The Hindu Business Line : AI gets Oracle supply chain tool to ease procurement process

AIR India has replaced its paper-based procurement process with an advanced supply chain management solution that helps simplify the procurement process, ensures greater transparency, brings about economics in unit procurement cost and participation of more vendors, irrespective of their geographical location.

Implemented at a cost of Rs 5 crore, the new system will help break some of the barriers that exist in paper-based procurements, like dependence on specific buyers, inability to reach to all vendors regarding requirements and procedural delay in procurement.

The Oracle supply chain solution, a module of Oracle ERP application implemented by Satyam, was rolled out on Thursday.

The project, completed in 10 months, was managed by IBM Global Services.

Mr Krishan Dhawan, Managing Director, Oracle India, said: "The solution will enable Air India to streamline its essential supply chain processes and help in continuous business process improvement while strengthening its IT system through the use of standardised IT infrastructure."

Mr V. Thulasidas, Chairman & Managing Director, Air India, said: "Having implemented ERP solution in the Materials Management Department, Air India now proposes to adopt such modern IT solutions across the company in a short and time-bound manner, particularly, as Air India is entering a phase of rapid growth."

The new software application was considered essential by Air India management in view of multi-stage tendering processes that is normally required to be followed as a public sector undertaking, which, at times, leads to delay in procurement of key items, resulting in cost and time overruns on budget.