from the desk of the national...

Materials Management Review 3July 2016

From the Desk of The National PresidentFrom the Desk of The National PresidentFrom the Desk of The National PresidentFrom the Desk of The National PresidentFrom the Desk of The National President

Dear Professional Colleagues,

Greetings of the day from your National President !

By the time e-copy or hard copy of this highly valuable professional journal (MMR)would be available with you, half of the year ‘2016’ would have lapsed. On the other hand, when we lookback, it looks as if the present Team of IIMM took over a few days back at Vadodara NATCOM in November2015.

Indeed, time is running fast, technology is changing at an unprecedented pace, globally. Major event acrossthe global such as, Jubilee Year of Mercy, Rome, Italy; The Setouchi Art Festival, Japan; World Design Capital,Taipei, Taiwan, Olympic Games and Paralympics in Brazil, US President Election this year in November, Brexit -the recent move of Great Britain’s exit from European Union, Kumbh Mela, Haridwar, India, a few to mentionwhich are attracting international community’s attention and will impact the global economic scene, duringthe year. At IIMM, we as a Team had chosen MISSION-100 for ourselves to accomplish, during our tenure.However, despite repeated assurances by all Team Members from time to time, for putting in best efforts inthis direction, much does not seem to have been achieved, by now. I, therefore, once again wish to reiteratemy request to all IIMM Members, to support the team in achieving the Mission-100.

Professionals, many a times, I come across to meet such Members, who still express their ignorance aboutMission-100. Hence, here I once again corroborate this mission for the clarity of those to whom it new and tobrush up the memories of those who are already familiar with this. Mission-100 is our plan to get recognitionto our GDMM & PGDMM courses from 100 Industrial Houses for their Materials and SCM employees in theirorganizations. In doing so the management will have to announce within the organization some motivational& financial benefits for their employees for doing the above courses from IIMM. This, while on the onehand, will inspire their Materials and SCM professionals to our courses, it will, on the other hand, enable ourCourse conducting branches to directly get in touch with all these organization’s Materials & SCM Functions,without spending huge money on advertisements in the newspapers for admission.

Thanks a lot and looking forward to your whole hearted support in our attempt towards accomplishing Mission-100.

O.P. LONGIANational President – IIMMe.mail :[email protected] No.9878601408

Materials Management Review4 July 2016

From the Desk of Editor-in-ChiefFrom the Desk of Editor-in-ChiefFrom the Desk of Editor-in-ChiefFrom the Desk of Editor-in-ChiefFrom the Desk of Editor-in-Chief

Dear Members,

In India, the Logistics industry is still in its nascent stage with a lot of challenges andbottlenecks. Over the last few years, there has been an increased emphasis on logistics,asthe sector has seen an inflow of good investments, better regulatory practices, megainfrastructure projects and several other initiatives like GST, Make in India and Skill Development.

Statistical evidence suggests that Indian logistics sector have grown at a healthy rate of 15% in the last fiveyears and is expected to grow at a CAGR of 12.17% by 2020 driven by the growth in the manufacturing, retail,FMCG and E-commerce sectors.

As the economy is growing, logistics sector is also becoming more refined and sophisticated. This is furthersupported by the development of E-commerce market. As E-commerce is competing with the ConventionalMarkets at the grass root level, the expectations from logistics and supply chains are increasing for beingprecise and accurate in their operations with timely delivery and service quality.However, lack of adequateavailability of trained manpower resources and lower adoption of technology in its processes.

Infrastructure is also one of the biggest challenges faced by the Indian logistics sector and has been a majordeterrent to its growth. Infrastructural problems like bad road conditions, poor connectivity, inadequate airand sea port capacities and lack of alternatives like inland water transport and domestic aviation have beenconstant irritants. Due to the infrastructural bottlenecks costs per transaction in Indian logistics sector is verymuch high compared to those in the developed markets.

Government of India has allocated greater public budget to boost overall infrastructure spending. An initialinfrastructure investment of Rs. 4100 Billion over the 12th Five Year Plan (FYP) period (2012-2017) is somethingthat we must appreciate. Building of dedicated rail freight corridors will promote efficient movement ofcontainerized cargo by rail.

The proposed Goods and Services Tax (GST) regime and e-commerce will change the way, how warehousing,supply chain management and third party logistics business are seen. Apart from creating a unified marketacross India, GST will help make India’s manufacturing competitive by cutting high logistics and warehousingcosts. GST implementation will be a game-changing event for businesses and Indian Economy. Simply halvingthe delays due to roadblocks, Toll - Taxes and other stoppages could cut freight times by some 20-30% andlogistics costs by an even higher 30-40%, according to World Bank estimates.

The future of the Industry is very bright and I am sure to achieve exponential growth in the coming years, weneed to focus not only on continued development of infrastructure but also on the capability of the serviceproviders for adapting themselves and making optimal utilization of technology. With the growing complexityof supply chains, we need more skilled people to manage them. There is a clear need for both the governmentand private players to concentrate on skill development programmes to achieve the targeted GDP Growth.

(M.K. BHARDWAJ)


MATERIALS MANAGEMENTREVIEW

Volume 12 - Issue 9 (July 2016)

C O N T E N T S

INCHING TOWARDS IMPLEMENTING GST 6

ROLE OF ASIAN DEVELOPMENT BANK INCONNECTING SOUTH ASIA TO CENTRAL ASIA 9

CORPORATE CHALLENGE’S - OUTSOURING INVALUE CHAIN 10

GDP: AT 7.6%, INDIA’S GROWTH POINTS TOFASTEST GROWING LARGE ECONOMY 18

CHANGING PERSPECTIVE OF ALL BANKS WHILEEXTENDING THE CREDIT FACILITIES DUE TOINCREASE OF NPA ACCOUNTS 19

CAG OF INDIA FORMULATES BIG DATA MANAGEMENTPOLICY TO MEET FUTURE CHALLENGES 21

THE NEXT MANUFACTURING DESTINATION 22

SITUATIONAL LEADERSHIP AND EMPOWERMENT 27

SUPPLY CHAIN MANAGEMENT 30

CUSTOM EXCHANGE RATES 32

WHATS APP - A KEY COMMUNICATION MEDIUM INSUPPLY CHAIN & LOGISTICS 33

BUILDING THE CULTURE OF COST CONSCIOUSNESSIN SMES 34

COMMODITY INDEX 35

GOVERNMENT TO SOON BRING TRANSPARENCY INPUBLIC PROCUREMENT OF GREEN PRODUCTS 36

WTO UPDATE : ENHANCING THE PARTICIPATION OFMSMES IN INTERNATIONAL TRADE 37

INTERNATIONAL NEWS 39

BRANCH NEWS 40

EXECUTIVE HEALTH 57

IIMM BRANCHES 58

PAGE NO.IIMM is a charter member ofInternational Federation ofPurchasing & Supply Management

Editor in Chief & Publisher:Dr. M. K. BhardwajPast President, IIMM &Former Director Ministry of Defence

Core Committee :Mr. Ashok Sharma, President 5M IndiaMr. V. K. Jain, Former ED, Air IndiaMr. Tej K Magazine, Management Advisor

National President :Mr. O. P. Longia

Editors :Mr. G.K. Singh (Sr. Vice President)Prof.(Dr.) A.K.Saihjpal, VP (North)Mr. Amal Chakraborty, VP (East)Mr. Malay Chandan Mazumdar,VP (West)Mr. D. Subramani, VP (South)Dr. Avinash S. Desai, VP (Central)Mr. A.K.Mehra, NS&TMr. Lalbhai Patel, IPPProf.(Dr.) V. K. Gupta - IMT, Ghaziabad

Correspondence :MATERIALS MANAGEMENT REVIEW

Indian Institute of MaterialsManagement4598/12 B, Ist Floor, Ansari Road,Darya Ganj, New Delhi - 110 002.Phones : 011-43615373Fax: 91-11-43575373E-mail: [email protected] & [email protected] : iimm.org

Printed at :Power Printers,4249/82, 2 Ansari Road, Daryaganj,New Delhi - 110002

Edited, Printed & Published by :INDIAN INSTITUTE OF MATERIALS MANAGEMENT4598/12 B, Ist Floor, Ansari Road, Darya Ganj, New Delhi - 110 002.Phones : 011-43615373 Fax: 91-11-43575373E-mail: [email protected] & [email protected] : iimm.org(Published material has been compiled from several sources, IIMM disowns any responsibilityfor the use of any information from the Magazine if published anywhere by anyone.)


The Empowered Committee of State F inanceMinisters has released the ‘Model Goods andServices (GST) Law’ on 14th June 2016. The Model

GST Law is made available on Government of India,Ministry of Finance website at http://finmin.nic.in/.

The salient features of the draft Model GST Law nowreleased are as follows:

The Model Law covers the following:

1. Goods and Services Tax Act, 2016

2. Integrated Goods and Services Tax Act, 2016

3. GST Valuation (Determination of the Value ofsupply of Goods and Services) Rules, 2016.

The draft Goods and Services Tax Acthas 25Chapters, 162 Sections and 4 Schedules

The draft Integrated Goods and Services Tax Acthas 11 Chapters and 33 Sections

GST Valuation Rules, 2016 has 8 Rules

The term ‘supply’ is introduced in place of terms‘clearance of goods’, ‘sale of goods’ and ‘renderingof services’ being used presently under variousprovisions of law.

The term ‘supply’ is defined inclusively to inter aliainclude -

All form of Supplies for a consideration.

Specific Supplies without consideration includingsupplies between two Units / branches of sameentity having separate GSTIN.

Transactions between principal and agent is deemedto be supply.

Supply of branded services by aggregator.

There will be three types of taxes. Supply of goods/ services shall be inter-State if location of supplierand place of supply are in different States. Otherwisethe supply will be intra-State.

Central GST (CGST) and State GST (SGST) will beleviable on intra-State supplies at a rate to benotified and

Integrated GST (IGST) will be leviable on inter-Statesupplies at a rate to be notified

Separate Model Acts for the intra-State and inter-State transactions are provided

INCHING TOWARDS IMPLEMENTINGGST

[email protected]

Imports of both goods and services have beendeemed as inter-State supplies leviable to IGST.Export is zero-rated.

Composition Scheme (rate to be prescribed, butnot less than 1%) available to a registered taxable person involved in intra-State (not available forinter-state transactions) supply of goods andservices whose aggregate turnover is less than Rs.50 lakhs (no credit available and no recovery fromthe recipient).

Goods or Services on which GST is payable by therecipient on Reverse Charge basis shall be notified.

Certain transactions involving both supply of goodsand services such as works contract, restaurantservice, etc. have been deemed as supply of serviceunder Section 3 read with Schedule II of the ModelLaw. Various declared services of the current servicetax law have also been deemed as supply of service.Transfer of Right to Use Goods has also beendeemed to be a service.

Taxable Person means a person who carries on anybusiness at any place in India and is registered orrequired to be registered and whose aggregateturnover in a financial year exceeds Rs 10 Lakhs (Rs5 Lakhs in case of North Eastern States includingSikkim). Such person is liable to pay tax

However every person crossing the threshold wouldbe required to obtain registration in each State heoperates.

Threshold limit prescribed of Rs. 9 lakhs andRs. 4 lakhs (for North Eastern States and Sikkim)

Central/ State Government may be regarded as ataxable person in respect of activities engaged aspublic authorities except otherwise specified

A person having multiple business verticals in aState may obtain separate registrations for eachverticals in that State.

Place of registration is the state from where taxablegoods and / or services are supplied by a supplier. .

Persons making inter-State taxable supplyirrespective of threshold; Persons liable to pay GSTunder reverse charge; Input Service Distributor;Aggregator; E-Commerce Operator need to obtainregistration.

Existing taxpayers will be issued RegistrationCertificate on a provisional basis valid for 6 months.


The taxable event for levy of Goods and ServicesTax (GST) is ‘supply’.

The liability to pay CGST/SCST on Goods shall ariseat the time of supply of goods

The time of supplyof goods shall be the earliest ofthe following dates, namely,-

(a) (i) the date on which the goods are removed bythe supplier for supply to therecipient, in a casewhere the goods are required to be removed or

(ii) the date on which the goods are made availableto the recipient, in a case where thegoods are notrequired to be removed; or

(b) the date on which the supplier issues the invoicewith respect to the supply; or

(c) the date on which the supplier receives thepayment with respect to the supply; or

(d) the date on which the recipient shows thereceipt of the goods in his books of account.

The provisions relating to time of supply in respectof services are in line with the Point of TaxationRules, 2011 of the service tax law.

The time of supply of services shall be:-

(a) the date of issue of invoice or the date of receiptof payment, whichever is earlier, if the invoice isissued within the prescribed period; or

(b) the date of completion of the provision of serviceor the date of receipt of payment, whichever isearlier, if the invoice is not issued within theprescribed period; or

(c) the date on which the recipient shows the receiptof services in his books of account, in a case wherethe provisions of clause (a) or (b) do not apply.

Since GST frame work will work on the principle ofdestination based consumption tax, Place of Supplyis important to determine taxable jurisdiction.Therefore separate provisions have been made insections 5 and 6 of draft IGST Act for determinationof Place of Supply (POS) of goods and servicesrespectively. The place of supply of goods shall bethe location of the goods at the time at which themovement of goods terminates for delivery to therecipient.

Transaction value shall be the basis for the levy ofCGST / SGST and IGST. Certain inclusions andexclusions while determining the value are providedin Section 15(2) of Goods and Services Tax Act.Further draft GST Valuation (Determination of theValue of supply of Goods and Services) Rules, 2016is prescribed methods for determination of valueof supply.

Every person making a taxable supply of goods orservices would have to issue tax invoice containingthe prescribed particulars

Adjustment in tax charged in tax invoice can bemade by issuing a credit note containing the

prescribed particulars and within the prescribedtime

Payment towards tax, interest, penalty, fee or anyother amount by a taxable person shall be made byinternet banking or by using credit/debit cards orNational Electronic Fund Transfer (NEFT) or RealTime Gross Settlement (RTGS) or by any other mode.The amount shall be credited to the electronic cashledger of such person to be maintained in themanner as may be prescribed

Every taxable person in respect of each registrationshall furnish three returns

furnish details of outward supplies by 10th of thesucceeding month;

furnish details of input supplies by 15th of thesucceeding month;

furnish a return of outward supplies, inwardsupplies, input tax credit availed, tax payable andtax paid by 20th of the succeeding month

No return can be filed unless the tax due as per thereturn has been deposited andno return can be filedunless a valid return for the previous tax period hasbeen filed.

In addition to the above mentioned periodic returns, each taxable person shall be required tofile an Annual return as well Returns have also beenprescribed for ISD, Tax Deducted at Source (TDS),Tax Collected at Source (TCS, applicable for e-Commerce Operators).

There will be Two Electronic Ledgers&a Registerofthe taxpayer where all transactions of an assesseeshall be recorded and maintained

Electronic Cash Ledger : Amount deposited by thetaxpayer towards payment of tax, interest, penalty,fee or any other amount by a taxable person shallbe credited to the electronic cash ledger.

Electronic Credit Ledger : Input tax credit as self-assessed by the taxable person shall be credited tohis electronic credit ledger.

Electronic Tax Liability Register : All the tax liabilitiesof the taxable person will be recorded in hiselectronic tax liability register.

Rules for utilisation of cash and cross-utilisation ofinput taxcredit of IGST, SGST and CGST are providedin CHAPTER-IX of the GST Act

Amount available in electronic cash ledger can beutilised for making payment towards tax, interest,penalty, fees or any other amount payable.

Amount available in electronic credit ledger canonly be used for making payment towards tax. Suchamount cannot be used for making payment ofinterest, fee or penalty.

Input Tax Credit (ITC) is available in respect of inputs,capital goods and input services. There is a negativelist of items on which no ITC is available.


Input Tax Credit (ITC) shall be allowed only in respectof the inputs attributable to taxable and zero ratedsupplies

Input tax credit of CGST shall not be utilised for thepayment of SGST and vice versa

ITC is available only on provisional basis (for 2months) until the supplier makes the tax paymentand files a valid return. There will be matching ofsupplier and receiver data and credit will beconfirmed only after such matching. Where the datais not matched and where the supplier has not madethe tax payment, the ITC shall be reversed withinterest. Interest is from the date of wrongavailmentor utilization.

Input Service Distributor has been introduced onlyfor passing on credit of GST onservices. No similarprovision has been introduced for goods

Provisions for Refund of are provided in Section 38of Goods and Services Tax Act. The claim shall bemade before the expiry of Two Years(not applicablein case of tax paid under protest) from the relevantdate.

Unutilised credit available on account of exports(whereby no export duty is payable) can be claimedas refund.

Special provisions have been introduced in respectof e-Commerce operators and Aggregators. E-Commerce Operators are required to collect anddeposit tax at source (TCS) on payments made tothe vendors.

Un-availed Cenvat credit on capital goods, which isnot carried forward in a return, will also be allowedin certain situations. Credit of eligible duties andtaxes in respect of inputs held in stock will also beallowed in certain situations.

The Commissioner of CGST/Commissioner of SGSTor any officer authorised by him, by way of a generalor a specific order, may undertake audit of thebusiness transactions of any taxable person for suchperiod, at such frequency and in suchmanner as maybe prescribed.

Separate provisions are made for Appeals andRevisions. Sections 79, 80, 81, 82 and 83 shall beapplicable for appeals under SGST Law. Sections84 to 93 are common for CGST and SGST law.

Provisions for Advance Ruling are provided inCHAPTER– XIX

Every taxable person shall be assigned a GSTCompliance Rating Score based on his record ofcompliance with the provisions of this Act. The GSTcompliance rating score shall be determined on thebasis of parameters to be prescribed in this behalf.The GST compliance rating score shall be updatedat periodic intervals and intimated to the taxableperson and also placed in the public domain in themanner prescribed.

Transitional provisions are made to allow amountof Cenvat credit carried forward in a Return as ITC.

Similar provision has been made for carry forwardof Value Added Tax.

Comments

Broadened Scope of Supply : Section 3 of the ModelGST Act covers the meaning and scope of ‘supply’. Theword supply is defined to include a variety oftransactions. For example “All forms of supply of goodsand/or services such as sale, transfer, barter, exchange,license, rental, lease or disposal made or agreed to bemade for a consideration by a person in the course orfurtherance of business’ are included as supply. Thisimplies that stock transfers and supply of goods / servicesbetween two separately registered units / branches ofthe same business entity whether in the same State ornot, will be deemed as supply. However, supply of goodsby a registered taxable person to a job-worker in termsof section 43A shall not be treated as supply of goods.

A person acting as an agent who, for an agreedcommission or brokerage, either supplies or receives anygoods and/or services on behalf of any principal, thetransaction between such principal and agent shall bedeemed to be a supply. This covers scope services of alltypes of agents, brokers, commission agents etc.

Stringent Norms for Compliance: Stringent norms areprovided in the act making mandatory obligation tofurnish information return and Disclosure of informationrequired under section with Penalty for failure to furnishinformation return. Matching provisions are made totally the supplier and recipient information electronicallyto check the correctness. Specific provisions have alsobeen introduced relating to scrutiny of returns filed anddetect discrepancies. No return can be filed unless thetax due as per the return has been deposited and noreturn can be filed unless a valid return for the previoustax period has been filed.The law provides for bestjudgment assessment in cases where a registered taxableperson fails to furnish the return as well as in cases wherea taxable person fails to obtain registration even thoughliable to do so. Model GST Law provides for recovery ofdue amount from the taxable person by resorting tovarious means including seizure, detention and / or saleof movable/immovable property of the defaultingtaxpayer

Also provisions are made in the act to putthe burden ofproving claim or claims of non-liable to pay tax oreligibility for input tax credit shall lie on the personmaking such claim.

Onus on the Buyer(recipient): As per provisions of thedraft GST Act, the buyer or goods or service receiver shallbe entitled to take credit of input tax (ITC), as self-assessed on provisional basis only. Matching provisionsare made to tally the details of inward (recipient) andoutward (supplier) transactions and Input Tax Credit (ITC)confirmed only after such matchingand tax liableis paidby the supplier and filed valid returns. That means theonus is on the buyer to ensure that the seller dischargeshis tax liability and files returns with two months period,otherwise the credit need to be reversed with interest.

Also provisions are made in the act to restrict a taxableperson who has not furnished a valid return undersection 27 of the Act to dis-allow utilizing such credit tillhe discharges his self-assessed tax liability.


The Asian Development Bank (ADB) is appointedas transaction advisor to build, own and operatethe planned 1,800 kilometre Turkmenistan-

Afghanistan-Pakistan-India (TAPI) natural gas pipeline.

Under an agreement signed with the state gas firms ofthe countries involved in the pipeline, the ADB will adviseon the establishment of the TAPI pipeline company,undertake technical due diligence, and handle thebidding and selection of a commercial consortium leaderto build, own and operate the pipeline.

The company will be jointly owned by four state gasfirms: State Concern “Turkmengas” of Turkmenistan,Afghan Gas Enterprise, Inter State Gas Systems (Private)Limited of Pakistan, and GAIL (India) Limited. Whenselected, the commercial consortium leader will take amajority stake in the company.

The project, earmarked for completion in 2017 by thefour countries, which will aim to export up to 33 billioncubic meters of natural gas a year from Turkmenistan,which has the world’s fourth largest proven reserves, toAfghanistan, Pakistan, and India over 30 years. It willallow landlocked Turkmenistan to diversify its gas exportmarkets to the southeast, provide a vital new fuel sourcefor developing southern Afghanistan, and help Pakistantackle chronic fuel shortages.

In India, it will allow the northern region to access asteady supply of gas to fuel its economic growth.

The ADB has provided secretariat services for the

ROLE OF ASIAN DEVELOPMENT BANK INCONNECTING SOUTH ASIA TO CENTRAL ASIA

PRADEEP KUMAR BARNWAL, OFFICER-MATERIAL,HALDIA PETROCHEMICALS LTD. [email protected]

development of the legal and institutional frameworkof the TAPI project since 2002, and more than $4 millionin technical assistance. The pipeline was estimated tocost about $7.6 billion in 2008, but the final amount nowcould be substantially different.

The pipeline, that is set to cross over 1,700 km, throughHerat and Balochistan before reaching the Indian Punjabborder, and will draw from the world’s second largestnatural gas field of Galkynysh, comes full of promise. Tobegin with, it will reopen a historic route that reconnectsSouth Asia to Central Asia, in the way it was before theBritish Empire sealed it off. It will also bring India and itsneighbours much needed energy at competitive pricing,and could easily supply a quarter of Pakistan’s gas needs,about 15 per cent of India’s projected needs, as well asAfghanistan’s requirements, by the time it is completedin the 2020s. This is a growing need, and even if India isable to source energy from other countries like Iran andfurther afield, both the proximity and abundance ofTurkmenistan’s reserves, that rank fourth in the world,will make it an attractive proposition. At a time whenChina has already secured nearly half of its energyrequirements from the region, and is working on the$400 billion Russia-China gas pipeline, India has no timeto lose in securing its interest in Central Asia. Finally, theTAPI pipeline gives this fractured region a reason to workon a project together as well, and it is hoped the sharedstakes in TAPI’s success will ensure that India, Pakistanand Afghanistan find ways of cooperating on other issuesas well.

Simplify Procedures for Returns & Refunds : Theproposed law prescribed electronic entry of details ofeach transaction which may add burden on the tax payerand increases transactional costs. There is annual returnapart from three types of monthly returns and variousother types of returns like TCS, TDS etc with differentdue dates prescribed. Since the details are capturedelectronically for each transaction, auto summary returnshould suffix instead of need to separately filing thereturns. Similarly there is scope for auto return ofrefunds.

Passing of GST Bill : Introduction of GST needsamendment of certain provisions of constitution. TheLok Sabha had already passed the Constitutional (OneHundred and TwentySecond) Amendment Bill, 2014 andis pending for approval by the RajyaSabha because ofopposition mainly by congress party. With the emerging

new equations in the RajyaSabha and many non-congress state Governments expressing their willingnessto support for passing the GST Bill, the NDA Governmentin the centre is enthused to proceed further.

Last year the Government of India had also released fourReports of the Joint Committee on Business Processesfor GST on Registration, Payment, Returns and Refunds.Now the draft Model GST Law is released with intentionto make the ground work ready and signalling the trade& industry to prepare for the new challenges in the faceof proposed GST. This is a definitive move towardspositive outcome.

There is lot of euphoria and expectations that the longcherished GST be implemented soonest.


Abstract: Outsourcing is the contracting out of aninternal business process to a third-partyorganization. The term “outsourcing” became

popular in the United States near the turn of the 21stcentury. Outsourcing sometimes involves transferringemployees and assets from one firm to another, but notalways.[1]

The definition of outsourcing includes both foreign anddomestic contracting, [2] and sometimes includesoffshoring, which means relocating a business functionto another country.[3] Financial savings from lowerinternational labor rates is a big motivation foroutsourcing/offshoring.

The opposite of outsourcing is called insourcing, whichentails bringing processes handled by third-party firmsin-house, and is sometimes accomplished via verticalintegration. However, a business can provide a contractservice to another business without necessarilyinsourcing that business process.

Two organizations may enter into a contractualagreement involving an exchange of services andpayments.

Outsourcing is said to help firms to perform well in theircore competencies and mitigate shortage of skill orexpertise in the areas where they want to outsource.[4]

In the early 21st century, businesses increasinglyoutsourced to suppliers outside their own country,sometimes referred to as offshoring or offshoreoutsourcing. Several related terms have emerged to referto various aspects of the complex relationship betweeneconomic organizations or networks, suchas nearshoring, crowdsourcing, multisourcing andstrategic outsourcing.

Key Words : ( Outsourcing, Business, Insouring,Economic, Emerging )

Outsourcing can offer greater budget flexibility andcontrol. Outsourcing lets organizations pay for only theservices they need, when they need them. It also reducesthe need to hire and train specialized staff, brings in freshengineering expertise, and reduces capital and operatingexpenses.[8]

One of the biggest changes in the early 21st century camefrom the growth of groups of people using onlinetechnologies to use outsourcing as a way to build aviable service delivery business that can be run fromvirtually anywhere in the world. The preferential contract

“CORPORATE CHALLENGE’S – OUTSOURCING INVALUE CHAIN.”!

RABI NARAYAN PADHIFellow in Research Materials Management

Life Member IIMM VIZAG Br, [email protected]

rates that can be obtained by temporarily employingexperts in specific areas to deliver elements of a projectpurely online means that there is a growing number ofsmall businesses that operate entirely online usingoffshore contractors to deliver the work beforerepackaging it to deliver to the end user.

One common area where this business model thrives isin providing website creation, analysis and marketingservices. All elements can be done remotely anddelivered digitally, and service providers can leverage thescale and economy of outsourcing to deliver high-valueservices at reduced end-customer prices.

The Benefits of Outsourcing

“Do what you do best and outsource the rest!” – TomPeters, Management guru

Outsourcing as an idea is not novice; it has been for overa thousand years now, the only difference being that it’sgaining lot more popularity since a decade for whateverreasons. Outsourcing basically means asking a third-partyvendor to work for you on a contractual basis. Companiesoutsource primarily to cut costs. But today, it is not onlyabout cutting cost but also about reaping the benefitsof strategic outsourcing such as accessing skilledexpertise, reducing overhead, flexible staffing, andincreasing efficiency, reducing turnaround time andeventually generating more profit.

Like any other business venture proper planning andresearch is necessary before choosing an outsourcingpartner whether it is on shore or offshore. But byoutsourcing to a third party, your business can focus onwhat it does best and gain a competitive edge in themarketplace.

Here are the top ten benefits of outsourcing:

1. Get access to skilled expertise : One of the primaryreasons why a business may want to outsource a task iswhen it requires skilled expertise. This skill set may notbe a core competency of its business. To allow you to


focus on your core mission in providing a high qualityproduct and service to your customer what makes senseis offshoring the task to people can perform it better.Moreover, as a double whammy, you not only spend lesson employee trainings and save precious man-hours butcut costs as well.

Outsource to india has dedicated teams to provide widerange of outsourcing services, which help us offerspecialized business process outsourcing solutions toclients globally. We leverage on our multi-domainexpertise and skills across variegated industry verticalsand technologies to achieve superior quality andunmatched proficiency in the outsourced process.

2. Focus on Core Activities : Workload increases withadditional non-core functions and the quality of yourcore activities suffers as your business grows.Outsourcing in such scenario to a third party plays animportant role by allowing your key resources to focuson primary business tasks.

3. Better Risk Management : Outsourcing will allow youto share any associated risks with your outsourcingpartners there by reducing your burden. For example -by outsourcing to a competent outsourcing partner youreduce the risk involved in having the same task donein-house by staff that may not be as competent in thatfield.

4. Increasing in-House Efficiency : After you allocatetasks to your outsourcing partner, they share theworkload of your employees. This allows you to developyour internal task force and use them more efficiently.

5. Run Your Business 24X7 : Offshore outsourcing to acountry like India, which is on a different time zone, givesyou the added advantage of making full use of your 24hour day. Since your night is their day, your outsourcingpartner can take over and continue your work even afteryour employees go home and to bed. They can completecritical tasks and send it back for your review the nextday. So the benefit of outsourcing here is that you getmore work done in a day, increasing your overallproductivity. A 24X7 customer support is a dream cometrue for your customers and this can be fully realizedthrough offshore outsourcing.

6. Staffing Flexibility : Outsourcing certain independenttasks, allows your business to maintain a financialflexibility when there is an uncertainty in demand. Youcan scale up or down comfortably. At a much lower cost,offshore outsourcing provides additional benefit ofrunning your business in full throttle even during offseason and holiday months.

7. Improve service and delight the customer : Youroutsourcing partner, with their skilled expertise willproduce quality deliverables faster, increasing your turnaround time to the customer. With on-time deliveriesand high-quality services your customers will bedelighted! Outsourcing can help you benefit fromincreased customer satisfaction and thus creating astream of loyal customers.

8. Cut costs and save BIG! : All the benefits listed abovecome with the bonus benefit of lower cost and big

savings! When you outsource services like medicalbilling, call center and teleradiology, etc. to a low-costcountry like India or Philippines, you are getting accessto quality services that are offered at a much lower cost(You can save up to 60% costs)!

Maintaining an infrastructure can be an extra burdenfor some businesses, which outsourcing can remove.Outsourcing your business requirements to a trustedvendor can help you save on the capital expenditure,time, and extra efforts of your personnel. Additionally,you are no longer committed to invest on employeetraining, or purchasing expensive software, or investingin latest technologies. All this add up to higher returnsin the longer run.

9. Give your business a competitive edge : The ultimatebenefit of outsourcing is that it helps your organizationgain a competitive edge in the market. Through strategicoutsourcing to an outsourcing partner, you are not onlyproviding your customers with best-of breed services,but increasing your productivity while managing yourin-house resources intelligently. Outsourcing can helpyou surpass competitors who have not yet realized thebenefits of outsourcing.

10. See an overall increase in your business :Outsourcing shows an increase in your productivity,customer loyalty. level of quality, business value, profits,and much more.

ADVANTAGES AND DISADVANTAGES OF OUTSOURCING

Outsourcing brings in a lot of flexibility and financialfreedom but it also has its pitfalls. Any company lookingto outsource must keep in mind the pros and cons ofoutsourcing before deciding to take the plunge. Take alook at this list of advantages and disadvantages ofoutsourcing.

Advantages of Offshore Outsourcing


· Core activities of the business take center stage.Outsourcing non-core activities such asadministration and back-office operations helps toput the focus back on the core functions of thebusiness, such as sales and marketing.

· One of the biggest advantages of outsourcing toIndia (or any other location) is cost savings. Thelower cost of operation and labor makes it attractiveto outsource.

· Outsourcing reduces overhead costs that usuallycome with running back-end operations.

· When certain functions of an organization becomeoperationally uncontrollable, outsourcing helps toovercome such difficulties.

· A company’s cash-flow can be streamlined.

· By increasing productivity and efficiency, a businesscan be more successful and better-prepared formarket challenges.

· Outsourcing frees an organization from investmentsin technology, infrastructure and people that makeup the bulk of a back-end process’ capitalexpenditure.

· Outsourcing gives businesses flexibility in staffingand manpower management. Since the serviceprovider is responsible for managing the workforce,you save costs and can also pick the best people torun your core functions.

· Offshore outsourcing gives businesses the ability todevelop new competencies and skill-sets that canbe used as a competitive advantage.

Disadvantages of Offshore Outsourcing

· One of the biggest disadvantages of outsourcing isthe risk of losing sensitive data and the loss ofconfidentiality. It is important, therefore, to havechecks in place to avoid data loss.

· Losing management control of business functionsmean that you may no longer be able to controloperations and deliverables of activities that yououtsource.

· Problems with quality can arise if the outsourcingprovider doesn’t have proper processes and/ or isinexperienced in working in an outsourcingrelationship.

· Since the outsourcing provider may work with othercustomers, they might not give 100% time andattention to a single company. This may result indelays and inaccuracies in the work output.

· Hidden costs and legal problems may arise if theoutsourcing terms and conditions are not clearlydefined.

· If important functions are being outsourced, anorganization is mightily dependent on theoutsourcing provider. Risks such as bankruptcy andfinancial loss cannot be controlled.

· Not understanding the culture of the outsourcingprovider and the location where you outsource tomay lead to poorcommunication and lowerproductivity.

· Though outsourcing has its share of advantages anddisadvantages, the many benefits that outsourcingbrings far outweigh its disadvantages.

· Many of the pitfalls of outsourcing can be avoidedby choosing the right company to work with. Beforetaking the decision to outsource it is important thatyou align the goals of your company and employeeconsiderations with the objectives of outsourcing.

WHY OUTSOURCE WORK?

Industry trends show that companies that have beenasking the question ‘why outsource’ have become vocaladvocates of the offshore model. Outsourcing work hascome to be a tried-and-tested model and is recognizedas a long term competitive strategy for success. Thequestion going around now is not ‘why outsource?’ but‘why not outsource?’

Reasons for Outsourcing : The economist, Adam Smith,says in his treatise The Wealth of Nations, “If a foreigncountry can supply us with a commodity cheaper thanwe ourselves can make it, it is better to buy it of them.”Outsourcing as we know it today is merely a progressionof an idea that has existed since early days of trade.

As companies grow in size and operations, it becomesincreasingly clear that their focus has to be redirectedto their core activities while the non-core functions canbe ‘sent out’ or ‘outsourced’ to vendors specialized inthat particular function.

Why Outsource Work !

Have you found yourself faced with any of the followingdoubts in recent times?

Are my resources being utilized effectively?

Are my current resources capable of supporting newtechnology?

Is there a quicker, more effective method to handleprocesses?


Does my team have the operational expertise to dothe task assigned?

Are we working at optimum costs?

If you are asking yourself the question ‘why should Ioutsource’, consider the following top reasons foroutsourcing cited by companies that have successfullymade offshore outsourcing work for them.

Strategic Reasons for Outsourcing

Focus on core functions: Companies that outsourcecertain routine functions to offshore experts are capableof focusing on their core competency. Before outsourcingcaught on in such a big way, healthcare practices had todeal with functions like transcription, medicalbilling and claims processing which consumed a lot oftheir time and resources.

However, now by outsourcing these processes to externallocations these practice are able to focus on their primaryconcern - ‘patient care’.

Redirect strategic internal resources for core activities:Outsourcing processes to external third party ensuresthat an organization’s internal resources are freed up formore mission-critical activities.

Accelerate migration to new technology: Migrating tonewer technologies allows companies to make better useof their investments and enjoy enhanced productivityand quality. Companies with outsourced IT processes arebetter enabled to migrate to new technologies withminimum downtime and productivity disruption.

Enhance risk management: In any outsourcing modelthe offshore partner supplements the operations of theoutsourcing company with redundancies and back-upmechanisms. In the event of any natural calamities,accidents, market fluctuations or technical crises therigorous disaster recovery mechanisms and detailed backup plans at the offshore vendor ’s end can helpcompanies to rapidly respond to the situation and getoperations back on track within remarkable turnaroundtime.

Lower infrastructure investments: Companies thatdecide to outsource find that expensive infrastructurerequirements are cut back drastically as some of thefunctions move to external locations. Cutting edge ITsystems, state-of-the-art customer servicecall centersand technical helpdesks entail heavy investments tocompanies. By outsourcing these functions to externalvendors, companies can keep their investments in theseareas very low.

Access to world-class capabilities: Apart from thefinancial benefits associated, another reason whycompanies outsource work is to have processes deliveredby teams that have operational expertise in theoutsourced process. Outsourcing gives companies accessto world-class capabilities and infrastructure in theoutsourced function.

Tactical Reasons for Outsourcing

Control operating costs: One of the most talked

about advantages of outsourcing to locations like Indiais the cheap labor costs in these countries. Processesoutsourced to these locations are done at much cheaperrates and same quality levels as in the donor location.This translates into major cost savings for companies.They also save on operational costs such as payroll,administrative costs, HR, power, rentals and utilities asprocesses move to other locations.

Improve operational performance: Companiesoutsource to vendors who have domain expertise in theoutsourced process. Their experience in the fieldtranslates into greater operational efficiencies for theoutsourcing company.

Talent shortages in countries like the U.S. and UK: Oneof the key reasons why outsourcing has become anecessity is the shortage of talent in countries like theU.S. and UK. As the previous generation of workersapproach retirement, there are precious few newcomerscoming in to fill the skills pipeline. The obvious outcomeof this acute talent shortage is an increased demand forskills wherever they may be available.

Overcome seasonal workflows: Industries in the U.S.and UK are subject to seasonal fluctuations in work andlack of workers during holidays and off-seasons. One ofthe advantages of outsourcing such processes tocountries like India and Philippines is that companies candeal with peak workloads and poor staff strength duringvacations and holidays.

One time applications: Companies often need to buildone time applications. Such ad hoc or one timeapplications will require which require high manpowerresources and companies find that they are faced withthe need to ramp up in relatively short time spans.Outsourcing such needs is the best solution forcompanies that want to avoid expensive outlays for theshort term.

Outsource to India is a provider of world-classoutsourced services to a global clientele. Headquarteredin Bangalore, we have multiple delivery centers acrossIndia and offices functioning in the U.S., South East Asiaand South America. We have proven competencies in arange of services such as Data Entry Services, EngineeringServices, Healthcare Services, Financial Services,Software Development, Web-analytics Services andmore. Read about the range of services offered byOutsource to india.

Why Outsourcing is still popular?

Despite outsourcing having come into a lot ofcontroversies in recent times, industry watchers predictthat outsourcing as a business practice is on a growthmode. More and more companies are drawing up plansto outsource work to offshore locations. The trend isclearly in favor of outsourcing larger volumes of work.Vendors are moving up the value chain to include in theirservice offering a range of additional services that requiregreater skills, research support and expertise. As offshorevendors become more streamlined and improvise onthe offshore outsourcing model, it is not difficult to seewhy outsourcing is here to stay.


THE 5WS OF OUTSOURCING

If your organization is new to outsourcing, you might beconfused about why should I outsource, who should Ioutsource to, who should outsource, when should Ioutsource,what should I outsource and where should Ioutsource. Making the right decisions aboutwho tooutsource to, when to outsource, where tooutsource and what to outsource can go a long way inhelping you make the most out of outsourcing. Thisarticle gives you insight on the five Ws of outsourcing,namely, who should I outsource to?, why should Ioutsource?, what should I outsource?, when should Ioutsource? and where should I outsource to?

Who Should Outsource?

Today, outsourcing has become the order of the day.Almost every organization is outsourcing. If you areunsure about stepping into outsourcing, analyze yourorganizations’ needs and find out if your business reallyrequires outsourcing.

Ask yourself the following questions.

Is my organization finding it difficult to meet customerneeds?

Does my organization want to remain small, but has ahuge market presence?

Does my organization have managers who are not sureabout which product lines make/lose money?

Is my company experiencing constant challenges basedon operational issues?

Does my organization lack the expertise that wouldgrow my business?

Does my organization have important nonrecurringproject requirements but no resources to handle them?

If you have answered ‘yes’ to more than one question,then you must venture into outsourcing. Outsourcingcan help you to efficiently deal with the followingchallenges. Outsourcing can help you to meet yourcustomer needs on time, make a huge market presence,make the right decisions about product lines, overcomeoperational challenges, get access to expert services andbenefit from professional resources who cancompetently handle your projects.

It does not matter to which industry your organizationbelongs to. Outsourcing can bring tremendous benefits

to any type of business, be it B2B, B2C, SMEs, largediversified companies or small home offices. Make adecision to outsource today and see a transformation inyour business.

What will I benefit from outsourcing?

Outsourcing can give you access to the several benefitsof outsourcing. The following are a list of some of thebenefits of outsourcing.

Get access to the best & latest in workflowtechnology without any capital investmentBenefit from professional and skilled servicesBetter and cheaper servicesSave on time, effort, infrastructure and resourcesLarge volumes can be completed on timeIncreased efficiency and productivityReduced capital and labor costsFaster time to marketImproved processes bring about improved customersatisfactionGain a competitive edge with sophisticatedtechnology and peopleBenefit from operational efficiencies without capitalinvestmentBenefit from better performance and managementBenefit from process maturity and scalability

Get ahead of the competition with strategicoutsourcing. Outsource to O2I now.

What should I Outsource?

You can outsource almost anything today. You will beable to easily find an outsourcing provider for any servicethat you might want to outsource. The following are alist of services that can be outsourced to India. India hasa large talent pool of skilled professionals who canefficiently provide the service that you want tooutsource.

Our key services are:Call Center ServicesData Entry ServicesSoftware DevelopmentMortgage ServicesEngineering ServicesHealthcare ServicesFinancial ServicesPhoto Editing ServicesResearch & AnalysisCreative Services

Outsource your business processes and focus on yourcore competencies. Tell us your needs.

When should I Outsource?

The right time to outsource would be when you wantyour personnel to concentrate on your corecompetencies. While your resources focus more onbusiness critical functions, other functions which are notcritical can be done by your outsourcing provider. If youwant to get access to expert services, then again it is theright time to outsource, If you want your services to becompleted on time, in a faster, cheaper and bettermanner, then again it is the right time to outsource. If


you do not want to invest in software, technology,manpower and resources, then you must consideroutsourcing. Finally, if you want your organization to gaina competitive edge, then you must outsource.

Where should I Outsource?

There are many countries that you can outsource to, butthe best country to outsource to would be India. India isthe world’s outsourcing hub and the most preferredoutsourcing location in the world. India is the most idealplace to outsource to, because India offers manyadvantages. Outsource to India and benefit from cost-effective services, skilled resources, specialized servicesand timely deliveries. Several global organizations haveset up offices in India, to tap the benefits that India offers.Asking yourself the 5Ws of outsourcing can help youmake the right outsourcing decision.

6 OUTSOURCING CHALLENGES FOR 2016

With the economy paragliding in the winds ofuncertainties, challenges are jetted out on all majorindustries including the rapidly growing outsourcingindustry. To be geared up for the upcoming challengesof 2016 is definitely a pressing business need for boththe outsourcers and the service providers. So let’s lookahead and see what challenges 2016 may dish out tothe outsourcing industry.

1. Outsourcing giants like India and China are struggling

With an overall shaky economy there is dire need tocheck and analyze the vendor’s financial health and itsability to overcome the rough economic patch for asustained partnership. Outsourcers should be extremelycautious and follow due diligence while choosingvendors, as small vendors may easily close theirbusinesses if the situation continues to be challenging.

NASSCOM predicts slow growth for India IT-BPO Industryin FY 2012-2013 with a lesser growth rate of around 14%with revenues of around US$115 billion in FY 2012-13compared to revenues of around US$ 101 billion at 15%growth for FY 2011-12.

2. Changes in outsourcing laws

The economic crisis and local political changes may forcechanges to the outsourcing laws in European and Asiancountries. So as outsourcers you need to keep a checkon the same and act accordingly.

3. To outsource or not, in national interest

This leads to another challenge, whether to outsourceor to near-shore. This primarily rests on two factors: one,to upkeep the national interest and economy by near-shoring, which also has other cultural and geographicadvantages; and two, to continue outsourcing andushering global economic sustenance at cheaper costsand competitiveness, and at the same time embracingeconomic challenges that the Euro zone and the otherAsian economies are facing.

4. Greener partners

Ensuring that your service provider follows green normsfor a greener environment is partly your responsibility;you can also mandate them to follow environmentalnorms to keep your partnership going. One of yourchallenges is to make your service provider follow thesenorms and become a true global player.

5. Understanding new participating economies

As more and more emerging economies vie for a part ofthe outsourcing opportunity, the competition mandatesthem to be more lucrative but with hidden challenges.So exercising extreme care is really important when goingfor these new service providers. You have to study theirwork culture, living standards, government policies, taxissues, political stability, work experience, etc., beforesigning them in.

As per the global outsourcing report by Mark M and Dr.Frank, over 30 highly competitive economies willcompete for an outsourcing opportunity in the comingtwo years.

6. Partnering with service providers

It is no longer outsourcing and getting relieved of thetask, it’s more about understanding, partnering andexpanding your business in the service provider’scountry. This is extremely lucrative and also challenging,but it’s a challenge worth taking by partnering with youroffshore service providers, who with their nativity edgecan help you expand.

THE OUTSOURCING HISTORY OF INDIA

The idea of outsourcing is not new. It started way backin the 1700s when manufacturers started shifting themanufacture of goods to countries with cheaper laborduring the Industrial Revolution, following the preceptsof Adam Smith in his book ‘The Wealth of Nations’. Thehistory of outsourcing to India is an interesting story.Even after over a decade of competitive globaloutsourcing, most of it still goes to India. Reaching thispinnacle in outsourcing has been a long journey. As land,sea, and later, air routes developed between the 15th


and 21st centuries, more nations started to outsourcetrade to other nations, eventually leading to outsourcingto India and other nations.

Why do companies actually outsource? In earlier times,cost and headcount reductions were the most commonreasons to outsource. Today, the drivers are often morestrategic, such as how a company can best utilize its owncore competencies. Though the outsourcing ofmanufacturing is an old story, outsourcing to services isa relatively new phenomenon. Services outsourcing toIndia started in the 1980s and rapidly accelerated in the’90s. In today’s world where information technology hasbecome critical to business, the meaning of outsourcinghas undergone a drastic change over the years.Companies have started focusing on their corecompetencies and outsourcing many non-core functions,for which they had no competence internally.

Key Factors:

Although the IT industry in India has existed since theearly 1980s, it was the early ’90s which saw theemergence of outsourcing. First, some global airlinesbegan outsourcing their back office work to India—andthen IT companies followed. Some of the earliest playersin the Indian outsourcing market were Texas Instruments,American Express, Swissair, British Airways and GE, whostarted captive units in India. Over the years, the industryhas built robust processes to offer world class IT softwareand technology-related services.

India offers a unique combination of attributes that haveestablished it as the preferred destination for IT-BPO.Advances in technology and communication haveallowed transnational companies to rapidly globalize ata very low cost. The cost of managing workers in a distantlocation had fallen drastically, and the need to outsourcebecame stronger. Significantly, India also began effortsto open up its economy to the world. Since the onset ofglobalization in the early 1990s, successive governmentshave pursued programs of economic reform committedto liberalization and privatization. The governmentstarted easing restrictions and liberalizing the economy,which has helped the country see rapid economicgrowth.

Developments in telephony, fiber optics and satellitecommunications made Internet-based communicationand transfer of data possible, paving the path foroutsourcing to India. The telecom industry in India usedto be a government-controlled monopoly and the marketwas small. By 1999, the government introduced policieswhich played a key role in reshaping the structure andsize of the telecom Industry, allowing commercial entitiesto participate in almost every industry segment. The newtelecom policy brought in further changes with theintroduction of IP telephony and ended the statemonopoly on international calling facilities. Thegovernment’s liberalized investment policies haveresulted in several foreign companies entering Indianmarkets, which has been a major contributor to thegrowth of the Indian economy.

In addition to the central government’s intervention,state governments are also competing with each other

to offer more favorable business environments in orderto attract IT/ITES companies to set up development unitsin their states. This kind of competition is helping theindustry grow at an astronomical rate.

Indian companies are enhancing their global servicedelivery capabilities through a combination of greenfieldinitiatives, cross-border mergers and acquisitions,partnerships and alliances with local players. Globalsoftware giants like Microsoft, Oracle, SAP and manyothers have established captive development centers inIndia over the years. Indian authorities have made effortsto further strengthen the information securityenvironment in the country, and special initiatives havebeen taken to enhance the legal framework. Manycompanies in India have already aligned their internalprocesses and practices to international standards suchas ISO, CMM, Six Sigma, etc. which have helped establishIndia as a credible outsourcing destination.

The IT & BPO sector has been a key beneficiary in India’sgrowth, with the cost of international connectivitydeclining rapidly and quality of service improvingsignificantly. India’s National Association of Software andService Companies (NASSCOM) has played a critical rolein outsourcing by acting as a coordinating body for theindustry. It conducts surveys and conferences which helpin the dissemination of knowledge and research in theoutsourcing industry. As per NASSCOM, “While India’slow-cost talent pool has helped its businesses grow,global incumbents have also recognized India’s inherentadvantage and have mastered this capability by off-shoring more work out of India.” India’s competitiveadvantage lies in its ability to provide huge cost savingsand thus enabling productivity gains.

According to NASSCOM, the major reasons behind India’ssuccess in ITES/ BPO industry are:

Abundant, skilled, English-speaking manpower,which is being harnessed even by ITES hubs such asSingapore and Ireland.High-end telecom facilities and infrastructure whichare on par with global standards.Better focus on maintaining quality andperformance standards.Fast turnaround times, and the ability to offer 24x7services based on the country’s unique geographiclocations that allow for leveraging time zonedifferences.A friendly tax structure, which places the ITES/BPOindustry on par with IT services companies.Proactive and positive policy environment whichencourages ITES/BPO investments and simplifiesrules and procedures.

India has become the largest player in offshore deliverywith levels of work delivered that are amongst thehighest across several verticals. The supply-side elasticityof skilled English-speaking manpower across technologyand non-technology spaces is unmatched. The successof the industry has resulted in Indian companies lookingat acquisition targets worldwide, and the Indian serviceprovider community is being viewed as a “strategicbusiness partner” and not just an IT services vendor.


Over the years, BPO has become the second largestsegment in Indian IT/ ITES industry and also the fastestgrowing. The scope of process outsourcing has widenedover the past few years to also include KPO (KnowledgeProcess Outsourcing) operations. Customer Care is thelargest contributor in the BPO segments. The last fewyears have witnessed the industry evolve from executingprojects at the lowest end of the value chain, to onewhere Indian players are aggressively bidding for andwinning large-scale turnaround projects. At the sametime, the Small and Medium Providers (SMPs) in thissector are holding their own during these difficult times.The SMPs in India are integral to the growth engine ofthe industry in particular, and the Indian economy ingeneral. As per studies by NASSCOM:

The compounded annual growth rate (CAGR) of theindustry has been over 25% in the last five years.Over these years, four main components haveformed the industry, IT services, BPO, EngineeringServices and Hardware.

Banking and F inancial Services, Telecom,Manufacturing are among the top 4 verticals forboth export and domestic market.

While hardware dominates the domestic market, ITservices tops in the overall industry.

Today, Indian companies offer a wide variety ofoutsourced services ranging from medical transcription,customer care, medical billing services, databasemarketing to Web sales/ marketing, accounting, taxprocessing, transaction document management,telesales/ telemarketing, HR hiring and biotech research.

Outsourcing to India has been a satisfactory andprofitable experience for most companies around theworld. Indian outsourcing vendors have continuouslyadapted to internal and external challenges and thecredit for this goes to Indian outsourcing companies andthe successive enabling governments. Outsourcing inIndia has faced adversities due to the state of the worldeconomy and the ongoing recession, but it is surely hereto stay.

Outsource to O2I

If you want cost-effective services without compromisingon quality, look no further than Outsource2india. Wehave skilled, experienced and well-trained professionalswho will provide you world class services. When yououtsource to O2I, you can be assured of a quickturnaround time. Outsource you requirements to O2Iand benefit from our expert, efficient and technology-driven services. Contact us with your outsourcingrequirements.

References

1. “Terms and Definitions”. ventureoutsource.com.Retrieved 2007-10-05.

2. Hira, Ron, and Anil Hira. Outsourcing America:What’s behind Our National Crisis and How We CanReclaim American Jobs? New York: AMACOM, 2008.Print # 67-96.

3. Davies, Paul. What’s This India Business?:Offshoring, Outsourcing, and the Global ServicesRevolution. London: Nicholas Brealey International,2004. Print.

4. Overby, S (2007) ABC: An Introduction toOutsourcing. CIO.com.

5. (Q4 2006)Mandatory MultisourcingDiscipline Business Trends Quarterly

6. (2006) Mandatory Multisourcing Discipline

7. Holcomb & Hitt, 2007

8. Olive, B (2004). “Outsourcing Growing, DespiteControversy”. Power: 148(4), 19–20.

9. Weidenbaum, Murray. Outsourcing : Pros and Cons19.1 (2004): 23-37. America: History and Life. Web.13 Mar. 2012.

10. Buchholz, Todd G. Bringing the Jobs Home: How theLeft Created the Outsourcing Crisis - and How WeCan Fix It. New York: Sentinel, 2004. Print 97-118.

11. Hunt, Albert R. “Letter From Washington: As U.S.rich-poor gap grows, so does public outcry” NYTimes 2/18/2007

12. Condon, Bernard. “Study: Tax code slashes tax forhugely profitable companies” USA Today 8/16/2012.

13. Forey, Gail, and Jane Lockwood. Globalization,Communication and the Workplace: Talking acrossthe World. New York: Continuum, 2011. ElectronicBook #21-26.

14. The Future Of Outsourcing

15. Koulopoulos, Thomas M.: Driving Innovation andGrowth through Outsourcing. Avon, MA: Platinum/Adams Media, 2006. Print.

16. Lawrence, Robert Z. Single World, Divided Nations:International Trade and OECD Labor Markets.Washington, DC: Brookings Institution 1996. Print#89-102.

17. Parry, G. and Roehrich, J.K. (2009). Strategicoutsourcing of core competencies in the automotiveindustry: Threat or opportunity? InternationalJournal of Automotive Technology andManagement. 9(1): 40-53.

18. Maddock, B. & Warren, C. & Worsley A.(2005) Survey of canteens and food services inVictorian schools.

19. Nadeem, S (2009) Macaulay’s (Cyber) Children: TheCultural Politics of Outsourcing in India. CulturalSociology.

20. Alster, N (2005) CustomerDisservice. www.CFO.com.

21. Ribeiro, J (2005) Indian call center workers chargedwith Citibank fraud. www.infoworld.com

22. Wadhwa, V (2005) About That Engineering Gap.www.businessweek.com


India’s GDP numbers for quarter January-March stoodat 7.9 per cent as against 7.3 per cent in October-December, thereby making it the fastest growing

economy in the world.

India’s gross domestic product (GDP) grew 7.6 per centin 2015-16, powered by a rebound in farm output, andan improvement in electricity generation and miningproduction in the fourth quarter of the fiscal. Economicgrowth was estimated at 7.2 per cent in 2014-15.

The growth numbers for the last fiscal, which reinforcesIndia’s position as the world’s fastest-growing largeeconomy, came on the back of a strong 7.9 per centgrowth in the last quarter of the fiscal.

The robust headline number, despite faltering privateinvestment, weak capital goods growth and shrinkingexports, has reinforced expectations that the RBI wouldkeep its policy rate on hold at its next quarterly reviewnext Tuesday. The central bank has already cut its policyrepo rate by 150 basis points since January 2015,reducing it to 6.5 per cent — the lowest level in morethan five years.

The strong 7.9 per cent growth in the fourth quartercomes at a time when China has reported a 6.7 per centin the March quarter — its slowest growth in about sevenyears.

According to data released by the Central Statistics Office(CSO), the farm sector grew by 2.3 per cent from a yearago compared with a 1.0 per cent contraction in theDecember quarter. Mining grew 8.6 per cent in the Marchquarter, up from 7.1 per cent in the previous quarter.Electricity, water and gas production growth surged to9.3 per cent from 5.6 per cent in the December quarter.

The CSO, in a statement, said that it has revised the GDPdata for the first three quarters released earlier from7.6 per cent, 7.7 per cent and 7.3 per cent to 7.5 percent, 7.6 per cent and 7.2 per cent, respectively.

Also, the growth of in the “agriculture, forestry andfishing” sector was revised upwards to 1.2 per cent in2015-16 as against 1.1 per cent in the advance estimatesfor the same period. “The upward revision is on accountof the use of third advance estimates of crop productionreleased by the Ministry of Agriculture,” it said.

The manufacturing sector’s growth was also reviseddownward to 9.3 per cent as against the growth rate of

GDP: AT 7.6%, INDIA’S GROWTH POINTS TOFASTEST GROWING LARGE ECONOMY

ARUN JAITLEYHON. FINANCE MINISTER OF INDIA

9.5 per cent estimated earlier due to lower print ofindustrial output than estimated earlier. “The IIP ofmanufacturing registered a growth rate of 2 per centduring the whole year of 2015-16, as against the growthrate of 3.9 per cent used for compiling AdvanceEstimates. Due to this change, the advance estimategrowth of ‘manufacturing’ sector has been reviseddownwards to 9.3 per cent,” it added.

Growth of trade, hotels, transport, communicationservices has been revised downward to 9 per cent against9.5 per cent estimated earlier, while financial, insuranceand real estate sector grew at 10.3 per cent, same asprojected earlier.

Upasna Bhardwaj, Economist, Kotak Mahindra Bank, saidthat private consumption has been holding up, mirroringsome of the progress in high frequency data such as autosales and the improving prospects of adequatemonsoons.

“Another reason for the pickup in private consumptioncould be attributed to the heavy dividend payouts bycorporates rather than increasing investment spending.Overall, the continued weakness in capital goodsproduction and lack of capacity addition continues toremain a drag on growth. Going forward, bettermonsoons and seventh pay commission payouts arelikely to remain supportive of consumption. However,private capex will likely remain the missing link for a fewmore quarters with growth continuing to be heavilyreliant on government spending. We, therefore, see agradual uptick in growth next year,” she said.

The Economic Survey had projected a wide band of 7-7.75 per cent growth in 2016-17, boosted by normalmonsoon projection. It had, however, cautioned thatwith the global slowdown likely to persist, chances ofIndia’s growth rate in 2016-17 increasing significantlybeyond 2015-16 levels were not very high.

The RBI, too, in its April monetary policy review, said anumber of factors could impinge upon the growthoutlook for the current fiscal such as slow investmentrecovery amid balance sheet adjustments of companies,weak revival of private investment demand and tepidexternal demand.

Source: The Indian Express-1st June 2016


Now a day’s all most all the bank has become verymuch shaky and scared while accepting any newproposals from third party those who are not the

existing borrower or already banking with that particularbank. Banks have enough funds inflow presently in placewith them but reluctant to invest good funds into badmoney unless otherwise is doubly assured with theminimum risk factor.

Bank is always conservative in nature particularly afterlate 90’s wherein they burnt their fingers in many casesby which its NPA level substantially were very high anddid not examine the credit proposal extensively beforesanctioning the facilities. They were focused mainly onrevenue earnings. At that time the bank’s interest ratewas very high and most of the borrowers unable torepaid their money on time due to high interest rate. Ofcourse, the economic meltdown took place at that timeand lots of foreign banking outfit were bankrupt. Thisfear factor has induced the entire banking fraternity toreduce their investment level.However, Indian banksnicely managed to handle the crisis and did not face anymajor issues due to such meltdown. Govt.of India wasgreeted by a round of applause for creating such fearlessatmosphere in India.

In my article, I would like to highlight some dimensionson how to prepare the proposal for those borrowers whoare going to place a loan packageor for availing creditfacilities like project finance/working capital finance/trade finance/ finance for diversification of theirrespective units. These write up/guidelines are both fornew units and existing units.

Not all banks are created same, but many of them focuson the same areas throughout the loan review process.You must be clear what documentation, projections andnarratives you’ll need to prepare as well as tips to ensureyou to negotiate the best loan package as availablewithin the bank.

Five Major Pointsof Loan Applications

The most fundamental characteristics of prospectivelenders will concentrate on the following:1. Your credit history/past performance2. Your cash flow history and projections for the

business3. Your collateral available to secure the loan4. Your credentials 5. Bank loan documentation that includes business

CHANGING PERSPECTIVE OF ALL BANKS WHILE EXTENDINGTHE CREDIT FACILITIES DUE TO INCREASE OF NPA ACCOUNTS

AVIJIT CHAKRABORTYFINANCIAL EXPERT AND FACILITATORS

[email protected]

and personal financial statements, income taxreturns, a business plan and that essentially sumsup and provides evidence for the first four itemslisted

The first three of these criteria are objective data(although interpretation of the numbers can besubjective).

The fourth item—your character—allows the lender tomake a more subjective assessment of your businesses.In assessing whether to finance to consider individualfactors that represent strengths or weaknesses for aloan.

Loan Documentation : The process of applying for aloan involves the collection and submission of a largeamount of documentation about your business andyourself.

The documents required usually depend upon thepurpose of the loan, and whether your business is astartup or an already-existing company.

Documentation for Startups unit : A bank will typicallyrequest, at a minimum, the following documentation fora startup business:

a personal financial statement and personal federalincome tax returns from the last one to three yearsprojected startup cost estimatesprojected balance sheets and income statements forat least two yearsprojected cash flow statement for at least the first12 monthsevidence of ownership interests in assets, such asleases and contracts, and collaterala business plan that includes a narrative explainingthe specific use for the requested funds, how themoney will assist the business and how theborrowed funds will be repaid (repayment sourcesand duration of repayment period), includingidentifying any assumptions used in developing yourprojected financial a personal resume, or at least a written explanationof your relevant past business experienceletters of reference recommending you as areputable and reliable business person may also helpyour chances for a loan approval

Some lenders will also want you to submit a breakeven


analysis in the form of a financial statement or a graph.A breakeven analysis shows the point at which thecompany’s expenses will match the sales or servicevolume. The breakeven point can be expressed in termsof units sold.

Documentation for Existing Businesses : For an existingbusiness, you can anticipate a request to produce:

income statements and business balance sheets forthe past three yearsprojected balance sheets and income statements fortwo yearsprojected cash flow statements for at least the next12 monthspersonal and business tax returns for the last threeyearsa business plan, depending upon the credit historyof your business and the purpose for the loan, maybe unnecessary, and a brief narrative of yourintentions may suffice

Additional Documentation Requests to Expect :Depending upon the specific type of loan you areseeking, you should also address certain issues germaneto that loan type.

For instance, if money is requested for working capital,your documentation should include:

The amount that will be used for accounts payable,along with an accounts receivable aging report todisclose the current amounts overdue 30 to 60 daysor olderThe amounts that will be used for inventory and anyincrease in the number of days that inventory onhand will be heldThe amount your cash balances will be increasedA contingency amount that is equal to at least 10percent but preferably 25 percent.

If money is needed for machinery or equipment, includeinformation that addresses:

whether the assets will be immediately available orif a delay is anticipatedthe price of the assets and how installation will beperformedwhether installation will interfere with currentproduction and the cost of any interruptions

Documentation for an acquisition/purchasing of landfinancing should include the real estate’s cost, locationand size, intended use, and whether any of the land isfor future expansion.

The objective of writing this article is to raise the veil soto speak about the borrowers for those who arefrantically searching guidelines for preparation of loandocuments. I shall be glad if it helps those who maygather some idea how to prepare the loan applicationfrom these articles. For more details, please may contactme on my email.

Indian Institute of Materials Management

MISSION

To promote professional excellence in materialsmanagement towards National Prosperitythrough sustainable development.

OBJECTIVETo secure a wider recognition of and promotethe importance of efficient materials managementin commercial and industrial undertakings.

To safe guard and elevate the professional statusof individuals engaged in materials managementfaculty.

To constantly impart advanced professionalknowledge and thus improve the skill of theperson engaged in the materials managementfunction.

Propagate and promote among the membersstrict adherence to IIMM code and ethics.

CODE OF ETHICS

To consider first the total interest of one’sorganisation in all transactions without impairingthe dignity and responsibility of one’s office :

To buy without prejudice, seeking to obtain themaximum ultimate value for each rupee ofexpenditure.

To subscribe and work for honesty and truth inbuying and selling; to denounce all forms andmanifestations of commercial bribery and toeschew anti-social practices.

To accord a prompt and courteous reception sofar as conditions will permit, to all who call up onlegitimate business mission.

To respect one’s obligations and those of one’sorganisation consistent with good businesspractices.


SHASHI KANT SHARMA CHAIRS 1ST BRICS SAISLEADERS MEETING

CAG Institution in India has taken several initiativestowards use of latest data analytical tools for auditplanning & analysis and is also fine tuning its

methodology for audit of environmental issues for betterimpact. This was disclosed by Comptroller and AuditorGeneral of India Shri Shashi Kant Sharma in Beijing.

He was delivering a key note address at the 1st Meetingof the Supreme Audit Institutions of BRICS countries inBeijing. Shri Sharma also shared the contributions madeby the CAG institution of India in enhancing transparencyand accountability in governance and in promotingeconomic and social development.

The CAG said that our Governments have taken severalinitiatives to address the challenges faced by ourcountries and the people by automating service delivery,choosing partners in development through Public PrivatePartnership arrangements, opening up economy forforeign direct investments and by focusing on sustainabledevelopment.

These government initiatives have brought in newchallenges to the SAI auditors. This has also placedenhanced Demands for greater objectivity in publicdealings and transparency in governance, he added.

Shri Sharma said that big strides have been made byGovernment in automating services rendered by it andin collecting, compiling and reporting data on itsprogramme interventions. This has led to a digital dataexplosion and opened up an opportunity to the SAIs,which would be one of the few agencies to have accessto such vast data held by different government agencies.

In the past, SAI auditors were content to analyze the datamaintained by the audit agencies. “Big data” hasprovided a window to the SAI auditors to examine theaudited agency data along with related data from othersources.

The CAG of India disclosed that “Recognizing this trend,India has formulated a Big Data Management Policy andis in the process of establishing a Data Analytics Centre.

Our pilot results on using sophisticated data and visualanalytic tools have already produced promising results. Iam convinced that use of improved data analytics willenable the SAIs to come up with more incisive auditfindings and to assist the Governments in takingappropriate policy decisions.”

Shri Sharma said that for SAI India, this meeting assumesgreater significance as India has recently assumed

CAG OF INDIA FORMULATES BIG DATA MANAGEMENTPOLICY TO MEET FUTURE CHALLENGES

Chairmanship of the BRICS.

The theme of India’s BRICS Chairmanship is BuildingResponsive, Inclusive and Collective Solutions. DuringIndia’s BRICS Chairmanship, India will adopt five-prongedapproach emphasizing on

(i) Institution building to further deepen, sustainand institutionalize BRICS cooperation;

(ii) Implementation of the decisions from previousSummits;

(iii) Integrating the existing cooperationmechanisms;

(iv) Innovation and (v) Continuity.

Source: PIB

E-tender must from April 1 for GovtPurchases above Rs 2 lakh

Come April 1, all central ministries and public sectorunits will have to float e-tenders for procuring goods andservices exceeding Rs 2 lakh, a move aimed at bringingtransparency in government purchases.

At present, e-procurement is mandatory for purchases ofRs 5 lakh or more. Government procures goods, servicesand work contracts.

In January, the Expenditure Department had decided thetender value limit of Rs 10 lakh spent in respect of e-procurement would be brought down to Rs 5 lakh from April1, 2015 and further down to Rs 2 lakh from April 1, 2016.

As per its instructions it is mandatory for all centralministries, departments and Central Public SectorEnterprises, and autonomous/statutory bodies to publishtheir tenders on the Central Procurement Portal (CPP) aftera certain threshold limit.

In 2014-15, about 3.81 lakh e-tenders were floated worthRs 2.12 lakh crore.

As per the latest data, in 2015-16 so far, 471,826 e-tendershave been floated entailing an amount about Rs 3.49 lakhcrore.

Bulk of the tenders are floated by Railways followed byCentral Public Works Department (PWD) and defence PSUs.

In the current fiscal so far, 3.56 lakh tenders were floatedfor goods, about 93,000 for work contracts and 22,342 forservices.

Source: PTI, 26th Jan. 2016


India is on the threshold of major reforms and is poisedto become the third-largest economy of the world by2030. In the words of our Hon’ble Prime Minister, India

offers the 3 ‘Ds’ for business to thrive— democracy,demography and demand. Add to that a tech-savvy andeducated population, skilled labour, robust legal and IPRregime, and a strong commitment to calibratedliberalization — India is a destination that Germaninvestors cannot overlook. India’s manufacturing sectorhas evolved through several phases - from the initialindustrialisation and the license raj to liberalisation andthe current phase of global competitiveness. Today,Indian manufacturing companies in several sectors aretargeting global markets and are becoming formidableglobal competitors. Many are already amongst the mostcompetitive in their sectors.

Demographics Advantage:

The country is expected to rank amongst the world’stop three growth economies and amongst the topthree manufacturing destinations by 2020.

Favourable demographic dividends for the next 2-3decades. Sustained availability of quality workforce.

Strong consumerism in the domestic market.

Strong technical and engineering capabilities backedby top-notch scientific and technical institutes.

The cost of manpower is relatively low as comparedto other countries.

Infrastructure:

Industrial Parks: Every state in India has developedindustrial parks for setting up of industries.

· National Investment & Manufacturing Zones: NIMZis a combination of production units, public utilities,logistics, residential areas and administrativeservices. It would have a processing area, wheremanufacturing facilities, along with associatedlogistics and other services and requiredinfrastructure will be located, and a non-processingarea, to include residential, commercial and othersocial and institutional infrastructure.

Special Economic Zones: India has also developedSEZs that are specifically delineated enclaves treatedas foreign territory for the purpose of industrial,service and trade operations, with relaxation incustoms duties and a more liberal regime in respect

THE NEXT MANUFACTURING DESTINATIONOn the threshold of major reforms India is poised to become the third-largest

economy of the world by 2030.

of other levies, foreign investment.

Sector specific clusters: like electronic manufacturingclusters, mega food parks etc: The government ofIndia has been promoting the development of sectorspecific parks.

Country specific zones: The country also have fewdedicated zones for industrial units from countriesfor example Neemrana Japanese Zone etc.

Industrial corridors: The Government of India isdeveloping the Delhi-Mumbai Industrial Corridor(DMIC) as a global manufacturing and investmentdestination utilizing the 1,483 km-long, high-capacity western Dedicated Railway Freight Corridor(DFC) as the backbone. The objective is to increasethe share of manufacturing in the GDP of thecountry and to create smart sustainable cities wheremanufacturing will be the key economic driver.

Other four corridors: planned include BengaluruMumbai Economic Corridor (BMEC); Amritsar -Kolkata Industrial Development Corridor (AKIC);Chennai Bengaluru Industrial Corridor (CBIC), EastCoast Economic Corridor (ECEC) with Chennai VizagIndustrial Corridor as the first phase of the project(CVIC).

Incentives offered for manufacturing:

Sector specific initiatives: The government of Indiaprovides sector specific subsidies for promotingmanufacturing for example in order to boostmanufacturing of electronics, the Govt. of Indiaprovides capital subsidy of up to 25% for 10 years.

Area based incentives: Incentives are provided forunits in SEZ/NIMZ as specified in respective acts orsetting up project in special areas like North EastRegion, Jammu & Kashmir, and Himachal Pradesh&Uttarakhand.

Incentives under income tax act:

Investment Allowance: The Government of India inits Union Budget 2014-15, has provided investmentallowance at the rate of 15 per cent to amanufacturing company that invests more than US$4.17 million in any year in new plant and machinery.

Deductions: Several additional deductions areprovided for instance deduction equal to 30% ofadditional wages paid to new regular workmen


employed by the assesse over and above 50workmen.

R&D Incentives: Higher weighted deductions of200% provided for expenditure related to R&Dsubject to fulfilment of conditions.

Export Incentives: Under the foreign trade policyexports have been provided with several incentiveslike duty drawback, duty remission schemes etc.

State Incentives: Apart from above each state in Indiaoffers additional incentives for industrial projects.Some of the states also have separate policies fortextile sector. Incentives are in areas like rebatedland cost; relaxation in stamp duty exemption onsale/lease of land; power tariff incentives;concessional rate of interest on loans; investmentsubsidies / tax incentives; backward areas subsidies;special incentive packages for mega projects.

Recent Initiatives & Budget announcements forpromoting manufacturing:

Ease of Doing Business:

The corporate tax rate for companies registered inIndia to go down from 30% to 25% of net profits ina phased manner over the next four years startingfrom FY 16-17.

An expert committee to examine the possibility andprepare a draft legislation where the need formultiple prior permission can be replaced by a pre-existing regulatory mechanism.

Goods and Services Tax proposed to be implementedfrom April 01, 2016.

The process of applying for Industrial License (IL) andIndustrial Entrepreneur Memorandum (IEM) hasbeen made online.

Initial validity period of Industrial License has beenincreased to three years from two years, also, twoextensions of two years each in the initial validity ofthree years of the Industrial License shall now beallowed up to seven years. This will give enough timeto licensees to procure land and obtain thenecessary clearances/approvals from authorities.

Operationalizing the e-BIZ portal: Through eBizportal, a business user can fill the eForms online/offline, upload the attachments, make paymentonline and submit the forms for processing of thedepartment.

Labor reforms:

A dedicated ShramSuvidha Portal: The portal wouldallot Labour Identification Number (LIN) to nearly 6lakhs units and allow them to file online compliancefor 16 out of 44 labour laws

An all-new Random Inspection Scheme: Utilizingtechnology to eliminate human discretion inselection of units for Inspection, and uploading of

Inspection Reports within 72 hours of inspectionmandatory

· Universal Account Number: Enables 4.17 croreemployees to have their Provident Fund accountportable, hassle-free and universally accessible

Apprentice ProtsahanYojana: Will supportmanufacturing units mainly and otherestablishments by reimbursing 50% of the stipendpaid to apprentices during first two years of theirtraining

Department of Industrial Policy and Promotion hasidentified various areas and action points on easeof doing business index/indicators have beenprepared for assessing the overall businessperformance of the country as well as States/UnionTerritories.

Government has undertaken a number of steps toimprove Ease of Doing Business in India. A largenumber of components of Defence Products’ listhave been excluded from the purview of IndustrialLicencing. The application process for IndustrialLicence and Industrial Entrepreneur’s Memorandumhas been made easy by simplification of form andmaking the process online 24X7. The validity periodof the Industrial Licence and security clearance fromMinistry of Home Affairs has been increased. Theprocess of registration with Employees’ ProvidentFund Organization and Employees’ State InsuranceCorporation has been made on line and real-time.Process of obtaining environment and forestclearances has been made online. The Departmentof Industrial Policy and Promotion has advisedMinistries and State Governments to simplify andrationalize the regulatory environment throughbusiness process reengineering and use ofinformation technology. 14 Government of Indiaservices have been integrated with the online singlewindow eBiz portal

Skill India: ‘SKILL INDIA’ - a multi-skill developmentprogramme has been initiated with a mission for jobcreation and entrepreneurship for all socio-economicclasses. It endeavours to establish an internationalequivalent of the Indian framework on skill development,creating workforce mobility and enhancing youthemployability.

Sector opportunities: India provides great avenues forinvestments in various sectors.

Defence: India is expected to spend US$ 40 billionon defence purchases over the next 4-5 years. Theopening of the strategic defence sector for privatesector participation will help foreign originalequipment manufacturers to enter into strategicpartnerships with Indian companies and leveragethe domestic markets and also aim at globalbusiness.

Automotive: India is expected to become a majorautomobile manufacturing hub and the third largest


market for automobiles by 2020, according to areport published by Deloitte. India is currently theseventh-largest automobiles producer in the worldwith an average annual production of 17.5 millionvehicles, and is on way to become the fourth largestautomotive market by volume, by 2015.

Engineering: The Indian Engineering sector haswitnessed a remarkable growth over the last fewyears driven by increased investments ininfrastructure and industrial production. Theengineering sector, being closely associated with themanufacturing and infrastructure sectors of theeconomy, is of strategic importance to India’seconomy. Growth in the sector is driven by varioussub-sectors such as infrastructure, power, steel,automotives, oil & gas, consumer durables etc.

Textiles: The Indian textiles industry, currentlyestimated at around US $108 billion, is expected toreach US $ 141 billion by 2021. The Indian textileindustry has the potential to grow five-fold over thenext ten years to touch US$ 500 billion mark on theback of growing demand for polyester fabric,according to a study by Wazir Advisors and PCIXylenes and Polyester. The US$ 500 billion marketfigure consists of domestic sales of US$ 315 billionand exports of US$ 185 billion.

Chemicals: The Indian chemical industry stands asthe third largest producer in Asia and 12th in world,in terms of volume. This industry could grow at 14per cent per annum to reach a size of US$ 350 billionby 2021. India accounts for approximately 7 per centof the world production of dyestuff and dyeintermediates and is currently the world’s thirdlargest consumer of polymers and fourth largestproducer of agrochemicals.

Food Processing: The Indian food industry stoodaround (US$ 39.03 billion) in 2013 and is expectedto grow at a rate of 11 per cent to touch (US$ 64.31billion) by 2018.

Leather: India’s leather industry has witnessedrobust growth, transforming from a mere rawmaterial supplier to a value-added product exporter.In fact, today, almost 50 per cent of India’s leatherbusiness comes from international trade.

Pharmaceuticals: The Indian pharmaceuticalindustry is estimated to grow at 20 per centcompound annual growth rate (CAGR) over the nextfive years, as per India Ratings, a Fitch Groupcompany. Indian pharmaceutical manufacturingfacilities registered with US Food and DrugAdministration (FDA) as on March 2014 was thehighest at 523 for any country outside the US. Weexpect the domestic pharma market to grow at 10-12 per cent in FY15 as compared to 9 per cent inFY14, as per a recent report from Centrum Broking.The domestic pharma growth rate was 11.9 per centin October 2014, highlighted the report.

Electronics: The electronics market is one of thelargest in the world and is anticipated to reach US$400 billion in 2022 from US$ 69.6 billion in 2012.The market is projected to grow at a compoundannual growth rate (CAGR) of 24.4 per cent during2012-2020.

Electronics Systems Design & Manufacturing

Heavy industries

Machineries

Engines

Tools

Steel products

Industrial equipment’s

Electrical and Home Appliances

Builders Hardware

Railway and related products and equipment’s

The Indian electronics system design andmanufacturing (ESDM) industry is at a hugeinflection point. From being predominantlyconsumption driven, the Indian ESDM industry hasa major potential to become a design ledmanufacturing industry. The industry is one of thefastest growing sectors in the country. The IndianESDM industry was estimated to be $68.31 billionin 2012. The impressive guidance between 2011 and2015 for this industry is expected to result in aCompound Annual Growth Rate (CAGR) of 9.88percent. The corresponding size of the industry by2015 is anticipated to be $94.2 billion. Reasons toInvest

Huge consumption market: The corresponding sizeof the industry by 2015 is anticipated to be $94.2billion. Large demand to be generated due togovernment schemes like the National KnowledgeNetwork (NKN), National Optical Fibre Network(NOFN), tablets for the Education sector, adigitisation policy and various other broadbandschemes.

Attractive Incentives: The central and stategovernment have announced scheme of incentivesfor manufacturing of electronics. Incentives includeup to 25% capital subsidy on capital expenditure,giving land at rebated cost, reimbursement ofcentral and state duties, income tax exemptions onsetting up in special economic zones, assistance inskill development etc.

Availability of the infrastructure: The government ispromoting development of electronicsmanufacturing clusters throughout the country toprovide world class infrastructure and facilities. TheGovernment of India has also received theapplications of two consortia (IBM, Jaypee Group,TowerJazz; ST Microelectronics, HSMC) to establish2 semiconductor wafer fabrication units in Gujarat


and Noida with the aim of operating at 20 nmprocess node within two years of initial operationsand reaching a capacity of at least 40,000 WSPM ofat least 300 mm size.

Availability of Skilled Manpower: India has the thirdlargest pool of scientists and technicians in theworld. Skilled manpower is available in abundancein Semiconductor Design and Embedded Software.India also has strong design and R&D capabilities inauto electronics and industrial electronics.

Investment Opportunities:

Setting up of Electronics Manufacturing Clusters.

Semiconductor Wafer Fabrication (FAB).

Electronic products like telecom equipment, LED’s,consumer electronics, medical electronics,automotive electronics etc.

Electronic Components.

Semiconductor Design.

Electronics Manufacturing Services (EMS).

Defence Indian defence sector is at the cusp of aninflexion point wherein the future growth will bepropelled by indigenous manufacturing both fordomestic & global clients. The sector will witness stronggrowth over the next decade due to its current size,longevity, and competitive advantages. As per FICCI-Centrum report the market opportunity for Indiancompanies (PSU + Pvt) will grow 7x from $6bn in FY14 to$41bn by FY22. Reasons to Invest

India has some of the basic ingredients (large andrelatively low cost (Frugal) engineering talent pool,comfort of western nations with India from a geo-political perspective) to exploit this opportunity butit will have to significantly improve on some others(technology, lack of a defence manufacturingecosystem, etc). Also, the nature of warfare isbecoming more software intensive, which plays intothe strength of India considering IT sector growthin the past two decades.

India may become a large sourcing base forcomponents and sub-systems in the years to comefor foreign systems integrators this will happen asthese companies face price pressure in the yearsahead as the large arms consumers – US and thewestern developed world – seek cut backs ondefence spending to improve their financial positionand rein in fiscal deficits and debt/GDP ratios.Already a number of JVs have been signed betweenIndian and foreign players.

The offset clause (which stipulates that 30-50% ofthe armament purchase value should be spent onbuying Indian components, sub-systems andproducts) introduced in capital purchaseagreements with foreign defence players will ensurethat an ecosystem of suppliers is built domestically.

Indigenization will take centre stage and gather pacegoing forward. Government has taken a number ofsteps in this direction. DPP 2013 furthers the causeof developing domestic defence sector byprioritizing procurement from Indian companies andbuying from global companies as the last resort.

Recent Government Initiatives:

53% of the defence items for manufacturing byprivate sector have been de-licensed and dual useitems having military as well as civilian applicationsif not specifically mentioned deregulated.

FDI cap raised to 49% and beyond 49% wherever itis likely to result in access to modern and ‘state-of-art’ technology in the country.

The procurement process would be made moreefficient, time bound and predictable so that theindustry can plan its investment and R & D well inadvance to meet the requirement of our armedforces.

Online filing and increase in validity of industriallicense.

Streamlining procedure in case of defense exports.

There is a big opportunity in the defence sector for bothdomestic and foreign investors. We have the third largestarmed force in the world with an annual budget of aboutUS$ 38 billion and 40% of this is used for capitalacquisition. In the next 7-8 years, we would be investingmore than US$ 130 billion in modernization of our armedforces.

Automobiles

Demographically and economically, India’s automotiveindustry is well-positioned for growth, servicing bothdomestic demand and, increasingly, exportopportunities. A predicted increase in India’s working-age population is likely to help stimulate the burgeoningmarket for private vehicles. Rising prosperity, easieraccess to finance and increasing affordability is expectedto see four-wheelers gaining volumes, although twowheelers will remain the primary choice for the majorityof purchasers, buoyed by greater appetite from ruralareas, the youth market and women. Reasons to Invest:

Over the next 20 years, India will be a part of the bigglobal automotive triumvirate.

Growth factors - growth in demand on back of risingincome, expanding middle class and youngpopulation base, large pool of skilled manpower andgrowing technology; The country enjoys naturaladvantage and is among the lowest cost producersof steel in the world.

Tractor sales in the country are expected to grow atCAGR of 8-9% in the next five years, upping India’smarket potential for international brands.

Two-wheeler production has grown from 8.5 Millionunits annually to 15.9 Million units in the last seven


years. Significant opportunities exist in ruralmarkets.

India’s car market has the potential to grow to 6+Millions units annually by 2020.

The emergence of large automotive clusters in thecountry: Delhi-Gurgaon-Faridabad in the north,Mumbai-Pune-Nashik- Aurangabad in the west,Chennai-Bengaluru-Hosur in the south andJamshedpur-Kolkata in the east.

Global car majors have been ramping up investmentsin India to cater to growing domestic demand. Thesemanufacturers plan to leverage India’s competitiveadvantage to set up export-oriented productionhubs.

An R&D hub: strong support from the governmentin the setting up of NATRiPcentres. Private playerssuch as Hyundai, Suzuki, GM are keen to set up anR&D base in India.

Tata Nano is a sterling example of Indian frugalengineering and is being positioned as a mobilizerof the young generation.

Electric cars are likely to be a sizeable marketsegment in the coming decade.

Multinational automotive plants in India rank amongthe top across the world in terms of theirproductivity and quality.

Largest tractor manufacturer; 2nd largest twowheeler manufacturer; 2nd largest busmanufacturer; 5th largest heavy truck manufacturer;6th largest car manufacturer; 8th largest commercialvehicle manufacturer.

Investment Opportunities:

Two-wheelers (motorcycles, geared and ungearedscooters and mopeds),

Three wheelers,

Commercial vehicles (light, medium and heavy),

Passenger cars,

Utility vehicles (UVs) and Tractors.

Production in 2013-14 – Passenger vehicles – 3.1 million;two wheelers – 16.9 million; commercial vehicles – 0.7million; three wheelers – 0.8 million

Engineering

The Indian Engineering sector has witnessed aremarkable growth over the last few years driven byincreased investments in infrastructure and industrialproduction. The engineering sector, being closelyassociated with the manufacturing and infrastructuresectors of the economy, is of strategic importance toIndia’s economy. Growth in the sector is driven by varioussub-sectors such as infrastructure, power, steel,automotives, oil & gas, consumer durables etc. The

country now joins an exclusive group of 17 countries whoare permanent signatories of the WA, an eliteinternational agreement on engineering studies andmobility of engineers. Reasons to Invest:

The engineering sector in India attracts immenseinterest from foreign players as it enjoys acomparative advantage in terms of manufacturingcosts, technology and innovation.

Capacity creation in sectors such as infrastructure,power, mining, oil & gas, refinery, steel, automotive,and consumer durables driving demand in theengineering sector.

The government has an ambitious mission of ‘Powerfor all by 2012’ and has planned capacity additionsof 120 GW in the 12th Five-Year Plan.

Governmental infrastructure projects such as GoldenQuadrilateral and the North-South and East-Westcorridors fuelled growth in the engineering sector

India has Comparative advantage vis-à-vis peers interms of manufacturing costs, market knowledge,technology and creativity.

More than 2,500 firms in the engineering sector haveISO 9000 accreditation.

The engineering sector is a growing market. Currentspending on engineering services is projected toincrease to US$ 1.1 trillion by 2020.

The Indian engineering sector is of strategicimportance to the economy owing to its intenseintegration with other industry segments. The sectorhas been de-licensed and enjoys 100 per cent FDI.With the aim to boost the manufacturing sector ithas announced scheme for capital goods sector.

Engineering exports from India are expected to crossUS$ 70 billion in FY 15 registering a growth of 15per cent over the previous fiscal, as demand in keymarkets such as the US and the UAE is on the rise.Apart from these traditional markets, markets inEastern and Central European countries such asPoland also hold huge promise.

The Government of India in its Union Budget 2014-15, has provided investment allowance at the rateof 15 per cent to a manufacturing company thatinvests more than US$ 4.17 million in any year innew plant and machinery. The government has alsotaken steps to improve the quality of technicaleducation in the engineering sector by allocating asum of Rs 500 crore (US$ 78.8 million) for settingup five more IITs in the states of Jammu,Chhattisgarh, Goa, Andhra Pradesh and Kerala.

Source: Make in India Website


For years, when people talked about leadership style,they talked in terms of two extremes – an autocratic(directive) and a democratic (supportive) style.Autocratic leaders used position power and theirauthority to get results while democratic leaders usedpersonal resources (power) and involved others inparticipative problem-solving and decision-making.

But then onwards the mode of business, cultureexchange, communication, and development changedthe corporate world. The modern business isdelivering time and mission critical solution in fasterpace. People from different background, culture &nature are engaged together in a single platform ofsolution. The rate of risks, criticalities are higher, whichrequire a change in the style of handling the situation,adopt changed and satisfy the need from parentorganization to client organization. Also, experienceand further research, however, showed thatleadership style tend to vary considerably fromsituation to situation.

And, that’s where leadership style, and leadershipmodel that presumes that different leadership stylesare better in different situations, and that leadersmust be flexible enough to adapt their style to thesituation they are in. We can define it as therelationship between a leader’s style and his or herenvironment to influence the performance ofsubordinates and empower team with energy andpositive mindset.

The changes from general leadership style tosituational

We can relate general leadership to two types ofbehavior, task and relationship. Task behavior isassociated with goal attainment while relationshipbehavior is synonymous with interpersonal relations.

Interpersonal behavior of this sort is generallyassociated with creating a comfortable psychologicalenvironment for subordinates, especially as it relatesto how subordinates feel about themselves, othergroup members, and the general circumstances theyfind themselves in. Closely related to relationshipbehaviors are two issues—a leader’s concern for

SITUATIONAL LEADERSHIP AND EMPOWERMENT

NEERAJ BHARDWAJDIRECTOR-BLUE WISDOM BUSINESS MANAGEMENT PVT. LTD.

AHEMDABAD

production and a leader’s concern for people.

Coming to situational approach, the relationshipbetween a leader’s style and his or her environmentalways influence the performance of subordinates.Also, this model allows you to analyze the needs ofthe situation you are in and then use the mostappropriate leadership style; depending on employeecompetences in their task areas and commitment totheir tasks the leadership style will also change fromperson to person. The overriding assumption is that aleader can adopt an “appropriate” style under certaincircumstances.

Two fundamental concepts: leadership behavior anddevelopment : The model of support, commitment,and competence which is required at the situationwhere the leader is in has proved popular withmanagers over the years because it is simple tounderstand, and it works in most environments formost people.

Leadership styles : We can characterize “Leadershipstyle” in terms of the amount of direction and supportthat the leader provides to his or her followers. Thiswill be counted throughout their interpersonalrelation and in organizational engagement. There arefour kinds of behavior:

• Directing Leaders define the roles and tasks of the‘follower’, and supervise them closely. Decisionsare made by the leader and announced, socommunication is largely one-way.

• Coaching Leaders still define roles and tasks, butseeks ideas and suggestions from the follower.Decisions remain the leader’s prerogative, butcommunication is much more two-way.

• Supporting Leaders pass day-to-day decisions,such as task allocation and processes, to thefollower. The leader facilitates and takes part indecisions, but control is with the follower.

• Delegating Leaders are still involved in decisionsand problem-solving, but control is with thefollower. The follower decides when and how the


leader will be involved.

Of these, no one style is considered optimal or desiredfor all leaders to possess. Effective leaders need to beflexible, and must adapt themselves according to thesituation. However, each leader tends to have anatural style, and in applying Situational Leadershipshe must know her intrinsic style.

Development levels : The leader style of working isdirectly applied on the development of the follower.The above behaviors can be extended to thedevelopment level of the follower. Leader’s chosenstyle should be based on the competence andcommitment of his/her followers. These can becategorized the possible development of followersinto four levels:

1. Low Competence, High Commitment - Theygenerally lack the specific skills required for thejob in hand, however, they are eager to learn andwilling to take direction.

2. Some Competence, Low Commitment - They mayhave some relevant skills, but won’t be able todo the job without help. The task or the situationmay be new to them.

3. High Competence, Variable Commitment - Theyare experienced and capable, but may lack theconfidence to go it alone, or the motivation to doit well or quickly.

4. High Competence, High Commitment - They areexperienced at the job, and comfortable withtheir own ability to do it well. They may even bemore skilled than the leader.

Development Levels are also situational. A membermight be generally skilled, confident and motivatedin his/her job, but would still drop into point 1 whenfaced, say, with a task requiring skills they don’tpossess. For example, many managers are in point 4when dealing with the day-to-day running of theirdepartment, but move to point 1 or point 2 whendealing with a sensitive employee issue.

How you can implement this in your workingenvironment?

Being a leader you need to

• Adopt a style which is natural to you• Exercise a set of operation which suits both you

and your follower• Create an environment which is comfortable to

execute those operations

Use the simple but “must be”steps, process

• Make an overview of your follower’s tasks• Assess the employee on each task using the

“development level” concept• Decide on leadership or management style using

“leadership style” concept• Discuss the situation with employee and create

environment for execution• Make a joint plan and milestone• Follow up, check and correct• Encourage the follower in every milestone for

next one and congratulate

Empowerment through leadership : Empowermentcan assist any leader (who is willing to make somekey changes) tap the knowledge, skills, experience,and motivation of every person in the company.Leaders who empower people are placing additionalresponsibility for results on the team members.Empowerment is not soft management. But eventhough it places high expectations on people, teammembers embrace empowerment because it leads tothe joys of involvement, ownership, and growth.Unfortunately, too few leaders and team membersunderstand how to create a culture of empowerment.

Leader chooses the right work for the right peopleand for a right reason. The reason should be visibleand measurable. The right work may be anythingoutside of the daily assignment. Leader May have toguide, track the new set of work. Encourage the teammember for every small change took place towardsthe goal/milestone and correct the mistaken area witha positive attitude. Example of great leaders on thesame area will encourage the team member more totake up innovative step towards the solution.

Leadership Effectiveness : Leadership effectivenessdepends on both the leader’s personality and thesituation. Certain leaders are effective in one situationbut not in others, and it’s therefore a situationaltheory in the meaning that there is no one best wayof leading.

Fiedler* introduced the contingency modeling ofleadership to determine the leader personality andthe situation and he used three methods:

1. Least Preferred Coworker (LPC) Scale : Fiedleridentified the a Least Preferred Co-Worker scoring forleaders by asking them first to think of a person withwhom they worked with, whom they would like leastto work with again, and then to score the person onarrange of scales between positive factors (friendly,helpful, cheerful, etc.) and negative factors(unfriendly, unhelpful, gloomy, etc.). A high LPC leadergenerally scores the other person as positive and a


low LPC leader scores them as negative.

2. Situational Favorableness : According to Fiedler,there is no ideal leader. Both low-LPC (task-oriented)and high-LPC (relationship-oriented) leaders can beeffective if their leadership orientation fits thesituation. The contingency theory allows for predictingthe characteristics of the appropriate situations foreffectiveness. Three situational componentsdetermine the favorableness or situational control.

Leader-Member Relations: The extent to which theleader has the support and loyalties of followers andrelations with them are friendly and cooperative.

Task structure: The extent, to which tasks arestandardized, documented and controlled.

Leader’s Position-power: The extent to which theleader has authority to assess follower performanceand give reward or punishment.

3. Leader-Situation Match and Mismatch : Sincepersonality is relatively stable, the contingency modelsuggests that improving effectiveness requireschanging the situation to fit the leader. This is called“job engineering”. The organization or the leader mayincrease or decrease task structure and positionpower, also training and group development mayimprove leader–member relations.

* Fred Edward Fiedler (born 1922) was one of theleading scientists in Industrial and OrganizationalPsychology of the 20 th century. He helped this fieldmove from the research on traits and personalcharacteristics of leaders, to leadership styles andbehavior s. In 1967 he in troduced the contingencymodeling of leadership, with the now-famousFiedler’s contingency model.

Exceptions : There are few opposing in the LPC theory,as its falls short on flexibility to define actual to rating:

· LPC scores can fail to reflect the personality traitsit is supposed to reflect

· LPC method reveals an individual’s emotionalreaction to people with whom he or she cannotwork. Critics point out, that this is not always anaccurate measurement.

Effectiveness in Growing organizations : As a growingup companies, it is very much important to hold thefaith and trust of employee and client and moveforward towards future goal of becoming a Marketleader.

The following area will make any organizationmotivated till grass root level

• Leadership• Team building and empowerment• Innovation

Leadership attitude needs to come from the highermanagement to project management. By following aneffective leadership process our organization canensure that every employee is able to meet his/hergoal of career and satisfaction of being the largerfamily of company. Large number of employee willfeel for taking up more initiative on innovation &encourage others to enrich more on knowledge. Thesechanges will ensure an organization through cultureindividual responsibility and coaching for betterquality.

Organization and employee will hold a win-winrelation for a successful future. When an organizationis large enough then “culture” which turns to be thekey of success. And, leadership is the cream of culture.

In a Nutshell : Situational Leadership can be used asa framework to give leaders the guidance they needto coach their people throughout the performancecoaching cycle. During the initial meeting, SituationalLeadership guides the leader in setting the degree ofparticipation for the planning and goal-setting process.During the rest of the period, it guides the leader ineach interaction with the follower.

The underlying principle in Situational Leadership isthat leaders should adjust their leadership styles totheir followers’ readiness level (ability and willingness)to perform a given task.

Leadership is the amount of task behavior (direction)and relationship behavior (support) given by a leader.And, a proper leadership can empower the membersto come up to a level where they set an example forthemselves.

Reference• How to Grow Leaders: The Seven Key Principles

of Effective Leadership Development by JohnAdair

• Coaching for Leadership: How the World’sGreatest Coaches Help Leaders Learn by MarshallGoldsmith, Laurence Lyons and Alyssa Freas (eds)

• Fiedler contingency model by Fred EdwardFiedler

• The 3 Keys to Empowerment: Release the Powerwithin People for Astonishing Results By KenBlanchard, John P. Carlos and Alan Randolph

• Blanchard & Hersey principle


Abstract : Supply chain management is simply thedesigning, planning, execution, control, andmonitoring of supply chain activities. It is aimed

at creating net value, building a competitiveinfrastructure, leveraging worldwide logistics,synchronizing supply with demand and measuringperformance globally. In recent decades,neworganizational management techniques like outsourcingand information technology have enabled manyorganizations to successfully operate collaborativesupply networks in which each specialized businesspartner focuses on only a few key strategic activities.

In this article we will be discussing the supply chainmanagement system of Walmart and understating howefficient SCM has helped in the success of Walmart.

The best supply chains aren’t just fast and cost-effective. They are also agile and adaptable, and theyensure that all their companies’ interests stay aligned

(Hau L. Lee, US Professor of Operations, Information andTechnology in Harvard Business Review 2004)

Supply chain management (SCM) is the oversight ofmaterials, information, and finances as they move in aprocess from supplier to manufacturer to wholesaler toretailer to consumer. Supply chain management involvescoordinating and integrating these flows both within andamong companies.

Ever since the era of Globalization & Liberalization, theworld has become one big supply chain and companiesthe concept of supply chains has gained hugesignificance.

The strength &efficiency of a supply chain directlyimpacts an organization on the following parameters:

1. Customer Service: SCM impacts customer service bymaking sure the right product assortment andquantity are delivered in a timely fashion.Additionally, those products must be available in thelocation that customers expect. Customers shouldalso receive quality after-sale customer support.

2. Bottom Line: SCM has a tremendous impact on thebottom line. F irms value supply chainmanagers because they decrease the use of largefixed assets such as plants, warehouses andtransportation vehicles in the supply chain. Also,cash flow is increased because if delivery of the

SUPPLY CHAIN MANAGEMENT AN ANALYSIS OF THE SUPPLY CHAIN MANAGEMENT SYSTEM OF WALMART

LAKSHIT GUPTAMANAGER - CENTRAL BANK OF INDIA

product can be expedited, profits will also bereceived quickly.

Evolution : Three major developments can be observedin the evolution of supply chain management studies:creation, integration, and globalization-

Creation era : The term “supply chain management”was first coined by Keith Oliver in 1982. However, theconcept of a supply chain in management was of greatimportance long before, in the early 20th century,especially with the creation of the assembly line. Thecharacteristics of this era of supply chain managementinclude the need for large-scale changes, re-engineering,downsizing driven by cost reduction programs, andwidespread attention to Japanese managementpractices. However, the term became widely adoptedafter the publication of the seminal book Introductionto Supply Chain Management in 1999 by Robert B.Handfield and Ernest L. Nichols, Jr. which published over25,000 copies and was translated into Japanese, Korean,Chinese, and Russian.

Integration era : This era of supply chain managementstudies was highlighted with the development ofelectronic data interchange (EDI) systems in the 1960s,and developed through the 1990s by the introductionof enterprise resource planning (ERP) systems. This erahas continued to develop into the 21st century with theexpansion of Internet-based collaborative systems. Thisera of supply chain evolution is characterized by bothincreasing value added and cost reductions throughintegration.

A supply chain can be classified as a stage 1, 2 or 3network. In a stage 1–type supply chain, systems suchas production, storage, distribution, and material controlare not linked and are independent of each other. In astage 2 supply chain, these are integrated under one planand is ERP enabled. A stage 3 supply chain is one thatachieves vertical integration with upstream suppliers anddownstream customers. An example of this kind ofsupply chain is Tesco.

Globalization era : The third movement of supply chainmanagement development, the globalization era, can becharacterized by the attention given to global systemsof supplier relationships and the expansion of supplychains beyond national boundaries and into othercontinents. Although the use of global sources inorganisations’ supply chains can be traced back several


decades (e.g., in the oil industry), it was not until thelate 1980s that a considerable number of organizationsstarted to integrate global sources into their corebusiness. This era is characterized by the globalizationof supply chain management in organizations with thegoal of increasing their competitive advantage, addingvalue, and reducing costs through global sourcing.

Supply chain management helps streamline everythingfrom day-to-day product flows to unexpected naturaldisasters. With the tools and techniques that SCM offers,you’ll have the ability to properly diagnose problems,work around disruptions and determine how toefficiently move products to those in a crisis situation.

In this research article we will be deeply analysing thesupply chain management system of Walmart.

WALMART (Brief History & Introduction)

Founded in 1962 by Sam Walton, Wal-Mart, the world’smost profitable retail outlet, is also the largest employerin the United States, with more than one millionemployees (called “associates”) and thousands of storesworldwide. It was incorporated on October 31, 1969, andlisted on the New York Stock Exchange in 1972.

It started with a single store in Rogers, Arkansas in 1962and has grown to what is now the world’s largest andarguably, the most emulated retailer

Today, this retailing pioneer has annual revenues of over$100 billion, 3,000 stores and more than 750,000employees worldwide.

1. Walmart is the world’s largest company by revenue,according to the Fortune Global 500 list in 2014, aswell as the biggest private employer in the worldwith 2.2 million employees.

2. Walmart is a family-owned business, as the companyis controlled by the Walton family. Sam Walton’sheirs own over 50 percent of Walmart through theirholding company, Walton Enterprises, and throughtheir individual holdings.

Supply chain management

“I don’t believe there is a university in the world thatdoesn’t talk about Walmart and the supplychain,”(James Crowell, Director, and Supply ChainManagement Research Centre at the Walton College ofBusiness).

Walmart began with the goal to provide customers withthe goods they wanted whenever and wherever theywanted them. The company then focused on developingcost structures that allowed it to offer low everydaypricing. Walmart then concentrated on developing amore highly structured and advanced supply chainmanagement strategy to exploit and enhance thiscompetitive advantage and assume market leadershipposition.

The features of the Supply chain Management systemof Walmart are as follows:

1. PURCHASES AND SUPPLIES

Even in its early years, Walmart’s supply chainmanagement contributed to its success. FounderSam Walton, who owned several Ben Franklinfranchise stores before opening the first Walmartin Rogers, Ark in 1962, selectively purchased bulkmerchandise and transported it directly to his stores.

Wal – Mart spent a huge amount of time meetingvendors and understanding their cost per productstructure. By making the process transparent, theretailer could be certain that the manufacturerswere doing their best to cut down costs. Oncesatisfied, Wal- Mart believed in establishing a longterm relationship with the vendor.

The retailer has over 80 distribution centers locatedat different geographical locations in the US. Theirown warehouses directly supplied 85% of theinventory, as compared to 50-65% of their rivals.They were able to provide replenishments withintwo days as against at least five days for competitors.

Each distribution centre has been divided intodifferent sections on the basis of quantity of goodsreceived and the inventory turnover rate is very high,about once in every 10 days.

These centers ensure a consistent supply of goodsto support the trade cycle

In order to provide good working conditions, eachcentre was equipped facilities such as shower bathand fitness centres. It also had provision for food,sleep and personal business.

2. LOGISTICS SYSTEM

An important feature of WALMART is its quick andfast transportation system. The distribution centresare serviced by more than 5000 company ownedtrucks.

These trucks allow the company to ship the goodsfrom distribution centres to stores within two daysand replenish the store shelves twice a week; thetruck fleet is a visible link between stores anddistribution centers.

Walmart also maintained a strict vigil over its driversby maintaing a record of their activities through thePrivate Fleet Driver Handbook. The purpose of thisbook was to educate the drivers with regard to thecode of conduct. It also included the terms andconditions regarding the safe exchange of trailerswith the store personnel and the safety ofitsproperty .

The retailer also adopted a logistics techniqueknown as cross- docking. In this system, the finishedgoods were directly picked up from the


manufacturing plant of a supplier, sorted out andthen directly supplied to the customers.

Under this system requisition’s received for differentgoods from a store were converted into purchaseor procurement orders. These purchase orders werethen forwarded to the manufactures who conveyedtheir ability or inability to supply the goods withina particular period of time.

In case, the manufactures agreed to supply therequired gods within the specified time, the goodswere directly forwarded to a place called the stagingarea

The goods are packed here according to the ordersreceived from different stores and then directly sentto the prospective customers.

3. Inventory Management

WALMART invested heavily in IT & communicationsystems to effectively track sales and merchandiseinventories in stores across the country

The retailer was able to reduce unproductiveinventory by allowing stores to manage their ownstocks, reducing pack sizes across many productcategories and timely price markdowns

Instead of cutting inventory across the board,Walmart made full use of its IT capabilities to makemore inventories available in the case of items thatcustomers wanted most, while reducing the overallinventory levels.

Walmart also networked its suppliers throughcomputers. The company entered into collaborationwith P&G for minting the inventory in its stores andbuilt an automated reordering system, which linkedall computers between P&G and its stores and otherdistribution centres.

Bar code and radio frequency technology was alsoused to manage the inventory through the bar codeand fixed optical readers, the goods could bedirected to the appropriate dock.

Bar coding devices enabled efficient picking,receiving and proper inventory control of theappropriate goods.

The company used Massively Parallel Processor(MPP) computer system to track the movement ofgoods and stock levels.

CONCLUSION

From the above, we can see that role and importance ofSupply Chain Management (SCM).Walmart stronglybelieved and constantly emphasized on strengthen itsrelationships with its customers, suppliers andemployees.

It also enjoyed the benefit of low transportation costs

since it has it’s ow transportation system which assistedWal-Mart in delivering the goods to different storeswithin 48 hours.

The company enjoyed good bargaing power as itpurchased huge quantities, this enabled it to price itsproducts competitively and pass on the benefits to thecustomers. The company offered higher discounts thanany other retailer and they earned good revenues in theform of higher voumes.

Wal-mart‘s supply chain management practices resultedin increased efficeiny in operations and better customerservice. It eliminated old stocks and maintained thequality of goods. Bar-coding and radio frequencytechnologies enabled accurate distribution of goods.Cross – Docking also helped Wal- Mart to reduceinventory storage costs. It also helped down to cut thelabour and other handling costs involved in the loadingand unloading of goods.

.

CUSTOM EXCHANGE RATESCUSTOM EXCHANGE RATES (All rates per unit)

w.e.f. 17th June 2016

CURRENCY IMPORT EXPORT

Australian Dollar 50.55 48.75

Bahraini Dinar 184.50 172.20

Canadian Dollar 52.75 51.15

Danish Kroner 10.35 10.00

EURO 76.90 74.30

Hong Kong Dollar 8.75 8.55

Kuwait Dinar 230.50 215.70

Newzealand Dollar 48.50 46.60

Norwegian Kroner 8.25 7.95

Pound Sterling 96.95 93.90

Singapore Dollar 50.50 48.95

South African Rand 4.55 4.25

South Arabian Riyal 18.50 17.35

Swedish Kroner 8.25 7.95

Swiss Franc 71.25 68.75

UAE Dirham 18.90 17.70

US Dollar 68.05 66.35

Chinese Yuan 10.40 10.05

Japanese Yen (100 Units) 65.25 63.10

Kenya Shilling (100 Units) 68.60 64.15

Source : www.dailyshippingtimes.com/custom-exchange-rates.php


With the advent of technology, especially themobile phones and GPS, Supply ChainManagement (SCM) & Logistics have seen rapid

transition in every business sector. Retail industry hasseen the most rapid transition with sleek apps and track-able service. This has also made the customersdemanding in terms of delivery in shortest span of timeand most importantly….Just In Time (JIT). To achieve this,companies are busy on bulk readiness of goods inwarehouse, procuring ample raw material to startmanufacturing way before the order is received. Helpof technology is taken by companies to minimizeinvestment by tracking Demand & Supply gap and tokeep it thin. In short companies are on their toes to serve!

However in achieving this goal of logistics, one key aspectis Communication. May it be communication withcustomers & leads, between purchase departments andsuppliers or communication between various teams inthe Organization.

Traditionally e-mail and phone call had been the mostpopular medium for communication in the SCM world.However, with the demanding needs and advent ofsmartphones, messengers have now become the popularway of communication. The most popular messenger inthe world is WhatsApp, with more than 1 billion activeusers in 2016! In a countries like India, Singapore, HK,South Africa, Holland, Germany, middle east, South eastAsia, Latin America and eastern Europe, it is difficult tofind a business professional, who does not haveWhatsApp on his/her smartphone!

Why is WhatsApp so popular amongst businessprofessionals?

It’s quick to use and handy even while out of officeCan share images and documents along with textIt’s equally secure as emailIt’s free globally, so all their customers and contactsare on WhatsAppCan be contacted 24X7 – no need for restricted houravailability for customers

Vendors are sending product details, quotations, deliverynotes, images of courier receipts, invoices etc. onWhatsApp. Negotiations, delivery planning is happeningover WhatsApp. In short, procurement communicationhas shifted now to WhatsApp either fully or partially inalmost all organizations.

Customers are checking delivery status on WhatsApp.

WHATS APP – A KEY COMMUNICATION MEDIUM INSUPPLY CHAIN & LOGISTICS

AJAY JAINDGM – PURCHASE, SHALBY HOSPITALS, AHMEDABAD

EXECUTIVE COMMITTEE MEMBER – IIMM, [email protected]

Customers prefer to put service requests on WhatsApp,as it’s free of cost. Delivery quality feedback is shared bycustomers on WhatsApp.

Delivery teams and services are using WhatsApp to track/intimate delivery status of shipments. WhatsApp groupsare created between warehouse, delivery teams andexternal dispatch partners like courier agencies etc. toensure dispatch to delivery are flawless and on time.

Even if companies invest heavily on app/website, it takestime for consumers to get accustomed to the userinterface and hence WhatsApp has become a favoriteshortcut to reach out to companies. So as a retailbusiness, it has become very important to be availableon WhatsApp with customers.

Many businesses are realizing this transition and openingup WhatsApp as an alternate communication channelfor customers and merchants. There is dedicatedcustomer service WhatsApp number showing up oncompany websites. This is helping building a ‘futureready’ image of the company with consumers.

With lots and lots of messages pouring in fromconsumers and vendors on WhatsApp, managing thedata and automating customer service based on thesemessages has emerged as a need for businesses. Thereare already a few companies providing solutions aroundthe same now. E.g. Bag A Chat (www.bagachat.com )provides solutions on WhatsApp or other messengersto manage the data. Now you can back-up the team’sbusiness communication on WhatsApp on secure cloud.So, all invoices, delivery notes, decisions etc. areaccessibleand quickly searchable even after months andyears. Now WhatsApp can also be integrated with yourcustomer service solutions like CRM, app, website,Helpdesk. No need to manually add leads fromWhatsApp to your CRM anymore. Few companies areproviding automated services based on WhatsAppmessages from customers. E.g. if a customer sends aWhatsApp message “Delivery status”, he gets anautomated SMS giving the precise current delivery statusof the goods he ordered.

So WhatsApp and solutions managing its data have madeit easier for companies to adapt to this transitionsmoothly. Super-Fast yet effectivecommunicationis nowpossible… and adapting to messenger basedcommunication is the future for SCM & logistics!


Small and Medium Enterprises (SMEs) must givespecial attention to cost management. Limitedresources and presence of operational bottleneckstend to become barriers to the progress of theseenterprises. In SMEs a strong culture of costconsciousness translates into bottom line growth.Adopting best practices of cost management and costcontrol helps a SME in exploiting its full potential.

In SME’s ‘cost’ is often considereii as a ‘given’phenomena. Junior level employees and managersdon’t think beyond their routine practices ofproducing the output as per the pre-defined standard.The entire focus is on ‘output’ side. There is little orno discussion around ‘cost control’. Cost cutting is notthe same thing as cost control. Owners of SMEs areconcerned with-cost cutting which often leads toresource cutting. Holding back resources hasimplications on behavioral aspects of the firm.Motivation of people gets affected and the quality ofoutput suffers in a cost saving exercise. Such costsaving exercises are ad-hoc and discontinuous. On theother hand cost control is a planned and continuousprocess. Cost controlling may not always result inresource cutting. Changing the source of raw materialby exploring better logistical feasibilities is an exampleof planning for controlling cost. But replacing thesuperior source of raw material with an inferiorcheaper variant is what SME managers end-up doingas an alternative cost saving mechanism.

Tangible Cost System : Another important factorwhich affects cost efficiency of SMEs is the system ofcosting itself. Most SMEs in India don’t have a welldefined cost system which can measure cost ofoperation accurately for various cost centers of theenterprise. The process of costing is unscientific andvague. Direct costs are fairly traced to the final outputbut the method of tracing indirect costs and overheadsis not appropriate. This results in wrong calculationof unit level product cost which eventually results intowrong pricing in the market. Indirect costs are usuallybundled-up into a single aggregate expense and thenspread across various products using heuristic basisof allocation like volume of production or labour hoursper category of product etc. But such simplification

in measuring and reporting of costs does not give aclear picture about how costs behave for each of thecategories of products sold by a SME. Unavailabilityof unit level and product level data then becomes amajor constraint in keeping track of costs.

An Investment : The first step in building a culture ofcost consciousness in a SME is to establish a propersystem of cost accounting in the enterprise. Ownersshould look at expenditure on establishing costingsystem as investment which yields returns over a longperiod of time. Having a good system of costaccounting is not a statutory pre-requisite for a smallcompany. Therefore the normal tendency of SMEfounders is to avoid spending time and effort in layingfoundations of costing for a newly started company.But visionary founders and good enterprises alwayslook at it as one of the key elements towards futuresuccess of their business. Indian companies who havegalloped their operations from small scale to largescale are the ones who concentrated their effort onmonitoring their financial performance from time totime. Modern manufacturing systems demandmodern costing systems. SMEs should adopttechniques like Activity Based Costing for overheadcost allocation and customer profitabilitymanagement. Activity based approach of costingtraces costs to individual product category using costdrivers which drive the resource consumption. In anactivity based environment a company can control thecosts by controlling its activity driven resourceconsumption.

Awareness about Cost Control : The second steptowards bringing a cultural change for costconsciousness is creating awareness about costcontrol among employees. Training managers to dealwith cost data helps them in creating the right outlook.Review meetings must be held with discussionsaround how and what goes into product costs. Everysection or department of the company must be madeaware about the impact of their respective actionson overall cost of production. Suggestions and ideasmust be welcomed across the organization in orderto make the system of costing fully robust. Sometimesthe owners fail to perceive an operational issue but

BUILDING THE CULTURE OF COSTCONSCIOUSNESS IN SMES

PROF. ANIL KSHATRIYA, ASSISTANT PROFESSOR IN THE AREA OF FINANCE ATINSTITUTE OF MANAGEMENT TECHNOLOGY, NAGPUR

[email protected]


the shop floor workers might have a betterunderstanding of the problem at hand. A culture ofcost consciousness can resolve such matters in timelymanner and avoid undue complexities leading to drainin financial resources. Bottom-up communicationshould be encouraged rather than top-downunidirectional communication which lacks creativeinteraction. It may be a good idea to involve anexternal expert in reviewing the costing systembecause over time the system tends to become lessdynamic.

The first step in building a culture of costconsciousness in a SME is to establish a proper systemof cost accounting in the enterprise. Owners shouldlook at expenditure on establishing costing system asinvestment which yields returns over a long period oftime. Having a good system of cost accounting is nota statutory pre-requisite for a small company.

Linking Performance with Management Control

The third and the final step for cost conscious culturein a SME, is to link the performance of people to thecost management process. Management controlsystems like budgeting and variance analysis shouldbe defined to measure and manage the contributionof managers towards cost consciousness. Withoutlinking rewards to performance, the possibility ofcontinuing with a systematic approach for costmanagement remains low. Hence there should bestandard operating procedures for achieving targetsset for cost management and control. Innovativeinitiatives of managers for managing cost must be

included as part of their appraisal for futureprogression within the enterprise. All the functionsfrom manufacturing to sales should be given equalimportance and weights. Cost effectiveness is not theresponsibility of shop floor alone. Only when itbecomes part of the entire organizational culture itfinds meaningful acceptance across the enterprise.

The biggest advantage enjoyed by any SME is its abilityto adapt change. SMEs are agile organizations.Because they are small and nimble it is easier tochange their cultural structuring. Large corporationsbecome hard with bureaucracy and inertia. Managersof large companies are not very open to change. SMEshave tremendous opportunity to shape the costconscious behavior of its people. It pays off by givingthem insights into business problems which are notapparent and obvious to owners. With good costconsciousness decision making in SMEs becomessmooth, smart and sophisticated.

The biggest advantage enjoyed by any SME isits ability to adapt change. SMEs are agileorganizations. Because they are small and nimbleit is easier to change their cultural structuring.Large corporations become hard withbureaucracy and inertia. Managers of largecompanies are not very open to change.

Source : SME WORLD - JUNE 2016, VOL. IX No. 06

COMMODITY INDEXCommodities Days’s Index Prev. Index Week Ago Month Ago

Index 2472.7 2449.6 2448.1 2387.7

Bullion 4855.5 4710.7 4690.0 4590.6

Cement 2104.2 2104.2 2104.2 1924.9

Chemicals 2182.6 2182.6 2182.6 2203.6

Edible Oil 1584.6 1586.8 1585.5 1574.9

Foodgrains 2357.2 2356.1 2365.7 2323.9

Fuel 2286.8 2286.8 2286.8 2154.3

Indl Metals 1480.9 1472.4 1468.2 1510.7

Other Agricom 2156.8 2156.8 2156.8 2132.8

Plastics 1920.1 1920.1 1913.3 1938.8

Source: ETIG Database dated 24th June 2016


Aiming to provide next level of ease of doing businessin India, the government today said it will soon putin place transparency in public procurement of

green products. Currently, environmental and greenprocurement laws in the country are under the purviewof several ministries and other government bodies, oftenwith significant overlap in responsibility and oversight.

“As far as tendering is concerned, many alternativeproposals are being considered so as to bringtransparency. ...the methods, procedure and criteria (forprocurement) has to be same. That’s a long pending issueand the government is seriously addressing those issues,”Environment Minister Prakash Javadekarsaid on thesidelines of second Indo-German Environmentforum event.

The government will provide “next level of ease of doingbusiness with predictable processes and mechanism inplace in shorter time” with regard to public procurementof green products, he added. The Minister was replyingto a query on whether the government is addressing theconcerns of developed nations with regard to India’spublic procurement policy. Stating that India is takingmeasures to address concerns of developed nations,Javadekar said, “I think Germany and other developedcountries were facing many roadblocks earlier. But oneby one, the Environment Ministry has provided an easeof doing business so far as permissions are concerned.

“We are moving towards one window shop where theywill get clearance at one window. All ministries andauthorities will be tied together. This is the beginning,”he said. According to experts, India’s public procurementof green products and technologies has been on an ad-hoc basis. For instance, Indian Railways has takenmeasures to improve energy efficiency and installedgreen toilets on its coaches.

Stating that India will amend rules and laws to makeeconomy more green, Javadekar said the government islooking at scaling up solid waste management and watertreatment technology, among others, and also givingmore teeth to enforcement agencies that is lacking atpresent. Besides, the government is keen to getaffordable and efficiency green technologies from acrossthe world and also ensuring public participation, headded.

“My ministry has already taken a number of initiativesensuring transparency and timely decision making. Indiatoday presents huge opportunities for the world to comehere and do business. ..Opportunities are immense andthe potential needs to be tapped,” he said. He also saidIndia is entering into technical cooperation agreementwith Germany for fostering resource efficiency andsustainable management of secondary raw materials. “Iwish the project breaks new grounds and leads to furthercollaboration in the field of resource efficiency.”

Seeking better business climate, German Environment

Minister Barbara Hendricks said that the companies are“still facing challenges” while investing in India despitethey having rich experience in areas such as waste andwater management, resource efficiency and sustainableurban development. German companies are facingproblems “particularly when it comes to public tenderingand complex procurement rules, which vary from oneadministrative level to the next, making access to Indianmarket rather difficult,” she said.

For German investors to become more active in India,Hendricks said, “It is important to establish buyingtransparency rules, clear deadlines and decision makingcriteria as well as uniform methods of standards foraward of contracts.” India’s strong public procurementpolicy plays a central role in negotiations in Free TradeAgreement (FTA) between the EU and India, she added.Hendricks said that the country is keen to engage inIndia’s Clean India programme by supporting in cleaningrivers, management of urban waste and resourceefficiency.

Source : PTI

GOVT RELAXES NORMS UNDER PUBLICPROCUREMENT FOR STARTUP MSMES

Government relaxed procurement norms related toexperience and turnover for micro, small and mediumstartups with a view to enabling these ventures to bepart of its public procurement. From April 2015, all PSUs,central government ministries and departments havebeen directed to procure at least 20 per cent of productsand services required by them from micro and smallenterprises.

“If the MSMEs can deliver the goods and services as perprescribed technical & quality specifications, the normson prior experience and prior turnover will be relaxedfor them,” the MSME Ministry said in a release. Themove will enable startup MSMEs to be a part ofthe mandatory 20 per cent public procurement, it said.

“The relaxation has been made to create aconducive environment for the startups in India, whichis high on the agenda of the government,” the MSMEMinistry said. A review of the mandatory procurementpolicy by MSME Minister Kalraj Mishra last month hadfound that less than half of the PSUs were complyingwith the mandatory 20 per cent procurement of productsand services from micro and small enterprises.

Besides, to ensure better implementation of qualitymanagement standards/quality technology tools schemeunder the National Manufacturing CompetitivenessProgramme, MSME Ministry has decided to conduct twointernational study missions in collaboration with CII andConsultancy Development Corporation in this fiscalending March as well as in next financial year.Source : PTI

GOVERNMENT TO SOON BRING TRANSPARENCY INPUBLIC PROCUREMENT OF GREEN PRODUCTS


WTO UPDATE

Trade is sometimes thought of as an economicactivity that only favours the big companies. Andwhile we may disagree with that, we cannot deny

that trading internationally is often much more costlyand difficult for MSMEs. The smaller the business, thebigger the barriers can seem.

MSMEs are responsible for the largest share ofemployment opportunities in most economies — up to90% in some countries. And they are big employers ofwomen and young people. So, at the domestic levelMSMEs have major economic importance. But theirparticipation in trade simply doesn’t match up. This istrue in both developing and developed countries.

And so it seems that we may be missing a significantopportunity. A truly inclusive trading system offeringMSMEs a chance to develop their potential could helpto transform many lives around the world. This wouldmean tackling the barriers that MSMEs face whenparticipating in trade. And I think there is a range of issueshere.

The fixed costs involved with meeting particularstandards or other non-tariff barriers can be particularlydifficult for MSMEs. But tariffs are also a major issue.MSMEs see tariffs as a greater obstacle than larger firmsdo, possibly because they are more sensitive to changesin tariff levels. Slow, costly border procedures also placea greater burden on MSMEs than they do on larger firms.

In addition, MSMEs can often struggle to access tradefinance. Globally, banks reject over 50% of all requestsfor trade financing placed by these firms — comparedto just 7% for multinational companies. These are just afew of the issues that MSMEs face.

And I think it’s very welcome that WTO members wantto explore what we can do in response. Since the NairobiMinisterial Conference in December last year, membershave been discussing a number of issues, with MSMEsas a constant feature. But so far the discussion has beenquite broad — we haven’t yet delved into the detail.

I think it would be useful to establish:

First, a detailed sense of what the major barriers andpriorities are for MSMEs.

And, second, what we can potentially do to help. Thiscould be through Aid for Trade support, through the

‘ENHANCING THE PARTICIPATION OF MSMES ININTERNATIONAL TRADE’

DG ROBERTO AZEVÊDO

regular work of the WTO, through negotiating newtrade agreements, or a whole range of other avenues.

I hope that this meeting will be an important step inanswering these questions. There is an impressive panelof experts to speak today. Although I can’t stay for thewhole meeting, I look forward to hearing about how yourdiscussions went. And I would urge you to focus on thepractical issues: what are the problems, and what arethe concrete steps we could take to solve them?

We have heard some interesting ideas in theconversations that have been taking place already thisyear — and not just from members. Due to the successof Bali and Nairobi, the interest in our work here isextending to other constituencies. In response torequests, we have facilitated meetings with the privatesector and the academic community in recent weeks.

Some 60 business leaders attended the private sectordiscussion. I ensured that the organisers of the eventinvited representatives from small and large companies,from developed and developing countries, and from arange of sectors. They debated the challenges they facein conducting trade operations and how the WTO canhelp in dealing with them. Improving trade conditionsfor MSMEs was a major theme.

Their suggestions included:

improving the regulatory environment for MSMEsthrough the digitalization of government processes,improvement of access to public procurementmarkets, and reduction of compliance costs,

developing coordinated capacity-building andcertification programmes to facilitate the inclusionof MSMEs in global production networks,

and conducting research on how MSMEs can fit intothese global value chains.

These points chime with those raised in most of theconversations I’ve heard. And in each case they will needto be further developed. So, to get the ball rolling today,I will say a few words about three elements where thedebate is perhaps slightly more advanced.

First, I think the quickest, simplest step we can take tosupport MSMEs to trade would be to implement theTrade Facilitation Agreement. MSMEs often citeburdensome customs procedures and regulations as


major obstacles to their participation in trade. This isbecause large firms, especially multinational firms, arebetter equipped to navigate complex regulatoryenvironments. The more time it takes to export, the moreexporting is dominated by large firms.

Indeed, the evidence suggests that when the time spentto clear exports is reduced, MSMEs are more likely toincrease their export shares than large firms.

So the Trade Facilitation Agreement has the capacity toboost MSMEs’ trading capacity. I received the latestratification just yesterday, from Madagascar, taking thenumber to 83. And I expect to receive more in the comingdays. We need to keep up momentum on this front.

Second, I want to say a few words about e-commerce.

It’s clear that being technology-enabled helps small firmsto export.

A survey conducted by eBay over 22 countries foundthat, on average, 97 per cent of tech-enabled firmsexport.

In contrast, among more traditional MSMEs, theproportion of exporters ranged between 2 and 28 percent.

So being connected is a major factor.

However, we can’t just assume that MSMEs will continueto benefit from greater opportunities once they areconnected. Connectivity is fundamental, but notsufficient.

The reality is that, if we just cross our arms and donothing, we may see the opposite effect. E-commercemay actually promote the concentration of opportunitiesfor big companies and services suppliers.

Therefore I think it would be useful to look at how newtechnologies can facilitate the participation of smallplayers in digital trade and in global value chains. Weshould look at how we can ensure that, throughmultilateral rules, MSMEs benefit from harmonizedprocedures, improved connectivity, and reducedoperational costs.

In short, we should look to ensure that small supplierscan market their products — goods or services — in atimely fashion, with competitive prices and reliablecustomer support. Only then will consumers have fullconfidence in buying from MSMEs in the digitalenvironment.

There are a range of interesting ideas out there. Forexample, I recently met with the founder of Alibaba, JackMa, who is proposing the establishment of e-hubs, ordigital free trade zones, for small firms. We agreed tocontinue and deepen our discussion.

So this is a very dynamic debate — and I think it canprovide food for thought for our work here.

Finally, I want to say a word about trade finance provisionfor MSMEs.

There are huge gaps in provision, as I indicated earlier,and this is a major barrier for MSMEs. Members will beaware that the WTO recently published a report settingout some of these issues in detail.

And we proposed some possible actions.

These included:

working with partners to enhance existing tradefinance facilitation programmes to reduce the gapsin trade finance,

addressing the knowledge gaps in local institutionsto help improve the capacity of local financialsectors,

increasing dialogue with regulators to help ensurethat trade and development considerations are fullyreflected in the implementation of regulations,

and improving the monitoring of trade financeprovision, as better market intelligence wouldenable us to be more responsive to problems as theyemerge.

So these are just some reflections, based on the recentdebate.

I think there is a need to deepen our understandingacross all of these issues, and to crystalize any potentialactions that members may want to explore.

This year’s WTO World Trade Report, which will belaunched in September, will provide some much-neededinsight. We will hear some of the initial findings today.And I’m sure that all of the presentations on today’sprogramme will help to improve our understanding ofthese issues.

So, to conclude, I hope you have a great workshop, anda robust exchange of ideas.

I hope that members will find the discussion useful, andthat the conversation will continue and evolve rapidlyin the weeks and months ahead.

As Director-General, I have always sought to make ourwork here inclusive. But, in the broader trade debateover the years, I think that the interests of MSMEs havesometimes been overlooked.

I want to make sure that that doesn’t happen again —and that their interests are always remembered in thediscussion — so that the WTO is as inclusive as possible.

This workshop is an important step towards the goal.

Source : WTO Website


INTERNAIONAL NEWSM.K.BHARDWAJ

Chief Editor – [email protected]

IFPSM AWARDS 2016

Each year the International Federation of Purchasingand Supply Management makes three awards inrecognition of contributions made by individuals

to the development of the profession of purchasing andsupply management. The awards are as follows:

1. Garner Themoin Award - Advancement of theProfession Award

The Garner Themoin Award is presented to anindividual whose modest, unselfish, sincere, andpersistent efforts for the advancement ofPurchasing, Supply Management and Logistics andwhose able assistance and guidance to purchasingagents in their endeavours have eminentlyqualified him/her for one of the highest IFPSMawards.

2. Hans Oveigonne - Purchasing Research Award

The Hans Ovelgnbnne Award is made to anindividual from a University, Company orAssociation for their outstanding contribution tothe development of Purchasing and SupplyManagement based on Research and Developmentstudies and works.

3. Lewis E. Spangier - Purchasing Professional Award

The Lewis E. Spangier Award is made to anindividual coming from a Company or Associationwhere he/she has proved an outstandingcommitment to the profession of Purchasing andSupply Management by evidence of successfulcontribution to the bottom line as well as bysupport given to their collaborators in the field ofEducation and Training.

Nominations for any of the above awards shouldbe submitted to Malcolm Youngson, the CEO ofIFPSM at [email protected] on the formbelow no later than 31 July 2016:

Nomination Form for IFPSM Award 2016

Please tick which award the nomination is for:

Garner-Themoin-Advancement of the ProfessionAward

Hans Ovelgonne - Purchasing Researach Award

Lewis E. Spangler - Purchasing Professional Award

I. Personal Data :

A. name :

B. Age :

C. Home Address :

II. Nominated By

Individual:

and / or Association

III. Company - Affiliation

A. Name of Employer

B. Address of Employer

C. Telephone Number, E-mail Address

D. Job Title

E. Number of Years in Purchaing

F. Scope of Responsibilities

IV. Association Activities (Include Local, District andNational)

A. name of Local Association

B. District

C. Date of Joining

D. List Offices Held

E. List Committee Service

F. Number of Years as Member of Association

V. Related Purchasing Activities

VI. Business, Civic and Fraternal Activities

VII. Formal Education

VIII. HONOURS (Professional, Business, Civic, Fraternal)

IX. Reason Why the person is being nominated.


EXECUTIVE HEALTH

If you stay fit and active throughout your life, you’ll beable to better control your diabetes and keep yourblood glucose level in the correct range. Controlling

your blood glucose level is essential to preventing long-term complications. such as nerve pain and kidneydisease.

When you have type 2 diabetes, physical activity is animportant component of your treatment plan.

Wondering why physical activity is so important?

Regular activity is a key part of managing diabetes alongwith proper meal planning, taking medications asprescribed, and stress management. When you areactive, your cells become more sensitive to insulin so itcan work more efficiently. Your cells also removeglucose from the blood using a mechanism totallyseparate from insulin during exercise.

So, exercising consistently can lower blood glucose andimprove your A1C. When you lower your A1C, you maybe able to take fewer diabetes pills or less insulin. Physicalactivity is also important for your overall well being, andcan help with many other health conditions.

Understanding Your Blood Glucose Reaction : Youshould become familiar with how your blood glucoseresponds to exercise. Checking your blood glucose levelfrequently before and after exercise can help you seethe benefits of activity. You also can use the results ofyour blood glucose checks to see how your body to reactsto different activities. Understanding these patterns canhelp you prevent your blood glucose from going too highor too low. -

How Does Exercise Affect Blood Sugar?

When you exercise, your body needs extra energy fromblood sugar, also called glucose.When you do somethingquickly, like a sprint to catch the bus, your musclesand liver release glucose for fuel.The big payoff comeswhen you do moderate exercise for a longer time, like ahike. Your muscles take up much more glucose when youdo that. This helps lower your blood sugar levels. If you’redoing intense exercise, your blood sugar levels may rise,temporarily, after you stop.

Low blood glucose and physical activity : If youexperience low blood sugar during or after exercise, treatit immediately. Use the same process as you would anyother time of the day:

Have at least 15-20 grams of fast-acting carbohydrate(sports drinks, regular soda, or glucose tabs are all goodideas). Wait 15-20 minutes and check your blood

ALLIANCE DIABETES PHYSIOSOLUTIONS (DIAGYM)

Dr. K M. Annamalai, M.P.T (Cardio-Respi), MIAP, Member of HPC,U.KISCP (Ireland), ACLS (AHA). Applied Ergonomist

H.O.D- Department of Physiotherapy, Apollo Hospitals International Ltd, AhmadabadDIRECTOR- Alliance Physiosolutions [email protected]

glucose again.If it is still low and your symptomsof hypoglycemia don’t go away, repeat the treatment.

After you feel better, be sure to eat regular meals andsnacks as planned to keep your blood glucoselevel up.Keep in mind that low blood glucose can occurduring or long after physical activity. It is more likely tooccur if you:

Take insulin or an insulin secretagogue

Skip a meal or don’t eat something within 30 minutes totwo hours after stopping

Exercise for a long time, Exercise strenuously

TIPS FOR EXERCISE : Ease into it. If you’re not active now,start with 10 minutes of exercise at a time. Graduallywork up to 30 minutes a day.

Be good to your feet. Wear athletic shoes that are ingood shape and are the right type for your activity. Forinstance, don’t jog in tennis shoes, because your footneeds a different type of support when you run. Checkand clean your feet daily. Let your doctor know if younotice any new foot problems

Hydrate. Drink water before, during, and after exercise.

Stop if something suddenly hurts. If your muscles aremildly sore, that’s normal. Sudden pain isn’t. You’re notlikely to get injured unless you do too much, too soon. Itcan improve blood sugar control. You can lift weights orwork with resistance bands. Or you can do moves likepush-ups, lunges, and squats, which use your own bodyweight

Make it a habit.Exercise, eat, and take your medicinesat the same time each day to prevent low blood sugar,also called hypoglycemia

Our program consist of :Initial assessment, Ongoing assessment, Safety tips forexercise, Creating physical activity chart based ondiabetes reaction, Pre work out diabetes check list, Bloodglucose and physical activity, Resistance band trainingBalance exercise with chair, Core strengthen exercise,Exercise with ketones, Exercising with diabetescomplications, Outdoor and indoor fun activity fordiabetes, Exercising without injury, Bone health anddiabetes

Growing older and staying active with diabetesWarming up to winter exerciseSo come and have fun with us in ourAlliance diabetes physiosolutions (diagym)


IIMM HEADQUARTERS AND BRANCHESIIMM NHQ : Plot No. 102 & 104, Sector-15, Instl. Area, CBD Belapur, Navi Mumbai-400614. Tel.: 27561754 / 2756 5831, Fax : 022-27571022

E-mail NHQ : [email protected], [email protected] E-mail Edu. Wing : [email protected], Website : www.iimm.org

AHMEDABADMR. H K GUPTA, ChairmanIndian Institute of Materials ManagementC/o. SPR International, B-34, Circle B,S G Highway, B/H. Pakwan dinning Hall,Bodakdev, Ahmedabad-380015Tel:(079)26872567Email: [email protected]

AURANGABADMR. NARENDRA JOSHI, ChairmanIndian Institute of Materials ManagementIMTR, Plot # 4, MIDC Railway Stn.,Nr. Bajaj Bhavan & Near Tiwari Lowns,Aurangabad – 431005Tel: (0240) 2331039Email - [email protected]

BANGALOREMR. SHANKAR NARAYANAN, ChairmanIndian Institute of Materials Management# 304, A-Wing, III Floor, Mittal Tower # 6,M G Road, Bangalore – 560001Tel: (080) 25327251/52Email : [email protected]

BILASPURMr. MANOJ PANDEY, ChairmanIndian Institute of Materials ManagementC/o. Gen. Mgr (MM), South Eastern CoalfieldsLtd, Seepat Road, Bilaspur-495006 (CG) Tel:(07752) 241087/75014Email : [email protected]@gmail.comBHILAIMr. D A LOTHE, ChairmanIndian Institute of Materials ManagementRoom # 314, 3rd Floor, Ispat Bhawan,Bhilai Steel Plant, Bhilai-490001Tel: 2892948, 2222170 Fax: 0788-2223491Email : [email protected]@sail-bhilaisteel.com

BURNPURMR. PRAFULLA KUMAR JHA, ChairmanIndian Institute of Materials ManagementMatls. Dept. New Matls Bldg., IISCO,Bunpur Works, Burnpur – 713325 (WestBengal) Email : [email protected]

BOKAROMr. M P SAHU, ChairmanIndian Institute of Materials ManagementC/o. Pur. Dept. Ispat Bhavan, Bokaro SteelCity -827001, Bokaro (Jharkhand)Tel: (06542) 240263/247042Email : [email protected]/[email protected]

BHARUCHMR. DILIP GOSAI, ChairmanIndian Institute of Materials Management 303,Vinay Complex, Near Dudhdhara Dairy, OldNH Highway # 8, Collage Road, Bharuch Tel:02641-283223Email: [email protected]

BHOPALDr.SAMEER SHARMA, ChairmanIndian Institute of Materials Management 4/9-B, Saket Nagar, Bhopal. M.P. 462024 Ph.0755-2452802, 8085856437Email: [email protected]

CHANDIGARHMR. V.S. MARIAM, ChairmanIndian Institute of Materials Management SCO19-B, Swastik Vihar, Mansa Devi Complex,Sector-5, Panchkula – 134109Tel: (0172) 2556646 / 4654205Email: [email protected]

CHENNAIMR. T A B BARATHI, ChairmanIndian Institute of Materials Management4th Floor, Chateau D’Ampa, 110 (New # 37)Nelson Manickam Road, Aminjikarai,Chennai – 600029Tel: (044) 23742195/23742750 Email:[email protected]

COCHINMr. G MURALIGOPAL, ChairmanIndian Institute of Materials ManagementGCDA Shopping Complex, Gandhi Nagar,Cochin -682020 - KeralaTel: (0484) 2203487/2317687Email : [email protected]

DHANBADMr. A K CHAUDHARY, ChairmanIndian Institute of Materials ManagementO/o GM(MM), B.C.C.L, Koyla Bhawan, KoylaNagar, Dhanbad - 826005, (Jharkhand)Tel: 0326-2230181Email: [email protected]. REETA BANERJEE, ChairmanIndian Institute of Materials ManagementC/o. Executive Director (MM), Steel Authorityof India Ltd, Durgapur Steel Plant, Durgapur-713203 Tel: (0343) 2574374Email: [email protected]. RAJENDER RAJ, ChairmanIndian Institute of Materials Management,C/o. Central Stores, ONGC,Kaula Garg Road, Dehradun – 248195Tel: 0135-2793111 / 9410397734Email: [email protected]. GAJANAND B. PRABHAKAR, ChairmanIndian Institute of Materials Management,S-6 & S-7, 2nd Floor, Vasco Citicentre,Opp: Canara Bank, Swantantra Path,Vasco-da-Gama, Goa – 403802GANDHIDHAMMR. S. N. AGRAWAL, ChairmanIndian Institute of Materials Management,Shop # 14, Gokul Park, Plot # 356, Ward-12B,Tagore Road, Gandhidham -370201 Kutch(Guj) Tel: (02836) 231295/231711Email: [email protected] NOIDAMr. AGEET KUMAR, ChairmanIndian Institute of Materials Management,B-193, Swarn Nagari, Opp. J P golf Course,Greater Noida Mob: 09818943894Email: [email protected]. P SOMASEKHARA RAO, ChairmanIndian Institute of Materials Management, Flat# 105, Sun City Apts, Block A, 8-3-483,Yellareddyguda, Hyderabad – 500 073Tel: 040-23744252, 23754252Email: [email protected]. M.C. HIREMATH, ChairmanIndian Institute of Materials Management,Karnataka Chamber of Commerce & IndustryBuilding, 1st Floor, Jayachamaraj Nagar,Nr. Nehru Ground, Hubli- 580020Tel: 0836-2264699/ 09972703336/9591372196 Email: [email protected],HOSURChairmanIndian Institute of Materials Management,Mr. J H Shastri, GM-C/M, Wendt India Ltd,# 69/70, SIPCOT Industrial Complex,Hosur – 635126 (TN)Email : sastryjh@cumi_murugappa.comINDOREMr. Sandeep Tare - ChairmanIndian Institute of Materials Management,Govindram Seksaria Institute of Mgt. &Research, MR-10, Scheme No.54, VijayNagar, Indore - 10(MP) - 452010Email: [email protected]. K M BHARDWAJ, ChairmanIndian Institute of Materials Management,Room # 6, Russi Modi Centre for, Excellence,Jubilee Road, Jamshedpur – 831001Tel: (0657) 2224670/2223530Email: [email protected]. PUSHOTTAM KHANDELWAL, ChairmanIndian Institute of Materials Management,C/o. Mr. Prushattam Khandelwal, 48,Mohan Nagar, Gopalpura Bypass,Jaipur- 302018 Tel: 09799299157Email: [email protected] BRANCHIIMM, C/o. Head of FOHOMCMM Jabalpur, Sita Pahari, Ridge RoadJabalpur – 482001 (M.P)Email: [email protected]. G.K.AGNIHOTRI, ChairmanIndian Institute of Materials Management,C/o. IGM Computer Academy, MallickComplex, Nr. Rama Devi Churaha, G T Road,Kanpur-208007 Tel: (0512) 2401291Email: [email protected]

KGFMr. B SUNEEL KUMAR, ChairmanIndian Institute of Materials Management,Dy. Gen. Mgr (MM), EM Division,BEML Ltd, KGF.- 563115Tel: 08153-279314, 09880994684Email: [email protected],[email protected]. ANIMESH CHATTOPADHYAY, ChairmanIndian Institute of Materials Management,8/B, Short Street, Kolkata – 700017Tel: (033) 22876971/22834963 Email:[email protected]@gmail.comLUCKNOWMR. K.P.SHARMA, ChairmanIndian Institute of Materials Management, 75,8th Floor, Lekh Raj Homes, Faizabad Road,Lucknow (UP) – 226016Cell: 9335211389/ 9044741159Email: [email protected]. S.K.ARORA, ChairmanIndian Institute of Materials Management,C/o Weltech Equipments & Infrastucture,Plot No. 3, Giaspura Road,Near P.S.E.B. Sub Station,Dhandari Kalan, Ludhiana-141003Email: [email protected] MHATRE, ChairmanIndian Institute of Materials Management2-A Arihant Bldg., Above Bhandari Co-op BankLtd, Goregaon (East),Mumbai – 400063Tel: (022) 26863376/26864528/26855645-46Email: [email protected]@gmail.comMUNDRAMr. NITIN G PATILC/o. M/s Kundan Industrial Products &Services Shop # 6, Golden Arcade ZeroPoint,Adani Mundra Road, Mundra- 370421.Mob: 09687660068Email: [email protected]@yahoo.co.inMYSOREMr. ANANTHRAMU, ChairmanIndian Institute of Materials Management,Anubhav Udyog, K-64, Hootagalli Ind. Area,Mysore – 570018 (Karnataka)Tel: 0821- 4282124Email: [email protected]. K. POWNRAJ, ChairmanIndian Institute of Materials Management,C/o. Mr. T Ramakrishna, GM (Matls.),Kuthethar (PO), Katipalla (Via),Mangalore-575030, DK Dist, (Karnataka State)Tel: 0824-2882202 Fax: 0824-2271239Email: [email protected]. LAXMIKANT DASHPUTE, ChairmanIndian Institute of Materials Management, 1,Parag Bldg, Patel Lane # 4, College Road,Nashik – 422005 Tel: (0253) 2314206Email: [email protected] [email protected]. SANT LAL, ChairmanIndian Institute of Materials Management, 404,Suryakiran Comml. Complex-1,Bajaj Nagar, Nr VNIT Gate, Nagpur - 440010Tel: (0712) 2229446Email: [email protected]. DIBAKAR SWAIN, ChairmanIndian Institute of Materials Management, Qtr.# C-352, Nalco Township,Nalco Nagar -759145, Dist: Angul, OrissaMobile: 09437081126Email: [email protected] DELHIMR. R.K. TANDON, ChairmanIndian Institute of Materials Management,U-135, VIKAS MARG, SHAKARPUR,(Near Laxmi Nagar Metro Station,Gate No.-3)Delhi – 110092,Tel-011-22464969Email: [email protected]

PUNEMR. K.R. NAIR, ChairmanIndian Institute of Materials Management,Pratibha Towers, Plot # 22, Old Pune MumbaiRd. CTS # 15/2, Above TVS Showroom,Wakdewadi, Shivajinagar, Pune - 411003Tel: 020-65000854Email: [email protected]

RAE BARELIDR. HARENDRA KUMAR, ChairmanIndian Institute of Materials Management,497, Near CMO Office, Jail Road,Rae Bareli -229001 Tel: 9451077744Email: [email protected]

RANCHIMR. R.N.SINGH, ChairmanIndian Institute of Materials Management,Gen Manager (MM) Office,Central Coalfiields Ltd.,Darbhanga House, Ranchi-834001Tel: (0651) 2360716/2360198Email: [email protected]@yahoo.com

ROURKELAMR. JITEN KUMAR MOHANTY, ChairmanIndian Institute of Materials Management,C/o. Rourkela Steel Plant, 6th Floor,Admin. Bldg. Rourkela -769011Tel: (0661) 2445528Email: [email protected][email protected]

SURATMR. R.L.SHUKLA, ChairmanIndian Institute of Materials Management,C/o. Addl. Gen. Mgr (Matls.),Krishak Bharati Co Ltd,PO: Kribhaco Nagar, Surat -15Tel: (0261) 2802682Email: [email protected]

TRIVANDRUMDR. K.M.GEORGE, ChairmanIndian Institute of Materials Management,TC-9/1447, 2nd Floor, Future House,Temple Road, Sasthamangalam,Thiruvanathapuram – 695010Tel: (0471) 2724952Email: [email protected]

UDAIPURMR. RAJESH MOHATA, ChairmanIndian Institute of Materials Management,2nd Floor, Above Manohar Furniture, AshwiniMarg, Udaipur – 313001Tel: (0294) 2411969/2421530Email: [email protected]

VAPIMR. J. R. SHAH, ChairmanIndian Institute of Materials Management,223, 2nd Floor, C B Desai Chambers,Koparali Road, GIDC, Vapi-396195Tel: 9099047350Email: [email protected]

V V NAGARMR. BHARATBHAI PATEL, ChairmanIndian Institute of Materials Management,C/o. Unique Forgings (I) Pvt Ltd ., 601, GIDCEstate, Phase – IV, Vithal Udyognagar, Dist:Anand, State: Guj – 388121Tel: 02692-233517/236343 Email:[email protected]

VADODARAMR. A.B.PUROHIT, ChairmanIndian Institute of Materials Management,Vishal Chambers, 2nd Floor, 34, VishwasColony, Alkapuri, Vadodara- 390007Tel: 0265-2359060Email: [email protected]@gmail.com

VISAKHAPATNAMMR. A. RAMA KRISHNA, ChairmanIndian Institute of Materials Management,#45-35-63, Flat # 401, Om Vigneshwar Apts.,Jagannadhapuram, Akkayyapalem,Visakhapatnam- 530016 Mob- 9849482991Email: [email protected]@gmail.com

VARANASIMr. P N TIWARI, ChairmanC-30/38 A, Maldihya, Varanasi (UP)- 220001Mob: 09794861723Email: [email protected]

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