Supply Chain Management in Emerging Markets

Supply Chain Management in Emerging Markets Emerging markets are nations with social or business activity in the process of rapid growth and industrialization. Facing pressures to cut costs, especially labor and materials, companies have been turning to emerging markets for facility locations. As a result, the supply chains have become increasingly global and complex, creating risk at every level of product development, manufacturing, and distribution. The problem lies not with capacity, but with protection of intellectual property rights, maintaining component quality and compliance with international trade regulations. Emerging markets can bring a company closer to suppliers and raw materials, cutting transit time but breaking into new markets in countries with little experience of manufacturing the components required is the ultimate challenge for a supply chain manager. The International Financial Corporation coined the emerging market term (more specifically: Emerging Financial Markets) in 1981, to describe certain countries. The term has expanded in meaning to reflect business opportunities in countries with social or business activity in the process of: Rapid growth Industrialization In pursuit of new opportunities and lower cost operations, companies are creating complex global networks. Impact on supply chain planning and management has been significant. Increased volatility and uncertainty of supply chains require: Greater flexibility and forecasting capability Sophisticated understanding of emerging markets Ability to assess and manage both risks and opportunities A number of universities and business schools have undertaken research to study and understand various aspects of Emerging Markets. It is difficult to make a list of emerging, developing and developed markets; the best guides tend to be investment information like The Economist or market index makers (such as Morgan Stanley Capital International). FTSE Group, a provider of economic and financial data, distinguishes between various markets on the basis of their national income and the development of their market infrastructure and assigns the market status of countries on the basis of their economic size, wealth, quality of markets, depth of markets and breadth of markets. Many companies want to benefit from emerging markets sourcing but often neglect to build integrated business processes to manage the added complexity in the supply chain, and fail to connect various corporate functions in managing both short-term and long-term business needs. Integrated Supply Chain Planning Coordinating product development, supply chain and sales and marketing activities that are oceans and time zones apart has become more difficult as supply chain operations become more fragmented with continued globalization. An integrated approach to supply chain management will go a long way in overcoming the difficulties. Integrated Supply Chain Planning is the coordinated planning of activities that occur over time in order to forecast, procure, manufacture and distribute goods across the extended supply chain, from supplier to consumer. Figure 1 shows various elements of integrated supply chain planning at strategy, tactical and execution levels. Figure 1 Source: Conference Board Webcast The Endless Search for Advantage: Supply Chain in Emerging Markets, October/November 2010 Management Challenges in Emerging Markets Supply chain management in emerging markets presents a number of management challenges generally not faced in domestic markets. Table 1 lists various management challenges faced in emerging markets. These challenges have been categorized as communication, cultural, safety security, corruption, delivery, financial and quality. Category Management Challenges Communication Language differences and understanding Expertise differences and nomenclature Systems compatibility Time zone differences Cultural Timing of Holidays and needing to conduct business Understanding of cultural nuances; Level of urgency Infrastructure(roads, ports, telecom, energy availability) Safety Security Government requirements, Port safety Personal safety Personnel safety; Criminal element Fire safety and response Raw Materials Safety Corruption Patent and IP protection Bribery, insidious inside activity Law enforcement issues; Legal ramifications Suppliers who become competitors Delivery Vendor compliance; reliability vs. culture Manufacturing, transport lead-times and reliability Amount of embedded transit time Financial Foreign exchange effect on Supply Chain Mobility of plant assets Supplier stability Quality Product testing Table 1 Source: Conference Board Webcast The Endless Search for Advantage: Supply Chain in Emerging Markets, October/November 2010 Among US companies over $1 billion, 73% experienced supply chain disruptions in the last 5 years (2009 Center for Supply Chain Research). Key Risks in Managing Supply Chains in Emerging Markets Global operations, while helping to achieve cost savings and market penetration, undoubtedly are accompanied by risk. Supply chains in emerging markets, where a whole series of risks are present, are specially challenged to plan, design and implement sophisticated strategies to manage and mitigate risk. Supply chain risk is a complex equation of risks that a business encounters between raw material extraction and final product delivery. From supplier selection, to paying customs charges, to hiring or firing, supply chain managers should consider all aspects of risk while considering emerging markets. Risk is defined from a practitioners standpoint as having specific financial impact. There often exists a distinct boundary between supply chain risk and financial risk in decision making processes, yet the two will naturally impact one another. Key supply chain management risks include: Trade Risk Trade risks include regulatory compliance, specifically dealing with the export and import of goods. Trade risk factors include customs valuation, trade regulations, anti-dumping, free trade agreements and export licensing. Political Risk Political risks include political instability, religious tensions, bureaucracy and inter-state conflict. Economic Risk Inflation can adversely affect the supply chain in many ways; rising prices in fuel incur higher transportation costs, rising food prices cause labor prices to rise, and both can compound to erode the financial health of operations in emerging markets. Operational Risk Operational risks occur in the day to day execution of the business, including labor, intellectual property, supply disruptions, commodity price volatility, internal product failures, and energy costs. Geophysical Risk Supply chains are exposed to several kinds of risks. Poor infrastructure and high levels of congestion can impede distribution and natural disasters can result in significant disruptions in sourcing operations. Risk Management Considerations There are many risk management considerations when entering emerging markets. The ability to effectively manage these risks directly impacts success of supply chain strategy implementation. Some of these considerations are: Social compliance and responsibility Intellectual property management Management of multi-cultures and multinationals Internal stakeholders/clients engagement skills On schedule quality delivery Disaster recovery plans Alternative manufacturing sites Table 2 shows potential mitigation options for various risk areas. Risk Area Potential Mitigation Options Limited infrastructure, creating potential delays in moving materials / products in and out of a market. Create partnerships with Logistics providers who understand the local marketplace. Appropriate inventory investments to compensate delays. Reduced (loss) of inventory visibility to in-transit raw materials and / or finished product. Create an integrated Supply Chain management strategy that aligns partners to create inventory visibility. Invest in technology to create the required visibility. Create incentives for suppliers to meet your expectations. Significant fluctuations in demand Use technology to create baseline forecasts and adjust to local market knowledge. Appropriate inventory investments to protect against significant delays in product arriving in market. Aggressive response to market entry by your competitors. Expect a response Game potential competitive response to your entry. Take appropriate action. Understand your vulnerabilities and take require actions to mitigate. Table 2 Source: Conference Board Webcast The Endless Search for Advantage: Supply Chain in Emerging Markets, October/November 2010 Global Logistics for Strategic Advantage in Emerging Markets To leverage opportunities in emerging markets, companies must transition or expand from managing logistics in a limited number of local geographies to managing them in emerging market geographies worldwide in a very efficient, agile manner that supports the responsiveness and flexibility associated with an on-demand Business. Companies can leverage specific approaches to transforming their global logistics capabilities and better support the business goals of lower cost sourcing or fulfillment by taking advantage of emerging market jurisdictions. In transforming logistics operations, companies have gained performance benefits from a strategic focus on logistics. The capabilities developed during transformation effort enables them to realize benefits with emerging market operations. In order to address the challenges of leveraging emerging markets as a cost reducing, and eventually, a profit-boosting strategy, companies are finding that they need to develop a strategy for managing logistics that can support multiple service-level requirements. As one element of such a logistics strategy, companies need to determine how, where and to what extent the services of logistics suppliers should be engaged. There are several logistics management options to consider before entering a new or emerging market. One end of the spectrum involves developing extensive multifunction logistics talent within the company, and then managing specific tactical activities and numerous contracts with logistics suppliers that provide narrowly defined services within a specific region or country. Pitfalls include the time it takes to develop or recruit the necessary level of logistics talent and leadership and the administrative cost of managing dozens, if not hundreds, of logistics suppliers. The key to managing global logistics is to enable the companys supply chain with the capability to efficiently unplug from one location or operating scenario, and enter a new or emerging market location. This capability will be both a strategic requirement and a competitive advantage, as long as worldwide business, economic and socio-political variables remain dynamic. Enabling this strategic capability requires cross-function process design, technology integration, and subject matter expertise ranging from network optimization, logistics contract and operations management to global trade and compliance management. This level of orchestration and collaboration is very scalable when merged seamlessly with a global governance model and strategically oriented leadership. Competitive advantage can be realized as the logistic transformation can prevent rising costs and complexities from eroding the benefits of global sourcing strategy. The advantages of a strategic approach to logistics are broad and can result in a significant increase in shareholder value. In fact, managing logistics costs, service-level lead times and overall supply chain security is critical to marketplace competitiveness. Greening the Supply Chain in Emerging Markets The term Greening the Supply Chain has emerged to describe a wide variety of actions that companies are taking to achieve greater performance rigor and operational control over extended supply chains. Greening the Supply Chain initiatives in emerging markets are part of a process for implementing a sustainable development plan aimed at achieving improved environmental performance; increasing efficiencies in the use of energy, water, other natural resources or raw materials; reducing the environmental and societal impact of business operations upon local communities and globally; and expanding economic and quality of life enhancing opportunities that result from the business activities. To maximize effectiveness, Greening the Supply Chain initiatives should not exist separate from the mainstream activities of the business. Rather, they should be fully integrated with and reflect the core value proposition of the business strategy. They should yield measurable results that are part of an integrated business-sustainability plan. The business value propositions for seeking to achieve a greener supply chain in emerging markets include the following: Mitigation of business risks Reducing risks to the business from current environmental factors or responding to expectations of future controls on carbon emissions or other substances can both advance learning and increase the operational integrity of business processes across the supply chain to create business value. Reduction in costs At a time of rising costs from energy consumption and other resource and raw material inputs, companies have more direct incentives to improve the efficiencies of a variety of operating processes. Motivation of suppliers Implementation of sustainability initiatives creates an opportunity to further focus and rationalize supply chains by eliminating low performers and focusing on a fewer number of suppliers that can meet more rigorous sustainability performance criteria while meeting the needs of the marketplace. Preservation of business continuity Green supply chain initiatives that focus on energy efficiency and other aspects of sustainability can buffer business processes from such disruption while contributing to emission reductions. Market access enhancement Companies seeking to manage their demand for resources e.g. water, food supply etc. while reconciling the needs of society will obtain greater long-term control over their business strategy by combining business process innovation with solutions to societal problems. Success Factors Supply Chain Management in Emerging Markets For managing supply chains in emerging markets successfully, it is imperative that the approach taken be made an integral part of the overall corporate strategy. An opportunistic, price driven approach will capture low-hanging fruits but a structured approach will deliver results on a sustained basis. Here is a list of factors to succeed in managing supply chains in emerging markets: Developing business processes to integrate the needs of an integrated supply chain Developing a strategy to protect intellectual property and meeting the needs and expectations of customers Performing extensive due diligence while choosing suppliers Considering total cost of ownership and not just material cost Developing a business continuity plan Making logistics management in emerging markets a strategic component of the business strategy Selecting leading logistics service providers who can effectively integrate functions, processes, and business partners As companies look to mitigate supply chain risk, they should incorporate both non-economic and economic factors into their decisions. Assessing the risk, attaching a financial impact to potential disruptions, and establishing a clear strategy that addresses supply chain risk will set the parameters for selecting a location in an emerging market. Country analysis should be an ongoing process, using both up-to-date statistics and historical trends. Emerging markets sourcing aimed at cost-cutting alone is a thing of the past. Quality, efficiency and effectiveness of global sourcing operations now differentiate competitors. But, profitability is being squeezed by unprecedented cost pressures from customers with their own capabilities and suppliers facing higher costs. To succeed in emerging markets sourcing, it is imperative that the approach taken be made a core part of the overall corporate strategy. To achieve the best overall supply chain performance and success in competitive global marketplace, companies need to address capabilities of people, processes and technology areas and integrate all elements of the extended supply chain. About This Report The material in this report is based on discussions and presentations from a meeting of The Conference Board Asia-Pacific Supply Chain Council that took place in Shanghai in May 2010 and The Conference Board Webcast on The Endless Search for Advantage: Supply Chain in Emerging Markets which took place in October and November 2010. About The Author Vipin Suri is program director for The Conference Board Supply Chain Council and The Conference Board Functional Excellence and Shared Business Services Council in the Asia-Pacific region. As a management consultant in shared services for the past nine years, he has assisted several companies in Asia-Pacific and North America in reviewing the effectiveness of their business support functions and implementing shared services. Prior to becoming a management consultant in 2002, Suri was Vice president, shared business services for BHP Billiton in Australia. Prior to that he had held several senior positions in MA, customer service, network services and asset management, and shared services during his 26 years at Ontario Hydro in Canada. Suri is a doctoral degree candidate in shared services at the University of Twente in the Netherlands. About The Conference Board The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: to provide the worlds leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board creates and disseminates knowledge about management and the marketplace, conducts research, convenes conferences, makes forecasts, assesses trends, publishes information and analysis, and brings executives together to learn from one another. The Conference Board is a not-for-profit organization holding 501 (c) (3) tax-exempt status in the United States.

Flooring Company Business Plan Essay

JD Epoxy has established a website that gives general information about products and services. The website will be developed with more detailed functions so it can offer customer services like consultation, Q&A, and reservations. Also, JD Epoxy plans to use the website for links to other social media like Facebook, Youtube and Blogger to connect with customers more closely, and there will be video materials introducing the JD Epoxy team that will deliver a friendly and trustworthy image to customers. Presently Daniel minimizes costs by managing the business from his home. He rents grinders, vacuums, and application tools from Gestion Anny-Picard, and Simplex. He purchases supplies on a per-project basis from CTM adhesives. He plans to open a warehouse in the West Island area as his client base increases, in order to keep an inventory of supplies and purchase equipment. As business continues to grow, he will add an office space to the warehouse. Presently all of the installation work is done by Daniel and Yannick. As contracts increase, they will need to hire additional labor, which will enable them to concentrate on other tasks. The usual installation process takes a couple of days, so having multiple teams will boost the productivity of the business. For the time being Daniel will continue to deal with customers directly by phone and by visiting them in person for estimations. Once financing is ready, JD Epoxy will set up a customer service department to deal with clients. The customer service department will answer the phone, respond to questions and take reservations from customers, as well as attending to the website services. The team will be composed of at least two people in the beginning, so that they can rotate break times, since there should be constant service during business hours. Once website traffic and call volume increases, the customer service team will be expanded to limit wait times. When a customer calls for a consultation, Daniel visits in person to give a more detailed quote and provide explanations about the service procedures. This is a very important role in this business since customers can change their minds during this step, so it requires someone with professional knowledge and great communication skills to interact with the customer. That is why Daniel prefers to visit customers himself at this point rather than sending an employee. However, JD Epoxy will start to prepare a sales consultation department for the future. There will be intense training for customer visitation and quoting. The sales consultation department will be necessary when appointments increase and will allow a more flexible schedule to customers, since overlapping appointments will be possible once the department is in place. The sales consultation department is very important in the JD Epoxy organization since they will represent the company on the front line and speak on behalf of the company, bringing in actual contracts that lead to profits. The accounting department will deal with financing, taxes, and payroll. This department should be organized from the beginning, since JD Epoxy is a partnership, and delegating the accounting work to a third party will give a more objective overview of the company’s financial state and preserves a fair relationship between the partners. The accounting department will start with one inside book keeper working in liaison with an external accounting firm, until JD Epoxy can select a CFO. JD Epoxy will establish a marketing team which will support the sales department by providing target regions and information for sales pitches. This department will work closely with the sales and accounting departments to coordinate the marketing budget and set sales objectives. JD Epoxy will have a general administration department that organizes documents and handles day-to-day office tasks such as routing calls and dealing with suppliers. This department has an important role because they act as the glue that binds all the other departments together, tracking procedures from beginning to end. This department will start with one employee, and expand as needed. These five departments should fit together like nuts and bolts. Each department needs the others’ support at all times. They should be able to share their opinions and information openly. There will be regular meetings and events with all departments present to encourage teamwork and motivation. The glue of the business will center around a management software that Daniel will program. This software will follow clients throughout the whole workflow of the business. All departments will work on the same software and they will update the customer information as it passes through the business: marketing to sales, to production, and finally to clientele satisfaction. This software will track all information of the client and respective projects. At the end of the year, we will know exactly the sales ratio per marketing tool and per period, the gallons bought and used, the hourly estimates and charges, etc. We will then precisely analyze the business and be able to correct faults rapidly. Work Flow: Organizational Structure Goal: JD Epoxy Based on the sales projection JD Epoxy sales revenue will be around $75,000 in 2013 and grow to $150,000, $300,000, and $500,000 in the following years. The SME report (NAICS code # 23833), shows how much members of this industry are spending for wages and labor. For instance, companies with revenue around $70,000 spend $11,000 for wages and labor, while those with revenue around $300,000 spend $77,000 for wages and labor. Since we should include the CEO’s salary in this cost, from 2013 to 2016, JD Epoxy cannot pay for full time employees; they can only afford part time employees when needed. In 2017, JD Epoxy can start to offer full time positions to part time employees and begin hiring full time employees thereafter.

Sop communication engineering

The heart of human excellence often begins to beat when you discover a pursuit that absorbs you, challenges you and gives you a sense of meaning, joy and passion. I have found that one thing that helps me to live peacefully on this glorious planet is â€Å"successful engagement in meaningful work† keeping in my mind where my hands are. An intrepid dream by the Wright brothers to give the humankind wings to fly, an intrepid dream by few thoughtful men to let the human race take the first step on the moon.I think hat it is the gift to dream, the ability to ponder beyond facts and the intelligence to make thoughts into reality that sets us apart from the rest in the tree of evolution. From the wheel to pacemaker, history is replete with events where a simple, yet brilliant idea has changed the way future generations live for decades, and even countries. I believe in seeing dreams and giving my best to realize those dreams that will be a step forward in the betterment of the human race.Dreams are what made the world, what it is today. In an era of competition and excellence, engineering has taken strides which our forefathers never even dreamt of. To be an excellent instrument for the development of our world we must be educated, cultured, refined and thoughtful. Knowledge is what elevates man to a disciplined being. To be an erudite is not only about possessing education but also having skill to implement it in a practical world.An aspiration to become a pioneer in the field of Electronics prevailed right from my childhood. The desire of gaining in-depth knowledge and my enthusiasm and curiosity to understand the mechanics of electronic devices and about communication systems led me to hose Electronics and Communication engineering as my undergraduate study. During my undergraduate studies, lectures delivered by eminent people who are leaders in their field exposed me to the needs and aspirations of the industry. Id my summer in-plant training in Airports A uthority of India, where I was engaged in learning various functional aspects of security and communication equipments such as X-ray baggage Inspection System (SIBS) and CATV camera used for surveillance purpose. During my third year of undergraduate study had the opportunity to visit Doorman's Achaean, which is the Indian's largest public broadcaster. Had a great experience working with the technicians in this platform where I had a thorough knowledge about the working mechanism in Production control room, Master control room, earth station and transmission process.To implement practically what had learnt in my three years of undergraduate study, I did my final year project which is about â€Å"Implementation Of tamper proof ATM and weapon identification system. † Looting money, ATM robbery/ burglars damaging the money vending machines have become common. So, n order to save the lives of common people I had used a vibration sensor and inductive proximity sensor which will al ert the cops using a RFC transceiver.Hence, this is an added protection to ATM itself. In addition to the above projects, I am currently pursuing a course on â€Å"CAN (Switching and Routing)† that validates the ability to install, configure, operate and troubleshoot medium-size routed and switched networks. I believe this course is supportive for any communication engineer to know more in depth about NETWORKING and also hope that this course will be beneficial for me to attain an internship experience in your laboratory.To further my knowledge in the field of Communication Systems, I wish to pursue my higher studies and excel in a graduate school that stands for high quality teaching and infrastructure which could help me realize my goal of becoming a lead engineer in the field of communication systems. Nanning Technological University (ANTI) is likely to provide me just that through its Communication Engineering program. The course listings under this program with subjects such as Digital communication systems, Optical fiber communications,Computer networks, Antennas and propagation for wireless systems and all other courses provides me a great platform to further my ideas. This knowledge shall help me in design an effective, efficient and safe system, play a significant role in long-term planning and help me to become a successful communication engineer. I strongly believe .NET is the place that provides the path towards my destination. NUT has one of the topmost ranked graduate programs in Communication Engineering in terms of experienced faculty and state-of-the-art infrastructure and research facilities.

Marijuana Should Be Legalized Essay - 1130 Words

Marijuana is a cannabaceae plant, which has always been associated with negative connotations until recently, when it has been discovered that this plant may be used to cure diseases and improve a country economy. Thus, the American opinion is split on the question of â€Å"Marijuana Legalization†. In fact, a survey undertaken by CNN/ORC International Poll states that 55 % of Americans believe that the use of marijuana should be legal, while only 44 % think it should be illegal (CNN). I also share the American majority opinion since there is some evidence that marijuana yields positive results. The use, sale and possession of marijuana is still illegal under federal law in the United States. However, it is allowed in 20 states and†¦show more content†¦Hence, the problem of addiction cannot be a reason for prohibiting marijuana. Opponents also support that marijuana may affect brain development and irritate the heart and the lungs. It may be true, but it is not a reason for criminalizing the use of marijuana since we know that smoking cigarette causes lung cancer and many heart diseases. Moreover, mental diseases such as the Parkinson’s disease and the Multiple Sclerosis can be treated with marijuana thanks to two substances it contains called cannabidiol and tetrahydrocannabinol, which permit to reduce inflammation, control spasms, and even prevent neurological damage. For instance, an Australian mother Cheri OConnell revealed in a report of Herald Sun News about the benefits of liquid marijuana, which she says saved her epileptic daughter Tara who was only given months to live. In fact, Tara could barely walk or talk, and she slept as much as a newborn. She endured more than 20,000 seizures every year; her condition left her parents and siblings, exhausted and scared for the future. Running out of options, they met another family, who had lost a similar battle. This family advices the O’Connell’s to try Marijuana. Then, they did so, and Tara is now seizure-free, walking, running and even dancing after one year of treatment. Cheri says, We didnt see her having a future at all. But I can now see us being able toShow MoreRelatedShould Marijuana Be Legalized?849 Words   |  4 Pageswhether marijuana should be legalized. Around 23 states have legalized marijuana for medical and recreational use. In the state of Illinois, medicinal use of marijuana has been passed on April 17, 2013. Since January 2014, patients are able to obtain marijuana with a doctor s recommendation. The new debate is whether marijuana shoul d be legalized for the general public as a recreational drug. Although some believe that marijuana is harmless, and that it has beneficial medicinal uses, marijuana shouldRead MoreShould Marijuana Be Legalized?1715 Words   |  7 PagesMarijuana in Society Cannabis, formally known as marijuana is a drug obtained from the tops, stems and leaves of the hemp plant cannabis. The drug is one of the most commonly used drugs in the world. Only substances like caffeine, nicotine and alcohol are used more (â€Å"Marijuana† 1). In the U. S. where some use it to feel â€Å"high† or get an escape from reality. The drug is referred to in many ways; weed, grass, pot, and or reefer are some common names used to describe the drug (â€Å"Marijuana† 1). Like mostRead MoreShould Marijuana Be Legalized?1489 Words   |  6 Pagescannabis plant or marijuana is intended for use of a psychoactive drug or medicine. It is used for recreational or medical uses. In some religions, marijuana is predominantly used for spiritual purposes. 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In recent years, numerous states have defied federal law and legalized marijuana for both recreational and medicinal use. Arizona has legalized marijuana for medical use, but it still remains illegal to use recreationally. This is absurd, as the evidence gathered over the last few decades strongly supports the notion that it is safer than alcohol, a widely available substance. Marijuana being listed as a Schedule I drugRead MoreShould Marijuana Be Legalized? Essay1457 Words   |  6 PagesSHOULD MARIJUANA BE LEGALIZED? Marijuana is a drug that has sparked much controversy over the past decade as to whether or not it should be legalized. People once thought of marijuana as a bad, mind-altering drug which changes a person’s personality which can lead to crime and violence through selling and buying it. In the past, the majority of citizens believed that marijuana is a harmful drug that should be kept off the market and out of the hands of the public. 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The fact that marijuana is illegal is mainly caused by the amount of money, jobs, and pride invested in the drug war. Once the government starts anything, they stick to it. At