Supply Chain Management in L&T (ECC Division)

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : OPER045 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Supply Chain Management
Case Length : 9 Pages
Period : 1990-2004
Organization : L & T
Pub Date : 2005
Teaching Note : Available
Countries : India
Industry : Construction


The case highlights the main operational functions of L&T's construction division - ECC. It focuses on the diverse and vast geographical spread of ECC's business and examines the challenges that the staggered and diversified nature of its business posed to the company. The case discusses in detail the supply chain management strategies adopted by ECC in order to streamline its supplier network and improve the efficiency of its supply chain. It also identifies the importance of information technology in ECC's supply chain. A lot of importance has been given to the functioning of ECC's enterprise information portal (EIP) and its web-based supply chain management solution.

The case also tries to bring out the fact that implementation of Information Technology in the supply chain of ECC has helped it make its operations lean and agile.


Understand supply chain management best practices in the Indian construction industry

Understand the challenges posed by the staggered nature of the construction industry to its supply chain

Appreciate the importance of information technology in streamlining the suppliers' network

Examine the different initiatives taken by ECC in order to streamline its supply chain

Understand the importance of Business-to-Business (B2B) long-term relationships for an organization to increase the effectiveness of its supply chain


  Page No.
Introduction 1
Background Note 2
L&T's ECC Division 4
Supply Chain Management Strategy in ECC 6
The Challenges 7
Supply Chain Management Solution 7
Exhibits 7


Larsen & Toubro, Supply Chain Management, Vendor Management, Enterprise Information Portal, Indian Construction Industry, L&T Information Technology Limited, Grasim Industries, Inventory Management, Web-Based SCM, Engineering Construction and Contracts (ECC), Build-Own-Operate-Transfer (BOOT), Supply Chain Integration, Supply Chain Collaboration, Construction Enterprise Management and Build-Operate-Transfer (BOT).

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