Procurement

One flag, one purchase order: how ₹3.3 lakh was saved in a day

Arjava TeamSep 10, 20264 min read

Quick answer

A site indent came in at a ₹12 lakh local quote. Arjava's vendor rate history flagged the same material at ₹8 lakh from a Delhi vendor. Here's the landed-cost math that followed, and why nobody had to remember the price themselves.

Shanti Infraconstruct Pvt. Ltd. has been an oil and gas pipeline EPC contractor since 2010: 32+ projects across more than 10 states. They run procurement on Arjava. This is one purchase order from that system, told as it happened.

Step 1: the indent

A site team raises a material indent. The local vendor's quote comes back at ₹12,00,000, the price everyone on site assumed was the going rate. There's no reason to think otherwise. It's a real quote, from a real vendor, for real material.

Step 2: the flag

Before the purchase order is approved, Arjava's vendor rate history flags it. The same material was quoted at ₹8,00,000 by a vendor in Delhi, 33% lower than the site's quote. Nobody on the site team had that number in front of them. It was sitting in a different site's purchase history, which is exactly the kind of thing that goes unnoticed when purchase records live in separate spreadsheets.

Step 3: the check

A lower quote in another city isn't automatically a better deal, transport costs money too. So the team runs a landed-cost check inside the system: transport from Delhi adds ₹70,000. All-in cost from the Delhi vendor: ₹8,70,000.

Step 4: the decision

The purchase order goes to the Delhi vendor, with a full audit trail showing why: not a lower quote in isolation, but a lower quote plus transport, still landing well below the local price.

The result

₹12,00,000 local quote becomes ₹8,00,000 from Delhi plus ₹70,000 transport, landing at ₹8,70,000.

₹3,30,000 saved on a single purchase order, about 27.5%.

No one had to remember prices across cities. The platform's vendor rate history and landed-cost comparison caught it automatically, before the money was spent.


Figures in this story are reported by the client from their own platform records. They have not been independently audited.