In the course of
running an Organisation, particularly a manufacturing
unit there arise
defectives ,surplus and obsolete items.
items not only have significant economic value
they also occupy valuable space. It requires
efforts to clear off spaces and free the blocked
money to be used as working capital.
activities viz. identifying, ,segregating and
finally selling off such items is usually referred
to as disposal.
There are different categories of
disposable items :
3 Waste arising out of production.
|Disposable item have no use and thus need to be removed
from the premises. These are often sold out through the
following method :
- Fixed price sales
- Online Auctioning through
Under Tendering, a Tender catalogue is prepared which
contains the detailed list of the items earmarked for
disposal such as description, unit , quantity and location
within the premises etc. The catalogue is sold to the
prospective buyers, who submit their best offer in a
sealed envelope, on a fixed date.
envelopes are opened at a stipulated date and time
in presence of the Tenderers.
Comparative statement of quoted rates is prepared and
those lots where the Highest bid , known as H1 bids are
within a specified percentage of the acceptable price ,
called Reserve price, are sold.
Under Fixed Price Sale, material is offered for sale at a
fixed price decided by competent authority. Interested
vendors can lift material after depositing payment at the
Under Contract system of disposal, contracting is done
with prospective buyers who lift the materials within a
given period at a pre-decided value. For items arising in
huge quantities like slag, fly ash etc. long term
contracts are entered into with parties for lifting total
quantities of such arisings.
Under Online Auctioning through an E-commerce portal,
called Service provider, the disposable lots are declared
to the general public by uploading the Auction Catalogue
on a popular website offering for sale through the
Internet. In India , portals offered by companies such as
Mjunction is highly popular and more and more such
auctions , also called Forward auctions are conducted
Each vendor who shows a willingness to participate in the
forward auction for the declared items, by submitting the
required EMD, is given a unique user name and password,
through which they can access the online auction and bid
for the eligible lots.
The bidding for the given lots implies increase in
bid value by each bidder till the time bidding
stops at the highest
value for the
given lots. After completion of auction, the Service provider submits
lot-wise H-1 bid report to the seller. The H-1 bids are
compared with the lot-wise Reserve price and those lots
which are within a specified percentage of the reserve
price are sold.
Sale Orders for sold lots are issued in favour of the
highest bidder (H1), asking them to deposit the lot value.
On receipt of lot value, Delivery Order is issued in
favour of the highest bidder, who then lifts the sold lot
within the stipulated time.