Vol.: 3/2018

April 2018

INTERNATIONAL FEDERATION OF PURCHASING & SUPPLY MANAGEMENT

IFPSM

TEA RM IAF

LO

S

E

MT

AU

N

TI

AT

GS

ENI

M

N

ENAITDNI

Mumbai

For Private Circulation Only

Newsletter of

Indian Institute of Materials ManagementMumbai Branch

Increasingly the Corporate world sees SCM as a growing contributor

to corporate competitiveness and agree on the priorities for

procurement going forward. Initiatives that directly manage supply

availability, logistics and commodity prices are areas where

procurement should play a leading role. Business model changes

bring in larger role for procurement and actively support P&L.

In line with this theme, the seventh version of CPO Roundtable

featured “Key Strategies for Procurement that contribute to Strategic

Business Goals”, sponsored by SAP- Ariba.

This year we are into our signature event ''DISHA 2018'' on April 20-

21st with great expectations through a special theme for the year

“Supply Chain as an Enabler to achieve Business Goals – Exploring

New Frontiers”. Innovation & Digitalisation is shifting the paradigms

while Collaboration & Agility are seen as levers for growth. This

theme is being addressed by diverse set of SCM specialists in India

and promises to unfold new frontiers.

MDP continues to be one of our prime vehicle to bring in the best

practices to the Supply Chain fraternity through its programs on Risk

management, Digitalisation etc. We have also planned to make it

more industry oriented by adding special skill building topics and

sessions like Communication skills, Interpersonal relations, Spend

Analytics, Project management, Negotiations Skills etc.

Consulting is identified as one of our thrust areas keeping in

mind the need for assisting organisations to bring in

performance in growing organisations. We have made a

modest beginning and IIMM Mumbai Chapter promises to

bring in the next change we are bringing.

IIMM also has a program that targets the young talent.

MATQUIZ has been our yearly initiative that targets to bring

out the Supply Chain knowledge of our young professionals.

This year's program was IT propelled be it in registration, to

online quizzes to the program rollout.

Last but not the least, IIMM Mumbai Branch also promotes

social networking opportunities to its own fraternity through

annual Family function which as usual was well attended, with

members and their family participating whole heartedly.

I wish to place on record the fantastic support from my entire

Team for once again putting up a stellar performance and wish

everyone good luck in years to come!

Satish Palekar

Chairman

FROM THE CHAIRMAN’S DESK

Editor : Mr. Ramachandran MenonPrinted and Publish by : Mr. Ashok Mhatre

Indian Institute of Materials Management (Mumbai Branch)2-A, Arihant Building, Goregaon (E), Mumbai- 400 063. Tel. : 2686 3376 / 2686 4528 / 2685 5645 / 2685 5646

Telefax : 26862247 E-mail : iimmbom@gmail.com Website : www.iimmmumbai.org

Newsletter of

Indian Institute of Materials ManagementMumbai Branch

12

IIMM MUMBAI welcome all New Members

1 01-Sep-2017 F/6769/BM MR. ANMOL RAJKUMAR DHAMNANI

2 04-Oct-2017 F/6770/BM MR. PRAKASH BEHERA

3 04-Oct-2017 F/6771/BM MR. MANSOORI M A MOHAMMAD

4 01-Nov-2017 F/6772/BM MR. SUJIT ABASAHEB DESHMUKH

5 23-Feb-2018 F/6773/BM MR. SWAPNIL DIGAMBAR WADAYE

6 23-Feb-2018 F/6774/BM MR. PRATEEK GOSWAMI

7 23-Feb-2018 F/6775/BM MR. RAHUL R SUTAR

8 23-Feb-2018 F/6776/BM MR. AMRISH SAGAR

9 23-Feb-2018 F/6777/BM MS. NISHITA SATHE

10 23-Feb-2018 F/6778/BM MR. RAJESH KUMAR

11 23-Feb-2018 F/6779/BM MR. HARSHAD R MALI

12 14-Oct-2017 L/5747/ND VINEET CHAUHAN

13 16-Mar-2018 L/6780/BM MR. RAGAVAN DESIKAMANI

INDIAN INSTITUTE OF MATERIALS MANAGEMENT

List of New Members Enrolled from : 1/9/2017 To : 31/3/2018

Region : WEST

Branch Name MUMBAI

Sr. No. Enrol Date Roll No. Name

APPEALMembers are requested to update us with their current contact details including email id, mobile number and communication address to

update our membership database. All communications are being sent by email only and hence please send the

information to our email: iimmbom@gmail.com

Greetings from the IIMM Mumbai Chairman's

office!!

The year 2017-2018 has been a tumultuous year

for the Supply Chain Industry with its ups and

downs and IIMM has been also going through its

own change management processes.

Education which has been the flagship for IIMM, a part of the Vision –

Mission has been going through a roller coaster ride in terms of the

course affiliation with AICTE. Of course it opens up new frontiers in

terms of an opportunity to evolve a progressive curriculum and

adopting newer approaches. The special Education Committee of

IIMM has been working on evolving a mechanism to evolve a new

opportunity.

On the national scene, GST implementation is finally in. Given the

need for simplicity while grappling with the national diversity, with

the pressing imperative to fuel the economy but under the influence

of the political compulsions that necessitates a fine balancing

between mitigating potential exchequer losses and the centre – state

pulls, the GST revolution is still evolving. The tax slabs have been

generally moved southwards from the launch rates and a good clarity

is emerging. The challenges associated with slow pace of Digital India

dreams however continues to cause some concerns. GST for Oil and

Gas sector is yet to settle. More is yet to come on e -way Bill.

IIMM contributed its bit in providing programs to propagate the GST

rollout through its various training programs and seminars.

True to its promise of bringing in relevant subjects in Supply Chain to

the fraternity we have organised 4 programs this year.

Focussing on Public Procurement, which continues to be a pillar of

our industry, we had this biannual program “National Summit on

Public Procurement”this year. It show-cased the latest developments

of note, starting with the GeM Initiative of GOI, latest trends in

governance through CVO and best practices from our public sector

Navaratna corporations.

Keeping in step with the path breaking revolutions in Industry 4.0,

namely the new world of “Digital”manufacturing, IIMM Mumbai

Branch organised for the first time a co-shared program in

partnership with SAP-Ariba, co-sponsored by IBM, titled “Make

Procurement Awesome” – a SAP-Ariba Initiative.

We had excellent presentations from IIMM-Mumbai, IBM and SAP on

latest advances in Digitally driven SCM. The treat of the day was a

Fireside Chat on trends in Procurement. The program emphasised

the dramatic progression SCM is traversing.

Newsletter of

Indian Institute of Materials ManagementMumbai Branch

2

MumbaiIIMM - In Pursuit of Excellence in Supply Management

11

Executive Committee (2018 - 2019)

INDIAN INSTITUTE OF MATERIALS MANAGEMENTMumbai Branch

Satish Palekar

Chairman

Ashok Mhatre

NC Member

Ganesh R Apte

NC Member

Nozer D Sadri

NC Member

B V Iyer

NC Member

Surendra Deodhar

NC Member

Hemaprabha Vasa

EC Member

Swapnil Dubey

EC Member

Keshav P Kotwal

EC Member

Sunil Dhakate

EC Member

Shakespeare Datta

EC Member

Zubin Sethna

Co-Opted Member

Animesh Shah

Vice-Chairman

Ajoy Sarkar

Hon. Secretary

Virendra Mantri

Hon. Treasurer

Umesh Mitbawkar

Co-Opted EC Member

Veersen Sidhwani

EC Member

MumbaiIIMM - In Pursuit of Excellence in Supply Management

3

New Admissions to GDMM/PGDMM:• Advertisement was given by NHQ indicating admissions to

Graduates with experience as well as fresh Graduates. Mumbai branch too gave ad in Mumbai newspaperabout new admissions of IIMM courses.

• E- mails were sent to members & corporate informing about new admissions to GDMM/PGDMM and asking for sponsoring their employees for GDMM about last date of admission being 11th February 2018..

• Visits to Degree Colleges to promote GDMM/PGDMM• Fresh Batch classes starting from 21st January 2018 at

Goregaon.

Free Programme''Strengthening your Leadership Capability” IIMM, Mumbai Branch organised a free programme on “Strengthening your Leadership Capability” on Friday, 19th January 2018 at IIMM Training & Research Centre, Thane. Dr.SantoshPhulpagar, Head Corporate Training, Crompton Greaves Ltd. was the speaker. The programme was attended by about 27 participants. The programme was well received and appreciated by the audience.

For the benefit of our GDMM students we have been conducting few out of syllabus specialised training sessions like public speaking, groom & grill, factory visits, sharing by experts on indirect taxation etc. ( over and above contact lectures on syllabus subjects) for past many years. This semester onwards these programs would be conducted in more structured manner with focus on both soft skills and functional skills. Totally 18 areas have been identified which would be covered in hundred hours spread over three semesters, Depending upon topic these would be conducted in workshop or Guest lecture mode through lectures, VDOs, notes, exercises, case studies, role plays( say for negotiations) or on the job ( say for learning advanced excel). After talking to students the sessions would be done in regular semesters as well as during off period (between semester end examination and start of next semester). The entire structuring of program is led by our NC member Ashok Mhatre along with Virendra Mantri, Ganesh Apte, Surendra Deodha , Haldankar. Our 1st session was Business Presentation Skills on 18th Feb at Goregaon campus. After brief introduction by Surendra Deodhar high lighting importance of effective communication and capturing student expectations, workshop started with one minute presentation by each participant on topics given earlier ,which was commented, graded ( and Video graphed) upon by students as well as program mentors.

Then sessions on fundamentals of presentation (like preparation, audience study etc., effective use of visual aids etc.,) body language techniques, vocalisation techniques , how to build confidence while speaking were done by mentors Ashok Mhatre, Ganesh Apte, Virendra Mantri. Post these inputs students were asked to do presentations again with necessary corrections on their Power point presentation based on inputs given and which were re-evaluated. Each participant was given a copy of manual on presentation skills as well as notes of useful tips .The program was well received and well appreciated. Some of the verbatim comments were 'Have now greater confidence” or 'find it extremely useful'or 'now fear of interactions gone'etc.Our 2nd workshop on strategic sourcing was conducted on 25th March 2018. Main topics were how to specify your need , spend analysis , understanding your market, strategic sourcing ,supplier relationship management .The mode of delivery was through ppt, VDOs, group interactions ,group exercises. Thementors for this workshop were Ashok Mhatre and Virendra mantra. This program was also extremely well received with some of verbatim comments like 'Now we really feel connected to the institute and cared for as a students for our development ' Next session is on costing on 29th April 18 ,covering cost elements, how to do costing , various commodities cost structures, cost drivers , how to use external data for tracking costs and also for preparing for price settlements .The session would be done by industry costing experts with usual team of mentors like Ganesh Apte, Ashok Mhatre ,VirendraMantri

Know the Kaizen Way of Success in Purchase KAIZEN IN PURCHASING. Presented by National & International QCFI Award Winner ,on 21st Jan 2018 at 10 am, IIMM Campus, Arihant Building, Goregaon (E)

Newsletter of

Indian Institute of Materials ManagementMumbai Branch

10

• Life is a game of chance.

• Individuals have little influence over the events of the world.

If the statements above best reflect your view on life, then you probably tend to have an external locus of control.

Outlook 2

•If you work hard and commit yourself to a goal, you can achieve anything.

• There is no such thing as fate or destiny.

• If you study hard and are well-prepared, you can do well on exams.

• Luck has little to do with success; it's mostly a matter of dedication and effort.

• In the long run, people tend to get what they deserve in life.

If the statements above best reflect your outlook on life, then you most likely have an internal locus of control.

A Word From Very well

Your locus of control can have a major impact on your life, from how you cope with stress to your motivation to take charge of your life. In many cases, having an internal locus of control can be a good thing. It means that you believe that your own actions have an impact. If you tend to have more of an external locus of control, you might find it helpful to start actively trying to change how you view situations and events. Rather than viewing yourself as simply a passive bystander who is caught up in the flow of life, think about actions you can take that will have an impact on the outcome.

Source : Google

Ravindra A. Jain

Sr. Manager (SBU-Sourcing),

M&M Ltd, Tractor

Education Activities:

Skill Development

Free Program Kaizen Way of Success in Purchase

Be the Person who touches the Lives

and Hearts of People. Be a Positive light

to Others as You put a Smile on their

Faces.

For in the End… It's not what You say

that matters. It's how You make them

Feel that Lovingly stays in their

Memory.

The Strongest factor for Success is Self-

esteem. Believing You Can do it,

Believing You Deserve it and Believing

You will Get it.

Be Honest when in Trouble and Simple

when in Wealth. Be Polite when in

Authority and be Silent when in Anger.

This is called the Life Management.

Pride and Ego comes when We Feel that

We have Done something Great.

Respect and Honor comes when Others

Feel that We have Done something

Great.

When you Move your Focus from

Competition to Contribution. Life

becomes a Celebration. Never Defeat

people. Just win them…. Have a Great

Day !!

Thought's For The Day

Newsletter of

Indian Institute of Materials ManagementMumbai Branch

4

A specially designed comprehensive Certificate Programme from IIMM in PURCHASING MANAGEMENT was organised from 9th September 2017 to 4th October 2017 at IIMM Research &Training Campus, Thane covering topics like 7 Rs, GST, Strategic Negotiation, Role Play, Spend Analysis, Category Management, Buying Services/Indirect Purchases Modern Purchasing Practices, and Value Engineering etc.

"National Summit on Public Procurement “held on 8th December 2017 at Hotel Novotel, Juhu, Mumbai

IIMM Mumbai held a National Submit on Public Procurement on the 8th December 2017 at Novotel Hotel. The inauguration of the submit was done by Mr.S.K. Sharma – Chairman and Managing Director - NPCIL who was the chief guest and the lighting of the lamp was done by him and other dignitaries with the soothing bhajan of Ganesh Vandana in the background.

The master of ceremonies Mr. Animesh Shah - Vice Chairman IIMM Mumbai set the ball rolling for a very interactive and highly informative session. The submit was attend by 125 delegates. The session which was highly interactive was that of Ms.RadhaChauhan whose subject “procurement through Government E-Market place: GeM portal was a great success with the delegates and many wanted a repeat session of the same. The other speakers like MR. Hemant Kumar Chief Technical Examiner (CTE), CVO'S office answered all questions raised by delegates during the question and answer session his answers were crisp and he had a humour to some of his answers which the delegates appreciated, Mr. Girish Bhatnagar Ex General Manager East Central Railways & consultant (Public Procurement) and Mr. Ashwini Nagia – Executive Director & Chief (MM) ONGC , New Delhi spoke in detail about in great detail and the delegates gained useful knowledge of the subject matter which was a huge success and each speaker overshot their allocated time slot provided to them .

The feedbacks from the delegates about the overall submit was that it was very informative and very useful for their day to day work function.

The National Summit on Public Procurement was ended by a vote of thanks given by Mr Satish Palekar- IIMM Chairman.

The program was co-ordinated by Mr A.R.Sarkar with support of Dr.Shete and IIMM office and Executive Committee members.

A one day seminar on “INNOVATION IN SUPPLY CHAIN MANAGEMENT'' was organised by IIMM Mumbai on 10th January, 2018 at Hotel Kohinoor Continental.

The welcome address was given by Dr. Ramesh Shete Welcoming Chairman IIMM Mr Satish Palekar - V.P and Business head, L& T Hydrocarbons Offshore, Mr. Ashok Sharma (Past President IFPSM) and the chief guest Cmdr Sanjeev Sharma of the navy and introduced Mr. Surendra Deodhar who was the master of ceremonies.

The inauguration of the seminar done by lighting the traditional lamp by the above dignitaries' along with Mr. JohneyMapgaokar, Mr. Ganesh Apte, Dr.Shete and Mr.SurendraDeodhar to the tune of GaneshaVandhana.

During the inaugural session, Mr. Satish Palekar emphasized the importance of innovation in supply chain management. Cmdr .Sanjeev Sharma spoke about the logistics which is required during defence and Mr. Ashok Sharma in his note stated the importance of digitization of supply chain management.

Mr. Pinak Deshmane – Principal, Accenture Strategy in his keynote address, highlighted the shift in focus of Supply Chains from cock pit to control tower, the skill set need to change. His session gave a bird's eye view of Innovations across segments of Supply chain management. He also spoke the need of zero budgeting in Supply chain Management extensively The session was followed by key note address by Mr Sushil Paigankar - Vice President Digital Customer Experience (DCX) Cap Gemini.

He spoke of the need of digitalisation of supply chain management and its relevance and advantage at the present time. Like a slice of Mango could be sourced out from where it was purchased by digitalisation. He was of the opinion the choice should be given to customer.

MumbaiIIMM - In Pursuit of Excellence in Supply Management

9

In 1954, psychologist Julian Rotter suggested that our behavior was controlled by rewards and punishments and that it was these consequences for our actions that determined our beliefs about the underlying causes of these actions.

Our beliefs about what causes our actions then influence our behaviors and attitudes.

In 1966, Rotter published a scale designed to measure and assess external and internal locus of control. The scale utilizes a forced-choice between two alternatives, requiring respondents to choose just one of two possibilities for each item.

While the scale has been widely used, it has also been the subject of considerable criticism from those who believe that locus of control cannot be fully understood or measured by such a simplistic scale.

It is also important to note that locus of control is a continuum. No one has a 100 percent external or internal locus of control. Instead, most people lie somewhere on the continuum between the two extremes.

• Are more likely to take responsibility for their actions

• Tend to be less influenced by the opinions of other people

• Often do better at tasks when they are allowed to work at their own pace

• Usually, have a strong sense of self-efficacy

• Tend to work hard to achieve the things they want

• Feel confident in the face of challenges

• Tend to be physically healthier

• Report being happier and more independent

• Often achieve greater success in the workplace

• Blame outside forces for their circumstances

• Often credit luck or chance for any successes

• Don't believe that they can change their situation through their own efforts

Those With an Internal Locus of Control

Those With an External Locus of Control

• Frequently feel hopeless or powerless in the face of difficult situations

• Are more prone to experiencing learned helplessness

What determines locus of control?

People who develop an internal locus of control believe that they are responsible for their own success. Those with an external locus of control believe that external forces, like luck, determine their outcomes.

What Role Does Your Locus of Control Play In Your Life?

Internal locus of control is often used synonymously with "self-determination" and "personal agency." Research has suggested that men tend to have a higher internal locus of control than women and that locus of control tends to become more internal as people grow older. Experts have found that, in general, people with an internal locus of control tend to be better off.

However, it is also important to remember that internally does not always equal "good" and external does not always equal "bad." In some situations, an external locus of control can actually be a good thing, particularly if a person's level of competence in a particular area is not very strong.

For example, a person who is terrible at sports might feel depressed or anxious about their performance if they have a strong internal locus of control. If the person thinks, "I'm bad at sports and I don't try hard enough," they might feel stressed out in situations where they need to participate in athletics, such as during a physical education class. If this person takes an external focus during such activities ("The game is too hard!" or "The sun was in my eyes!"), they will probably feel more relaxed and less stressed.

Do You Have an External or Internal Locus of Control?

Where does your locus of control fall on the continuum? Read through the statements below and select the set that best describes your outlook on life:

Outlook 1

• I often feel that I have little control over my life and what happens to me.

• People rarely get what they deserve.

• It isn't worth setting goals or making plans because too many things can happen that are outside of my control.

Purchasing Management

"National Summit on Public Procurement

Innovation In Supply Chain Management''

MumbaiIIMM - In Pursuit of Excellence in Supply Management

5

The customer should feel he is in control.

The next speaker was Mr Vinod Giri, Vice President Commercial, Flipkart, who spoke about the complexities and challenges faced by Flipkart in handling millions of deliveries. He also stated the use of Robots in warehouses to hasten up delivery time and cut down the time of delivery from the placement of order and actual delivery done. And shared many innovative ideas deployed by Flipkart including last mile delivery. The next speaker to follow was Mr. Deven Pabaru-Chief Strategy and implementation Officer, Stellar Value Chain solution Pvt. Ltd. He emphasized the shift from Supply Chain to Value Chain Management. He shared positive sentiments in Indian economy especially with a big push to infrastructure and GST. After his session Mr. Arun Banavali (Ex IIMM Chairman)– Management consultant gave inputs on projects commissioned by HCC like nuclear reactors, hydel power etc done on difficult terrains and hostile weather and high altitude like Kargil and Leh where transportation and logistics of heavy machinery was difficult due the climatic condition and narrow roads was overcome to built these projects on the given time frame. The came Mr. Prabhakar Sarwade – Vice President Tech. Mahindra (Rtd.) who spoke on Bitcoins and the blockchain relevance to Supply Chain Management. The concluding speaker, Mr K.G. Shenoy – Senior Vice President Supply Chain Management Mahindra and Mahindra unfolded the journey of M&M to excellence through Quality initiatives, TPM and the present focus on Digitization, Industry 4.0 as part of the same journey. He explained how digitalisation is helping M&M to boost quality, productivity, agility to achieve leadership position.

All the speakers were felicitated by various IIMM members and given Mementos.

The vote of thanks was given by Dr. Shete to the delegates attending the one day seminar and specially thanked Mr. Surendra Deodhar who was the master of ceremonies.

On 6th Feb 2018, a one day program on Supplier Relationship Management (SRM) & Commodity Price Risk Management (CPRM) was conducted for United Phosphorus Ltd. at their Mumbai Headquarters. Mr. G R Apte coordinated the program. Mr. Virendra Mantri conducted the SRM module &Dr. V. Shunmugam from MCX conducted the module on CPRM. Mr. R. Janakiraman, Director for Global Procurement, requested for more such customized programs from IIMM.

IIMM Mumbai Branch conducted the VII Edition of CPO Roundtable on Friday, 9th February 2018 at Hotel The Lalit, Andheri , Mumbai. The Theme was “Theme : Key Strategies for Procurement to Contribute to Strategic CFO Goals ”

Mr. B V Iyer, Group Country Head Procurement South Aisa , Bayer & Current National Council Member was the Convener of the CPO Forum.

Mr. Satish Palekar, Vice President Head Offshore L&T-Hydrocarbon Engg. Ltd. and Chairman, Mumbai Branch welcomed the participants and gave and overview about IIMM and the activities of Mumbai Branch.

Mr. Ravindra Sharma , Vice President, Business Development – Asia Pacific & Japan at SAP Ariba, was the key note speaker. The event was supported by SAP. Over 50 CPOs from leading companies attended the event.

The Matquiz Semi-finals and Finals was organised on 8th April at Holiday Inn, Saki Naka, Andheri, Mumbai. The chief guest was Mr G.K. Singh – President of IIMM ( Ranchi) The other dignitaries were Mr. Lalbhai Patel Baroda , Mr. SrinavasRao IIMM Chairman Bangalore and Mr. Malay Mazumdar from IIMM Baroda.

The lighting of the lamp was done and all dignitaries light the lamp. There were total 27 (Twenty seven Participant) taking part in Matquiz 2018. The preliminary rounds were done online and finale culminated at Holiday Inn. The contest was keenly fought and competition between the teams kept the audience on the edge of the seat. The final was a 6 round contest which had a nail biting finish.

The teams that took the laurels home were teams from Larsen Toubro team won first prize they were represented by Mr.Sameer Momaya and Mr. Sudam Sahu and the Runners

Newsletter of

Indian Institute of Materials ManagementMumbai Branch

8

What is Locus of Control?

Within psychology, Locus of Control is considered to be an important aspect of personality. The concept was developed originally Julian Rotter in the 1950s (Rotter, 1966).

Locus of Control refers to an individual's perception about the underlying main causes of events in his/her life. Or, more simply:

Do you believe that your destiny is controlled by yourself or by external forces (such as fate, god, or powerful others)?

The full name Rotter gave the construct was Locus of Control of Reinforcement. In giving it this name, Rotter was bridging behavioral and cognitive psychology. Rotter's view was that behaviour was largely guided by "reinforcements" (rewards and punishments) and that through contingencies such as rewards and punishments, individuals come to hold beliefs about what causes their actions. These beliefs, in turn, guide what kinds of attitudes and behaviours people adopt. This understanding of Locus of Control is consistent, for example, with Philip Zimbardo (a famous psychologist):

A locus of control orientation is a belief about whether the outcomes of our actions are contingent on what we do (internal control orientation) or on events outside our personal control (external control orientation)." (Zimbardo, 1985, p. 275)

Thus, locus of control is conceptualized as referring to a unidimensional continuum, ranging from external to internal:

In general, it seems to be psychologically healthy to perceive that one has control over those things which one is capable of influencing.

Is an internal locus of control desirable?

In simplistic terms, a more internal locus of control is generally seen as desirable. Having an Internal locus of control can also be referred to as "self-agency", "personal control", "self-determination", etc. Research has found the following trends:

• Males tend to be more internal than females

• As people get older they tend to become more internal

• People higher up in organisational structures tend to be

more internal (Mamlin, Harris, & Case, 2001)

However, its important to warn people against lapsing in the overly simplistic view notion that internal is good and external is bad (two legs good, four legs bad?). There are important subtleties and complexities to be considered. For example:

• Internals can be psychologically unhealthy and unstable. An internal orientation usually needs to be m a tc h e d b y c o m p e t e n c e , s e l f - e f f i c a c y a n d opportunity so that the person is able to successfully experience the sense of personal control and responsibility. Overly internal people who lack competence, efficacy and opportunity can become neurotic, anxious and depressed. In other words, internals need to have a realistic sense of their circle of influence in order to experience 'success'.

• Externals can lead easy-going, relaxed, happy lives.

Despite these cautions, psychological research has found that people with a more internal locus of control seem to be better off, e.g., they tend to be more achievement oriented and to get better paid jobs. However, thought regarding causality is needed here too. Do environmental circumstances (such as privilege and disadvantage) cause LOC beliefs or do the beliefs cause the situation?

Sometimes Locus of Control is seen as a stable, underlying personality construct, but this may be misleading, since the theory and research indicates that that locus of control is largely learned. There is evidence that, at least to some extent, LOC is a response to circumstances. Some psychological and educational interventions have been found to produce shifts towards internal locus of control

"A locus of control orientation is a belief about whether the outcomes of our actions are contingent on what we do (internal control orientation) or on events outside our personal control (external control orientation)," explained psychologist Philip Zimbardo in his 1985 book Psychology and Life.

Supplier Relationship Management (SRM) & Commodity Price Risk Management (CPRM)

CPO Roundtable-VII Edition

Matquiz

External Locus of Control

Individual believes that his/her behavior is guided by fate, luck, or other external circumstances

Internal Locus of Control

Individual believes that his/her behavior is guided by his/her personal decisions and efforts.

up was Ms. Pooja V. Rao from Bharat Heavy Electricals Ltd., and Mr. Omey Badakh from Tata Blue Scope Steel Ltd.,

This article is for the practising supply chain professionals and draws upon, observations made during the period of work in South Korea.

Amongst the many similarities between Korea and India, one similarity that stands out is that both the countries got independence around the same period & both countries celebrate August 15 as their Independence day.

Korean companies like Hyundai, Samsung, LG, are world leaders with more than half of their revenues coming from overseas markets, whilst Indian MNC's have tasted, limited success with their overseas acquisitions.

One thing which possibly helped Korea, is the insistence on learning from only the best in the world. During discussions with my Korean friends, I heard that Korea considered Germany as their benchmark in the areas of technology, civic planning and cleanliness.

Besides the Vision and the Leadership at the National and Organisational level, it is the focus on Collaboration, Innovation, Digitisation and Agility, which is mainly responsible for Korea's phenomenal success.

The best example of Vision and Leadership at a National level is the eight lane Seoul – Busan Highway, built in the early sixties when most of the highways in the worldwere four lanes. This was the time,when Korea was a poor nation.

Newsletter of

Indian Institute of Materials ManagementMumbai Branch

6

At an organisational level the vision and leadership is reflected in their ability to sense the economic need, much before the competition. While other car makers were planning to export from India, Hyundai India,taking advantage of the low cost manufacturing, already shipped out more than 45,000 Creta SUV, to other overseas markets and has set an export target of more than 60%.

Supply Chain Management(SCM), as we know is an integrating philosophy to manage, the total flow of a distribution channel from supplier to the ultimate customer. The purpose of SCM is to minimise waste and add value to the entire network. The success of SCM depends on the extent to which the various players in the chain work in a collaborative manner towards this purpose.

Collaboration:-

Communication speed and transparency – Decisions taken at the headquarter level in the morning, are known to the departmental level team members by the end of the same day.

Early supplier involvement - The complete project details for a new product to be developed, like capital investments, volumes, scope of the project, launch timings, are communicated to all the suppliers with clearly spelt out expectations.

Cross functional working – The design, manufacturing and purchasing members from the customer end, work shoulder to shoulder with their counterparts from the supplier end. Together, as one team they are committed to deliver on the quality, cost, quantity, time and service targets for the project. This team is responsible to address or escalate deviations from the set targets, if any.

Customer delight – It was a general observation that, after a hard round of negotiation, the seller usually gives his customer something extra to leave a sweet taste of the transaction.

Innovation :-

Frugal mind set – As a nation, Korea is not gifted with natural resources. More than 33% of land is mountainous with extreme cold and summer during a year. The Koreans, sensitive to the fact that, they cannot afford to waste any resource put a lot of emphasis on doing things, right the first time with detail planning, covering for contingencies.

Learning attitude – Thirty minutes before the start of the working day, are reserved for learning. Similarly, some part of the lunch time is also reserved for learning and stress relieving. During lunch breaks, I have seen people reading at their desk,

MumbaiIIMM - In Pursuit of Excellence in Supply Management

7

Virendra S Mantri

About the author:

The author works as aTrainer and Consultant for MSME's. He is also an EC member at IIMM, Mumbai.

A person with an internal locus of control believes that he or she can influence events and their outcomes, while someone with an external locus of control blames outside forces for everything. This concept was brought to light in the 1950's by Julian Rotter.

Locus of control refers to the extent to which people feel that they have control over the events that influence their lives. When you are dealing with a challenge in your life, do you feel that you have control over the outcome? Or do you believe that you are simply at the hands of outside forces?

If you believe that you have control over what happens, then you have what psychologists refer to as an internal locus of control.

If you believe that you have no control over what happens and that external variables are to blame, then you have what is known as an external locus of control.

Your locus of control can influence not only how you respond to the events that happen in your life, but also your motivation to take action. If you believe that you hold the keys to your fate, you are more likely to take action to change your situation when needed. If on the other hand, you believe that the outcome is out of your hands, you may be less likely to work toward change.

some watching movies, some

listening to music and some even sleepingat their workplace, without bothering about what the seniors would say.

There are libraries and learning centres on the shop floor for the workmen to learn and improvise. I did not come across any self-proclaimed expert, willing to offer his expertise without any asking. Respect for domain expertise, is openly seen for all functions and no function assumes secondary importance.

Digitisation :-

Knowledge economy - Korea is not a cricket loving nation but Koreans are test match players. I have seen my Korean friends working for years, understanding development of one single item with just one aim in mind, that they should be the best and should be recognised as an authority on the subject. Their experiences are digitised and available on the central servers for reference and improvisation.

Local search engine – Naver is the preferred online platform with its own search engine. Just like we use google search, my Korean friends would do a NAVER search for everything they wish to know.

Having got a preliminary understanding of the subject, they would then develop their knowledge by interacting with internal and external experts on the subject.

Agility :-

Physical fitness – Korean citizens, before start of professional life spends few months in military service which makes them physically fitter and agile which is reflected in the working. Every day before start of work, there is a 10minute workout covering basic stretching, bending and breathing exercises.

Respect for time :-

Meetings start in time and end in time. There is a lot of preparation done before the meeting. Meetings are mostly concluded by communicating the decision taken or the direction received from the top.

If the meeting happens to be an external one, and if it is the first time,then the profiles of key personnel are exchanged before the meeting. The profiles include current designation, date of birth, name of the University at which studied,etc. This preparation helps both sides to understand the respect to be given during the discussions. Members,

senior by age or designation or University ranking will command higher respect.

Commitment :-

A lot of planning is done before making any commitment to the other side. Failure to honour commitment amounts to loss of face and reputation which in some cases can attract penalties.

To conclude, Supply Chain Management is a team sport and practising Supply Chain Managers need to work as one agile team with focus on innovation, learning and renewal.

Article - Supply Chain Management Learning from the BestArticle

“ Locus of Control and Your Life “Are You in Control of Your Destiny?