9 Easy Steps to Implement Customer Service Policies that Decreases Risk

Everybody loves good service. It makes us feel appreciated when patronizing a company that meets our service expectations.

Businesses understand the need to satisfy their customers and take great strides to provide helpful, friendly service.

However, not only is implementing structured customer service practices smart business, it has the potential to reduce risk management issues.

9 Easy Steps to Implement Customer Service Policies that Decreases Risk

By putting the following 9 steps into action, it's possible to improve customer service and reduce costly mistakes and accidents. Customer service practices can be woven into policy and procedures so that good customer service is achieved when following company policy.

Step 1. Identify areas of service that need improvement as well as potential risk. Implement policies that address these issues. Ask for the input of management and staff to create an atmosphere of teamwork.

Step 2. Create a policy and procedure manual that is easily read and understood. To encourage employee interest, be sure to explain how the procedures will benefit employees. Distribute the manuals to each employee or department manager. Ensure all management is committed to the education of their department.

Step 3. Hold staff meetings to discuss the new policies and customer service expectations. Make the meetings a positive experience and reinforce the benefits of implementing the policies. This may be as simple as giving certificates of recognition or as valuable as a raise (an idea to increase the perceived value of certificates of recognition is to allow employees to accumulate and trade them for gift certificates).

Step 4. Create a culture in which employees and staff show the same helpful respect to each other as they do customers (teach that we are all each other's customers). Empower staff to nominate each other for certificates of recognition. Invite customers to do the same.

Step 5. Ensure that each employee has read and understands the policy manual. Encourage its importance by having each employee take a written test and go over the results to fill in any gaps in understanding. Have the employee sign it and keep the results in the personnel file.

Step 6. Continually educate staff on the importance of each department and teamwork. Each month, choose one staff member to learn something new about another department and give a short inservice to the rest of the team (for example, have a payroll clerk take a couple hours to learn and share something about the shipping department). If employees have some understanding of the business processes, it will help staff identify ways they can indirectly help their co-workers in other departments.

Step 7. As time passes, continue to reinforce policies and good customer service practices. Look for ways to continue to involve staff (for example, form teams to create a new system, implement a new idea, solve a dilemma, etc.).

Step 8. Replace employees, according to termination guidelines, who continue to refuse to follow procedures. This will show your existing staff you are serious about the policies and you will help your staff by hiring employees that want to be part of the team.

Step 9. When hiring new employees, stress the value placed on teamwork and following procedures. Start during the interview process and make it a positive experience. Look for someone who can fill the position and is eager to learn. It's easier to train someone that it is to change someone.

A few of the benefits of implementing these steps are:

Better Service: Employees who are knowledgeable about their responsibilities and follow company procedure are better equipped to serve customers and each other (thus improving the bottom line).

Loyalty: Employees who are empowered to teach and help implement procedures feel that their efforts are worthwhile and that they are part of the team (this encourages loyalty, improves job satisfaction and less employee turnover).

Financial Rewards: Employees who understand that by following procedures, decreasing risk, and improving customer service, financial goals will be met and have a positive impact on their payroll and benefits.

The implementation of simple procedures can have a major impact on customer service, improve the workplace culture, and decrease mistakes and accidents. By fostering a knowledgeable team atmosphere, employee accountability and awareness will improve.

Keep the procedures simple and easy to follow so they can be remembered. Don't overload employees. Think of policies and procedures as guidelines. Hire someone to review your current policies and procedures and write a fresh manual that will speak to your employees and motivate them to follow procedures.

Company rules should be included and include employment/labor law, minimum wage laws and hours, State and Federal guidelines, safety issues, harassment issues, privacy issues and industry specific regulations. Purchase and post the mandatory employment posters and consult an attorney when in doubt.

9 Easy Steps to Implement Customer Service Policies that Decreases Risk
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Appreciate your customers and staff and watch for better service to bloom, less risk and an increase in the bottom line. For more information about policy and procedure manuals, contact cheryl@olmsteadwritesit.com or call (512) 508-0044 for more information.

watch mobile phone Best Offer Lund 18536 Interceptor Clear Hood Shield Best Buy Pac Strapping 5830116B36 5 8 X

An Over-view of Credit Risk Management in the Banking Sector

Over the years, banks have been involved in a process of upgrading their risk management capabilities. In doing so, the most important part of upgrading has been the development of the methodologies, with introduction of more rigorous control practices, in measuring and managing risk. However, the by far the biggest risk faced by the banks today, remains to be the credit risk, a risk evolved through the dealings of the banks with their customers or counterparties. To site few examples, between the late 1980's and early 1990's, banks in Australia have had aggregate loan losses of billion. In 1992, the banking sector experienced the first ever negative return on equity, which this has never happened before. There have been many other banks in the industrial countries, where losses reached unprecedented levels.

The analysis of credit risk was limited to reviews of individual loans, which the banks kept in their books to maturity. The banks have stride hard to manage credit risk until early 1990s. The credit risk management today, involves both, loan reviews and portfolio analysis. With the advent of new technologies for buying and selling risks, the banks have taken a course away from the traditional book-and-hold lending practice. This has been done in favour of a wider and active strategy that requires the banks to analyse the risk in the best mix of assets in the existing credit environment, market conditions, and business opportunities. The banks have now found an opportunity to manage portfolio concentrations, maturities, and loan sizes, eliminating handling of the problem assets before they start making losses.

With the increased availability of financial instruments and activities, such as, loan syndications, loan trading, credit derivatives, and creating securities, backed by pools of assets (securitisation), the banks, importantly, can be more active in management of risk. As an example, activities on trading in credit derivatives (example - credit default swap) has grown exceptionally over the last ten years, and presently stands at trillion, in notional terns. As it stands now, the notional value of the credit default swap (a swap designed to transfer the credit exposure of fixed income products between parties) on many established corporate, exceeds the value of trading in the primary debt securities, received from the same corporate. Loan syndications grew from 0 billion to more than .5 trillion between 1990 and 2005, and the same period saw a growth of loan trading, which grew from less than billion to more than 0 billion. For the banks, securities pooled and reconstituted from loans or other credit exposures (asset-backed securitisation), provided the means to reduce credit risk in their portfolios. This could be made possible by the sale of loans in the capital market. This became especially viable in case of loans on homes and commercial real estate.

An Over-view of Credit Risk Management in the Banking Sector

The banks are now more equipped in handling credit risk, in the allocation of its on-going credit allocation activities. Some of the banks use a more comprehensive credit risk management system, by critically analysing the credits, considering both, the probability of default and the expected loss in the possibility of a default. More sophisticated banks use the criteria given in Basel II accord in determining credit risk. In here the banks take credit decisions by increased expert judgment, using quantitative, model-based techniques. Banks, which used to sanction credits to individuals relying mainly on the personal judgment of the loan sanctioning officers, now use a more advanced method of srutinisation, applying the statistical model to data, such as credit scores of that individual. The lending activity of a bank has its credit risk invariably embedded, as one finds in the market risk. It all such cases, banks need to monitor risks by managing it efficiently, absorbing the risk involved.

Pricings of relevant risks are needed when-ever a bank moves in a lending contract with a corporate borrower. New analytical tools now enable banking organizations to quantify lending risks more precisely. Through these tools, banks can estimate the measure of risk that it is taking on the fund, in order to earn its risk-adjusted return on capital. This allows the bank to price the risk before originating the loan. Banks often use internal debt rating, or third party systems, that uses market data to evaluate the measure of risk involved, when lending to corporate issuing stocks.

The financial Pundits of the banking sector have discussed diverse range of subjects and issues, and have arrived on four main themes for a better credit risk management.

The first theme is concerned with a rapid evolution of techniques to manage credit risk. This evolution of techniques have been greatly supported by the technological advancement made, with low cost computing being made available, making analyzing, measuring, and controlling credit risk in a far better way. This has allowed introducing a more rigorous credit risk management system. However, despite the thoughts of the utilization of the techniques evolved, implementation of these practices still has a long way to go for the bulk of the banks. However, it is expected that the pace at which the changes are required to be introduced, will soon accelerate. With competition growing in the provision of financial services, there is a need for the banking and financial institutions to identify new and profitable business opportunities, and as such, it is inevitable that the policies on credit management have to change.

The second theme considered that, the ability to measure, control, and manage credit risk, is likely to be the criteria as to how the banking sector grows in the future. Widespread cross-subsidization has introduced significant negative impact on the net interest margin of all the banks, with a profitable business supporting the cause of otherwise non-profitable activities. The matter of cross-subsidization has been an intentional business decision by the management of the institutions. However, this has introduced problems in cash flow, with the inability to accurately measure risk and return. With the banks getting on to improve on their ability to measure risk and return on the activities, it is inevitable that the characteristic of the internal subsidies will become clearer.

The third theme considered the interaction between the management and the improved credit risk measurement. The theme also looked into the possibility of using alternative risk measurement techniques within the regulatory environment. There were certain issues that emerged.

1. The role of the supervision of a bank or a financial institution, in a more competitive and a much more advanced financial environment.

2. At what extent are the banks' risk supervisory efforts and their relevant policies, keeping pace with the initiatives and developments taking place in the market.

3. The urgent need to align the supervisory methodologies conceived, with the newly emerging risk measurement practices. In this issue, a general sense of optimism exists, where the alignment between the banking sector and the regulatory authority, regarding the approached towards the risk management practices, would happen over time. However, there is an obstacle in meeting the objective. The banks need to demonstrate with confidence, that they have in place well defined, and well tested rigorous risk management models, which are completely integrated into their operational system.

The fourth and the last theme that evolved, was the need to have a firm commitment from the banking sector, relating to the management of risks in all its forms, and the need to have a strong orientation of the credit management policy embedded within the culture of banking. Without such a firm commitment coming from the higher levels in the banking sector, the alignment between the regulatory authorities and the banking institution, relating to strong credit management principles, is hard to achieve. It needs to be mentioned here that, today, unless banking institutions do not take a firm committed step towards a viable credit management system, and integrate the policies within their operational culture, it will be difficult for the sector to meet any broader objective, which importantly includes improved shareholder returns.

In the matter to be better aligned, there is a necessity of accurate measure of the credit risk involved in any transaction that the bank makes, and such a measure is bound to alter the risk-taking behavior, both, at the individual and at the institutional levels within the bank. So long we have been talking about the state-of-the-art technology and its use in rigorous credit risk modeling. With this, it should be borne in mind that, improved measurement techniques are not automatically evolved without the application of proper judgment and experience; where-ever credit or other forms of risks are involved.

prabirsenuk@yahoo.co.uk

An Over-view of Credit Risk Management in the Banking Sector
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Over twenty two years experience in Oracle. Significant development & Management skills viz.,technical writing, project planning and execution, project management, Oracle sql, pl/sql, data flow design, database design, datawarehousing, Oracle applications viz., manufacturing, scm, crm, financials, hrms,workflow, Oracle discoverer, forms, reports, etc., having expertise in Business Analysis. Presently a Sr. Program Manager with a Large IT organization in London, looking after 10 Oracle applications project in Europe, and managing offshore development partners.

Education:

1. Fellow - Institute of Electronics & Communication Engineers.
2. MSc. Eng (Computer Science), University of London.
3. BSc. Eng (Electronics), University of London.

Hobby: Writing

prabirsenuk@yahoo.co.uk

watch mobile phone Best Offer Lund 18536 Interceptor Clear Hood Shield Special Price Progressive Automations Linear Actuator Stroke Size Best Buy Peerless Industries Desktop Articulating Mount Lct

Risk Management in Hospitals

Risk management in hospitals now has to include what insurers refer to as preventable conditions such as bedsores and since October 2008 have refused to reimburse hospitals for the treatment of this ailment.
 
The number of patients suffering from bedsores has increased dramatically in recent years focus on treating bed sores and ulcers rather than preventing them. This is a problematic situation because doctors are concerned with alleviating the pain and avoiding secondary infections, rather than preventing these things from happening.
 
One of the best ways to avoid things like this from occurring is to model the actions of other hospitals faced with solving the same problems, this is one form of effective risk management.
 
Hospitals have similar problems to other healthcare providers only here the problems are writ large. One of the things that hospital doctors have to look out for is an increasing rate of hospital caught infections. Infection is often the result of medical intervention such as surgery
 
A hospital has many of the billing and patient privacy problems that doctors and other healthcare professionals have to deal with. Some hospitals may deal with a number of people ho have chronic conditions, some of these can be alleviated by diet and lifestyle advice, particularly in conditions like diabetes and heart disease.
 
There are a growing number of Americans suffering from these chronic conditions, which often start because people eat too much, don't eat a proper diet and don't exercise.
 
Unless healthcare providers can help patients manage their habits to the extent where the condition can be controlled then they are engaging in good risk management. Those hospitals that treat more than their fair share of chronic cases need to find some way to get their patients to take preventative measures.
 
Because hospitals are large institutions, and like many institutions make a lot of mistakes, most of them have their own risk analysis department. These mistakes can result in expensive court cases as well as patient injury and/or death. As soon as the hospital authorities realise that a mistake has been made they will flag your patient file because of a possible legal case.
 
Risk management can be more difficult in hospitals because of the number of procedures undertaken. Decisions are not always taken by doctors but by whoever is managing the hospital and its finances.
 
Hospitals have lots of visitors and this makes managing risk to the patients a lot more difficult because staff may not know who is going or coming at any given time.

Risk Management in Hospitals

Risk Management in Hospitals
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

HealthcareRiskManagementGuide.com covers all your healthcare risk management needs, with tips and information. Whether you need clarity on hospital risk management or on private practice risks, go to the site to find out more.

watches mobile phone Best Buy Oe Replacement Cadillac Srx Driver Side Best Buy Peerless Industries Desktop Articulating Mount Lct

What is Sustainable Development and How to Achieve Sustainable Waste Management

The Brundtland Commission report provides an excellent definition of sustainable development has been quoted and more recently, the United Kingdom government in the form of its Sustainable Development Strategy, published by the DETR also defined it, and that definition can be found on the web.

However, these definitions shouldn't be left to government only. The idea is after all very simple to understand and we thought we would give you our slant on their definition as follows:

Sustainable development starts with the idea that the most sustainable aim for all is a better quality of life for everyone, not only now, but for generations to come.

What is Sustainable Development and How to Achieve Sustainable Waste Management

To achieve this, sustainable development is concerned with achieving economic growth, in the form of higher living standards. It is definitely not about hair shirts and scrimping and saving, or punishing ourselves for enjoying the use of the world's resources now.

But it IS about our protecting and where possible enhancing the environment, not just for its own sake but for our own enlightened self interest, because a damaged environment would quite soon begin to hold back economic growth and lower the quality of life.

It IS egalitarian, because it to be truly sustainable as history shows, things only work in the long term if we all make sure that economic and environmental benefits are freely available to the whole society and not just a privileged few.

Sustainability is compatible with all the major faiths and can be supported by all.

So, it is commonly accepted that sustainable development must encompass four broad objectives.

These are; social progress which recognises the needs of everyone, the effective protection of the environment, prudent use of natural resources, and maintenance of high and stable levels of economic growth and employment.

One of the most important areas for society to act sustainably is in how it throws away its waste, its trash and detritus. Nothing else, other than fossil fuel energy over-use causing climate change, and war, has the potential to do so much accumulating damage.

Unsustainable waste management poisons watercourses and underground water, leaves litter around everywhere to maim and kill our wildlife, encourages rats and vermin, pollutes the air with odours and unhealthy aerosols and can render vast areas of land damaged or largely unusable.

What is Sustainable Waste Management

There is no one sustainable waste management solution which yet reigns supreme. There are still conflicting views as to the most practical, environmentally beneficial and effective means of achieving sustainable waste management.

The overall policy aims to achieve sustainable waste management, that have been established in recent years across the whole of the European Union and many other nations are:

* to reduce the amount of waste that society produces;
* to make best use of that that is produced; and
* to choose waste management practices which minimise the risks of immediate and future environmental pollution and harm to human health.

Over the last ten years or so the actions needed for the waste industry and individuals to follow, and which are most sustainable have been defined by the policy makers.

A waste disposal method for making the choice between waste treatment and disposal options which puts landfill disposal at the bottom of the list of possible waste disposal routes, has been provided throughout the EU, for use by everyone. It is known as the waste disposal hierarchy.

Landfill does have a role in this strategy in mopping up the residual waste after all pre-treatment of waste has already removed as much of the waste stream as possible, but it is a continually reducing one, and consensus among waste professionals still remains tenuously established at best.

Sustainable Landfill

Flushing bioreactor landfills have been suggested as the only way to achieve sustainable landfills but very real technical problems exist in developing these, not least obtaining enough fresh clean water for the flushing in the first place.

However, there is a general consensus on the objectives of sustainable landfill, which we list as follows:

- The contents of the landfill must be managed so that outputs are released to the environment in a controlled and acceptable way.
- The residues left in the site should not pose an unacceptable risk to the environment, and the need for aftercare and monitoring should not be passed on to the next generation.
- Future use of groundwater and other resources should not be compromised.

The striking point here though is it could be suggested that slow leakage to the environment can be better than a total containment if slow improvement and stabilisation is achieved without any irreversible harm being caused.

What is Sustainable Development and How to Achieve Sustainable Waste Management
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Steve Evans is a Mechanical Biological Treatment processes professional who holds extensive experience across the activities of the waste management industry.

watch mobile phone Best Buy Oe Replacement Cadillac Srx Driver Side

Risk Management - A Case Study on the Consequences of Bad Risk Management

Introduction

Risk in business is a reality. When these risks are successfully managed the rewards can be substantial. If not, a business can run into serious problems and even collapse. It is unnecessary (and stupid) to ignore risks.

Over more than a decade we advised and assisted companies in growing and managing their businesses. Over time we observed many companies that ran into trouble because they ignored specific risks. This case study focuses on a few companies that each ignored one important aspect of risk management and then paid the price. The discussion is done under the following headings:

Risk Management - A Case Study on the Consequences of Bad Risk Management

Insufficient planning; Bad relationships; No hedging; Lack of discipline.
Insufficient Planning

Risk is drastically reduced by proper preparation and detailed planning. Planning includes feasibilities studies, business planning, cashflow projections and financial planning.

We were recently approached by Hypothesis Toys to assist them with additional financing. At that stage they were already in dire straits and had invested a small fortune. The company was established to make one specific type of toy. The management made the following assumptions:

That customers would pay a premium (double the price) on their products compared to other existing products due to the fact that their products look different and was branded with the logos of professional sport bodies. That all the major supermarkets will sell their products. That the total market consists out of every toddler in the (developing) country that they operate in. That they would get 10% of this market within the first year and 50% by year three.

This company did not have a chance from the beginning. The haphazard way that they came to their assumptions was mind-boggling. The market penetration figures were absolutely unrealistic. No research was done to get the real facts (except for the number of toddlers in the country). The scary part of this story is that it is not an isolated incident. Many entrepreneurs, and even established companies, expose themselves to the unforgiving risk of not doing proper market research when they embark on a new venture.

Bad Relationships

Human relationships can never be ignored. It is potentially one of the most fatal risk factors in a business. Relationships should be nurtured with all stakeholders in a business - including the investors, financiers, suppliers, employees and customers.

A while back one of our clients asked us to handle a possible merger and acquisition on their behalf. They were approached by Fuzzy Manufacturers to buy out their total operations over a few years (they do a lot of business with this company).

The owners of Fuzzy Manufacturers managed some of their relationships during the negotiations as follows:

They never kept any commitments that they made with us or with our clients. They were not transparent with the relevant stakeholders - including the financiers. They did not involve their senior management with any aspect surrounding the proposed deal.

The negotiations were finally called of due to financiers that withdrew. Everybody lost their respect for the owners of Fuzzy Manufacturers and some companies are very uncomfortable to do business with them. Eventually some of their senior employees left and joined the competition. Their business became a shadow of what it used to be.

No Hedging

Financial risks (such as currency risk and commodity price risk) can often be hedged with sophisticated products. Operational hedging is also possible (to a large extent) by spreading the risk through a variety of suppliers, products, distribution channels, customers, back-up facilities, etc.

Focused Systems specialises in IT networks. They were exceptionally successful, especially after landing a big national concern. Thereafter they made some serious errors when they did not hedge their operational risks, including the following:

They focused on this client and regarded all other clients as less important. This client contribution grew to more than 35% of their turnover and they were responsible for most of their profits. They ceased to do any more international work.

The big national concern became the target of an international listed entity. This group had their own IT specialists and Focused Systems lost the account. The company nearly went under. Fortunately the owners learned from their mistakes and with a concerted effort they broadened their product and service offering, their customer base and their geographic representation. Today the company is really formidable. No customer can keep them ransom due to the fact that not one of them is responsible for more than 5% of the company's turnover.

Lack of Discipline

There is probably no better way to reduce risks in a business than to be properly prepared and to be well-disciplined. This is true for planning, relationships and hedging as well as for being disciplined in aspects such as keeping a lid on expenditure, to grow within sustainable levels, to not fall into the debt-trap and to manage cashflow with an iron fist.

About a decade ago Expansion Chemicals was very well known and respected in the industry that they operated in. Their vision was to be the market leader. Unfortunately they were not very disciplined and made the following serious mistakes:

They sold products at any price just to get the sale. Their actual gross profit margins were much lower than their projected margins and their net profitability were very low. They grew at an alarming rate that was not sustainable with internal financing or through debt. The expenses of the owners (who also managed the company) skyrocketed and it included luxuries such as private planes and sport cars.

Unfortunately this once profitable business failed. The owners are now employees in other companies.

Summary

The companies discussed above all basically ignored one specific type of risk. It can only take one unexpected claim against a company, a major customer that is lost or not enough cash to pay a big supplier, to cripple a company. When a business plan diligently, work on all its relationships, hedge its financial transactions and operations as far as possible and work in a disciplined way they reduce the risks in a company tremendously.

Copyright© 2008 - Wim Venter

Risk Management - A Case Study on the Consequences of Bad Risk Management
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Wim Venter is the founder of Ventex Consultants, a business development consultancy. To receive more information on how to start a new venture, to grow it sustainably and to finally harvest it successfully, you can contact us via our website.

watches cell phone Best Buy Oe Replacement Cadillac Srx Driver Side

The Strategic Importance of Supply Chain Management (SCM)

1 Introduction:

Logistics supply chain management is one of the most contemporary and challenging concept in today's business world. Due to increasing global demand of business; transportation, procurement, manufacturing, distribution activities increased tremendously. Now a day, major companies are focusing on SCM to reduce cost and constantly trying to develop new innovative strategy to meet consumer demand to achieve competitive advantage.

2 Definition of Supply Chain Management:

The Strategic Importance of Supply Chain Management (SCM)

In short, supply chain management means, right product at the right place at the right time at the right measure and at the right quantity. For example, in a supermarket, if the consumer found in a product shelves, there is tag for the product but no product in shelves; what you think? Yes, that is because of poor management of SCM. More precisely, SCM is the management of inbound and outbound logistics process to integrate from procurement, suppliers, manufacturers, warehouse, distributors, transportation, and store in order to meet consumer demands.

3 Why Supply Chain Management is Important?

As global competitions are increasing customer have different choices & needs to satisfy demands. For example, if there are demand for umbrella in rainy season and if you asked supplier to deliver 20,000 umbrellas in summer and expected to receive at the beginning of rainy season; what do think would probably happened?

According to this scenario, say for example, supplier response lately after two weeks, slowly starting procurement and then starting production and supply the goods at the end of rainy season. As a result, in this case the buyer will face tremendous losses.

Let's just think how can, we change our scenario with an effective strategy: consider the order of umbrella was given at the end of spring to deliver at the end of summer. Supplier response precisely, starting from procurement to distribution utmost efficiently and transported through freight within one week before ending summer. The delivery was on time and arrive within 30th days in summer. The buyer is happy to receive items on time and that allows the buyer to distribute products through distribution channel and, with the right forecasted of demand, buyer captures the market at the right time and making money.

In past manufacturers were known as the drivers of the supply chain as they were scrambling to meet customer demands at rapid pace but now customer is called the driving shots in a long term competitive advantage. To meet the customer demand accordingly, companies are shifting to customer oriented strategy (a bright example would be 'Dell computer'). Hence, to achieve competitive advantage in the market, it's necessary to deliver the product at the peak time.

4 Key Drivers of Logistics Supply Chain Management:

From the analysis different journal article, textbook, web research we found the key drivers are differ in according to different perspective, such as Globalisation, Sustainability, Cost-awareness, Customers, Suppliers, Technology and Transportation.

4.1 Globalization:

The external forces (i.e. political, economical, socio-cultural, technological, legal and environmental), local competition, continuous policy and regulations changes, pressure from international brands and all affects to meet the consumer demand in market. Thus, companies are facing huge challenges to meet the requirements globally. Through the product barriers are eliminated, no products are now considering domestic products but due to globalization forces companies tend to change policy and strategy regularly. Besides, with the benefits from globalization now, foreign investor are encouraged to invest in several countries which forces local companies to improve quality of existing products which create huge challenges in procurement, manufacturing, transportation and distribution activities for the companies.

For instance, a company can develop a product in the US, manufacture in China and sell in worldwide, i.e. Apple. This makes a complex and challenging activities for company. Thus, in order to maintain global demand Apple makes strategic choice to build global manufacturing and engineering infrastructure in California, Ireland and Singapore to capture market in US, Europe and Asia. This global strategy from Apple allows the company to take advantages of capturing large market. This strategy, allows Apple to become number ONE innovative company in the world.

4.2 Sustainability:

Creating sustainable chain has a major concern for companies. Constant variable pressure from regulations, geographic in nature, social-economic impact, international policies and principles in general is complex for managing SCM.

For example, green environment (i.e. carbon emission); local government are always imposing regulations which affect on the manufacturer. For instance, production and manufacturing in developed countries like in Europe is huge challenge as because of strict rules and policies of environmental issues compare to underdevelop countries like in Asia. For example, in automobile industry producing vehicles is challenging because of environmental issues in different countries.

4.3 Cost-Awareness:

There are four major decision areas in cost awareness:

4.3.1 a) Location: Convenient feasible location with availability resources including all facilities is the primary step of towards of creating strategic network. However, due to geographical distance and cost, companies often couldn't able to cope up with customer expectation.

4.3.2 b) Production: Cost fluctuation from production levels are critical issue for strategic decision, such as what product to produce, which plant to allocate and what supplies to get for production.

4.3.3 c) Inventory: Inventory cost varies at different level starting from raw materials to finished goods. Cost is also associated in buffer stock, safety stock or even days of inventory in hands as well as price increases during the periods of inflation affects.

4.3.4 d) Transportation: 30 percent of logistics cost associate with transportation that makes the companies to think about distribution channels about air, ship and road. Air shipment is fast, reliable but expensive while sea shipment is chap but time consuming.

4.4 Customers:

Customers are the most unpredictable variables to determine demand. Frequent changes of demand, new expectation, changing approach of existing product, influential behaviour attitude towards products are all determine to develop a customer-product innovation strategy. For example, Apples starts it business on the bases of computers but after understanding demand of consumer, they launched iPhone, iPad, iPod as means of innovations strategy which satisfy customer but not merely makes the customer delight but introducing facilities like ITunes, music, software application gradually capture the market the whole market.

The example here provides a key learning tool 'how the company understand its customer to achieve competitive advantage' which makes us to think what strategy they are following. In Apple strategy most of the iPhone and iPad items (i.e. parts) are outsourcing. More precisely speaking, very few components are created by Apple, hardware is supplied by contract manufacturer and software is supplied by millions of software developer to build various applications for the devices which minimize the cost.

4.5 Suppliers:

Supplier's motivation is important for quality, cost and delivery expectations of producing product with value as they have greater influential aspect of supplying item. For example, Dell's direct strategy requires processing orders direct from customer. Dell's pull strategy to build computers o customer's specifications and deliver within time. To support this model, Dell asked suppliers to keep inventories within 15 minutes of the manufacturing locations. Virtually all products are made to order. Every two hours, the factory planning system sends out a computerized message to suppliers detailing what parts the plant needs. That means there is almost no inventory of parts or products in the factory and this happen only because of healthy relationship with suppliers.

4.6 Technology:

With the benefit of technology, customer are now becoming more technological oriented focusing on online trading, online shipping, online payment, online information, online virtual chatting, and so on. This technological process has a greater impact on customers and now a day customers are constantly willing to get more information, answers, about their choice, preferences. Dell's could be an ideal example, how technology impact on business and increase revenue. The success of Dell's direct sells strategy depends mostly on continuous development of technological aspect as the customer willing to become more connected, assist them to develop cost effective quality product strategy.

4.7 Transportation:

Transport system is the most important economic activity among the components of business logistics systems. Around one third to two thirds of the expenses of enterprises logistics costs are spent on transportation. Beside good transportation is challenging issue to deliver product at right time. Thus, to enable flow of goods from one destination to another and to ensure on time delivery; companies needs to understand the right strategy of supply chain. However, unorganized transportation system, labour force, policies, laws and regulations, uncategorized rooting system is a big hindrance for supply chain solution. If there is suitable transportation network, delivery of the product to the market not ensured supply chain activities will be at risk.

5. Companies Prospective of Strategic Importance of Logistics Supply Chain Management:

5.1 IBM

IBM faces challenges on future supply chain are on cost containment, supply chain visibility, supply chain risk management, customer requirements and globalization. Here cost containment relate to shifting cost of operation rapidly, supply chain visibility includes information and collaboration with external partners where supply chain risk management describe as forecasting customer demands and higher costs, customer requirements influence to identifying customer demands, approach, attitudes towards of product and globalization relates to global issue like geographical distance, cultural barriers, transportation system, feasibility of resources, rules and regulations and so on. Thus, to tackle those issues IBM developed strategy on future supply chain based on "instrumentation", "interconnectedness" and "intelligence".

5.1.1 Instrumentation:

Developing RFID (i.e. radio frequency identification) tag, meter, GPS system, tracking reduce the inventory cost and increased visibility. That allows to witness actual fact occurred in supply chain activities. Besides, forecasting of demand becomes much easier as tracking production level and sales level estimated through technology. Again, production, distribution and transportation are controlled and monitored with smart devices to eliminate waste and increasing efficiency. So, with the force of technology IBM creates a sustainable global supply solution by focusing more on customer.

5.1.2 Interconnectedness:

Interconnect with global network i.e. suppliers, manufacturer facilities collaboration with external partners and bodies reduce global issues. Besides, shared decision making with and determine regulatory constitutes from local, regional and international enable to share the risk.

5.1.3 Intelligence:

Effective sophisticated modelling and simulation capabilities allow designing sustainability model, network transportation system, and distribution strategy for IBM. Thus, smarter supply chains allow intelligent modelling to the key driven force.

5.2 Woolworths

Woolworths is an Australian's largest retailer faces multiple turbulences to find an effective solution of supply chain at the beginning. It faces challenges on sustainability (environmental issues), customer focus, suppliers, transportation system and technology. However, after removing those barriers, it builds strong supply chain strategy not only to meet customer requirements but also expanding business in Australia and New Zealand and to achieve competitive advantage over the market.

The success stories build up with collaborating and strong networking relationship with suppliers, adopting policies, rules and regulations, technology and new innovation (i.e. fresh foods).

The strategy for sustainability point they come up with 'fresh foods' and carbon emission. For example, "announcing 40 percent reduction in carbon emissions on project growth levels by 2015, managed 13 percent reduction. This is an estimate saving of about 500,000 tonnes of carbon dioxide again 25 percent minimum reduction in carbon emissions per square meter for new stores Woolworths has now on average reduces in 25.08 percent carbon emissions per square meter" (Our planet, n.d). Besides, introducing new products in the market like Woolworths Pet Insurance, android application applies sustainability in market.

From supplier driving force, Woolworth's key strategy is to build strong and committed relationship with suppliers that involves in communication, continuous feedback to ensure quality product for customer.

In customer point of view strategy, they are more customers oriented to provide most enjoyable, quality shopping experience to fulfil the demand at the right time at the right place. For this, they focus on centralized distribution model for all inbound and outbound logistics.

In technological point of view, company adopted new technology with keeping pace of technological advancement. For example: EFTPOS system.

5.3 Procter & Gamble

Proctor & Gamble faces challenges on global alliances, constructive network distribution channel, healthy transportation system, inbound and outbound logistics support. For this, they build a supply chain strategy, first to understand target customer according to their satisfaction and loyalty level and then optimizing supply chain (i.e. ensuring product availability at all time). Side by side, focusing on technology like RFID which increases product visibility for better supply chain management. Besides, maintain strong relationship with retailers like Wall-mart and implementing online web support allow the customer to be connected with customer its build premium foundation for sustainable environment.

6 Conclusion:

Thus, globalization, sustainability, cost-awareness, technology, customer, suppliers, transportation are all related to supply chain activities. Now, opportunities of barriers has been minimized which encourage foreign investors to invest, implement and operation. Side by side, in terms of sustainability; collaborating, adopting policies, rules & regulations, technology, transportation allow to build constructive communicative strong relationship with external partners which could be an ideal solution for sustain in global market. Most importantly, focus on customer is vital to enhance growth and for this choosing right strategy for supply chain is essential to ensure right product at the right time at the right order with right measurement.

The Strategic Importance of Supply Chain Management (SCM)
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Our Planet, n.d., Viewed 14th September 2011, retrieved from, http://www.woolworths.com.au/wps/wcm/connect/Website/Woolworths/About+Us/Our+Planet

watch mobile phone Special Price Gingham Cradle Sheets Set Best Offer Spectra Premium F55A Fuel Tank For Best Buy Kichler 15504Bk 10 Gauge Low Voltage