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Ambar Singh Roy

Kolkata, Aug. 19 byjunction, the sourcing division of e-commerce company mjunction services ltd, has taken up pilot projects that are aimed at aggregating the requirements of three Tata Group companies — Tata Steel, Tata Power and Tata Chemicals.

The initiative is aimed at helping the companies to aggregate their requirements of products and services before going to the market and obtaining the same at the best price, according to Mr Viresh Oberoi, Managing Director of mjunction services ltd.

Speaking to Business Line, Mr Oberoi said the exercise would complement the the Tata Group’s initiative ‘Project Prune’, which is aimed at reducing the cost of products and services that the Tatas buy as a group. A total of 21 Tata Group companies have signed up under the “technology-ready” initiative.

Mr Oberoi said that, under the pilot projects, byjunction would leverage on data to aggregate the non-strategic requirements of products and services of the three companies before sourcing them from the market at the lowest price. These products and services could range from MROs (maintenance, repair and operations) to personal computers, cables, travel, courier, stationery, etc.

According to him, aggregated buying facilitates aggregated rate contracts that are based on the concept of consortium buying. Volume orders coupled with reduced marketing costs incurred by the seller enables the latter to indulge in competitive bidding and offer products and services at the lowest price. In 2007-08, the value of transactions facilitated by mjunction stood at Rs 10,314 crore. Twenty five per cent of this was accounted for by byjunction. In 2008-09, the value of transactions expected to be concluded on the mjunction portal has been pegged at Rs 15,000. In that, byjunction’ share is expected to be Rs 4,500 crore, Mr Oberoi said.

More Stories on : E-Commerce & E-Business | Tata Chemicals Ltd | Tata Steel Ltd | Tata Power Co. Ltd

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