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Better than the Best

MILAN VYAS
MILAN VYAS

Better then the Best: Built-up of Three Data Centers (Tier- II, 1250 Racks) at Bangalore, Hyderabad & Kerala.

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Better than the BestA Case Study on Hyderabad & Cherthala IDC Sites SIS SCM TEAM Date : 5th January 2012
Sequence of Events for the Execution of Orders of Hyderabad & Cherthala IDC Sites Sr. No. Date Events 1 09-12-2011 SCM has received the requirements & tentative build cost from IDC team for Finalisation of Project Management Vendor. 2 10-12-2011 Finalised the Project Management Vendor @ 2.95% of Project Cost & discussed with Top Management where it was decided to wait for IBM offer as Turnkey Project owner based on IBM's World wide experience to build IDC. 3 17-12-2011 Done a First Meeting with IBM Team and received First offer from them. 4 20-12-2011 IBM has given their Revised Offer of Rs. 2.78 Cr. For Hyderabad & Rs. 2.72 Cr. For Cherthala IDC Sites with Taxes Extra at actual. 5 22-12-2011 Done a Final Meting with IBM at our Corporate Office and we have offered final rate @ Rs. 2 Cr. Per IDC Site inclusive of all Taxes. 6 23-12-2011 Received revised BOQ & Final Design from IDC team, we have asked vendors to provide their quotes against the requirements. 7 24-12-2011 IBM has given us their Final & No regret offer @ Rs. 2.40 Cr. Per IDC Sites with the Taxes Extra at actual. 8 25-12-2011 Received direction from Top Management to build IDC Sites on ourselves. 9 26-12-2011 Started techno-commercial negotiations with all vendors as per the final requirements received from IDC team. 10 27-12-2012 Received final design & BOQ of Fire & BMS requirement from IDC team. 11 28-12-2011 Sent recommendations for Final rates & vendor of PAC, Civil & Raised Floor requirement to Top Management for approval. 12 29-12-2011 Received approval & PO released to vendors for PAC, Civil work & Raised Floor Requirements for both sites. 13 31-12-2011 Sent recommendations for Final rates & vendor of UPS requirement to Top Management for approval. 14 01-01-2012 Sent recommendations for final rates & vendor of Electrical work requirement to Top Management for approval. 15 01-01-2012 Received approval from Top Management for final rates & vendor for UPS & Electrical work requirements for both sites. 16 02-01-2012 PO released to vendors for UPS & Electrical work requirements for both sites. 17 03-12-2012 Sent recommendations for final rates & vendor for Fire & BMS requirement to Top Management for approval. 18 04-01-2012 Received Approval & PO released to vendors for Fire & BMS requirements for both sites.
Strategy for Cost Reduction An effective techno-commercial negotiation is done with Minimum 4~5 reliable vendors for all item groups to get most competitive rates. To take the right & accurate decision, TCO Model is followed with the detailed Comparative Statements with the inclusion of all commercial terms like Taxes & Duties, Delivery / Completion Terms, Warranty, Payment Terms etc. with the status of Final Quote against the First Quote for all requirements. To achieve financial success of the organization by all means, identified the bought out items from BOQ and procured it directly from the manufacturer, which resulted in the cost savings to the company. A detailed Analysis of all commercial offers against the BOQ & Benchmarking is done against Bangalore price as well as Market Price of high valued items. Availed maximum benefit of taxes as finalised all deals against form C only instead of local VAT and get service tax credit as much as possible. Finalised & released Purchase Orders directly to the vendors and Saved 4% Margin cost as Project Management charges of vendor.
Better than the Best
ValuesinLacs 50 100 150 200 250 Milestone Events First Quote of Vendors First Quote of Vendors Rs. 212.35 L Final Quote of IBMFinal Quote of IBM Rs. 240 L + Taxes Final SIS Offer to IBM Final SIS Offer to IBM Rs. 200 L Final rates negotiated by SCM Final rates negotiated by SCM Rs. 153.11 L Better than the BestHyderabad IDC Savings of Rs. 46.88 Lacs (23.44%) against our final offered rate to IBM Rs. 200 Lacs. Inclusive of Tax. Savings of Rs. 86.88 Lacs (36.20%) against IBM final offer to us Rs. 240 Lacs + Tax.
ValuesinLacs 50 100 150 200 250 Milestone Events First Quote of Vendors First Quote of Vendors Rs. 219.01 L Final Quote of IBMFinal Quote of IBM Rs. 240 L + Taxes Final SIS Offer to IBM Final SIS Offer to IBM Rs. 200 L Final rates negotiated by SCM Final rates negotiated by SCM Rs. 161.89 L Better than the BestCherthala IDC Savings of Rs. 38.10 Lacs (19.05%) against our final offered rate to IBM Rs. 200 Lacs Inclusive of Tax. Savings of Rs. 78.10 Lacs (32.54%) against IBM final offer to us Rs. 240 Lacs + Tax.
Floated inquiry to 4~5 vendors after their detailed evaluation of Technical & Financial capabilities, Quality & Workmanship and their total experiences in line with our deliverables. Sr No Description Name of Vendors No of Vendors Contacted 1 Civil & Interior Work Perfect Interior 4 Callista Constructions Pvt Ltd Raj Interior & Decorators Pvt Ltd Kalakriti Interiors 2 Electrical Work KAP Electromech Pvt. Ltd. 5 Unique Electro Engineers Pvt Ltd SNS Electrical Technologies Private Limited Ideal Engineering Services Shree Vardhman Associates 3 UPS APC India Pvt Ltd 4 Eaton Power Quality Private Limited Emerson Network Power (India) Ltd Socomec UPS India Pvt. Ltd 4 PAC Uniflair India Pvt Ltd 5 STULZ-CHSPL (India) Pvt. Ltd. Emerson Network Power (India) Ltd Bluestar Ltd GEA Ecoflex India Pvt. Ltd 5 BMS Johnson Controls 4 Siemens Ltd Tyco Fire & Security India Pvt. Ltd Newage Fire Protection Engineers Pvt Ltd
Identification of Bought out items Sr No Description Name of Vendors No of Vendors Contacted 1 Raised Floor United Access Floor Pvt Ltd 2 Access Floor International 2 Fire Rated Doors Shakti Met Dor Ltd 3Agew Steel manufacturers Pvt Ltd Srima Sales & Service 3 Fire Rated Partition Sain Gobain - India Gypsum 1 4 Battery Bank Exide Industries Ltd 5 Paresh Bhai Power Ex HBL Power Systems Ltd Ishan Enterprise 5 LT Panel & Distribution Boards Active Engineers Pvt Ltd 6 Arrow Engineers Pvt Ltd Power Pack Pvt Ltd Shivam Electricals Vivid Electromech Zenith Engineering
Going beyond the Cost alone Not only Price, but other benefits / value-adds as compare to earlier executed Bangalore IDC: To cover all financial risks, all payment terms are agreed with No Mobilisation Advance Payment. Asked Vendor to provide PBG of 5% retention amount valid for 12 Months from the date of completion work against the earlier validity of 6 months. To get additional benefit on OPEX Cost as AMC charges, finalised Warranty terms of 2 Years instead of their standard warranty of 1 Year only. To avoid any ambiguity at later stage and get the quality work in the agreed time, received acceptance mail / confirmation from the finalised vendor on final rates, terms & delivery time. Penalty terms will be applicable on all item group for the late delivery or completion period. Purchase Orders are enclosed with the detailed commercial terms & conditions along with special terms if any and detailed technical specification & agreed deliverables. To make an effective monitoring & tracking of the Project, a detailed Tracker is made which is enclosed herewith. Microsoft Office el 97-2003 Worksh
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Better than the Best

  • 1. Better than the BestA Case Study on Hyderabad & Cherthala IDC Sites SIS SCM TEAM Date : 5th January 2012
  • 2. Sequence of Events for the Execution of Orders of Hyderabad & Cherthala IDC Sites Sr. No. Date Events 1 09-12-2011 SCM has received the requirements & tentative build cost from IDC team for Finalisation of Project Management Vendor. 2 10-12-2011 Finalised the Project Management Vendor @ 2.95% of Project Cost & discussed with Top Management where it was decided to wait for IBM offer as Turnkey Project owner based on IBM's World wide experience to build IDC. 3 17-12-2011 Done a First Meeting with IBM Team and received First offer from them. 4 20-12-2011 IBM has given their Revised Offer of Rs. 2.78 Cr. For Hyderabad & Rs. 2.72 Cr. For Cherthala IDC Sites with Taxes Extra at actual. 5 22-12-2011 Done a Final Meting with IBM at our Corporate Office and we have offered final rate @ Rs. 2 Cr. Per IDC Site inclusive of all Taxes. 6 23-12-2011 Received revised BOQ & Final Design from IDC team, we have asked vendors to provide their quotes against the requirements. 7 24-12-2011 IBM has given us their Final & No regret offer @ Rs. 2.40 Cr. Per IDC Sites with the Taxes Extra at actual. 8 25-12-2011 Received direction from Top Management to build IDC Sites on ourselves. 9 26-12-2011 Started techno-commercial negotiations with all vendors as per the final requirements received from IDC team. 10 27-12-2012 Received final design & BOQ of Fire & BMS requirement from IDC team. 11 28-12-2011 Sent recommendations for Final rates & vendor of PAC, Civil & Raised Floor requirement to Top Management for approval. 12 29-12-2011 Received approval & PO released to vendors for PAC, Civil work & Raised Floor Requirements for both sites. 13 31-12-2011 Sent recommendations for Final rates & vendor of UPS requirement to Top Management for approval. 14 01-01-2012 Sent recommendations for final rates & vendor of Electrical work requirement to Top Management for approval. 15 01-01-2012 Received approval from Top Management for final rates & vendor for UPS & Electrical work requirements for both sites. 16 02-01-2012 PO released to vendors for UPS & Electrical work requirements for both sites. 17 03-12-2012 Sent recommendations for final rates & vendor for Fire & BMS requirement to Top Management for approval. 18 04-01-2012 Received Approval & PO released to vendors for Fire & BMS requirements for both sites.
  • 3. Strategy for Cost Reduction An effective techno-commercial negotiation is done with Minimum 4~5 reliable vendors for all item groups to get most competitive rates. To take the right & accurate decision, TCO Model is followed with the detailed Comparative Statements with the inclusion of all commercial terms like Taxes & Duties, Delivery / Completion Terms, Warranty, Payment Terms etc. with the status of Final Quote against the First Quote for all requirements. To achieve financial success of the organization by all means, identified the bought out items from BOQ and procured it directly from the manufacturer, which resulted in the cost savings to the company. A detailed Analysis of all commercial offers against the BOQ & Benchmarking is done against Bangalore price as well as Market Price of high valued items. Availed maximum benefit of taxes as finalised all deals against form C only instead of local VAT and get service tax credit as much as possible. Finalised & released Purchase Orders directly to the vendors and Saved 4% Margin cost as Project Management charges of vendor.
  • 5. ValuesinLacs 50 100 150 200 250 Milestone Events First Quote of Vendors First Quote of Vendors Rs. 212.35 L Final Quote of IBMFinal Quote of IBM Rs. 240 L + Taxes Final SIS Offer to IBM Final SIS Offer to IBM Rs. 200 L Final rates negotiated by SCM Final rates negotiated by SCM Rs. 153.11 L Better than the BestHyderabad IDC Savings of Rs. 46.88 Lacs (23.44%) against our final offered rate to IBM Rs. 200 Lacs. Inclusive of Tax. Savings of Rs. 86.88 Lacs (36.20%) against IBM final offer to us Rs. 240 Lacs + Tax.
  • 6. ValuesinLacs 50 100 150 200 250 Milestone Events First Quote of Vendors First Quote of Vendors Rs. 219.01 L Final Quote of IBMFinal Quote of IBM Rs. 240 L + Taxes Final SIS Offer to IBM Final SIS Offer to IBM Rs. 200 L Final rates negotiated by SCM Final rates negotiated by SCM Rs. 161.89 L Better than the BestCherthala IDC Savings of Rs. 38.10 Lacs (19.05%) against our final offered rate to IBM Rs. 200 Lacs Inclusive of Tax. Savings of Rs. 78.10 Lacs (32.54%) against IBM final offer to us Rs. 240 Lacs + Tax.
  • 7. Floated inquiry to 4~5 vendors after their detailed evaluation of Technical & Financial capabilities, Quality & Workmanship and their total experiences in line with our deliverables. Sr No Description Name of Vendors No of Vendors Contacted 1 Civil & Interior Work Perfect Interior 4 Callista Constructions Pvt Ltd Raj Interior & Decorators Pvt Ltd Kalakriti Interiors 2 Electrical Work KAP Electromech Pvt. Ltd. 5 Unique Electro Engineers Pvt Ltd SNS Electrical Technologies Private Limited Ideal Engineering Services Shree Vardhman Associates 3 UPS APC India Pvt Ltd 4 Eaton Power Quality Private Limited Emerson Network Power (India) Ltd Socomec UPS India Pvt. Ltd 4 PAC Uniflair India Pvt Ltd 5 STULZ-CHSPL (India) Pvt. Ltd. Emerson Network Power (India) Ltd Bluestar Ltd GEA Ecoflex India Pvt. Ltd 5 BMS Johnson Controls 4 Siemens Ltd Tyco Fire & Security India Pvt. Ltd Newage Fire Protection Engineers Pvt Ltd
  • 8. Identification of Bought out items Sr No Description Name of Vendors No of Vendors Contacted 1 Raised Floor United Access Floor Pvt Ltd 2 Access Floor International 2 Fire Rated Doors Shakti Met Dor Ltd 3Agew Steel manufacturers Pvt Ltd Srima Sales & Service 3 Fire Rated Partition Sain Gobain - India Gypsum 1 4 Battery Bank Exide Industries Ltd 5 Paresh Bhai Power Ex HBL Power Systems Ltd Ishan Enterprise 5 LT Panel & Distribution Boards Active Engineers Pvt Ltd 6 Arrow Engineers Pvt Ltd Power Pack Pvt Ltd Shivam Electricals Vivid Electromech Zenith Engineering
  • 9. Going beyond the Cost alone Not only Price, but other benefits / value-adds as compare to earlier executed Bangalore IDC: To cover all financial risks, all payment terms are agreed with No Mobilisation Advance Payment. Asked Vendor to provide PBG of 5% retention amount valid for 12 Months from the date of completion work against the earlier validity of 6 months. To get additional benefit on OPEX Cost as AMC charges, finalised Warranty terms of 2 Years instead of their standard warranty of 1 Year only. To avoid any ambiguity at later stage and get the quality work in the agreed time, received acceptance mail / confirmation from the finalised vendor on final rates, terms & delivery time. Penalty terms will be applicable on all item group for the late delivery or completion period. Purchase Orders are enclosed with the detailed commercial terms & conditions along with special terms if any and detailed technical specification & agreed deliverables. To make an effective monitoring & tracking of the Project, a detailed Tracker is made which is enclosed herewith. Microsoft Office el 97-2003 Worksh