Marketing Management Araft

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Marketing Management

Marketing is an attempt to create awareness of the company, its projects and generate newenquiries. Today Advertising, sales promotion, extensive dealer network etc., are the important

functions of marketing. Different modes of marketing produce different results and their

comprehensive analysis helps an organization in correct decision making. But equally importantfor the organization is to know, how a particular strategy worked in the promotion and success ofa specific project. Marketing Management Module provides various tools of marketing for the

organization to get complete information regarding the conversion of an enquiry into a salethrough a specific mode and the quantum of efforts behind it, both in terms of finance and

personnel. Complete follow up history is maintained that makes the entire process, system drivenrather than person dependent. Other important tools of marketing like appointments for the

executives, their work schedules, alerts for follow ups are also available on this module.

Salient Features

y Comprehensive details of various open projects as per different parameters ( unit types,group, block, floor, rates etc.) for the marketing executives to offer from the vast range ofcategories.

y All Advertisements and other promotional activities are defined and categorized withtheir cost to company and are linked to the enquiries generated.


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y Extensive search option to explore the availability of a particular unit as per thecustomer's choice.

y Provision to rate potentiality of a customer by the executive on a defined scale. Thisensures follow up on priority for the highly potential customer.

y Database of all potential customers with their complete follow-up history and respectivealerts.

y Cost incurred by the company on the advertisements by various dealers and theirconversion ratio can be computed.

y Average marketing cost for a sale can also be derived.

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Purchase Management

This module deals with the inventory of all construction materials, consumables equipments &

asset items at different project sites of the company along with their purchase and supplierdetails. The Store issues items/equipment to various users and details are recorded. Once the

stock reaches below the reorder level, it generates a requisition for purchase. This also maintainsrecords of purchases, stock, and supplier list, item/equipment/material master tables.

The Store module ensures that there is a round the clock availability of a sufficient quantity of

materials in a mode that neither hinders efficient construction work, nor it becomes a financialburden on the company.


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The Store module ensures that there is a round the clock availability of a sufficient quantity ofmaterials in a mode that neither hinders efficient construction work, nor it becomes a financial

burden on the company.

Salient Features

y Details of all items, its suppliers and purchase details.y Items can be categorized under different groups.y Items can be defined for the particular site i.e. a particular site will be able to view only

those items which comes under it.y Generate Purchase order linked with purchase requisitions.y Maintain Stock of all Stores & Multiple site Stores.y Maintain vendor details from whom Items are being purchased.y Store can acknowledge return of purchased item.y Maintain Reorder Level of Items and warn accordingly

pply Chain Management : Enterprise Resource Planning

The goal ofERP (Enterprise Resource Planning) systems is the successful integration of acompanys data and processes in to a single unified system. Usually, several components of

computer software and hardware are employed in order to realize this goal. A unified databasemust be employed in order to store data for the various modules of the system.

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History of Enterprise Resource Planning

Originally, the term enterprise resource planning was employed to designated systems used by

enterprise wide resources. It was originally used in the context of manufacturing, but in todays

world, enterprise resource planning is used in a variety of spectrums. It can be used to unite allbasic functions of a company, no matter what kind of company it is. Indeed, enterprise resource

planning is used by governments, non profits, and corporations alike.

In order to be considered a legitimate enterprise resource planning system, the software package

has to provide functionality in a single package that would normally involve two or moresystems. To give one example, a software program that provides payroll and accounting is a

legitimate enterprise resource planning software package. But the term is usually used in relationto bigger, more broadly based software applications. Using an enterprise resource planning

system can not only replace several functioning applications, it will also eliminate the need forexternal interfaces that systems might have required before, as well as supplying further benefits


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that might range from lower maintenance and standardization to more convenient reportingabilities.

ERP Overview

Many companies that boast the necessary in house IT skills to integrate several software

programs decide to implement just a few portions of an enterprise resource planning system.They will then develop an external interface to other similar systems being employed to take care

of their other application needs. To use an example, in some instances the PeopleSoft HRMSsystem might be perceived to be better than SAPs HRMS system, or vice versa. So a company

might choose to buy an enterprise resource planning system, but desire the PeopleSoft HRMSand Financial modules, but then buy the remaining applications from the SAP company.

Even in the retail world, this is a very common practice. Even middle sized retailers often havediscreet Point of Sale products and financial applications, which are then rounded out by an

application series that will take care of such facets of the business as merchandising, logistics,warehouse management, and the rostering of staff.

In an ideal enterprise resource planning system, the database would take care of all data,including manufacturing, supply chain management, finances, projects, human resources,

customer relations management, as well as data warehousing.

Originally, enterprise resource planning systems were rooted in material requirements planning.When the routings became part of a software architecture and the organizations planningcapacity became part of standard software activity, the enterprise resource planning system was

born. Usually, an enterprise resource planning system will oversee the logistics, production,inventory, distribution, accounting, invoicing, and shipping facets of an organization. Enterprise

resource planning system software helps numerous business activities; these might include sales,inventory management, human resource management, quality management, marketing, billing,

delivery, and manufacturing.

Enterprise resource planning systems tend to be mislabeled back office systems. This infersthat customers are not involved at all with the systems. Front office systems, such as customerrelationship management, deal with customers directly, as to eBusiness systems like eCommerce,

as well as supplier relationship management systems.


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Cross functionality defines enterprise resource planning systems. All the departments involved inmanufacturing or operations can be effectively integrated in to a single functioning system. This

could include accounting departments, as well as marketing, strategic management, and human

resources, in addition to warehousing, Information Technology, logistics, and production.

Before enterprise resource planning systems were developed, all the departments that compriseda company would have to rely on their own separate computer systems. The system belonging to

the Human Resources department would usually contain employees personal data, as well asinfo on the department itself and the reporting structure. The PR department would take care of

paycheck info. The Finances department would have a system that dealt exclusively with thecompanys payment transactions. In order to communicate with one another, the various systems

would require a certain amount of common data. For the Human Resources department to be

able to send salary info to the PR department, for example, there would have to be a staticemployee number assigned so that the employee in question could be successfully identified bythe two systems. Because of this confusing system, many complications would arise.

The development of enterprise resource planning systems led to the combination of data amongapplications that used to be strictly separate. Organizations thus no longer had to worry about

keeping their data in synchronization across numerous different systems. Larger organizations nolonger had to worry about the vast number of software specialties that were previously required

to keep the business running.

Enterprise Resource Planning Best Practices

One benefit of installing an enterprise resource planning system is known as Best Practices. If a

company does not wish to customize their enterprise resource planning system, they can choose

the Best Practice function, which comes with the softwares basic version.

Best Practice usually applies to larger companies that have compliance requirements, or wherethe process depends on commodities like electronic fund transfers, owing to the fact that theprocess of capturing and reporting such content can be easily codified within the enterprise

resource planning system, and subsequently replicated across several different businesses thathave similar requirements.


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Implementation

Enterprise resource planning software systems can be quite complex. Installing such a system

almost certainly requires major changes within the companys work practices. A specialist willtypically have to be employed in order to soothe the transition, as such systems are not typically

in house skills. How long it takes to install such a system depends on how large the business is,as well as the extent of the changes being made. Smaller projects can be installed within a period

of three months. In order to install a large system, however, it could take several years. What ismost important, however, is for the company who has purchased the enterprise resource planning

system to eventually take control over it. First, they will generally have to employ a consultingcompany to help them. Consulting companies generally help the company in three phases:

consulting, customization, and support.

The consulting phase takes care of the enterprise resource planning system implementation and

helps the system go live. The tailoring involve might include product training, the creation ofprocess triggers as well as workflow optimization, advice on how to improve the way the system

is being used in the business, the optimization of the overall system, as well as help with writingreports or assisting in the implementation of Business Intelligence. The consulting operation also

includes planning and testing the system. This part of the process should not be forgotten about it is of vital importance for the systems future functionality.

The three levels of enterprise resource planning system consultation include systemsarchitecture, business process consulting, and technical consulting. The systems data flow will

have to be designed by a systems architect; this design should include a future data flow plan.The firms current business processes will then be studied in depth by the consultation team, who

will match the current business processes with the enterprise resource planning systemscapabilities and configure all the firms needs. The process of technical consulting might include

programming operations. Most of the businesses that sell enterprise resource planning systemsoftware will allow their software to be modified in order to suit particular business needs.

The customization process involves changing how the firms system works via the writing ofnew user interfaces as well as application codes. Typically, these operations are not included in

the enterprise resource planning system software and must be done by a specialist team.

It can be incredibly expensive to customize an enterprise resource planning system. Most of

these packages are not designed to support extensive customization. As a result, the vast majorityof firms choose to utilize Best Practices, a method that is outlined above. On the other hand,

there are some enterprise resource planning systems that are so general that customization will


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have to take place on every level. For such packages, it is advisable to purchase third party plugins that interface well with the enterprise resource planning system software.

e the system has been successfully implemented, your consultant should provide you with

support in order to assist your company with any enterprise resource planning system related

problems that may occur in the future. This ensures that the system stays running. It is advisableto create a committee to be headed by the consultant using a participative management approachthroughout the design stage in order to provide hands on management control and minimize

additional costs for the units that are going to be affected by the new enterprise resource planningsystem.

Usually, a maintenance agreement program supplies the business with all the patches of thecurrent version, including major and minor releases. Your staff should be allowed to make

support calls whenever necessary. The price of this type of agreement is usually around twenty

percent of the enterprise resource planning systems user licenses.

Building Better Supply Chain

Author : Exforsys Inc. Published on: 31st Aug 2007 | Last Updated on: 9th Sep 2007

Building Better Supply Chain

In order for your company to remain relevant in todays marketplace, it is essential to continually

look to evolve your supply chain process. Companies that prosper and minimize their costs while

maximizing their profits and keeping customers happy realize that this habit of continual supplychain evolution relies on well thought out and well applied redesign efforts. And this redesign isaccomplished by using computer systems to perform detailed analysis and perform more

efficient supply chain planning. In this article, youll learn what some of these analytical systemscan offer your business.

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Why Redesign?

You may be wondering, My supply chain functions fine! Why spend all this effort in some big

redesign effort that might end up only saving a few measly bucks? The answer to this questionlies in the Japanese concept of Kaizen. Kaizen is the principle of continuous improvement that

was popularized by certain Japanese companies, notably Toyota.


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The purpose of Kaizen is to use scientific and analytical methods on a daily basis to eliminate allexcess and waste within an organization through the process of making gradual and continuous

improvements to the products, habits, and functioning of the organization. In order to bemaximally effective, the philosophy of Kaizen must be shared and practiced every day by each

member of the organization.

Some examples of things that the Kaizen method would seek to improve are:

y The quality of products (for example, an herbal supplement company seeking to remove asmany impurities as possible and increase the value of its product to the customer);

..

y The speed of an assembly line;.

y Product design (in certain cases, companies that followed the Kaizen principle would actuallytemporarily stop an assembly line upon finding a defective piece of equipment so that the

defective piece could be examined and improved upon, while suggestions were given to prevent

the defect from happening again);

.

y Shipping and storage costs and efficiency;.

y Customer service response times (for example, constantly striving to reduce the time thatcustomers spent on hold before being able to speak with a representative who could help them

resolve their problem);

.

y And reducing the number of products returned.Applying the philosophy and practice of Kaizen to your supply chain (and to the rest of your

company) will benefit your company by creating an ever-increasing improvement in the valuethat your product has to your customers.

More value for customers means more loyal customers who spend more money and even referyour product or company to their friends as a result of their enjoyment of doing business with

you. It will also reduce supply chain costs that eat away at your profits. This is whats called awin/win situation.

Step 1: Determine Project Objective, Facilities And Needs

So, with the concept of continual improvement in mind, the first step in building a better supply

chain is to determine your project objective, facilities and needs. This means that you must


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Likewise, if customer demand for your product is high, then that is a signal that the benefits ofyour redesign project will be maximally effective because in a high demand environment, getting

more products to your customers more effectively means more sales. Conversely, if your

customer demand tends to be erratic, or is seasonal (fashion accessories, for instance), then youshould factor this into your planning process.

Also, determine the range of your supply chain redesign. Is your company local, regional,

nationwide or international? Your companys range will affect your redesign effort in severalways.

For example, international product delivery rates will have an impact on your shipping costs.Also, in todays age of heightened global tensions, dealing with security and privacy concerns

should also be a consideration.

The next task is to assess your supply network. This includes identifying both your supply

manufacturing needs (for example, identifying where you get your raw supplies from) and yourmeans of distribution. When assessing this network information, its important to remember that

the data can vary according to the time frame.

For this reason, it may be necessary to design different redesign analysis models that represent

different scenarios. For example, one model that represents a short-term, seasonal analysis andanother that represents a longer term approach.

Step 2: Identify People, Places and Things

As supply chain manager or logistics executive, your goal in this step is to identify your

customers, transportation and shipping methods and means of storage. The first objective is toidentify your customers. Specifically, this is where you gather data related to customer demand.

You can use electronic records of sale such as customer receipts and shipment records, as well asinvoice materials to determine the volume of product that is being delivered to your customers.


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Supply Chain Management : Distribution

Alongside product management, promotion, and pricing, distribution is one of the four key

components of marketing. In simple terms, distribution provides an inlay between the producerof a product and the seller of that product. After a product is made, it is usually then sold to a

distributor, who in turn will sell the product either directly to customers, or to retailers who willin turn sell it to customers.

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What is Distribution?

Throughout history, distribution has been related to questions in the field of logistics, namely,

how does one get a particular product to a customer. Thus, the distribution end of supply chainmanagement must contend with such decisions as to whether to sell the product directly, or

through a retailer; whether the product should be distributed on a wholesale basis; whether theproduct should be sold via multi level marketing channels; whether members of the channel

should share advertising costs, etc.

The Channels of Distribution

Quite often, there is a chain of intermediaries who pass the product down to other organizations.The product might change hands several times before it eventually reaches the customer. This is

what the distribution channel means. The producer has to take in to account the fact that eachlevel of the distribution channel might have particular needs they are hoping to have fulfilled by

the product and that is before it even reaches the end user!

Several distribution channel options might be available, depending on the exact nature of theproduct or service you are offering. It might be best, for example, for you to eliminate thechannel altogether and sell direct via the Internet, mail order, or the telephone. Or you can go

through an agent, who will sell your product directly on behalf of you. Alternately, you can use adistributor, who will sell your product to retailers. They, in turn, will make sure your product get

to end customers.

There are many ways by which a product might be sold. But services are also sold in thisfashion. Hotels often sell their service, which is essentially a room, via travel agents, airlines,centralized Internet portals, etc.


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In fact, recent years have seen a number of innovations in the sector of service distribution. Oneinstance has been a vast increase in rental services as well as franchising. Rental services these

days might offer anything from tools through televisions and beyond.

There has also been a lot of integration in the service industries, with two or more relatedservices coming together to offer related services. This is particularly evident in the area oftourism and travel. Sometimes, you can rent a car, book a flight, and book a hotel all on the same

website. There is also an increasing demand for retail outlets for services. In shopping centers,you can easily find travel agencies, real estate companies, and more service providers.

There can be a number of different levels to each distribution channel. There is the zero levelchannel, which involves distribution with no intermediaries whatsoever. The one level channel

involves one intermediary in the case of consumer goods, this usually refers to the retailer. If itis industrial goods we are talking about, then that one intermediary will generally be a

distributor. For smaller markets, using a zero or one level scheme can be quite practical andeffective.

For larger markets, however, it is generally better to use a two level system, which will involve awholesaler. This enables a ton of smaller retailers to receive and sell the product. The Japanese

market uses even further levels than this, having evolved a highly complex distribution systemfor even simple consumer items.

In the realm of supply chain management, of course, we must also take in to consideration therelationship among the various members of the distribution channel. Generally, the relationship

among the players can be described in one of three ways. First, there is the conventional channelrelationship, which involves a bunch of middlemen passing the goods on from the producer to

the end user. Then, there is the single transaction relationship, wherein a channel is set up foronly one transaction. This frequently happens when a piece of real estate is sold, for example.

Then there is the Vertical Marketing System, or VMS, in which disparate distribution elementsare all integrated in to one cohesive system.

Keep in mind that a lot of the marketing techniques that you apply to external customers of yourcompany can also be applied to each divisions internal customers, as well. This might come

about in the form of a formalized arrangement, wherein goods are transferred to different units in


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the distribution channel at a transfer price. When this happens, all sides should view theinteraction as a normal relationship between a buyer and a seller. The same marketing techniques

can thus be employed.

Whats more, administrative and service divisions of the business can also employ marketingtechniques. These techniques can be used to optimize their relationship with their customers,who may only be the other members of the organization. The way that non-profit organizations

have typically dealt with their clients is a good example for this.

Management of Distribution Channels

It is important to make a wise, informed decision about how extensive your businesss

distribution channel shall be. If you want to achieve wider distribution, then the cost will be a lotlower if you use intermediaries. In fact, the vast majority of product manufacturers are unable tosell directly to customers, as it would be way too costly for them. The bigger the producer, the

more intermediaries should be used in order to have a cost effective operation.

Most of the concepts surrounding distribution channels are related to costs. Many of the practicalmatters relating to distribution channels, however, have to do with customer control. A lot ofbusinesses think that by selling their product in to the distribution channel, their role in the

matter has come to an end and they no longer have to do any work. But in order to be effective, it

is vital for businesses to take a market-oriented approach and manage every level of theirproducts distribution until it arrives at the end user.

There are three levels of channel distribution membership. The first one is intensive, wherein alarge majority of the resellers are stocking the product. The normal pattern, however, is selectivedistribution. In this membership model, only suitable resellers are selling the product. Finally,

there is exclusive distribution, in which only selected resellers are permitted to sell the product this is usually one seller per geographical region.

Sometimes it can be tough for suppliers to motivate their distribution team to provide the salesthey require. There are many ways a company might motivate their distributors to make more

sales on behalf of their organization. One way is through bribery, wherein you offer a betterprofit margin to tempt your distributors to push your product rather than the competitions.

Alternately, competition might be offered to the sales personnel of the distributor, tempting themto push the product. There is another side of the spectrum wherein the personnel of the agent are


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trained to the same standard as the suppliers own sales staff. These instances are quite rare,though.

A vital element of supply chain management is the management and monitoring of thedistribution channels. Just like a companys own sales and distribution departments have to be

overlooked and taken care of, each level of the distribution chain will have to be managed in asimilar vein. In reality, however, most companies utilize a mixture of different distribution

channels. They might help compliment a direct sales team, call on bigger accounts, work withagents, or help take care of smaller accounts and prospects.

One of the more recent developments in distribution is the concept of vertical marketing. Thisunites the producer, wholesalers, and retailers in to one integrated channel. Sometimes this

happens as a result of one of the members of the distribution chain owning the others outright this is referred to as corporate systems integration. For example, a supplier might own its own

retail outlets; in this case, it is called forward integration. Backward integration, in which theretailer owns its own suppliers, is a much more common example. The furniture retailer, MFI,

falls in to this category, as they own Hugena, who manufactures their kitchen and bedroom units.Another integration model occurs via franchising, as is the case with McDonalds fast food

restaurants. Another model occurs with simple cooperation, in the sense that Marks & Spencercooperates with their suppliers.

Another approach is via a contractual system. These are often dictated by retail or wholesalecooperatives.

Then there are administered marketing systems. When one member of the distribution chain withmore power is able to use its position to coordinate the activities of other members, then there

could be said to be an administered marketing system. Typically, it is the manufacturer who hasthe dominant position in this scenario.

The point of vertical marketing is to give everyone on the distribution channel some power overwhat goes on there especially the retailers and suppliers. Research shows, however, that it is

best to pursue these strategies at the mature stage. If one sets out at an early stage of the productusing these methods, it could do more harm than good in terms of profits.


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These methods can also pull attention away from more important business matters. Theoretically,suppliers do not do well in retail situations, whereas retailers should focus on selling rather than

on bothering with manufacturing facilities.

Then there is horizontal marketing, which is used less often and has less to do with marketing. Ittypically refers to situations in which several non competing businesses work together on a

venture because it is beyond their capacity to go at it alone.

ply Chain Management : Inventory

Author : Exforsys Inc. Published on: 24th Jun 2007

Supply Chain Management : Inventory

What is Inventory?

Inventory refers to the list of goods and materials in stock by a particular company. The purpose

of inventory is to manage and conceal the fact that oftentimes manufacture delay lasts longerthan the delays in delivery. Inventory also eases the imperfections that result as part of the

normal manufacturing of a product. These imperfections can lower production efficiencies in

those instances where production is idle owing to a lack of needed materials.

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Business Inventory

The following stock reasons might apply to any stage of the product or any owner.

Buffer Stock: Sometimes the upstream workstation might get delayed in providing the next partthat needs to be processed. In that case, a buffer stock is held at each workstation. Depending on


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Changeover stock: When a sub-process has a long set up time, then changeover stock willaccumulate. While the change over is occurring, this stock can be used up. Tools such as SMED

can help eliminate this changeover stock.

All of these inventory stock classifications apply to the entire supply chain not just within oneparticular plant or facility.

Those in supply chain management who have to deal with inventory must learn a set of specialvocabulary terms. One of these is SKU, or Stock Keeping Unit. This describes the combinationof every single component that goes in to the assembly of a product. Anytime the packaging or

product itself undergoes a change, then a new Stock Keeping Unit has been created. Keepingtrack of this helps one to manage the inventory.

Another important term in inventory is stock out. When you run out of the inventory of a StockKeeping Unit, then the term stock out is used.

Another term is NOS, or New Old Stock. This refers to a product that was made a long time agobut has never been used and is now being offered for sale. Sometimes that product is not beingproduced anymore, and the New Old Stock represents the sole source of a particular product at

present.

Accountants often treat inventory in terms of goods to sell. But a lot of organizations, such as

non profits and manufacturers and service providers, have a whole store of inventory that is notintended for sale, such as furniture and office supplies. The inventory of manufacturers anddistributors and wholesalers tends to gather up in warehouses or similar storage spaces. The

inventory for retailers might be kept in a similar warehouse or a shop that is customer accessible.Inventory that is not intended to be sold to customers may be kept in any area of the business.

Stock is merely money in disguise. If the stock is not controlled, then theft may occur.


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A company that manufactures products will divide their sellable goods in to three different

categories: raw materials, meaning those materials that will be used to create a product; work in

process, meaning materials that have already begun to be transformed in to sellable goods; andthe finished goods themselves, which are already ready to be sold to clients. Finally, there mightbe goods for re-sell that the company counts as inventory.

When it comes to accounting for inventory, every country has its own laws. In the United Statesof America, the Financial Accounting Standards Board, among others, regulates inventory laws.

The United States Securities and Exchange Commission then enforces the laws. Inventorymanagement can have a major effect on a businesss internal operations via their cost accounting

methodologies.

Inventorys internal costing and valuation can be quite complicated. In the old days, the vastmajority of enterprises ran on a one process basis. This is seldom still the case in our

technological era. Where these one process businesses still do exist, then an independent marketvalue exists for that product.

In todays complicated world, with numerous multi stage process organizations, much inventorythat is held that would have once been classified as finished goods is now categorized as work in

process. The valuation of these goods is a management decision, as there is no market for apartially finished item. The arbitrary valuation of work in process, in combination with the

allocation of overheads, has led to some results that are not very desirable.

The inventory of a company can be a mixed blessing. On the one hand, on a balance sheet itcounts as an asset. On the other hand, it can tie up funds that might be used for other purposes. It

also must be protected, which requires extra money. Inventory might also be a burden on onestaxes, depending on what the particular countrys tax regulations are on the depreciation of

inventory.


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On a companys balance sheet, inventory will appear as a current asset. This is because the

company can turn that inventory in to cash via selling it. Some companies might hold larger

inventories for this very reason they can inflate their apparent asset value, as well as theirperceived profitability that way.

If a company stocks too little inventory, then they will not be able to take advantage of biggerorders from clients, as they will not be able to deliver. Indeed, here we must come face to facewith two conflicting objectives: that of customer service and that of cost control. These interests

can and oftentimes do pit the companys operating and financial managers against theirmarketing and sales offices. If goods are unavailable at a particular time, this is likely to anger

the sales department, who may be working on commission. The solution to this problem is toreduce the time of production to being nearly identical to the delivery time expected by the

customer.

21st Century Cost Accounting

The accountant should help the company make better, more informed decisions in regards to

their inventory. They can also help effect a wider change in the public sector that will result in an

increased value in the investment of the tax payer. Wise accounting measures with regard toinventory can also aid the incentivization of progress, making sure that reforms are bothsustainable and effective in the long run. It can also help ensure that success is recognized in the

companys reward systems, in both a formal and informal way.

This is where accounting plays a key role in supply chain management. It should be obvious toall involved that finances play a major role in nearly every aspect of a business. It should alsohelp determine whether or not the business is going about its day to day activities in an

appropriate, ethical fashion. Foundations have to be laid firmly to ensure that the public hasconfidence in a particular business if not, then all will be lost.


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It is also the responsibility of the finance department to provide all the necessary information,advice, and analysis to help the service managers of the company operate in a more effective

fashion. This transcends the typical every day concerns with budget that so many of us arepreoccupied with. It has to do with helping the company attain a higher understanding of how it

performs in the market. This entails making connections between different fields as well as

comprehending the complex relationships that exist among given inputs, which are the resourcesbrought to bear, as well as the outputs and the outcomes that they attain.

LIFO and FIFO Accounting: When a dealer sells products from an inventory, the inventorysvalue reduces by the cost of the goods sold. In the case of commodity items that cannot be

tracked individually, the accountant has to determine a good method to identify the type of salethat has taken place. The two most common methods are first in, first out (FIFO) accounting

and last in, first out accounting (LIFO.) The former refers to the first unit in the inventory as

being the first one to sell, while the latter considers the last unit in the inventory as being the firstone to sell. Depending on what method the accountant chooses, it can have a significant impacton taxes, value, and net income. By utilizing a LIFO accounting system, the business will report

lower net income as well as lower book value due to inflation. As a result, the company does nothave to pay high taxes. Some countries have banned LIFO accounting for this reason.

Standard Cost Accounting: In standard cost accounting, efficiencies, a form of ratio, are

employed to compare materials and labor that were used to produce an actual good to the same

goods that would have been required under the standard conditions. As long as the two rates aresimilar, there should not be much of a problem. It is true, however, that this kind of accountingdeveloped over a century ago, when labor formed most of the cost in the production of products.

Now labor constitutes a minor part of the overall cost, but this type of accounting continues tofocus on it.

Standard cost accounting can also be quite harmful to an organization. If a policy decision ismade to increase inventory, then the managers performance evaluation could be harmed. This is

because in increase in inventory necessitates an increase in production, and as a result, processeshave to operate at a higher rate than before. This means that if something goes wrong, then the

process is going to take longer and use up way more of the labor time than is usual. Despite thefact that the management has no control over this problem, they will then seem to be responsible

for the excess.


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During tough financial times, business might utilize the same efficiencies to right-size, downsize,or reduce their labor force by other means. Workers who lose their jobs under such

circumstances do not have control over excess inventory and cost efficiencies, putting them inthe same helpless state as their managers.

It is thus advisable to find an alternative to this type of accounting something that is easier saidthan done.

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Theory of Constraints Cost Accounting: The theory of constraints was developed by oneEliyahu M. Goldratt in order to address cost accounting problems. The theory is based on the

idea of throughput accounting, in which throughput money obtained from items sold tocustomers is used instead of output items that might sell or might boost inventory. Labor isconsidered as a fixed cost rather than a variable one under this scheme. Goldratt defines

inventory as everything that a business owns that it plans to sell, including such things asmachinery and buildings. Throughput accounting only acknowledges a sole class of variable

costs: that is, operating expenses such as components and materials that depend on the quantitybeing produced.

National Accounts

In todays business world, inventory plays a significant role in national accounts. It also

contributes to an analysis of the business cycle. Occasionally, short-term macroeconomic

fluctuations can be attributed to the cycle of inventory.

Head-Supply Chain Management

The Company

The opportunity is with a leading infrastructure company involved in the construction of national

highways, railway lines, irrigation projects and industrial infrastructure from design to execution. The


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organization is a young, professionally managed infrastructure company with highly skilled and

experienced team of associates and projects all over India.There areas of expertise lie in the sector of

transportation, irrigation, power and urban infra.

The Role

The role of the Supply Chain Head, wouldprovide Leadership and take Ownership for the entire gamut

of Supply Chain Management which includes Asset Management, Procurement, Inventory & Stores and

Contract Management. This role would also involve:-

y Managing Procurement for Pan India Operations

y Helping the group in controlling costs by alternate sourcing & value engineering

y Implementing Structured Budgeting & Costing methods

y Established Strategic tie-ups for major materials with both Global & Local vendors

y Build a team of highly charged professionals

y Responsibilities of Contract Management, strategic sourcing, procurement & maintenanceof assets/machinery & materials required for all projects.

Purchase & Logistics

y Strategic Sourcing, Vendor Development, Long term tie-ups with vendors,

Negotiations for Procurement of Imported materials / Capital Equipment / Assets /Services etc

y Work closely with team for brining improvements in Supply Chain

y Prepare & manage the budget for the department ensuring the objectives of thedepartments are met within the agreed cost estimated.

y Monitor procurement activities & maintain the highest level of quality lowest costand designs and implementation of suitable logistics for the same.

y Initiate cost reduction programs and establish strong vendor relationships, negotiatecontracts and execute processes for purchase, receipt, inspection and payment ofmaterial conforming to sound ethical practices

y Initiate and administer company contracts related to procurement of material andalso Plant & Machinery and establish systems for tracking, reporting, vendor quality,

delivery and cost.

y Meeting budgeted targets on cost savings.


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Vendor Development

y Developing long-term partnerships with local & foreign suppliers; managing supplier

performance to ensure meeting of service, cost, delivery and quality norms.

y Consistently evaluating vendor performance to ensure adherence to predefined specifications

and supply of quality material / execution of job works.

Procurement

y Final Negotiations with Vendors for every material.

y Preparing MOU for long terms contracts i.e. Steel /Cement and other bulk material.

y Preparation of own cost estimates; compare the bids with our cost estimate.

Providing cost inputs of materials, sub-contracts and equipments.y Strong interpersonal skills. Successful in developing and nurturing business

relations.

y Providing price approvals for purchase done under other divisions with Proven

Negotiation skills.

Stores and Inventory Control :

y Monitor & ensure Material Reconciliation, Vendor supply reconciliation, Shipment

reconciliation. Scrap Management

y Inventory Monitoring and Control through ABC analysis.

y Statutory regulations and compliance, Audit observations and solving audit queries.

y Ensuring 100 % accountability, Traceability and Quality standards.

y To ensure all statutory & legal compliances related with materials department &

ensure zero NCR in ISO audit

y To participate in Make or Buy decisions with project management

Assets Management


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y Formulate company's contracts & procurement manual companywide for uniformpurchasing policies.

Maintaining Safe work practices in all activities achieving-Zero Accident target.

Marketing Management Araft

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