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Current Scenario_Materials Management

Current Scenario_Materials Management

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Published by atul_gaikwad_9

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Published by: atul_gaikwad_9 on Mar 11, 2011
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MM Role - Changing Environment


Overview Materials Management in current Business scenario

MM Role - Changing Environment


Current Business Scenario MM Role .Changing Environment 3 .

Current Business Scenario  Intense Competition-Survival of the Fittest  Price minus vs. Cost Plus  Demanding & Knowledgeable Customers  Participative Share Holders  Intense Technology Changes  Increased Outsourcings  Supplier Partnering  Change in Skill sets and expectations of employees  Change in Government policies and legislations  Need to satisfy all the stake holders  Requirement of Environmental friendly Products & Services  Emerging Global Treaties MM Role .Changing Environment 4 .

insurance.the protection to local manufacturers has almost come to an end ‡ Restriction on Foreign equity participation removed and now been encouraged ‡ Opening of traditional Government held sectors to private sectors like telecom.contd ‡ End of ³Licenced Era´. Manufacture eased. ‡ Technology driven products / services ‡ India Shining. MM Role . ‡ Imports restrictions reduced. defense.Intense Competition«««.Changing Environment 5 . Good GDP growth. Global slowdown did not affect much. oil sectors etc. ‡ Reduction in Imports duty ‡ Easy availability of finance ‡ Economical reforms .

etc promotes foreign equipments with duty free import ‡ Shorter Product Life ‡ World is a global village MM Role .Changing Environment 6 . large organizations are able to use the money power to shut down the small scale competitors ‡ Patenting of products becoming popular ‡ Mass production trend to be cost competitive ± Elimination of many small manufacturers ‡ Offering the ever changing technological differentiation in products ‡ Use of political influence by developed countries ± World Bank loans.Current Business Scenario Survival of the Fittest: ‡ Take over and merger trend has started in India in order to consolidate the business ‡ With free participation of Foreign Financial Institutions and Producers.

Current Business Scenario Demanding & Knowledgeable Customers: ‡ Customers are more knowledgeable than ever ± Easy availability of information and developments ‡ Customer looking for the solution and not a product/service ‡ Customers have choices/options ± Difficult to hold their loyalty ‡ Customers looking for softer aspects of products/services resolution of complaints ‡ Customers are aware of their rights / demanding customers ‡ Change in ³Sellers Market´ to ³Buyers Market´ ‡ One needs to know the customers stated & unstated expectations / perceived values MM Role .Changing Environment 7 .

Changing Environment 8 . reducing ‡ Multi-skilling ‡ Stretched Goals ‡ Empowerment of front line employees ‡ Employees need to update their knowledge & skills to survive ‡ Employee expectations are high MM Role .Current Business Scenario Employees ‡ Trend : Nos.

share can bring in opinion-pressure in AGM ‡ Pride in association ROI = Return on Investment EVA = Economic Value Addition MM Role .Current Business Scenario Share-holders ‡ Not only expects better returns. but also analyses the moves and the decisions of the company ‡ Company¶s vision ‡ Image in society ‡ ROI and EVA ‡ Even holder of 1 no.Changing Environment 9 .

‡ Selection of community & relevant welfare measures and returns to the Company MM Role .Current Business Scenario Community / Society ‡ Expects decent behavior from the corporate citizens ‡ Expects returns to them in terms of welfare measures etc.Changing Environment 10 .

Changing Environment 11 .Current Business Scenario Environment ‡ Expects decent behavior from the corporate citizens ‡ Effect of product / services on environment throughout their lifecycle ‡ Pollution ± air. water. noise ‡ Natural Resources ± Deforestation etc. ‡ Treatments to animals ‡ Safety to environment ‡ many active environment groups MM Role .

Changing Environment 12 .Current Business Scenario Govt Legislation ‡ Reductions in excise duty ± shall continue ‡ Subsidies waning ‡Sales Tax exemptions being taken away MM Role .

Changing Environment 13 .Current Business Scenario Global / Regional Treaties ‡ WTO & the expected changes ‡ Euro Market ‡ SAARC Countries etc MM Role .

Changing Environment 14 .New / Emerging Techniques MM Role .

Changing Environment 15 . MM Role .New / Techniques Emerging As a Company ‡ Statement of Vision / Mission ‡ Divisions / Departments treated as Profit Centers ‡ SWOT analyses ‡ Strategic Planning & stock of HR capabilities ‡ Balanced Score Card ‡ Many Surveys ± all stake holders. satisfaction surveys and recent transaction surveys ‡ Many outside consultants ‡ PR work / image of Co.

New / Techniques Emerging Customer ‡ Voice of Customer / Listening Posts ‡ Customer Satisfaction surveys ‡ Customer Recent transaction surveys ‡ Customer meets ‡ Customer inputs in strategic planning ‡ CRM : Customer Relations Management MM Role .Changing Environment 16 .

Changing Environment 17 .New / Techniques Emerging Market ‡ Shorter Product Life ‡ Many choices in the market ‡ Sale offers / Buy-back offers ‡ Media management / PR work MM Role .

New / Techniques Emerging Employees ‡ Participation in formulating Vision / Mission of the Co.Changing Environment 18 . ‡ Goal Setting ‡ MOUs between the departments: SLAs ‡ Self±appraisals ‡ 360 degree survey ‡ Satisfaction Survey ( Organization Health Surveys) ‡ Training & Effectiveness of training ‡ S H E ( Safety Health & Ergonomics) ‡ Welfare measures for employees and families SLA = Service Level Agreements MOU = Memorandum of Understanding MM Role .

Changing Environment 19 .New / Techniques Emerging Channel Partners ‡ Working Capital Management ‡ Payments from them / Commission payments ‡ Market feedback ‡ Logistics ‡ Training for After Sales service ‡ Show Rooms ± brand image ‡ Channel partner meets ‡ Motivation ‡ Strategic Planning ± their participation MM Role .

Reverse auctions ‡ Supplier certifications ‡ JIT .Changing Environment 20 .New / Techniques Emerging Suppliers ‡ Partnership ‡ Reduction in nos. ± modular sub-assemblies ‡ Involvement at planning stage ‡ vendor meets ‡ Rating systems & feedback ‡ Satisfaction surveys ‡ Net-working / EDI / e-tracking ‡ e-procurements . suppliers¶ stocks ‡ Payments ± one way match ! EDI = Electronic data interchange MM Role . supplier-managed stocks.

Changing Environment 21 .New / Techniques Emerging Technology ‡ Communications: e-mails. & net ‡ Reverse Auctions. e-procurement MM Role . convenience. chats ‡ Video conferences ‡ Video-phones ‡ Mobiles ‡ e-payments ‡ Credit cards.

Changing Environment 22 .What is the Role of MM? MM ‡ Why does his department exist? Expectations of the Company from his dept. ‡ Goals of the dept aligned to the Company¶s goals ‡ Must act in sync with the thinking of the Company ‡ Be aware of the new / emerging techniques and take advantage of these if these are applicable to his work area. ‡ Feedback to relevant departments / divisions ‡ Attitude .Must be open to receive criticism and act positively MM Role .

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