Re-engineering materials management: a case study on an Indian refinery

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Materials management function is always a major concern to the management of any industrial organisation as high inventory and an inefficient procurement process affect the profitability to a great extent. Problems multiply due to a very current business environment in India. Hence, existing materials planning and procurement processes and inventory management systems require a re-look with respect to a changing business environment. This study shows a radical improvement in materials management function of an Indian petroleum refinery through business process re-engineering (BPR) by analysing current processes, identifying key issues, deriving paradigm shifts and developing re-engineered processes through customer value analysis. BPR has been carried out on existing processes of “materials planning and procurement” and “warehousing and surplus disposal”. The re-engineered processes for materials management function trigger a few improvement projects that were identified by the group of executives who took part in the re-engineering exercise. Those projects were implemented in an integrated framework with the application of the state of art information technology tools.
Original languageEnglish
Pages (from-to)394-408
Number of pages15
JournalBusiness Process Management Journal
Issue number5
Publication statusPublished - 2001


  • materials management function
  • industrial organisation
  • high inventory
  • procurement process
  • profitability
  • business environment
  • India
  • Indian petroleum refinery
  • business process re-engineering
  • BPR
  • customer value analysis
  • materials planning and procurement
  • warehousing and surplus disposal


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