MATERIAL MANAGEMENT

DefinitionIt is concerned with planning, organizing and controlling

the flow of materials from their initial purchase through internal operations to the service point through distribution.

OR

Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials, from their initial purchase to destination.

AIM OF MATERIAL MANAGEMENT

To get

1. The Right quality

2. Right quantity of supplies

3. At the Right time

4. At the Right place

5. For the Right cost

PURPOSE OF MATERIAL MANAGEMENT

•To gain economy in purchasing

•To satisfy the demand during period of replenishment

•To carry reserve stock to avoid stock out

•To stabilize fluctuations in consumption

•To provide reasonable level of client services

Primary•Right price•High turnover•Low procurement •& storage cost•Continuity of supply•Consistency in quality•Good supplier relations•Development of personnel•Good information system

Objective of material management

Secondary•Forecasting•Inter-departmental harmony•Product improvement•Standardization•Make or buy decision•New materials & products•Favorable reciprocal relationships

Four basic needs of Material management

1. To have adequate materials on hand when needed

2. To pay the lowest possible prices, consistent with quality

and value requirement for purchases materials

3. To minimize the inventory investment

4. To operate efficiently

Basic principles of material management 1. Effective management & supervisionIt depends on managerial functions of • Planning• Organizing• Staffing• Directing• Controlling • Reporting• Budgeting2. Sound purchasing methods3.Skillful & hard poised negotiations4.Effective purchase system5.Should be simple6.Must not increase other costs7.Simple inventory control programme

Material Handling Tools

• CONVEYORS

• INDUSTRIAL TRUCKS

• CRANES AND HOISTS

• CONTAINERS

• ROBOTS

E-CRM

Introduction

• The emergence of e-commerce has changed many aspects of existing businesses.

• Companies need the ability to track and manage Internet-based e-commerce events.

• Companies have to maintain consistency across all interaction channels and across all areas of a company a customer interacts with.

Introduction

• Many organizations are considering adopting the concept of electronic Customer Relationship Management (e-CRM).

• E-CRM provides the ability to capture, integrate, and distribute data gained at the organization’s Web site throughout the enterprise.

• Useful guidelines for the efficient integration of e-CRM.

The emergence of e-CRM

• e-CRM expands the traditional CRM techniques by integrating technologies of new electronic channels.

• e-CRM solution supports marketing, sales and service.

• With the advancement of Web-based technology, market dynamics are driving companies to adopt e-CRM.

Key applications of e-CRM

• A successful e-CRM solution is the challenge of consolidating all customer-related information into a single view.

• e-CRM can enable companies of all sizes and across all industries to offer one-to-one relationships to customers.

• The conceptual relationship among five key e-CRM applications.

Key applications of e-CRM

• Information integration application– an incomplete view of customers reduces their

loyalty and trust– consolidating customer data and information from

different sources– to keep up with every customer’s interaction

Key applications of e-CRM

• Customer analysis application– measures, predicts, and interprets customer

behaviors– predictive models to identify the customers

most likely to perform a particular activity– online analytical processing, data mining and

statistics

Key applications of e-CRM

• Campaign management application– integration of multichannel communications with

individual customers– using the data warehouse to plan and execute– campaign operation, analytical integration,

reporting

Key applications of e-CRM

• Real-time decision application– to coordinate and synchronize communications

across disparate customer– an effective real-time decision application

promotes information exchange between the company and every customer

Key applications of e-CRM

• Personalized messaging application– building customer profiles and enables

customized product and service offerings based on the information integration application

conclusions

• e-CRM application is actually integration with other points of contact, leading to a single view of the multichannel interactions.

• Web-based CRM applications provide integrated marketing, sales…

• A major consideration in deciding which e-CRM system to adopt depends largely on the compatibility of the system.

An Introduction to the WTO

A. What is the WTO?

• The World Trade Organisation (WTO) Established on 1st January 1995 As a result of the Uruguay Round negotiations (1986-1994) Located in Geneva, Switzerland Members: 149 countries (as of 11 Dec. 2005)

• At its simplest:“A global organisation dealing with rules of trade between nations”.

(source: WTO)

The WTO’s functions

• Administers the WTO Agreements and facilitates their operation and implementation

• Provides a forum for trade negotiations among member states on matters covered by the Agreements and for further liberalisation of trade amongst members

• Responsible for the settlement of differences and disputes between members

• Responsible for periodic reviews of the trade policies of members• Also provides technical assistance and training for developing

countries • Cooperates with other international organisations on subjects of

mutual interest

Services and the WTO

• The WTO regulates trade in services through the General Agreement on Trade in Services (GATS). The GATS is “broadly comparable” to the GATT but there are significant differences in its approach to liberalization.

• Services cover a wide range of activities. Under the GATS, the term “services” include any service in any sector except services supplied in the exercise of governmental authority.

• The GATS applies to all measures by Members affecting trade in services.

Measures can be laws, regulations, procedures, decisions, administrative action etc., of Member governments.

WTO: Benefits for business

• Creation of a stable, rule based, multilateral trading regime• Market access translates into market opportunities• The rule based system creates certain rights of access

- Security of accesstariff bindings and disciplines on barriers to trade whether tariff or non tariff. It also provides non discriminatory treatment of products and services.- Stability of accessthe application of uniform rules in key areas of the trading process e.g. customs valuation, import licenses etc.- Rights against unfair trade practices for

– Domestic industry– Export industry– Import industry

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