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VENDOR PERFORMANCE IN VENDOR MANAGEMENT SYSTEM (CHEMIST & DRUG STORE) BY
A PROJECT REPORT
SUBMITTED to BHARTI VIDYAPEETH UNIVERSITY
In partial fulfillment of the requirements for the award of the POST GRADUATE DIPLOMA in INFORMATION TECHNOLOGY MANAGEMENT BHARTI VIDYAPEETH UNIVERSITY-Amplify DITM,
Vendor Performance in Vendor Management
System(Chemist & Drug Store) is the bonafide work of Mr.Ishu Singh who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
PROJECT GUIDE V J GOMES
VMS (Vendor Management Services) is a fairly recent advancement in managing contingent labor spend. VMS is an evolution of the Master Service Provider (MSP) / Vendor-OnPremise (VOP) concept, which became more prevalent in the late-1980s to the mid-1990s when larger enterprises began looking for ways to reduce outsourcing costs. In this I decided to manage the suppliers of Chemist & Drug Store. For this I have collected information on what criteria’s the firm choose their vendor. Among them I have also found out which criteria is given maximum importance. In this project I have visited fifty plus chemist store in different areas of Pune with questionnaire. The questionnaire are filled by maximum of them and help us in collecting the information. I learnt lots of things about managing the vendors and also about the different type of companies. The project helped us to get a insight knowledge of the vendor management in chemist and Drug Store .I saw how the professionals use their experience and skills to bring business.
I acknowledge the sincere assistance provided to me from several rather unexpected quarters during the course of execution of this study. It would be a mammoth task to place on record my gratitude to each and every one of them but a whole hearted attempt would be made nevertheless, least I be branded ungrateful. I am extremely thankful to COL V.J Gomes (H.O.D) for giving me such an esteemed environment and proper guidance under which I have done my project. Where the emotions are involved words cease to work.. I am deeply indebt to for her encouragement, affections, valuable advice and guidance that helped me to complete this project successfully.
2) 1.1) Inventory 2.1) The Need of Technology Advancement in medical Software 3.3) 1.1) Analysis of Data Collected 5.6) Introduction Vendor Management System Objective of the Project History and Evolution of VMS Vendor Selection Strengthen Vendor Relations PAGE NO.1) 1.2) Maharashtra State Druggists and Chemists Association Objectives 3.3) Existing System in Market 4.3) Vendor Managed Inventory 3.5) 1.4) 1.2) Drawback of Existing Systems 5.5 TABLE OF CONTENT CHAPTER NO 1 TITLE 1. 8 8 9 11 18 19 23 24 34 42 43 46 60 71 72 73 74 76 2 3 2.1) Findings 5.3) Conclusion & Suggestion Questionnaire References 4 5 Annexure-1 Annexure-2 5 .2) Concept & Importance of Inventory 2.
5 FIGURE.5.5.5..5.4………………………………………49 FIGURE.6 LIST OF FIGURES CHAPTER.1…………………… ……………….3………………………………………48 FIGURE.6………………………………………51 6 .47 FIGURE.5.2…………………….5.5………………………………………50 FIGURE.……………….46 FIGURE..
7 CHAPTER.ONE 7 .
e. often Webbased application that acts as a mechanism for business to manage and procure staffing services – temporary. consolidated billing and significant enhancements in reporting capability that outperforms manual systems and processes The contingent workforce is a provisional group of workers who work for an organization on a non-permanent basis. VMS is a type of contingent workforce management. There are several other terms associated with VMS which are all relevant to the contingent workforce. Typical features of a VMS application include order distribution. A vendor is literally a person or organization that vends or sells contingent labor. independent contractors or consultants. that distributes job requirements to staffing companies. or from other suppliers. specifically a software program. A VOP. or staffing company (who can also be called a supplier – because they supply the labor or expertise rather than selling it directly). temporary contract workers. in some cases. The VOP does this either by sourcing labor directly from themselves. also known as freelancers. is a vendor that sets up shop on the client's premises. a consulting company. Specifically a vendor can be an independent consultant. or Vendor On Premise. and other vendors (i. permanent placement services – as well as outside contract or contingent labor. It facilitates the interview and hire process. the VOP manages and coordinates this labor for the client.8 INTRODUCTION Vendor Management System A Vendor Management System (VMS) is an Internet-enabled. independent professionals. VMS is a tool. They are concerned with filling the labor needs and requirements of the client. as well as labor time collection approval and payment. and. whom may be their competitors. Also. 8 . consulting companies. recruiters. Independent consultants). or staffing industry.
Poona Hospital. Balaji Nager. Singhad Road. After 2 pm it is seen that most of the Chemist shut down their store. Because in this time slot. 3) To provide the performance metrics for vendors. The best time to visit Chemist and Drug Store is for 11:30 am to 2pm. it is observed that frequency of customer is less and owner of the firm feel comfortable to answer the question from questionnaire as they are in fresh mood. It was seen that about 5-10 min is taken to complete one questionnaire. Dhayari. which can help firm for choosing vendor for placing an order in order to gain maximum profit and better service. I decided to adopt the best approach i. Proper questionnaire is made for collecting relevant information. 9 . The area covered in our survey are Satara Road.9 Objective of the Project The purpose of my project are given below 1) To have insight knowledge of existing vendor management system. Dhankawadi. The question is asked them in such a way so that maximum questions answer can be obtained.e Questionnaire. FC Road. Methodology Adopted For collecting an information about vendor management system. Deccan Gymkhana. 2) To determine the drawback of existing system. I visited different medical store or Chemist and Drug Store and asked them question from questionnaire.
I have collected my secondary data from the Internets and website like google. Discussion. I have collected my primary data in the form of questionnaire. Secondary Data:Secondary Data is that data.On the basis of primary data researcher withdraw some important conclusion and gives suggestion according. Purpose of Questionnaire How long they are in this business ? 10 . collected Prior to the Present Study work.com etc. Any data that is available prior to the commencement of the research Project is called Secondary data and therefore Secondary is also called as Historical data. As the study was restricted with the chemist & drug store. Random Sampling method:The sampling method used for collecting the data was Random sampling method.10 Primary Data:- Primary data is that which are collected “afresh” and is supposed to be original in Character. which is. 41 chemist & drug store are considered randomly and depending upon that study is conducted. Interview with medical store owner/worker. Primary data is gathered in such a way so that need of the researcher can be fulfilled .
in turn. VMS is an evolution of the Master Service Provider (MSP) / Vendor-On-Premise (VOP) concept. reduce procurement costs by simplifying their payment process. It is noteworthy to mention that VMS really started to evolve around the time Michael Hammer and James Champy's Reengineering the Corporation became a bestseller. Large enterprises were looking for ways to compete in the global economy. businesses during this time period was that their purchasing departments were able to channel new contract personnel requisitions to one source – the VOP – and. In effect.11 Whether they are using automated system or not ? How they maintain inventories (Manually/Automated) ? Drawbacks of existing system ? Are they are satisfied from their Existing System or not ? History and Evolution of VMS VMS (Vendor Management Services) is a fairly recent advancement in managing contingent labor spend. which became more prevalent in the late1980s to the mid-1990s when larger enterprises began looking for ways to reduce outsourcing costs. An MSP or VOP was essentially a master vendor who is responsible for on-site management of their customer’s temporary help / contract worker needs. they only had to write a check to one vendor vis-à-vis hundreds of suppliers. In keeping with the BPO (Business Process Outsourcing) concept. The main advantage for U. 11 .S. the master vendor enters into subcontractor agreements with approved staffing agencies.
then it is usually not considered to be contingent work. B2B. As businesses began to integrate this e-business concept. industrial suppliers and other commodities by putting these purchase requests out for bid via an online auction. they claimed. also sometimes known as casual work. There is no universally agreed consensus on what type of working arrangement constitutes contingent work. is a neologism which describes a type of employment relationship between an employer and employee. Inc. contingent work is usually not considered to be a career.however. If a job is full time permanent. that they could reduce spend for purchasing office suppliers. and either pays a regular salaryor a fixed wage for regular hours.12 With the Internet came new ways of doing business. was the catalyst that began the VMS industry. E-Procurement et al. According to Staffing Industry Analysts. which included electronic payment. 12 . or part of a career. online auctions such as Covisint began to appear. The value proposition was. but it is generally considered to be any one or combination of the following: • • • Work which is temporary or lacks job security Work which is part time Work which is paid on a piece work basis Whether a person who does contingent work can be described as 'having a job' is debatable . One of the features of contingent work is that it usually offers little or no opportunity for career development. Typical benefits included: • • • • • • • • • Streamlined requisition approval workflow Reduced time-to-fill cycle times Bill rate standardization / management Optimization of supplier base Consolidated invoicing Improved security and asset management Availability of vendor performance metrics Visibility and cost control over maverick spend 10-20% reduction in contingent labor spend Contingent work. the emergence of eBusiness.
13 Contingent work is not an entirely neutral term. In particular. The VMS programs often treat people as a commodity – the lowest hourly bidder of temporary labor gets the job. labor costs represent a significant part of operating costs. organizations are searching for ways to accurately assess their contingent workforce spending and to streamline the on-boarding and off-boarding of this adaptive workforce. Whilst all casual work is considered to be contingent work. A Vendor Management System (VMS) has typically been defined as any internetbased procurement application that enables companies to manage the process of outsourced procurement of temporary and permanent staff. However. not all contingent work is casual. This creates a number of problems that are difficult to quantify in any feasibility study. part time jobs. but aren't necessarily casual. but who aren't interested in a long term career. 13 . because commentators who use the phrase generally consider it to be a social problem employment agencies and classified advertising media are more likely to use the phrase casual work. THE PROS AND CONS OF VENDOR MANAGEMENT SYSTEMS (VMS) For many companies. the reality is often something quite different. The cost savings from VMS programs seem seductive – immediate reductions to the bottom line and possibly a reduction in the number of intrusive sales calls from vendors. or jobs in organizations that have a high staff turnover. particularly to attract students who wish to earn money during the summer vacation. may be considered contingent work. In an effort to more intelligently manage labor costs and leverage relationships with suppliers.
Therefore. with no qualifying of the talent supplied. In fact. background checks. There are a number of detailed studies that will provide good market rate data.There is no VMS system today which asks the supplier of temp labor for the contractor’s IQ. 14 . and skill assessments). what does this do to the loyalty of the contractor and service supplied by the agency? Will the temporary labor leave if a higher-paid position is available? Does this affect productivity? The solution to this piece of the labor puzzle is to pay market rate. . the complications increase exponentially. However. they will have to cut services.If a contractor must supply the lowest hourly rate to procure an assignment. . . an 80 IQ contractor is considered as good as a 130 IQ contractor.The prime labor supplier will also often limit access of labor suppliers to project managers. in-person interviews. This reduces the amount of IT temp labor available to the client. some of the sub temp labor agencies will then consider the client to be a resource rather than a client. with a few small groups working out of their basements with no G&A expenses and no services other than providing resumes (services from quality agencies include QA departments. video email of interviews. making it impractical for the subs to continue providing labor. not lowest rate. Most agencies are forced to use very junior recruiters in order to meet the cost guidelines. If the VMS system is administered by a temp labor agency. or a single person working alone? Is there much travel involved? What is the end client environment like? What are the deadlines? What other skills would be nice to have?” This will increase cost since the hiring manager will end up interviewing candidates who may fit the generic job description but not the true position. . This reduces the effectiveness of the temp labor subcontractor since all information is never included on a written job description – “is this a team environment. If the temporary agency supplying the labor has to endure cuts in rates.The “prime” temp labor agency will often charge the sub-contracting agency a percentage of the sub-agencies’ profits.This evolves into a situation where the prime temp labor agency is the sole supplier to the client. the 80 IQ contractor will get very little done in terms of productivity in a technology that requires some mental horsepower.14 .
Rates will take care of themselves through a process of supply and demand. This will assure equitable treatment for all vendors.Disruption of the labor market supply chain What’s the solution? How does a company assure quality access to a strong. with a difference of $10 per hour. The sub labor providers therefore know that they are only getting the “extremely difficult” job orders to work on. highly-qualified labor market? The only way to attack this problem is to locate a good piece of vendor management software and run the system independently of any of the vendors using the system. b. If you receive 3 resumes. all qualified. Where does one begin? The steps in a company’s successful use of a VMS have been itemized below: 1) 2) Keep it Vendor neutral Keep the lines of communications open. hoping to fill the position themselves. This would also be the best way to assure that the VMS interfaces with the company financial systems. what has the risks a client company faces with a VMS system? Limited access to the job market High turnover of their workers Less than satisfactory results from temporary labor Slowed delivery in realizing benefits from new systems Loss of key partners who have spent years learning the company and developing valuable business relationships . Vendors should be able to communicate with client management and hiring managers.15 . So. This is key! a. 15 .The prime temp labor supplier will also often hold the job description for several weeks. there is no reason not to select the lower cost person so long as this person is at market rate. Some of the VMS vendors evolve into mini-dictators. They mandate that vendors cannot communicate with the end client.
c. The IT and Financial staffing model is much different and requires more services than the Administrative staffing model. b. They have taken this business model and have tried to make IT and Financial staffing fit within this model. and typically the best candidate isn’t one of the first submitted. 2) Allow the cost savings to be a result in improved back office efficiencies instead of using the VMS systems to drive down bill rates to unworkable levels. The fee for using the system should be in addition to the bill rate and shouldn’t impact the vendor. 16 4) 5) . Anything else is just pushing paper. Managers should be required to provide proper feedback within a specified time period. Resumes are submitted and then feedback is never received.16 c. They must be funded and ready to be filled. a. You get what you pay for! a. Finding good people takes time and effort. This will provide valuable input from the vendor community. 3) Don’t allow the system to overly reward quick submittals and the number of submittals. Must contain details on what the person will be doing. Must contain details on the required skill set and the desired skill set. Put Service Level Agreements (SLA’s) in place with the hiring managers. Many of the existing VMS systems were established by administrative staffing companies. Enter only real and thorough Job Orders. Quarterly/twice a year vendor summit meetings are important. b. A common impression of VMS’s is that they are nothing but black holes. Resist the desire to establish multipliers and/or a rate card. Otherwise recruiters are reluctant to work on these openings.
did the position go away …) The foregoing comments identify a number of requirements for a successful VMS implementation. A vendor. and sells those items to a customer. Must contain rate and duration. A successful implementation must be well managed not only during implementation. the implementation of a VMS can present the client company with a number of risks. If you think you have enough submittals then put the position on hold. The term vendor originally represented property vendors. Supply The total amount of a good or service available for purchase. along with demand. quarterly) b. was it filled internally. today it means a supplier of any good or service. is a supply chain management term that means anyone who provides goods or services to a 17 . one of the two key determinants of price Vendor A vendor. but on an on-going basis after implementation in order to achieve the milestones detailed above. Close the position once a candidate has been identified. 6) Advertise your success and let the vendors know what happened with a position. However. usually associated with interrupting the company’s supply chain for contingent labor. or a supplier. monthly. Clearly. or a supplier. is a supply chain management term meaning anyone who provides goods or services to a company. A vendor often manufactures inventorial items.17 d. e. a. Must be kept up-to-date. Let the vendor community know how many positions have been filled (weekly. Let the vendor community know how a position was closed (was it filled by a vendor.
18 company. they will build stock rather than build to order. Vendors may or may not function as distributer of goods. and sells those items to a customer. This guide will show you how to accomplish this and gain consensus across all the stakeholders before you begin the vendor selection process 18 . Step #1: Analyze Business Requirements The toughest part of the vendor selection process is analyzing the business requirements. rather than to the original manufacturer or the organization performing the service if it is different from the immediate or the organization performing the service if it is different from the immediate Vendor Selection .How to Select a Vendor The vendor selection process is important no matter how small the part or how simple the service. Purchase order are usually used as a contractual agreement with vendors to buy goods or services. This page will guide you through the process in order to select the right vendor for your company. or the organization that is paid for the goods. A vendor often manufactures inventorial items. Vendor generally applies only to the immediate vendor. Vendors are often managed with a vendor compliance checklist or vendor quality audits. They may or may not function as manufacturer of goods. Typically vendors are tracked in either a finance system or a warehouse management. used for suppliers of industries from retail sales to manufacturers to city organizations. complicated and emotional undertaking if you don't know how to approach it from the very start. If vendors are also manufacturers. The Successful Vendor Selection Process The vendor selection process can be a very confusing. Here are five straightforward steps to help you select the right vendor for your business. Vendor is often a generic term.
This guide will show you how to plan a successful contract negotiation strategy. Vendor management is 19 . Strategies to Strengthen Vendor Relations Vendor management allows you to build a relationship with your suppliers and service providers that will strengthen both businesses. This guide will show you how to create a document that will detail the needs and expectations of your company. This guide will show you how. this will position your business to find the right vendor and create a competitive atmosphere between competing vendors.19 Step #2: Vendor Search The second part of the vendor selection process is to perform a comprehensive vendor search and create a "short list" of vendors to pursue. this is the most crucial step of all. Successful contract negotiation means that both sides will gain from coming to an agreement. Step #3: Request for Proposal (RFP) and Request for Quotation (RFQ) The third part of the vendor selection process is to write a Request for Proposal (RFP) or Request for Quotation (RFQ). This guide will help you organize your selection process and lead your team to a unified vendor selection decision. Step #4: Proposal Evaluation and Vendor Selection In the vendor selection process. Step #5: Contract Negotiation Strategies The final stage in the vendor selection process is developing a contract negotiation strategy. Lack of preparation and not paying attention to detail can lead your vendor selection team to recommend the wrong vendor for your company. Done correctly. A well written RFP or RFQ is the critical success factor in the entire vendor selection process.
changes in design and expansion or relocation changes. Always get competitive bids. invite that vendor to strategic meetings that involve the product they work with.20 not negotiating the lowest price possible. 3. the vendor is expecting a certain level of commitment from you. 1. just to name a few. Allow Key Vendors to Help You Strategize If a vendor supplies a key part or service to your operation. new product launches. On-the-other-hand. Appropriate vendor management practices provide only the necessary information at the right time that will allow a vendor to better service your needs. you brought in the vendor because they could make the product or service better and/or cheaper than you could. 2. This does not mean that you should blindly accept the prices they provide. They are the experts in that area and you can tap into that expertise in order to give you a competitive advantage. Vendor management is constantly working with your vendors to come to agreements that will mutually benefit both companies. 20 . Balance Commitment and Competition One of the goals in vendor management is to gain the commitment of your vendors to assist and support the operations of your business. That does not mean that you throw open the accounting books and give them user IDs and passwords to your systems. This may include limited forecast information. Remember. Share Information and Priorities The most important success factor of vendor management is to share information and priorities with your vendors.
Seek to Understand Your Vendor's Business Too Remember. Come Together on Value Vendor management is more than getting the lowest price. Constantly changing vendors in order to save a penny here or there will cost more money in the long run and will impact quality. preferential treatment and access to insider or expert knowledge. Look for negotiation points that can help both sides accomplish their goals. they won't have a problem specifying the quality details in the contract. If you are constantly leaning on them to cut costs. Asking questions of your vendors will help you understand their side of the business and build a better relationship between the two of you. 7. Part of vendor management is to contribute knowledge or resources that may help the vendor better serve you. 6.21 4. Negotiate to a Win-Win Agreement Good vendor management dictates that negotiations are completed in good faith. In other words: value! You should be willing to pay more in order to receive better quality. Other benefits of a long term relationship include trust. your vendor is in business to make money too. 21 . If the vendor is serious about the quality they deliver. Most often the lowest price also brings the lowest quality. 5. Vendor management will focus quality for the money that is paid. Build Partnerships For The Long Term Vendor management seeks long term relationships over short term gains and marginal cost savings. A strong-arm negotiation tactic will only work for so long before one party walks away from the deal. either quality will suffer or they will go out of business.
22 CHAPTER -TWO 22 .
then the manager 23 . Shortages or overages after an inventory can indicate a problem with theft (called 'shrinkage' in retail circles) or inaccurate accounting practices. All of these business rely on an inventory count to provide answers. a master list of all the items in the restaurant. If the par sheet calls for 20 apples. The inventory itself may reveal 10 apples. Store owners need to know the precise number of items on their shelves and storage areas in order to place orders or control losses. Restaurants need to order more food based on their current supplies and menu needs. Many companies take an inventory of their supplies on a regular basis in order to avoid running out of popular items. The preferred number of each item is listed on a 'par sheet'. for example. The word 'inventory' can refer to both the total amount of goods and the act of counting them. Factory managers need to know how many units of their products are available for customer orders.23 Inventory Definition Inventory is the total amount of goods and/or materials contained in a store or factory at any given time. 12 oranges and 8 bananas on the produce shelf. Others take an inventory to insure the number of items ordered matches the actual number of items counted physically. Restaurants and other retail businesses which take frequent inventories may use a 'par' system based on the results. 15 oranges and 10 bananas.
Inventories constitute the largest component of current assets in a production organization. Effectiveness of production functions depend to a large extent Annual Demand upon inventory management.24 knows to place an order for 10 apples. stored & carried for a production system. The term inventory is comprehensive. Furniture companies may also offer 'inventory reduction sales' in order to clear out their showrooms for newer merchandise Concept & Importance of Inventory Inventory is defined as a usable resource which is physical & tangible such as material. Sound management gives a higher inventory turn over ratio. 3 oranges and 2 bananas to reach the par number. it is idle resource also. work – in – progress (WIP). Though it is a usable resource. Quite often a company will offer significant discounts if the inventory numbers are high and sales are low. Inventory could be raw material. Having too many products languishing in a warehouse can make a company look less appealing to investors and potential customers. This is commonly seen in new car dealerships as the manufacturers release the next year's models before the current vehicles on the lot have been sold. Inventory management boils down to maintaining an adequate stock to meet expected demand pattern subject to budgeting considerations. In a manufacturing unit. unless it is managed efficiently & effectively. Ideally. Companies also take an inventory every quarter in order to generate numbers for financial reports and tax records. This same principle holds true for any other retail business with a number of different product lines. Efficient inventory control can therefore significantly contribute to the overall profit-position of the organization. Inventories have to be procured. inability to supply an item from inventory could bring production to halt and could adversely affect the business prospects of the organization. most companies want to have just enough inventory to meet current orders. 24 . finished products or spare parts & many other indirect materials. On the other hand excessive inventory added carrying cost may reduce the profit margin. Inventory turnover ratio is an index of business Average Inventory performance. since a situation when they can be instantaneously available is difficult to assume in business environment.
Each type represents money Purpose of inventory management o o how many units to order when to order Nature of Inventory • • • • • Two Fundamental Inventory Decisions Terminology of Inventories Independent Demand Inventory Systems Dependent Demand Inventory Systems Inventory Costs Types of Inventory Raw materials Purchased parts and supplies Work-in-process (partially completed) products (WIP) Items being transported 25 .25 "Inventory" to many small business owners is one of the more visible and tangible aspects of doing business. Raw materials. goods in process and finished goods all represent various forms of inventory.
• • • Raw Materials Works-in-Process Finished Goods Finished Goods • Essential in produce-to-stock positioning strategies • Necessary in level aggregate capacity plans • Products can be displayed to customers Work-in-Process • Necessary in process-focused production • May reduce material-handling & production costs Raw Material • Suppliers may produce/ship materials in batches • Quantity discounts and freight/handling $$ savings Reasons for Inventories 26 .26 Tools and equipment A physical resource that a firm holds in stock with the intent of selling it or transforming it into a more valuable state.
conversely. etc. surges in demand.location. natural disasters. low inventory levels may force high quality Speed .) To maintain independence of supply chain Inventory and Value Remember this? Quality Speed Flexibility Cost Nature of Inventory: Adding Value through Inventory Quality . level of anticipatory inventory both have effects 27 .27 Improve customer service Economies of purchasing Economies of production Transportation savings Hedge against future Unplanned shocks (labor strikes.location of inventory has gigantic effect on speed Flexibility .inventory can be a “buffer” against poor quality.
HR systems may promote this-3 year postings Nature of Inventory: Functional Roles of Inventory Transit Buffer Seasonal Decoupling Speculative Lot Sizing or Cycle Why We Do Not Want to Hold Inventories Certain costs increase such as • carrying costs • cost of customer responsiveness • cost of coordinating production • cost of diluted return on investment • reduced-capacity costs • large-lot quality cost 28 . manufacturing indirect: holding.28 Cost . delivery.direct: purchasing. stockout.
29 • cost of production problems Two Fundamental Inventory Decisions How much to order of each material when orders are placed with either outside suppliers or production departments within organizations When to place the orders Inventory Costs Carrying cost cost of holding an item in inventory Ordering cost cost of replenishing inventory Shortage cost temporary or permanent loss of sales when demand cannot be met Inventory Control Systems 29 .
and how large orders should be Inventory Management must be designed to meet the dictates of market place and support the company’s Strategic Plan . As this is the blocked Working Capital of organization. Inventory Management does not make decisions or manage operations. when stock should be replenished. effectively utilize people and equipment .A set of policies and controls that monitors levels of inventory and determines what levels should be maintained. new opportunities due to worldwide marketing . The many changes in the market demand . INVENTORY is defined as the blocked Working Capital of an organization in the form of materials . coordinate internal activities and communicate with customers . Inventory System. Inventory Management system provides information to efficiently manage the flow of materials . they provide the information to managers who make more accurate and timely decisions to manage their operations.30 Continuous system (fixed-order-quantity) constant amount ordered when inventory declines to predetermined level Periodic system (fixed-time-period) order placed for variable amount after fixed passage of time Inventory-A physical resource that a firm holds in stock with the intent of selling it or transforming it into a more valuable state. global sourcing of materials and new manufacturing technology means many companies need to change their Inventory Management approach and change the process for Inventory Control . 30 .
the determination of the optimal levels of order quantities and reorder points and setting safety stock levels . But we are maintaining Inventory . Optimization means providing a balance of supply to meet the demand at a minimum total cost . stock-outs and planned promotions • Trucks are filled in a prioritized order . Some features of VMI include : • Shortening of Supply Chain • Centralized Forecasting • Frequent communication of inventory. Keeping in view all concerns . This Inventory is maintained to take care of fluctuations in demand and lead time. Annual Rate Contracts with manufacturers or their authorized dealers . We are entering into Vendor Managed Inventory . items that are expected to stock out have top priority then items that are furthest below targeted stock levels then 31 . It is strategic in the sense that top management sets goals .COM focuses in optimizing the total investment of materials cost and workload for every Inventory item throughout the chain from procurement of raw materials to finished goods Inventory . In some cases it is maintained to take care of increasing price tendency of commodities or rebate in bulk buying. Inventory level and workload to meet customers service goal for each items in the link of Inventory Chain . These include deployment strategies ( Push versus Pull ) . VMI reduces stock-outs and optimize inventory in supply chain . the latest concept of Vendor Managed Inventory is used to optimize the Inventory .31 ideally it should be zero. typically focuses on implementing more rapid and efficient systems to reduce the cost of communicating information between and across the Inventory links in the SCM. since they are primary determinants of customer service levels. who maintain Inventory on our behalf and supply the items as and when required . Traditional Supply Chain solutions such as Materials Requirement Planning . These levels are critical . e. control policies .g. Inventory Control .
handling. asset management. and related costs are kept in check. replenishment. The Inventory Management system and the Inventory Control Process provides information to efficiently manage the flow of materials. quality management. returns and defective goods and demand forecasting. shipping. inventory forecasting. effectively utilize people and equipment. they provide the information to Managers who make more accurate and timely decisions to manage their operations. future inventory price forecasting. and communicate with customers. inventory valuation. but the underlying principles for accomplishing good Inventory Management and Inventory activities have not changed. physical inventory. inventory visibility. the basic principles of Inventory Management and Inventory Control remain the same. Some of the new approaches and techniques are wrapped in new terminology. Inventory Management and the activities of Inventory Control do not make decisions or manage operations. This would include the monitoring of material moved into and out of 32 . Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods. carrying costs of inventory. Handles all functions related to the tracking and management of material. set targets. Systems and processes that identify inventory requirements. provide replenishment techniques and report actual and projected inventory status. coordinate internal activities.32 advance shipments of promotional items Despite the many changes that companies go through. Inventory management is primarily about specifying the size and placement of stocked goods. Other definitions of inventory management from across the web: • • • Involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering. The scope of inventory management also concerns the fine lines between replenishment lead time. available physical space for inventory.
In business management. more so to cater for the time period when supply may become lean or non-existence is imperative. sales are 33 (b) . Also may include ABC analysis. cycle counting support etc. Economising purchases – If the product does not have sufficient demand to sustain continuous production round the year. During the time when production is not taking place. with the primary objective of determining. rice industries or coal. INVENTORY MANAGEMENT must tie together the following objectives . Management of the inventories. An inventory can also be a self examination.to ensure that there is continuity between functions : • Company’s Strategic Goals • Sales Forecasting • Sales & Operations Planning • Production & Materials Requirement Planning. are some of the example. inventory consists of a list of goods and materials held available in stock. Inventory of raw material is created accordingly. it is usually produced in batches or lots. a moral inventory. Functions that are performed by inventories are summarized as under: (a) Regular demand & supply – Stocking of raw material for future anticipated consumption. lot tracking. metal ores which can not be easily mined during rainy seasons etc.controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling costs. tobacco. Functions that Inventory Performs In any organization. This is mostly applicable for agricultural products which are available during harvest season. inventories add an operating flexibility. Sugarcane. Work-in-progress inventories are a must for any production unit. on intermittent basis.33 • • • stockroom locations and the reconciling of the inventory balances.
electrical appliances etc. • Improve customer satisfaction. improve cash flow. (c) Allowing organizations to cope with perishable material Organizations selling canned & bottled food materials. purchasing. • Gain visibility into inventory processes. Effectively balance availability with demand and track items and their possible expiration dates throughout the supply chain to help minimize on-hand inventory. especially fruits & vegetables. This is applicable in case of seasonal clothing. They must procure adequate raw material during production season & in turn create so mush ready stock so as to last them till such time next production season starts.34 made from the inventory of ready items which is accumulated while the production is on.This is primarily continuing with production through out the year & create sufficient inventory of ready material to cater for peak anticipated demand in season of maximum purchases by customers. and sales order processing with demand planning and help reduce costs. operate at peak production capacity only for a few months each year. Inventory can store labour . (d) Benefits: • Help reduce purchasing and inventory costs. optimize replenishment. and increase warehouse efficiency. and help ensure that you have the right stock available when you need it. Make more accurate order promises and intelligent last-minute exceptions with access to up-to-date inventory information. Connect inventory control. 34 .
Furthermore. EDI software and statistical methodologies to forecast and maintain correct inventory in the supply chain. As a symbiotic relationship. In other cases. This is one of the successful business models used by Wal-Mart and many other big box retailers. Delta. the vendor (supplier) will repurchase the product from the buyer (retailer). Vendor-managed inventory (VMI) Vendor-managed inventory (VMI) is a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material. usually at the buyer's consumption location (usually a store). your business can reduce manual data entry and get your goods to market fast. Oil companies often use technology to manage the gasoline inventories at the service stations that they supply (see Petrolsoft Corporation). A third party logistics provider can also be involved to make sure that the buyer has the required level of inventory by adjusting the demand and supply gaps. VMI helps foster a closer understanding between the supplier and manufacturer by using Electronic Data Interchange formats. RIDGID. inventory. • Reduce time to market. meaning that the retailer simply houses (and assists with the sale of) the product in exchange for a predetermined commission or profit. as well as item tracking capabilities. A special form of this commission business is scan-based trading whereas VMI is usually applied but not mandatory to be used. vendor (supplier) representatives in a store benefit the vendor by ensuring the product is properly displayed and store staff are familiar with the features of the product line.Home Depot uses the technique with larger suppliers of manufactured goods (ie. One of the keys to making VMI work is shared risk. all the while helping to clean and organize their product lines for the store. 35 . With integrated order. Often if the inventory does not sell. Moen.35 Respond quickly and knowledgably to customer queries for improved customer service. Paulin). and distribution processes. VMI makes it less likely that a business will unintentionally become out of stock of a good and reduces inventory in the supply chain. the product may be in the possession of the retailer but is not owned by the retailer until the sale takes place.
insurance and taxes. but also the cost of money tied up in inventory. retailers benefit from reduced risk.but not spreading the rapidly moving ones too thin. which include not only direct costs of storage. This fine line between keeping too much inventory and not enough is not the manager's only concern. 36 • • • . store staff with good knowledge of most product lines offered by the entire range of vendors and therefore the ability to help the customer choose amongst competing products for items most suited to them. Others include: Maintaining a wide assortment of stock -.but not sacrificing the service level. Many small business owners fail to appreciate fully the true costs of carrying inventory. and reduced display maintenance outlays Consumers benefit from knowledgeable store staff who are in frequent and familiar contact with manufacturer (vendor) representatives when parts or service are required. manufacturer-direct selection and service support being offered by the store Successful Inventory Management Successful inventory management involves balancing the costs of inventory with the benefits of inventory.36 Vendors benefit from more control of displays and more contact to impart knowledge on employees. Increasing inventory turnover -. better store staff knowledge (which builds brand loyalty for both the vendor and the retailer).
Obtaining lower prices by making volume purchases -. it is necessary to establish adequate controls over inventory on order and inventory in stock. and Having an adequate inventory on hand -. 37 • . Average inventory turnover ratios for individual industries can be obtained from trade associations. They are listed below.but not getting caught with obsolete items. the type of business and how the ratio is calculated (whether on sales or cost of goods sold). ! Visual control enables the manager to examine the inventory visually to determine if additional inventory is required.but not ending up with slow-moving inventory. from simplest to most complex. but it must be realized that the turnover rate varies with the function of inventory.37 • Keeping stock low -. In very small businesses where this method is used. computing the inventory turnover ratio is a simple measure of managerial performance. This value gives a rough guideline by which managers can set goals and evaluate performance. • • • CONTROLLING YOUR INVENTORY • To maintain an in-stock position of wanted items and to dispose of unwanted items. records may not be needed at all or only for slow moving or expensive items. The degree of success in addressing these concerns is easier to gauge for some than for others.but not sacrificing service or performance. There are several proven methods for inventory control. For example.
both through the widespread existence of computer service organizations and the decreasing cost of small-sized computers. it may find a need for a more sophisticated and technical form of inventory control. The manager can then use the stub to record the item that was sold. Such information is then used for reorder purposes. The final method for inventory control is done by an outside agency. the use of computer systems to control inventory is far more feasible for small business than ever before. ! Off-line point-of-sale terminals relay information directly to the supplier's computer who uses the information to ship additional items automatically to the buyer/inventory manager. The manager receives information printouts at regular intervals for review and action. • • • • • Developments In Inventory Management 38 . ! Point-of-sale terminals relay information on each item used or sold.38 • • ! Tickler control enables the manager to physically count a small portion of the inventory each day so that each segment of the inventory is counted every so many days on a regular basis. Often the justification for such a computer-based system is enhanced by the fact that company accounting and billing procedures can also be handled on the computer. Unwanted merchandise is removed from stock and returned to the manufacturer through a predetermined. Today. ! Click sheet control enables the manager to record the item as it is used on a sheet of paper. As a business grows. takes the stock count and writes the reorder. authorized procedure. A manufacturer's representative visits the large retailer on a scheduled basis. ! Stub control (used by retailers) enables the manager to retain a portion of the price ticket when the item is sold.
Materials are scheduled more closely. The inventory of raw materials and work-in-process falls to that needed in a single day. This is accomplished by reducing set-up times and lead times so that small lots may be ordered. thereby reducing inventories. • • TIPS FOR BETTER INVENTORY MANAGEMENT • At time of delivery 39 . Their application is primarily within manufacturing but suppliers might find new requirements placed on them and sometimes buyers of manufactured items will experience a difference in delivery. Just-in-time inventory management is an approach which works to eliminate inventories rather than optimize them. Suppliers may have to make several deliveries a day or move close to the user plants to support this plan. taking one to three years to develop. two approaches have had a major impact on inventory management: Material Requirements Planning (MRP) and Just-In-Time (JIT and Kanban). Material requirements planning is basically an information system in which sales are converted directly into loads on the facility by sub-unit and time period. MRP systems are practical for smaller firms. The computer system is only one part of the total project which is usually long-term. Its primary use is with products composed of many components. and delivery times become shorter and more predictable.39 • In recent years.
immediately open all cartons and inspect for merchandise damage.40 • Verify count -. note it on the delivery receipt and have the driver sign your copy.All damaged materials must be held at the point received.If damage is visible. After inspection • • • • • • • • • • 40 .Make sure you are receiving as many cartons as are listed on the delivery receipt. Carrier inspection of damaged items Have all damaged items in the receiving area -. After delivery. When damage is discovered Retain damaged items -. carefully read before signing.Make certain the damaged items have not moved from the receiving area prior to inspection by carrier. Carefully examine each carton for visible damage -. Call carrier to report damage and request inspection. After carrier/inspector prepares damage report. Confirm call in writing--This is not mandatory but it is one way to protect yourself.
It is expressed as a %age of rupee value per unit of time. Transportation cost. Stock out costs – There is an economic cost when a firm runs out of stock. tracking the order are also ordering cost. insurance. thus reducing inventory costs Ordering cost – These are costs associated with the placement of an order. depreciation. When set up costs are heavy. When there is no cost in changing from product to product. Though set cost is considered fixed. obsolescence. It is an opportunity loss as well. 15 to hold Rs. pilferage. These costs include clerical cost or making an order. there is loss of instant & future business. When items are carried in the inventory. & the opportunity cost of capital. smaller lots are feasible. There is a 41 (b) (c) (d) . An annual holding cost of 15% will mean that it will cost Rs. irrespective of the item ordered. charging time for material & moving out previous stock of material. If customer has to wait for an item. receiving & the cost of transportation. breakage. there is economy in having large runs. Set up (production charge) – Production of different kinds of products require procurement of necessary material. This cost practically remains same. it can be changed by changing the design & management of operations. taxes etc. handling. 100 of inventory for a year. it can not be sold to customer till such time stock is replenished. When an item is not in stock.41 Inventory Costs There are four types of costs those are considered while calculating inventory size: (a) Holding (carrying) cost – This relates to those costs which are incurred to carry the inventory items in stock for a period of time. tracking it. This broadly includes costs for storage. the capital is tied up & is not free to be invested in other things – a case of foregone opportunity for other investments. expediting it. arrangement of specific equipment set up. filing of required papers. Set up time can be reduced by changes in production system & the product.
42 trade off between carrying cost to satisfy customer demand & costs resulting from loss of business form customers. CHAPTER-THREE 42 .
According to the survey their priorities are: • Rapid Speed Billing & Best Crowd Handling / Rush Hour Handling • Dump Stock Handling • Report on Fast Moving Items & Slow Moving Items • Report on Fruitful Investment on the Products • Expiry Item Handling • Who is Best Supplier? • Best Cash Handling • Best Prescription Handling • Substitute Medicines • Monitoring the Cash Handling & Stock Handling • 24 x 7 After Sales Service 43 .43 The Need of Technology Advancement in medical Billing Software The efficient operation / management of a crowded Chemist Shop which is dealing with a huge number of prescriptions. depends on the factors like the number of efficient staffs to handle the customers or the implementation of the appropriate software technology. MARG conducted a survey across the Indian Cities by its Senior Doctors & Chemists as a first step of preparing the software.
research arrangements. public or private bodies. To Promote the scientific study of all branches of drug trade industry and allied trades and with a view there to establish. bulletins. periodicals. to promote and protect the interests of drug trade and allied lines in Maharashtra and of persons engaged therein. industry and allied trades. To subscribe to or become member of and co-operate with or amalgamate either wholly or partially with All India Association of Pharmaceutical 44 . seminars refresher courses and also foundation and endowment of studentships or scholarships and to take over the management of such associations formed for similar objective. To take necessary steps to safeguard the interest of the public in all possible ways particularly against misbranded. To collect and circulate statistics and all other such information relating to the drug trade industry and allied trades. printing and publishing of news paper. maintain or help in the establishment or maintenance of medical and pharmaceutical organizations. publishing house circulars etc. committees etc. laboratories. meetings and conferences. To promote the development of pharmaceutical trade.44 Maharashtra State Druggists and Chemists Association Objectives The Objects for which the association is established are : • • • • • • • • To aid and develop pharmaceutical education in all its branches and to coordinate the functioning of all the district associations of Chemists & Druggists in Maharashtra. sub-standard or spurious drugs and medicines or help in the undertaking of legal action in such matter singly or in co-operation with others. To encourage and assist the drug trade. lectures. To elect or nominate representatives to legislatures. books. journals. To establish and maintain or to help in the establishment or maintenance of libraries and reading rooms for general use of the members of the association and all those engaged in the drug trade. leaflets. industry & allied trades in the diffusion of useful knowledge by arrangement and provision of rooms holding of exhibitions.
lands.45 • • • • • • • • and/or allied trade. lease. maintain or alter any house. To maintain and establish uniformity in rules. wiz (AIOCD) whether incorporated or in part similar to those of this association or to help them financially. hire or otherwise. extend or abridge any of the purposes mentioned in the memorandum accept any other purposes as may think fit by the association. donations and subscriptions or provide funds or endowment for the benefit of 'the association' or for any specific purpose as it might think fit. lease. develop. gifts. buildings or lands or works necessary for the purpose of the association as it might think necessary from time to time. and other property movable or immovable to construct. To acquire or purchase or buy exclusive marketing rights or marketing rights of any pharmaceutical or healthcare product or products. pharmacy and allied subjects and specialized ailment diagnosis methods. buildings. refresher courses by eminent persons in the field of medicines. To undertake or help in undertaking propaganda or publicity work in any part in any way on behalf of the trade and also all merchandise. exchange. o To invest all monies not immediately required for the purposes of its business upon such securities or in such manner as may from time to time and to make donations as and when think fit by it. (new additions) o In order to achieve the above objects 'the association' shall have the following powers. To form or constitute or take over any "chain of medical stores" or any pharmaceutical marketing unit or co-operative trading and marketing society. o To sell. To develop and maintain friendly relations amongst its members and all persons engaged in the pharmaceutical trade and allied trades and profession and also government medical. mortgage or dispose off or turn to account otherwise deal in or with property of 'the association'. purchase. To organize suitable medical relief in areas affected by malnutrition epidemics and other natural calamities. (Tours for omitted) 45 . To organize extensive lectures. o To accept request. regulations usages of the trade and the profession. seminars. singly or along with others. o To acquire. mercantile or other public or private bodies individuals. To alter. improve. let out.
To do all such other acts. accept. 46 . execute issue and negotiate promissory notes. To raise money by subscription or otherwise and to grant right and privileges to the members. as may be conducive to the objects stated in the memorandum or to any one of them. To make. bills of exchange debentures and other negotiable instruments.46 o o o o To borrow or raise money required for the purpose of 'the association' upon such terms and in such manner and on such securities as may be determined. endorse.
Existing System in the Market
Dava Plus Overview
DavaPlus software is a comprehensive solution designed to automate the activities of Medical/Pharmaceutical Retailers, Distributors and C F Agents. DavaPlus has the Capability to administer the total enterprise and efficiency and manage information. It is designed with an easy-to-use user interface. DavaPlus is an automated system for any large/medium Pharmaceutical Retailers, Distributors and C F Agents. It covers Complete Customer Management, Inventory Reporting, Cashier with integrated accounts, Product database etc. Thus this software is a Complete MIS tool for pharmaceutical business management/medical stores-shops management/pharmacy management/retail chemists & druggists management. DavaPlus is developed in state of art technology. Listed are few of the functionalities that DavaPlus caters to: Daily business functions are made easy. • Purchase, Sales, Cash receipts/payments, Cheque receipts/payments. • Stock, sales, Inventory and MIS Reports using crystal reports. • Information list views for faster data location. • Multi-user and Internet enabled, Comprehensive reporting. • Easy-to-use User friendly Graphical user interface. • Stringent data security and easy recovery in case of a system failure. • On line help has been provided for each and every screen. • Faster accessing, accuracy, more efficiency, more security. • Better service to customer Enhanced administration and control. • Cost control and improved profitability. • VAT Compatible software.
Technical Overview... DavaPlus along with DavaNet is a product suite that caters to the need of Pharma supply chain management. DavaPlus, developed in Microsoft Visual Basic Why Microsoft Visual Basic?
There are quite a number of reasons: VB is not only a language but also primarily an integrated, interactive development environment ("IDE") • The VB-IDE has been highly optimized to support rapid application development ("RAD"). It is particularly easy to develop graphical user interfaces and to connect them to handler functions provided by the application. • The graphical user interface of the VB-IDE provides intuitively appealing views for the management of the program structure in the large and the various types of entities (classes, modules, procedures, forms...). • VB provides a comprehensive interactive and context-sensitive online help system. • When editing program texts the "IntelliSense" technology informs you in a little popup window about the types of constructs that may be entered at the current cursor location. • VB is a component integration language, which is attuned to Microsoft's Component Object Model ("COM"). • COM components can be written in different languages and then integrated using VB. • Interfaces of COM components can be easily called remotely via Distributed COM ("DCOM"), which makes it easy to construct distributed applications. • COM components can be embedded in / linked to your application's user interface and also in/to stored documents (Object Linking and Embedding "OLE", "Compound Documents”). DavaPlus’s backbone is the very powerful SQL database. We utilize SQL Server 2000, which supports hundreds and thousands of users or tens of gigabytes of data. It also offers enterprise class reliability along with dynamic backup and restore. It is the most popular relational database on Microsoft Windows. It also has significant new security enhancements, by not only offering the highest level of security available in the industry, but by also making it much easier to achieve that level. According to Microsoft, “SQL Server 2000 can give you over one million transactions” DavaPlus also supports Microsoft Access database as back-end, which is very handy for single-user or a small-scale user.
DavaPlus incorporates Crystal Reports, an industry standard, that changes the way you interact with your data. We have standard reports with unique criteria for analysis and decision-making. Each report highlights the key components of your business data and provides you with a bird’s eye view of the direction your business is heading. Reports are broken in to parts of your business, such as List, Sales, Purchase, Stocks, Accounts and Final Accounts reports so it's easy for you to grab the report you need. Crystal Reports provides more data connectivity and control options. You can integrate Crystal Reports with your B2B or B2C applications via XML access or export. You can also process reports faster and use network resources more efficiently since Crystal Reports uses multi-threaded report processing capabilities. DavaPlus users have the opportunity to export reports formatted the way they want. Export reports to popular formats, including: · XML · PDF · Excel · Word · RTF Our ReportManager uses your inventory’s data to create reports. One easy glance shows you how much stock is currently on customer orders, on vendor orders and the stock in hand to sale. The Sales Reports of Customer and Products give you a strong business tool to further evaluate your business processes and increase sales. Easily set the criteria for each report generation. DavaPlus has reports that give you an in depth view of your inventory, that assist you in the analysis of the data from your returns department, alert you about product re-order levels, organize your customer price lists and much more. A complete breakdown of you data enhances your business’s capability in understanding the data flow. DavaPlus also uses XML technology. The use of XML—an open standard managed by the World Wide Web Consortium (W3C)—removes barriers to data sharing and software integration. XML makes it easy to exchange data, and our design technology enables us to customize DavaPlus functionality by little changes in these XML files. Though an external entity, these supporting XML files form the basic support for DavaPlus.
ME. 2000.51 DavaPlus is a desktop application. which means if you the following hardware and software set onto your desktop or laptop then you will be able to use DavaPlus. Network required 51 . the short date format should be set to DD/MM/YY format Windows 98* SE. Following is the list hardware and software that we recommend for you to use DavaPlus efficiently: Pentium IV 1GHz with at least 256MB of RAM CD-ROM with 32-bit driver The Regional Settings in the control panel. 2003 or XP At least 256 color SVGA video Minimum 800x600 resolution with normal fonts of 96 dpi Any DMP printer. which supports draft mode printing Multiple-user version.
3. 52 . Day by day it is becoming increasingly difficult to manage it with the current method of running business. The following compelling facts will give you the missing dimension perhaps worth giving attention to. 1. 4. you have been running retail business very successfully. The items and the suppliers you have been dealing have grown in numbers. Bar Code readers/printers/scanner enabled software will only simplify your business needs and will help you sustain your current leadership status. All your business partners have joined the technology bandwagon and they have changed their style of business.making it a perfect point-of-sale solution Key Features at a Glance: 1) 2) Simple & Intuitive Automated Entry: You need not bother about which account has to be debited or credited since the system automatically takes care of : a) Debit & Credit Voucher b) Journal Voucher(VJ) c) TDS Voucher d) Contra Entries & Transfer Voucher e) Sales & Purchase f) Debit Note &Credit Note Also you need not worry about Accounting codes / Serial no of voucher etc. Tomorrow they will expect you to take orders on web and so on. Quicksoft Art-RM lets you computerized from day one without delay of keying in Bulky data and moreover you don’t need to use separate software for accounting and inventory purposes.52 Medical Shop Management Software(Quick soft) Over the years. 2. it is only the different way we look at it. Even your customers are demanding the speed with which you need to respond and deliver. The Overall volume of your business has grown exponentially. The art of retail management is not new to you. The use of Computers.
53 Multiple Location Multiple Batches Multiple Godown Per Location Multiple Barcode handling Multiple Units of Measurement Attend Multiple Customers/Invoices . Inventory: m) Barcoding of your products in user defined format. No Limits: The software enables you to work on multiple companies with a provision of accounting for: g) h) i) j) k) l) Day Books: The system does online posting to respective account and thereby provides upto date Accounts Receivable/Accounts Payable and Trial Balance every time. the stock avaliable in different UOM can be seen by toggling for different UOMs. In the sales invoice form. Barcode.Allows you to scan barcode of different type(i.product code etc. n) Stock Ledger o) Stock movement statement: Online stock information of selected products for chosen warehouse and UOM. system generated.53 since the system auto-generates the same.e.mrf. The system also gives report showing the list of products expiring after a specified no. t) Sale in loose: The system allows to sale the products in loose form by automatically converting product to least selling units of measurement. The system also doesn't allow to sale the products already expired.) and lets you save on barcode printing for the products having manufacturer barcode.You always get up-to-date stock for different items with different batches and their units of measurement lying at different shelf in different warehouses.barcode for different batches. q) Online stock status with P.stock-in(delivery challen/GAN/GIRN) and sales transaction. Lets you Track Inter Warehouse Stock Movement p) Warehouse Management : Allows user to sale products for multiple Godown and Auto Transfer goods from one warehouse to another.O generation to preferred vendor for multiple items r) Batch Management: The system takes care of different prices. s) Expiry Management: The system lets user enter the manufacturing and expiry date for the product during entry of opening stock.expiry. of days.
Customer Relationship Management: v) The software helps you to maintain customer master with personal details of the customer. with Keyboard Shortcuts for frequently used forms cc)Multi-User dd) Allows you to buy in bulk & sell in loose ee)All reports for specified period selected using calender ff) Simplified Edit / Delete using Mouse Right Button gg) Data view in tabular form to check the correctness of entries made h) Zoom to Voucher Direct from Trial Balance just by Double clicking the mouse button i) Users manual with Online Support and email support j) Updates available from website k) Internet Surfing / Email / FTP from within the accounting software Data Management hh) Data Import and Export Facility ii) Excellent Data Management jj) Simplified data back-up.It has an inbuilt browser for surfing.It supports many other input/output devices. Future Ready: The system is barcode enabled.sending regular news letters etc. User Interface z) Very Easy to Use aa)Soothing Graphical User Interface with Context Sensitive Help bb) Totally Menu Driven.54 u) Stock Taking :Allow you to tally your physical stock with computer stock and lets you update your purchase/sale/stock data.intelligently and with ease. w) Customer Analysis(their buying patterns) x) Keep in touch with the customer's by wishing them on their important dates. y) Allows you to take orders on phone/through email.thereby allowing you to recall all your products with speed and ease.auto back-up on daily basis. kk) Send / Receive Data of your branches spread across the Country ll) User level/Form level screen access for improved security mm) Scalable:available with MS-SQL Version Reports nn) Excellent quality of output for Reports 54 .
55 oo) All frequently used reports at the click of a button pp) All reports can be previewed.. exported to Excel/Word etc.or can be faxed or emailed qq) On Line Trial Balance and Balance sheet at the click of a button rr) On-line & Batch mode voucher & cheque printing ss) Bank Reconciliation report as per the book keeping rules tt) DOS/Fast Printing for Voucher. ww) Multiple Printer selection from the network xx) Group Consolidation 55 . Also gives you the comfort of managing multiple vv) customers by allowing you to work on multiple invoices at the same time. Invoice printing is available uu) Invoices at lightening speed. printed.
As a result of tireless teamwork. specially designed for the Chemist Shops. MARG Medical Billing Software. MARG is an ISO 9001:2000 certified company since 1993. Expiry & Claims Easy & Fast Medicine billing with Accuracy Cross check of Purchase Rates. Stocks. Disc. was launched in the market during 2000 (after obtaining quality certification from the Panel of Senior Chemists & Doctors after thoroughly assessing the software) Since then MARG Chemist Software is committed to provide the best supporting system for the Pharmacy / Chemist Business upgrading itself from time to time according to the market needs. Deal & Cost Online Sales Tax/NDPS/Drug Reporting Effective Purchase Management to reduce costing Regular Patient Prescriptions & Reminders Auto Order generation & Best suppliers planning Auto Purchase feeding from Email/CD/Pending Order Substitute/Salt/Location wise search Zero Percent chance of Manual Mistake Best Relations with Patient & Doctors Customers Satisfaction & Business Improvement Integrated Accounting "PAPERLESS CHEMIST SHOP Allied Overview 56 .56 About MARG Chemist Software Only MARG Chemist Software which is designed to handle every needs of a Chemist Shop / Pharmacy in most efficient way. MARG Medical Billing Software achieved the clientele of more than 25000 The incomparable After Sales Service and Training Support is the key behind its success Benefits of MARG Chemist Software a) b) c) d) e) f) g) h) i) j) k) l) m) n) Complete Medical Inventory & Accounting Management Control on Pilferage.
it is only natural that our teams develop leading-edge products. The future of our company depends squarely on the knowledge. With our range of professional development tools and a large library of upto-date resources. India. We are committed to the highest standards of ethics and integrity. Founded in 1997.57 Allied Softech Pvt Ltd is a software development house located in Pune. We value these qualities most highly. Quality of Services and Quality of Communications. We believe that great products come from talented and motivated teams. We achieve our goals through innovation and by consistently improving efficiency. o) Excellence A technology-driven company. Quality of our Promises. We assure Quality. imagination. The company provides software products for various industries. We are specialized in providing software products to Pharmaceutical Trading industry. and can be nurtured in an environment conducive to learning and capability building. And motivated teams are born. Quality of Relationships. Powered by superior technological skills acquired in a world-class learning environment. skills. This is precisely why we focus our energies towards providing our teams with abundant opportunities to enhance their technological skills and acquire deeper knowledge and greater expertise. committed to delivering value to customers. p) "Sound people + Cutting edge Technology = Quality Product" 57 . among others. oursteams have a wealth of knowledge at their disposal. Quality of Products. teamwork and sincerity of our employees.
Our sharp understanding of business process empowers us to build work engagement models that deliver real and tangible value especially in Pharmaceutical industry. Due to deep knowledge of pharmaceutical trading market. sure-success solutions that maximize benefits and reduce costs. We have experience of developing softwares in Hotel. Our experience in providing softwares with complete Financial & Accounting features makes us the leader in this kind of software 58 . We have been working for pharmaceutical softwares for many years now. Lodge and Bar industry and we are the only company. Experience Being into software development business for so many years. which offers a unique and modular product for this industry.We effectively combine our technological skills and deep domain knowledge to build cost-effective solutions with a shorter lead-time. it's no wonder that we are the leaders in this market. Product Development Attitude and Culture . Restaurant.58 q) Excellent track record of on-time delivery of high-quality software. Motel. Having been in the technology field for many years. After analyzing your specific requirements. we have expertise in all major and modern technologies used today. our professionals leverage their expertise to design and develop customized. it goes without saying that our teams possess a sharp understanding and in-depth knowledge of numerous technological areas including Databases & Web Services.
For this to happen we will stay viable and relevant through practical innovation and a continuous focus on efficient and consistent execution.59 applications. Vision Allied has set a vision to become a premier software company providing world leadership in software solutions. trusted and successful long-term partner to our clients. associates and our employees. 59 . We will strive to attain a leadership position in the markets we choose to serve by creating innovative and differentiated IT and IT enabled solutions that are delivered with impeccable quality. to be the preferred.
60 60 .
61 CHAPTER-FOUR 61 .
Chemist store using automated and Non automated System. Percentage of return on expiry Medicine by vendor to the firm. 4. 3. Chemist Store use to track expiry medicine with help of automated system. 5. Frequency of order placed to vendor by the firm. The data is analyzed in order to determine following point 1. Various criteria for selecting vendors. 6.62 Analysis of Data Collected After collecting data with the help of questionnaire. the data is analyzed. of firm satisfied with the current automated system. No. 62 . 2.
63 Criteria For Selecting Vendor’s 63 .
64 Medical Store using Automated System 64 .
of Firms Percentage of Return on Expiry Medicine by Vendor 65 .65 Vertical axis=No.
66 66 .
of shops Vertical axis=Frequency 67 .67 Frequency of order placed to Vendor Horizontal axis=No.
of Firms Satisfied with the Current Automated System 68 .68 No.
69 Tracking of Expiry Date with the help of Automated System 69 .
70 70 .
71 71 .
72 72 .
73 73 .
FIVE 74 .74 CHAPTER.
No segmentation of medicine in software according to molecules. discount. No pop-up window is shown for expiry medicine/short medicine in main window. No option for analysis of sell/purchased medicine on yearly/monthly/weekly basis.e delivery time. No information about vendor performance metrics(i. No option for banned/un-prescribed medicine. 75 . No concentrated information at one place. availability).75 Drawbacks of Existing System Data Entry problem.
• 10% of the firm has left using automated system because of data entry problem. • Mostly all medical store is associated with approximately 35-45 vendors. • Orders are placed daily mostly by all the firms. 76 .76 Findings • 61% of the firm select Vendors on the basis of discount Percentage.
77 • 35% of chemist store do not track expiry medicine with the help of automated system because they feel more convenient in tracking expiry medicine manually rather than maintaining data for expiry date . Conclusion & Suggestion 77 . • 51% of vendor are giving 70-80% percent of return in expiry medicine • Almost all medical store segment there inventory in alphabetical order.
78 .78 • Existing system are lacking behind in decision making. Various software developer company should concentrate on adding this feature in the software specially for vendor performance metric so that it could guide chemist for placing order to particular vendor. • Existing System are having no information about Molecule segmentation and banned/un-prescribed medicine.
.25 lakhs c) 26-50 lakhs d) >50 lakhs c) 10-15 years d) >15 years Date 4) Do you calculate annual/monthly growth rate or not? If yes pls mention….... 79 ..:………………………………………………………………………………………… …………………… g) E-Mail/Website (if any):………………………………………………………………………………………… …....79 APPENDIX-1 QUESTIONNAIRE Time in: Time out: 1) Personal Details a) Name of Concerned person:……………………………………………………………………………………. 2) How long you are in this Business? a) 1-3 years b) 4-9 years 3) What is your annual turnover? a) 1-10 lakhs b) 11.... d) Name of Firm:………………………………………………………………………………………… ………………… e) Address of Firm:………………………………………………………………………………………… ……………... c) Your Qualification:………………………………………………………………………………………… …………. f) Contact No.. b) Designation of Concerned Person:…………………………………………………………………………….....
. 11) Are they willing to pay more for new software which will help in managing their inventories/vendors? 80 ...... b) No(Mention Reason):- …………………………………………………………………………………… …………………………………………………………………………………… …… 9) Does your current system provide you with vendor performance metrics or not? a) Yes b) No 10) What type of reports are generated from current system? ...... 8) Are you satisfied with your current system or not? a) Yes(Mention Reason):- …………………………………………………………………………………… …….......…………………………………….....80 5) Are you having PC in your firm? If yes then how many……………………………………………… 6) Do you maintain data for your inventories/vendors? If yes how a) Manually (Maintain Register) b) Software(Pls Mention) ………………………………… 7) What is the expenditure of current system (for inventory/vendor)? a) If software then pls mention installation and maintenance cost monthly/yearly …………………………………………………………………………………… …………………………………………………………………………………… …… b) If manually then what is the expenditure in maintaining data for inventory…………………………………………………………………………… ………………………………………………....................... ………………………………………………………………………………….
com 81 .. ……… 16) Vendor provides how much time for returning expiry medicine? How much percent return on it? a) Percentage:- …………………………………………………………………………………… …………………………………………………………………………………… …… b) Time:…………………………………………………………………………………… …………………………….81 a) Yes b) No 12) Is your vendor directly associated with manufacturer or not? a) Yes b) No c) Some and Some are not…………..justdial. 17) Are cutting are return or accepted by dealer after expiry? a) Yes b) No APPENDIX-2 REFERENCES 1)www. 13) Do you keep track of offers/discounts provided by your vendor? a) Yes b) No 14) How frequent order is placed? a)Daily b) Alternate c) Weekly d) Monthly 15) What are the criteria’s in which you choose to place an order to particular vendor? ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………...
org 5) www.82 2)www.google.K.com Books and Papers 1) Material Management by K.com 3) ) www.mindbank.com 4) www.Mandal PROJECT EVALUATION SHEET PROJECT NAME:VENDOR PERFORMANCE IN VENDOR SYSTEM (CHEMIST AND DRUG STORE) MANAGEMENT 82 .Shridhar Bhat 2) Total Quality Management by S.wikipedia.vendormanagedinventory.
83 . has observed the student’s activity. he /she has awarded < ___ > marks out of 40. Assessment of Project Presentation <Name of External Examiner>. on this project. has assessed the Project Report. on < / / >. On < / / >. Assessment of day-to-day activity <Name of Project Guide>.83 STUDENT NAME: ISHU SINGH (ITM/O8/016) Assessment of Project Report <Name of External Examiner>. The project presentation is awarded < ___ > marks out of 40. Signature of Assessor _________________________ . on < / / >. The project report is awarded < ____ > marks out of 280 Signature of Assessor ____________________. has attended the Project Presentation.
regarding the project on < / / >. < A representative of the Project Committee> has conducted a Viva with the student.84 Signature of Project Guide ________________________. D. TOTAL MARKS The student has obtained < ______ > marks out of 400. 84 . and awarded < ___ > marks out of 40 . Signature of Project Committee Representative ________________________.