Procurement of Raw Materials and Other Items

It is one of the most important managerial responsibilities to ensure the availability of all necessary inputs for production. It is very important to procure them as per required specifications—especially the raw materials in the right quantities for smooth eflhcient production runs. 

Some materials required for the production of chemicals are the finished products of other industries. These could be inorganic chemicals, organic chemicals, and solvents and are generally available as per specifications. They can be fed into the process units after confirming their quality by lab tests they are sulphuric acid, caustic soda, ethyl alcohol, aniline, sodium sulphite, etc. These could be stabilisers and anti-caking agents also. 

Any deviations from the specifications beyond permissible limits can disturb plant operations, cause breakdowns of pumps and choke filters frequentiy, increase utility consumptions (more steam will be required for drying wet raw materials), or can result in environmental pollution. 

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In a typical supply chain, raw materials are procured and items are produced at one or more factories, shipped to warehouses for intermediate storage and then shipped to retailers or customers. If you asked people involved in business to define the term supply chain you would get many different answers. Each definition would reflect the nature of the business and the inputs and outputs produced. For some, supply chain is related to purchasing and procurement, to others it is warehousing, distribution and transportation. Yet for others it would be sources of capital and labour. 

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