🇮🇳India

खरीद निर्णय त्रुटि - गलत विनिर्देश और अत्यधिक लागत (Procurement Decision Error - Wrong Specifications and Cost Overrun)

1 verified sources

Definition

Technical Committee provided faulty evaluation and ambiguous recommendations, resulting in procurement of Centre Pivot Rubber Bush Assemblies with incorrect specifications. Imported bushes cost 4x more than indigenous variants, justified on longer lifecycle claims without supplier guarantees. Entire quantity (material received not as per specification) was rejected in August 2003, blocking capital of Rs. 6.78 crore. Firm requested to rectify or refund. Railways then reverted to indigenous CPRBs with high maintenance costs due to frequent replacements.

Key Findings

  • Financial Impact: ₹6.78 crore capital blocked; 4x cost premium on imported vs. indigenous components; ongoing high maintenance costs
  • Frequency: One-time major procurement error; but manual TC evaluation creates recurring risk
  • Root Cause: Faulty TC evaluation, ambiguous specification documents, lack of lifecycle guarantee enforcement, absence of automated specification validation

Why This Matters

The Pitch: Indian Railways manufacturers lose ₹6.78+ crore due to specification errors in procurement. Automated specification validation and cost-benefit analysis in procurement workflows prevents incorrect sourcing decisions.

Affected Stakeholders

Technical Committee, Procurement Officers, Quality Inspectors at destination

Deep Analysis (Premium)

Financial Impact

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Current Workarounds

Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.

Unlock to reveal

Get Solutions for This Problem

Full report with actionable solutions

$99$39
  • Solutions for this specific pain
  • Solutions for all 15 industry pains
  • Where to find first clients
  • Pricing & launch costs
Get Solutions Report

Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

वारंटी दावों में विलंब और अपूर्ण वसूली (Warranty Claims Delay and Incomplete Recovery)

₹2.25 crore net loss; ₹6.78 crore capital blocked due to rejected material; 14+ month delay in warranty recovery

वारंटी निरीक्षण में मैनुअल प्रक्रियाएं (Manual Warranty Inspection Procedures)

Estimated 20-30 hours per wagon inspection × 1000s of annual procurements × ₹500/hour labor = ₹1-1.5 crore annually (logic estimate)

AAR Certification परीक्षण और निरीक्षण शुल्क अधिच्छादन

Multiple fee stages with no consolidated pricing: Est. ₹1,50,000-₹5,00,000 per certification cycle (4-year amortization); Annual recertification audits add ₹50,000-₹1,50,000/year. Typical cost overrun due to extended timelines (4-10 weeks per approval stage) = 20-40% budget variance.

AAR अनुमोदन के बिना निर्यात - कानूनी जोखिम और आपूर्ति श्रृंखला बहिष्कार

Estimated customer contract loss: ₹50,00,000-₹10,00,00,000+ per manufacturer (depending on North American customer base). Penalty mechanisms: Not explicitly quantified in search results, but supply chain exclusion = 100% revenue loss from AAR-regulated customers.

AAR प्रमाणन अनुमोदन प्रक्रिया में बाधा - उत्पादन विलंब

Estimated idle capacity: ₹15,00,000-₹50,00,000 per approval cycle (assuming 4-10 week delay × facility daily production value). Annual impact if 2-4 certification renewals: ₹30,00,000-₹2,00,00,000 in lost production capacity and late delivery penalties.

हज़मैट टैंक कार दस्तावेज़ गैर-अनुपालन जुर्माना

₹50,000–₹200,000 per vehicle per incident (inspection failure + rework + loss of dispatch window); estimated 2–5 incidents annually per manufacturer

Request Deep Analysis

🇮🇳 Be first to access this market's intelligence