Safety audits 101: What are they, and why does your workplace need them?
Safety audits 101: What are they, and why does your workplace need them?
Think your workplace is safe?
The International Labour Organization may have some grim news to put things in perspective — it estimates that around 2.3 million worldwide are yearly victims of work-related accidents or diseases. Regardless of the size of your business or the industry in which you operate, your organization may inadvertently be putting employees at risk.
Fortunately, a workplace safety audit can help you identify vulnerable areas in your corporate safety program and take timely measures to fix the gaps revealed. Here’s a closer look at what a safety audit entails and why it is an essential aspect of occupational health and safety (OHS) at your workplace.
Safety audits: What are they, and what do they entail?
A safety audit is a comprehensive process where the auditing entity gathers material information about the level of safety in a corporate workplace. Various aspects of safety, such as health risks, fire safety, and exposure to workplace hazards, are all evaluated as a part of this process. Typically, an audit of this kind is performed on the existing safety plan in the organization. The audit findings can help streamline the safety plan and bring it up to industry standards if needed.
Safety audits can be one of three kinds, as outlined below.
Compliance audits:
Here, the existing safety programs in your organization are reviewed to ensure they adhere to the local OHSA guidelines in place in your country.
Program audits:
These audits gather inputs from employees and workplace staff and evaluate how adequate your existing safety protocols and programs are.
Management system audits:
Management system audits combine both compliance and program audits. They simultaneously assess the adequacy of your safety programs and compare them against the regulations in place.
Three key reasons to prioritize periodic safety audits
Many businesses view safety audits through an anxious or skeptical lens. However, in the best interests of your employees and your business, a safety audit isn’t just optional — but essential today. Here’s why your business needs it.
To ensure regulatory compliance.
Depending on where your business has been established, you may have to comply with various local, federal/state, and central laws pertaining to OHSA. Timely audits allow you to comply with these regulations and avoid potential penalties.
To avoid lawsuits
Any harm caused to an employee can be a potential lawsuit, mainly if it involves legal non-compliance that directly or indirectly leads to harm. Safety audits by a competent partner can help you steer clear of these legal pitfalls by strengthening your company’s safety protocols.
To promote employee well-being.
Safety audits promote employee well-being, which is an oft-overlooked asset. A Harvard-MIT study revealed that, proactive safety audits increased sales by 37% and productivity by 31%. By regularly conducting safety audits, you can gain the advantage of improved revenue and decreased costs.
Bridge the gaps in workplace safety with a comprehensive audit partner today
Workplace safety is a complex target, requiring a healthy collaboration between your company and your audit partner. Moglix works with certified safety consultants and safety auditors to help you design proactive and periodic audit plans. Be it electrical, fire, OSHA or wash audit, we have certified professionals who can help you with any type of audit. Know More
Energizing India at 75 The Renewable Energy Supply Chain Transformation We Need to Fight Climate Change
Energizing India at 75 The Renewable Energy Supply Chain Transformation We Need to Fight Climate Change
Back in December 2021, while writing an article for guest column of a leading business tabloid soon after the COP26 Glasgow Summit on climate change, we had commented on the next steps.
Our observation was that supply chain transformation will enable the smooth reconfiguration of value to reflect the real reprioritization of climate change in corporate value chains and value systems.
Governments will start clearing out carbon content from the supply chain, manufacturers will have to roll out innovative solutions with speed and scale to cash in on the opportunities. Everyone will have an active role to play.
The time for such a supply chain transformation has come. What makes each one of us at Moglix Business so confident about the renewable energy supply chain transformation? The answer to this question is in the e-book “Energizing India@75: The Renewable Energy Supply Chain Transformation We Need to Fight Climate Change”.
The Future of Renewable Energy Supply Chain in India; Digital and Made to Order for Agility at Scale
India’s next generation renewable energy mix to fight climate change will require a whole new approach to handling the manufacturing supply chain. From supplier capability mapping, quality management of made to order equipment like solar PV modules, solar PV cells, wafers/INGOTs to poly silicon, and monitoring work in progress, everything should come together on digitally integrated ecosystems and centralized data governance platforms.
It will ensure that all stakeholders in the ecosystem like IPPs, EPC companies, OEMs, MSMEs, lenders, and investors are relying on the same numbers to look from their respective vantage points.
Energizing India at 75: The Significance of the E-Book
We have tried to answer some difficult questions in this e- book. These include answers to the lenders’ checklist for offering credit to independent power producers, the debt equity ratio for such projects, and which sector offers the greatest incentives to IPPs?
True to the best of our knowledge, we believe that solar PV projects have an advantage. We have therefore done an end-to-end value chain analysis of the solar PV projects.
Complete Guide to Sustainability in Procurement
Complete Guide to Sustainability in Procurement
As per a study conducted by Mckinsey, only 20% of the CPOs surveyed said their companies used sustainability as a key criterion to make sourcing decisions. This is far from encouraging because sustainability is the future. Most industry leaders across the globe make the shift towards future-proofing their operations with sustainability at the core. Additionally, an increasing number of organizations are also driving their efforts toward tackling Environment, Social, and Governance (ESG) issues.
Against the backdrop of these developments, sustainability is the way forward for all facets of supply chain management, including procurement. Sustainable practices are crucial for procurement leaders who want to align their strategies with their organization’s overall principles.
With ‘sustainability’ being the buzzword here, let’s understand how MRO procurement can be transformed to accommodate this necessary principle.
Upgrade to Sustainable Procurement with 3 Simple Steps
Procurement is one of the most important functions in an organization’s supply chain. To implement end-to-end sustainability in your organization’s procurement function, it is pivotal to assess the status quo. Furthermore, you must detect the missing links and devise a comprehensive strategy to address these issues.
Here are the steps that you can adopt for a sustainable approach to all aspects of procurement, including MRO categories.
1. Take stock and ascertain the status quo/weigh up and mark the status quo: The first step is assessing where your supply chain stands and ascertaining its ESG impact. Once you have established the status quo, you must identify the elements of the supply chain which can be optimized. You may be faced with several bottlenecks in the process, for instance, the challenges in MRO procurement.
2. Develop a core strategy and plans to implement it: Having established the areas of improvement in the supply chain function, you must move on to the next step. Develop a strategy to incorporate sustainable practices and processes in procurement. This strategy should encompass all the elements of procurement, ranging from supplier selection to data management and visibility.
3. Drive a phased implementation of the sustainable procurement strategy: Implement an organization-wide sustainable approach to procurement in a phased manner, and make course corrections wherever necessary. It is critical to monitor every step of the transition and compare actual results with the planned ones. Subsequently, you must ensure that the necessary rectifications are implemented in a timely manner.
Switch To Sustainable Procurement Now!
Driving a shift from legacy systems in procurement to sustainable practices is a comprehensive undertaking. Therefore, assistance from experts can help streamline the transition. At Moglix, we can help you streamline your procurement function, including MRO procurement. Download our exclusive e-book to get your hands on an exclusive guide to help you nail the procurement game!
Are you looking to transform your procurement function? Send us your business queries at info@moglixbusiness.com.
Beware of committing the 5 Deadly Sins of Procurement
Beware of committing the 5 Deadly Sins of Procurement
Did you know that over 60% of enterprises rely on manual MRO procurement? But just because it’s prevalent, it doesn’t mean it’s the best strategy. If your organization is also yet to automate and upgrade its procurement process, here are two questions for you:
- Are you struggling to minimize expenses and keep track of costs?
- And are you piling inventory or facing material shortages?
It’s highly likely that you may have answered yes to either of these questions. Unfortunately, such gaps in the procurement process can cause consequential disruptions to your business operations.
Effective management of procurement, especially indirect procurement like MRO (Maintenance, Repair, and Operations), can considerably reduce unnecessary costs. However, curtailing costs alone is not enough. If the COVID-19 pandemic has taught us anything, it is that procurement dynamics are changing as rapidly as technology. Today, procurement spans across departments in companies — from finance to operations — advocating the need for a sound procurement strategy.
So, this Dussehra may be the perfect time for your organization to identify and steer clear of the fundamental errors in the procurement process. After all, the festival is all about the triumph of good over evil, and what better time than now to draw up a plan and fight the cardinal sins of MRO procurement?
5 Sins of Procurement
1. Getting your Sourcing wrong? Think Again
Indulging in any procurement activity without a robust sourcing strategy is calling trouble. From picking out the sellers, negotiating contracts, and buying the materials, vital sourcing channels and effective supply chain management are necessary. Many times there is a spike in demand for goods. You might need to procure from global networks to ensure timely delivery of the product. But, global markets are susceptible to volatility in the currency exchange market, time constraints, and import limitations.
You can mitigate supply risks by diversifying the sourcing channels and selecting the most suitable products and services you require to run the business.
2. Manual Processes are so last decade. What You can do instead?
Living in a digital world and relying on manual processes is outdated and inefficient. Doing things the old way can be comforting but waste time and money. One of the significant challenges in MRO procurement stems from investing time in manual tasks. They make procurement cycles lengthy and lead to increased operational costs.
By digitizing the procurement process, you can safeguard yourself from task burnout and working with poor-quality data. The advent of mobile apps and catalog-based buying ensures you undergo smooth procuring.
3. Streamlined Supplier Base
You might have a business where there is a need for specialized demands and unique materials. Often these necessities are met with a fragmented supplier pool and a decentralized procurement network. Such networks pose significant risks in carefully monitoring the procurement process and lead to massive costs, specifically in MRO categories. Additionally, a decentralized system leaves room for errors because individual departments/stakeholders purchase materials separately. It also results in poor management of data, thus suboptimal business analysis.
To reduce cost, waste, and risks associated with multiple supplier bases, you should opt for supplier consolidation and standardized pricing to beat the latent costs of the procurement: which will allow you with greater buying power and higher long-term returns.
4. Inadequate Analysis of Internal Needs
Faulty decisions always arise when you are uncertain about the company’s requirements and goals. Today, data is the world’s most critical resource, and its improper conduct will lead to inaccurate business forecasting. It paves the way for piling inventories because you cannot gauge the market demand and estimate necessary sales. It results in short budgeting and inferior overall outcomes.
Safeguard your business from the misery of inventory pile-up by strategic optimization. Avail of the benefits of vendor-managed inventory and enjoy the perks of an entirely data-driven process and demand-supply optimization. Also, with the help of an MRO aggregator, you can automate the procurement process and indulge in cost savings.
5. Shoddy Inspection in Contract Agreements
The biggest obstacle to the seamless procurement flow is the lags caused due to breaches in service and contract agreements. SLA breaches can result in delayed delivery of goods or subpar service performance. Moreover, seeking redressal from vendors becomes difficult if you do not follow proper contract management practices.
To avoid such violations, look at the finer points of the contract. Inspect the supplier proposal to keep away from making the wrong decisions.
Get Cracking with the proper steps
Managing MRO in procurement can get overwhelming if not tackled correctly. You can reimagine your procurement process with guided assistance from experts. Moglix, with its digital solution, can assess the pain points of your procurement process and elevate it to a new digital paradigm. Download this exclusive e-book, as it can be a helpful ally in your journey to ease the hassles of procurement.
Looking forward to transforming your procurement? Just send your business query to info@moglixbusiness.com.
Why popular e-marketplaces are a strict no go when it comes to corporate gifting?
Why popular e-marketplaces are a strict no go when it comes to corporate gifting?
How often have you heard (or used) the phrase: “I’ll just buy it online”?
Let’s face it. eCommerce platforms have a robust market presence. They’re the go-to destinations for most people who are shopping online, particularly for gifts. As one global survey revealed, around 42% of people prefer to buy most (or all) of their holiday gifts on one of these platforms.
Often confused, hence seldom understood is the fact that marketplaces lack the sensitivity when it comes to corporate gifting. Shopping for corporate gifts on these marketplaces defeats the objective of corporate gifting. This festive gifting season, hence, it is a good time to reinvent corporate gifting and look beyond these marketplaces for your employee,customer, and other stakeholder gifts.
One of the key reasons to give bespoke portals a chance this year is that they offer greater freedom to personalize the gifts you purchase. And personalization is one of the hottest gifting trends at the moment. Even adding small details like names, designations, and achievements can significantly elevate the quality of a gift.
Customized gifts like these make receivers feel more valued and included in the corporate family. Unfortunately, on larger, bulk-order marketplaces, you cannot choose curated gifts or add a personal touch to every gift.
Another reason to steer clear of universal online stores is their vetting process. Leading eCommerce marketplaces are generally not particularly picky about the sellers they enlist on their platforms. So, you may have to navigate various issues like inaccurate or insufficient product information, failure to meet delivery deadlines, or a lack of standardized customer service.
Additionally, when you look beyond such generic marketplaces to pick a portal that specializes in corporate gifting, you get the advantage of building a relationship with the latter. You can capitalize on this partnership to build a robust and dynamic corporate gifting program that could quickly become a unique value proposition for your company. This may not be possible when you choose large, consolidated eCommerce portals.
Want to give your corporate gifting game an upgrade this year?
If you answered yes to that question, the Moglix Big Bonanza Festival is just what you’re looking for. Its unique and customized corporate gifting catalog includes over 100 brands across 50+ product categories, and you’re sure to find the perfect corporate gift to let your employees, customers, dealers, distributors and suppliers know just how much they are valued.
You can also take advantage of the massive bulk deals and discounts on the products listed for sale. So, no matter what your corporate gift budget is, India’s biggest corporate gifting festival from Moglix is bound to have something for you.
Know more about how to delight your employees and business associates through the Big Bonanza Festival this year.
Corporate Gifting Made Easy – 5 unmissable corporate gifting ideas
Corporate Gifting Made Easy – 5 unmissable corporate gifting ideas
Back in the day, corporate gifts in India may have been limited to a classy gold watch presented to retiring employees. But in the years since, gift-giving has become a more integral part of corporate culture in the country. In fact, the corporate gifting market in India, now worth Rs. 12,000 crores, is estimated to be growing at over 200% annually.
This is not surprising because the gifting season in India’s offices comes around every year (or sometimes even twice a year!). Gifting trends, however, change from one year to the next.
So, if you want to go the extra mile for your employees, customers, vendors, and other stakeholders this festive season while still keeping pace with the times, here are 5 trending corporate gifting ideas across different budgets.
1. Something that’s sustainable and eco-friendly
With businesses and individuals increasingly embracing sustainability, eco-friendly products will undoubtedly be a hit. This year, you can adopt a sustainable theme and choose gifts that contribute to the betterment of the environment, like reusable products, recycled luxury goods, or even organic options for regular products.
2. Something for the home
You could also get the recipients something for their home, like charming home decor items. If your corporate gift budget allows it, you can even consider getting home appliances this season. Alternatively, if your company follows a hybrid work culture, your employees and other stakeholders will certainly appreciate gifts that will be useful in a home office.
3. Something that’s personalized
Customized gifts never go out of style. Adding little details to a gift, like an employee’s or customer’s name, can give a heartfelt touch to the gesture of corporate gifting. It also boosts their morale and trust more than a generic gift ever could. You can customize many regular products like stationery, coffee mugs, photo frames, and more.
4. More gift to you
If personalized or curated gifts are not what you’re considering this year, why not give the recipients more flexibility with a digital gift card? Each individual can redeem their gift cards at the relevant online marketplaces to purchase products or services that they actually want. This kind of flexibility is a gift in itself, isn’t it?
5. Some cool, new tech gifts
You can never go wrong when you choose a tech-based gift. The options here are practically endless. Depending on the budget available, you can opt for accessories like headphones, power banks, smartwatches, and other wearables, or even electric grooming products. These may not be your average corporate gifts, but your employees, customers, and other patrons will certainly appreciate them.
Want to crack the corporate gifting code this season?
If you answered yes to that, you’ll love the Moglix Big Bonanza Festival, India’s biggest corporate gifting festival — where you can find a wide range of gifting options, all available at attractive deals and discounts. Visit our website to know more.
Building India at 75: The Infrastructure We Aspire for and the Supply Chain We Need
Building India at 75: The Infrastructure We Aspire for and the Supply Chain We Need
India@01 was a new shining star of freedom that had just risen on the horizon. It was an India of humble beginnings with an aspiration to reach commanding heights. As India turns 75, this Independence Day and celebrates Azadi Ka Amrit Mahotsav, we must introspect and ask ourselves some meaningful questions.
While life during the COVID19 pandemic was tough, which sector steered India’s economy to safety shores?
What is it that we need to bridge the gaps between the talent that is locked up inside India’s demographic dividend of a 55% young population and the opportunities in the global economy?
The answer is “infrastructure”.
India’s infrastructure sector, leveraged by the government’s mega CAPEX drive, outcome-based union budgeting for the National Infrastructure Pipeline, integrated data governance initiatives like the PM Gati Shakti Master Plan, and a vision to create “100 Smart Cities” is enabling the flow of a staggering INR 1,08,17,449 Cr of value into our economy.
The government expenditure multiplier in India’s infra sector is 2X. The benefits of the CAPEX that we are pump priming will get back to us in the form of economic growth across decades.
Building India@75 signifies a generational change in “our aspirations for infrastructure in the country” and consequently brings into focus the question of “what kind of supply chain do we need to get there?”
The Supply Chain Secrets for EPC Companies Building India@75
The supply chain for building infra for India@75 needs unique performance reporting metrics, processes, competencies, and technologies that can seamlessly integrate with the way in which EPC companies do business. This e-book is divided into three parts. Part one throws light on the opportunities for EPC companies across 21 sub-sectors. Part two delves on the latest trends in the prices of cement and the production and consumption of steel in India. Part three accumulates the learning outcomes of the Infra & PSU team at Moglix Business, derived from procurement and supply chain collaborations with EPC companies.
The Future of Infra Supply Chain in India: Freedom from Efficiency Leakages for EPC Companies
India’s next generation infrastructure will not be built only on land, TMT bars, structural steel, cement, transformers, and electricals alone. Rather it will be but on a digitally concretized foundation that is value engineered through contactless, seamless, and paperless supply chain processes.
It will ensure freedom from cost, time, and manual inefficiencies to EPC companies, project developers, contractors, engineers, and suppliers building India. This Independence Day let’s pledge to build India into a meritocracy where performance connects opportunity on one hand and rewards on the other.
What Does the 500 GW CAPEX Opportunity in Solar Energy Mean for EPC Companies?
What Does the 500 GW CAPEX Opportunity in Solar Energy Mean for EPC Companies?
Here’s the big bang news from India’s solar energy sector. In February 2022, India surpassed 50 GW of total installed solar capacity. What does this imply for EPC companies with interests in solar energy?
The Opportunity Size for EPC Companies in India’s Solar Energy Landscape
India has set an ambitious goal of producing 500 GW of renewable energy by 2030. Out of the targeted 500 GW of renewable energy, about 300 GW will be supplied by utilizing India’s immense solar energy potential.
The road to achieving over 300 GW of installed solar capacity represents a steep curve. Whatever challenges waylay India from achieving its solar power goals can be overcome with a concerted push by a superior collaboration between the government, EPC companies, OEMs, and suppliers.
How Do We Locate the Coordinates of Value in India’s Solar Energy Value Chain?
Out of the 50 GW solar capacity in India, over 42 GW stems from photovoltaic (PV) systems mounted on land, whereas around 6.48 GW comes from roof-top solar, and 1.48 GW is generated from off-grid solar PV. Ground-mounted PV systems are investment intensive and strain the company’s capital expenditure capabilities to expand its solar energy operations.
Modules, Share in Solar Energy Project Costs: 70%
Modules comprise the most significant cost component of about 70% of solar energy projects. India still imports 80-90% of its solar components.
Going with India’s Aatmanirbhar policies, the Union Budget FY23 has allocated an additional INR 19,500 crore to the Production Linked Incentive (program) to enhance India’s PV manufacturing heft. India’s production-linked incentive push to the solar industry has meant that Indian solar modules manufacturers are fast bridging the gap.
Modular Mounting Structures, Share in Solar Energy Project Costs: 10%
MMS accounts for 10% of the solar energy project costs. Modular Mounting Structures (MMS) are the supporting structures for the modules. Without these Modular Mounting Structures supporting the modules, the solar energy plant will fail miserably, considering that the modules need to be aligned at the right angle to catch the maximum possible solar irradiation.
The highest potential installation of the modules is a mark of competency of the EPC company. A strategic sourcing partner with broad experience in cultivating and consolidating a supplier base can help EPC companies access many suppliers who produce MMS at cost-effective rates without diluting quality benchmarks.
Transformers, Share in Solar Energy Project Costs: 10%
Transformers constitute about 10% of the total costs incurred in a solar energy project. These are specialized equipment manufactured by a select few vendors across the length and breadth of the country.
Sourcing transformers can be a very tricky task requiring coordination and calibration between several players in the pipeline. While procuring, it is necessary to ensure that the vendor’s background is strong enough to withstand a credibility check.
A good vendor can provide a track record of the customers serviced. Moving expensive machinery like transformers is riddled with problems and roadblocks at every turn, and without complete value chain visibility, chances of compromise on quality, delays, and logistical mishaps multiply manifold.
Next is What? Setting New Benchmarks and Bridging Gaps in the Solar Energy Supply Chain
In 2021 alone, India added a record-breaking 10 GW of solar power to its total power capacity. The solar energy capacity addition in 2021 registered a phenomenal rise of 200% over 2020, indicating an immense appetite in entrepreneurs to explore this avenue.
However, enthusiasm will have to be coupled with new-age procurement and supply chain capabilities for a solar energy project to be successful.
How Moglix MaaS Solutions for Solar Energy Projects Can Benefit EPC Companies?
Moglix’s solutions ensure that the supplier base is consolidated, inefficiencies in the logistic chain are weeded out, and the end-to-end digitization of the value chain lends unparalleled clarity to EPC companies. Moglix’s vast experience in this domain can help you navigate the source to site supply chain journey. To know more, click the link here
The Road to 500 GW Solar Energy in India and What EPC Companies Need
The Road to 500 GW Solar Energy in India and What EPC Companies Need
India is witnessing an unprecedented push for solar energy generation. By 2030, India plans on generating 500 GW of power from renewable energy sources. Out of this, 300 GW is meant to be generated from solar energy, and by the end of February 2022, India’s total solar installed capacity stood at 50 GW. Let’s dive deep into the challenges beset India’s road to 500 GW of solar energy generation.
1. Working Capital Optimization
OEMs and suppliers need working capital to maintain just-time-deliveries. The first step is for the EPC company to create a particular purpose vehicle (SPV) with a strategic sourcing partner. The strategic sourcing partner works alongside the client to meet liquidity gaps and is adequate assurance that working capital paucity does not halt operations.
2. Capital Expenditure and Credit Support
The cost for setting up a solar energy park in India amounts to INR 3200 Cr to 3500 Cr. Capital expenditure of such large amount calls for large scale credit support. Any EPC company looking to finance infra projects must be bolstered by adequate capital flows to stay committed to a project from its inception to its culmination. EPC companies will find synergy in procurement and financing operations in a strategic sourcing partner with large capital reserves.
3. Logistics
There are far too many examples of solar energy infrastructure projects that cost inordinately more than allocated funds. The supply chains of these projects are highly mismanaged with a fragmented vendor base and without logistics route optimization that leads to delays in procurement. Power project equipment, be it solar modules or modular mounting structures, can be sourced from reliable vendors, while logistics optimization enables just-in-time deliveries.
4. Operational Rigor
Solar energy EPC companies often incur project costs and time overruns. A project can, sooner rather than later, lose its mojo to a halt because of an ever-evolving, disruptive logistical or financial environment.
A strategic sourcing partner with dual prowess in the financing and supply chain domain can steer the project towards accelerated completion and fast-paced productivity without bottlenecks in capital deployment or raw material sourcing.
5. Digital Project Management
Say, a solar power project needs to source four transformers, niche products manufactured by only a select few vendors in India. The strategic sourcing vendor will execute the task of selecting the right OEM that meets the project’s custom demands. Once the order is placed, the digital project management solution will keep the solar EPC company updated about the status of the manufacturing of the transformer, delivery timelines, design and drawing challenges, if any, faced by the supplier and financing problems.
This visibility isn’t limited to transformers alone. Many capital goods including modular mounting structures and solar modules can be monitored with ease.
Moglix and EPC Companies in India: Connected Future of the Energy Supply Chain
Moglix can help you leverage the power of cloud-based project management and inject transparency, speed, and cost-effectiveness into the energy supply chain. Our solutions, which include but are not limited to consolidating the vendors’ list, predictive course correction, and a single-interface birds’ eye view of the project, can help revamp your workflow. To know more about how Moglix can help your EPC business, visit https://business.moglix.com/blogs/manufacturing-as-a-service/
EPC Companies Can Catalyze India’s WEF Davos 2022 Goals. Here’s How
EPC Companies Can Catalyze India’s WEF Davos 2022 Goals. Here’s How
Net zero by 2070 is a crystal-clear target with a timeline. What are the carbon emission challenges facing EPC companies in India? How can EPC companies be a part of the supply chain solution? What are the rewards if any for EPC companies in India for meeting the target of net zero emissions?
Cost Benefit Analysis of EPC Companies’ Mandate to Reach Net Zero Carbon Emissions
Manufacturing and construction, energy, and logistics are the three most important components of the supply chain of EPC companies.
Of the gross GHG emissions of 3364 MT CO2e in India, manufacturing and construction account for 690 MT CO2e (20.5%), energy for 1373 MT CO2e (40.8%), and transport 305 MT CO2e (9.06%). The cumulative GHG emission of 70% MT CO2e corresponds to a GDP loss of USD 350 billion.
On the contrary, a WEF research dated November 2021 asserts that solving for the net zero equation can add USD 1000 billion to India’s GDP by 2030 and USD 15000 billion by 2070.
The Supply Chain Agenda for EPC Companies to Act on WEF Davos 2022 and Net Zero
1. Address Compliance Challenges in the EPC Segment with Fit for Audit Data
Anything that cannot be measured, cannot be managed. The first step in the transition to net zero and WEF Davos 2022 ambitions is to start measuring and monitoring all transactions in the supply chain. That calls for a unified data governance model with user access on a “need to know basis” between procurement, operations, supply chain, finance, and technology teams at EPC companies.
2. Resolving Reporting Challenges with Knowledge of Cost Vs GHG Emission Metrics of Procurement Choices
Valuable supply chain data that is spread across silos, files, and offline records makes reporting difficult. EPC companies need a one page view of GHG emissions. Corporate leaders at EPC companies can switch to a digital catalog based buying solution that maps GHG emissions corresponding to units of measurement (UoM) of SKUs such as TMT bars, structural steel, CR & HR plates, precast concrete slabs, etc. That data allows them to know the cost efficiency vs carbon emission tradeoffs involved with the procurement choices they make.
3. Enabling Material, Supplier, and Logistics Substitutions in the Supply Chain
EPC companies are multi-site operators that can have either of the two supplier relationship management models.
First, they can have 300 suppliers supplying say 5 SKUs for each for 50 sites across India. Assuming that EPC companies procure each SKU at least once a month, they need to map carbon emissions for each of these 300 X 5 X 50= 75,000 transactions a month!
On the other hand, they can have a supply chain transformation, conduct a vendor consolidation exercise and enroll all 300 suppliers into its supply chain ecosystem. That reduces EPC companies’ workload to mapping carbon emissions from 5 X 50 = 250 transactions a month!
The supply chain transformation partner also takes the responsibility for finding substitute sustainable materials and suppliers that manufacture them.
The EPC company benefits from reduced costs, efficient resource utilization, and higher accountability, while environmental concerns are mitigated through bulk purchasing of sustainable materials like fly ash and pre-cast concrete slabs.
Moglix and EPC Companies in India: Connected Future of the Green Infra Supply Chain
Moglix can help you leverage the power of data analytics and inject accountability, visibility, and cost-effectiveness into the infra supply chain. Our solutions, which include but are not limited to consolidating the vendors’ list, predictive course correction, and a single-interface birds’ eye view of the project, can help revamp your workflow. To know more about how Moglix can help your EPC business, visit https://business.moglix.com/our-solutions/infrastructure
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