Case Study
Case Study: Enhancing Vendor and Inventory Management at BRBNMPL
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) is a wholly owned subsidiary of the Reserve Bank of India (RBI), established to bridge the demand and supply gap of banknotes in India. Operating two major presses in Mysore (Karnataka) and Salboni (West Bengal), BRBNMPL plays a crucial role in the nation’s currency supply chain.
Challenge
Despite its efficiency, BRBNMPL faced significant challenges with data visibility, particularly in performing vendor performance analysis. Managing over 200 purchase orders (POs) daily across 80,000-line items, the company struggled with categorization—a critical aspect given the government-mandated quotas for Micro, Small, and Medium Enterprises (MSMEs). This lack of categorization and visibility could potentially lead to severe compliance issues during audits. Furthermore, data visualization and reporting were overwhelming tasks due to the volume and complexity of the data involved
Solution
To address these challenges, we implemented a comprehensive workflow to manage buying and consumption patterns by onboarding and categorizing all vendors. This three-month vendor onboarding process culminated in categorizing vendors into A, B, and C grades. Surprisingly, it was discovered that many POs had been pending for over four months. Immediate corrective actions were taken, including tagging all slow-moving inventory which facilitated an accurate assessment of inventory value and enabled the efficient disposal of unused and scrap items.
Outcome
The new vendor performance reports were instrumental in resolving supply chain issues, particularly by minimizing stock-outs through an optimized reordering process. Additionally, our depreciation reports enhanced taxation compliance with the Indian Companies Act by allowing a more consistent representation of financials year-over-year, assessing depreciation or loss in asset value more accurately.
