Supply Chain Management: Why it is important?

Supply Chain Management Software As A Services

A successful profit-driven organization is one that achieves a good level of profitability. In order to do this, there is a need for an effective supply chain management software

A successful profit-driven organization is one that achieves a good level of profitability. In order to do this, there is a need for an effective supply chain management software. The efficacy level of the said chain relies greatly on the supply chain management software as a services.

Defined as the control of materials, information, finances and other resources as the output moves from the supplier to the manufacturer to the wholesaler to the retailer and finally to the customer. The entire network that involves these different elements is referred to as the supply chain. Each stop gives out an additional value to the product and at the same time, benefits from its passing by.

Management of the chain is focused on making sure that every single party involved in the chain is able to get the optimal level of benefits that can possibly be accessed in the whole process. It is necessary for an individual to understand this basic concept to get a good shot at how an organization's logistics and operations go. 


The product is the most important element in supply chain management. It is essential to consider various factors when determining and manufacturing the product. One of which is the demand. A product is useless if it is not something the customers want. More so, the time it takes for the product to get into the customers' hands is also something to take note of. 


Demand is possible only if the customer has access to the information pertaining to the presence and possibility of the product. Within the supply chain, information involves the different parts of the different processes the product has to go through before it gets to the hands of the consumer. 


Last comes financing. It plays a major role in the supply chain since each step of the process entails specific costs. The manufacturers, for instance, gets to deal with the suppliers concerning the possible payment arrangements pertaining to the supplies of raw materials and similar needs. 


Certain problems can occur within this management. These can include the distribution strategy as well as the distribution network configuration. The cash flow and inventory management can also be sources of issues within the chain. 


For a business end product to be successful, an effective supply chain management is definitely a must-have. It is all about the different operations and processes that take place within an organization. Hence, it is a necessity to maintain its presence and well-being


WALMART is the best example for maintaining their supply chain through the integrated software..

Entrepreneurship:Business Incubators

Business Incubators: business support resources and services

Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Incubators vary in the way they deliver their services, in their organizational structure, and in the types of clients they serve. Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term: Historically, 87% of incubator graduates stay in business.

Most common incubator services:

• Help with business basics
• Networking activities
• Marketing assistance
• High-speed Internet access
• Help with accounting/financial management
• Access to bank loans, loan funds and guarantee programs
• Help with presentation skills
• Links to higher education resources
• Links to strategic partners
• Access to angel investors or venture capital
• Comprehensive business training programs
• Advisory boards and mentors
• Management team identification
• Help with business etiquette
• Technology commercialization assistance
• Help with regulatory compliance
• Intellectual property management

Unlike many business assistance programs, business incubators do not serve any and all companies. Entrepreneurs who wish to enter a business incubation program must apply for admission. Acceptance criteria vary from program to program, but in general only those with feasible business ideas and a workable business plan are admitted. It is this factor that makes it difficult to compare the success rates of incubated companies against general business survival statistics.

Incubators in India

Agro Industry: Last Decade

Indian Agro: Farm output bounces back

Has Indian agriculture turned the corner? Official data on crop production as well as consumption of key farm inputs suggest so.

The accompanying table shows output trends for major crops over three periods: 1995-2000, 2000-2005 and 2005-2010 (April-March). For each of these five-year periods, the average production has been taken, in order to minimise the impact of unusual year-to-year fluctuations arising from the vagaries of weather.

A clear picture emerges. The early half of this decade was pretty bleak for agriculture, with output stagnating or rising only marginally in most crops, and declining in the case of oilseeds and pulses.

Turnaround time

However, the subsequent five-year period – roughly coinciding with the United Progressive Alliance (UPA) in office – has witnessed a reversal of fortunes in foodgrains, oilseeds and sugarcane. In some crops – cotton, maize, potato and onions – the production increases have been quite significant. Even milk has posted a bigger jump relative to the preceding period.

The evidence of a turnaround is further borne out when one looks at the ‘input' side. There has been a robust rebound, for instance, in tractor sales and consumption of fertilisers, reflective of higher demand originating from farms.

Part of the overall improved agricultural performance is explained by higher yields. This is particularly apparent in cotton and maize, where Bt technology and increased penetration of hybrids have made a difference.

But equally, if not more, important has been the role of prices. During 2005-06 to 2009-10, the average wholesale price index (WPI) for ‘food articles' went up by 40.76 per cent, which was more than the 24.14 per cent for ‘all commodities'.

It was the other way round in the previous five years, where the cumulative general WPI inflation of 20.30 per cent exceeded the 9.27 per cent of food.

Twin bonanza

The more favourable terms of trade for agriculture in the recent period are likely to have induced farmers to ramp up output, just as the earlier lower relative prices may have discouraged expansion of cultivation. The combination of higher production and better price realisations has, in turn, helped boost rural incomes.

That still begs the question: Why have food prices spiralled so much despite the farm sector staging a revival of sorts during the UPA regime (unlike the earlier period when prices ruled soft even in face of stagnant production)?

The answer could lie in the increased purchasing power accompanying higher economic growth rates over the last 5-6 years. This has led to a situation where food production is now having to keep pace not just with rising population (as in the past), but also rising incomes.

Demand-pull

The growth in the purchasing power base may have made prices more volatile than before – with the result that even a 10 per cent production shortfall nowadays translates into a 100 per cent price increase. Onions are a live example of this.