Monthly Archives: July 2020

The Role of Customers in Your Business Success

The primary purpose of a business is to create a customer because it is the customer that will determine the growth potential of a business. Though, it is imperative to create time and effort on how you are going to improve your business and services, it is still the customers that will dictate the success of your business. So, customer service is very vital if you want your business to succeed.

Customer service is a major factor in making sure you achieve business growth and success. It can affect your business positively or negatively. This is reason why the whole business plan, marketing strategies, sales and profit will largely depend on its impact on the customers. Primarily, you are in business to generate revenue through selling your products and services to people who are in need of the services. All these people want to know if your products and services will make impact in their lives and meet their needs.

To make sure that you generate income for your business, you must be willing to satisfy the desires and needs of your customers. Your whole business is resting on that foundation. Every decision making must take into cognisance how it is going to affect the customers. You should make it a point of duty ensure that you have an excellent customer service system.

All strategies you have put in place to ensure you have great marketing and sales will help in attracting new customers for your business but it is the excellent customer service that keeps the business going and makes customers wanting to come back. People will only want to do business with those they are comfortable with and can trust. As a business owner, you must make sure that you make your customers have that confidence, trust and satisfaction in you by giving them the best quality service.

This factor has created opportunities for large and small businesses. It affords every business to offer the best quality service which their organisation will be known for. By so doing, they have been able to distinguish themselves from all the rest in that sector of business.

In recent years, there has been continuing change in the demands of the customers because of the ”law of dynamism”. So it is your duty to know exactly what your customer’s needs and wants are. You can get hooked up to some customer support systems that offer quality incentives on how to give your customers the best quality services. It will assist you to expand your customer base and retain your customers. A recent survey reveals that using these systems has increased some company’s turnover by almost 50%.

All businesses must realise that customer service plays a major role in the success of any business. You must have the ability to focus on the need of your customers rather on your own selfish gains, and supporting them with all the abilities at your disposal to make sure that they are 99% satisfied with the services they are getting from you as this is the determinant of their coming back to patronise you. This will make your business much more cost effective and in turn increase the output you are getting in terms of profit because to make you succeed in business.

Ford Motor Company – Case Study

Background (General Facts)

Ford Motors is one of three leading automotive manufacturing companies in the United States. Based in Michigan in 1903 by Henry ford and grew to reach revenue of $150 billion and more than 370,000 employees by 1996 [1]. In the 1970’s, the automobile market for the major auto makers – General Motors (GM), Ford, and Chrysler- was crunched by competition from foreign manufactures such as Toyota and Honda. In 1999, Ford acquired the Swedish Volvo model in an attempt to compete in the foreign market and expand to other regions. Furthermore, Ford launched a full organization re-engineering business process plan called “Ford 2000” aiming at reestablishing the company’s infrastructure. The process meant reduction in their Vehicle Centers (VCs) to only five covering the operations that spanned 200 countries. It also meant cutting redundancies and requiring Information Technology (IT) to be the driving force and the link between Ford centers worldwide.

In building Ford’s IT infrastructure, the company focused on implementing a setup that supported the TCP/IP communication protocol based on the U.S. department of Defense requirements. At those days, Ford internal network was meant to serve files transfer unlike most companies that used the network mainly for email communications. Throughout the 1990’s, Ford developed a cost effective Global Enterprise Network Integration (GENI) process to link all its locations compromising on the type of the connection and the cabling in favor of full coverage. During the same time, Ford started building its Web Farm, which was basically a set of hardware and software managed by a team for building Ford’s public website. The work started by publishing documents for technical references and moved to more advanced images from a live auto show. As a result, the website received 1 million visits a day in less than 2 years after its official launch. Throughout the end of the 90’s, Ford established its web services by increasing the amount of information published, building more intelligent and standard web application in 12 weeks period, purchasing more Netscape browsers for setup on its users’ machines, and creating a B2B server to allow the suppliers secured access to Ford’s Intranet.

In the path towards service cost reduction and bringing more business through the web, Ford worked closely with its competitors in the U.S. market GM and Chrysler to establish what came to be known as “Automotive Network Exchange” (ANX) certificate. The protocols aimed at providing a unified communications standard through the Internet to enable suppliers to provide common technology for all manufacturers. Moreover, Ford focused on making information on its web site more accessible and useful by deploying a team to manage the process of adding and updating information based on an analysis of how humans deal with information. One final aspect of Fords endeavor was to try to build a model through its infrastructure that benefited from the model implemented by Dell computers to improve their supply chain and delivery process. The direct model would not work well for automotives as it would with computers, as a result Ford worked on its retailing network remodeling and identifying what would eventually give it the extra edge in delivery time.

Enterprise Architecture Issues

  • Ford’s regional expansion to address the competition for market shares demanded cost management for the infrastructure upgrades
  • IT infrastructure places limitations on the type of application development based on the platforms
  • Easy access to information and prompt delivery of vital data to key individuals requires proper knowledge managementOrganizations reengineering and process remodeling is necessary when adapting new technologies to maintain the cost and increase efficiency
  • Supply chain errors and delays can severely affect the progress of the business and the market value of the corporation

Analysis

Infrastructure Upgrade

Since the inception of the Internet in the 1960’s, much effort has been made in standardizing how computers connect to it. In 1982, the International Organization for Standards (ISO) realized that during that period many ad hoc networking systems were already using the TCP/IP protocol for communications and thus adapted it as a standard in its model for the Internet network [2]. The main driver for IP convergence, at that period, was the growth in data traffic through wide area networks (WANs) established by local companies. Furthermore, in 1991, the Internet was open for commercial use, and that demanded a reduction in the total cost of operating the network to cope with 1 million Internet hosts that materialized in only 1-year time. Telecommunications companies like AT&T understood the potential and worked on standardizing the network offering voice services over IP networks that managed the separation between voice and data transmission [3].

At the same time, Ford had launched its plan to update its infrastructure, and seized the opportunity brought by the global movement of integrating the voice, fax transmission network with data transmission and expanded its WAN to include its offices in Europe and elsewhere. The financial benefits also came from the fact that Ford adapted the TCP/IP protocol from the beginning and made sure that all its technical infrastructure upgrades adhere to the standards. This made the transition of its system to the Internet as cost effective as it could be.

Web Technologies

Intranets employ the hypertext and multimedia technology used on the Internet. Prior to 1989, when Tim burners-Lee invented the Web [4], most applications used standard development languages such as C and C++ to create desktop applications that were proprietary and dependent on the platform. For example, applications running on a command-based operating system such as UNIX would not run under Windows, and those working for PCs might not work on Apple computers and vice versa [5]. The invention of HTML (Hyper-Text Markup Language) introduced a new model for applications that conform to the standards provided by a single program, the “Web Browser”. Unlike standard applications, the browser brought a unified interface that had a very fast learning curve. Users seem to require no additional training to work with web browsers. Furthermore, system administrators did not have to spend time installing upgrades on users’ machines, since the Intranet client/server architecture facilitated all the updates through the connection with the web server [6].

Since Ford established its Intranet, it was aiming at building web applications through the initial analysis of “Mosaic”, the early form of web browsers. The technical department at Ford used web languages to create the first web site in 1995. In 1996, the team started building applications making use of the unified “Netscape” browser that was deployed on all machines at the company, and working on a standard template to cut on the development life cycle. There was a substantial cut in training cost due to the user-friendly interface of web applications. Furthermore, the speed of development made vital applications available to different individuals across the company. For example, the B2B site allowed suppliers remote and secured access to various sections of Ford’s Intranet. In addition, the development team created an application as a virtual teardown on Ford’s website where Ford’s engineers could examine parts of competitors’ cars and evaluate any new technologies. The alternative would have been an actual trip to a physical location where Ford tears down cars to examine the parts.

Knowledge Management

While there are many definitions for knowledge, each company might adapt its own based on how it analysis data and information to acquire knowledge. The University of Kentucky, for example, defines knowledge as “a vital organization resource. It is the raw material, work-in process, and finished good of decision-making. Distinct types of knowledge used by decision makers include information, procedures, and heuristics, among others… ” [7].

Organizations go through different activities to manage the amount of information they collect to form the knowledge base of the company. Activities include creating databases of best practices and market intelligence analysis, gathering filtering and classifying data, incorporating knowledge into business applications used by employees, and developing focal points for facilitating knowledge flow and building skills [8].

Ford was excited about the traffic it was receiving on the Web site and everyone was publishing all the material they have on desk on the Intranet. Nevertheless, there was a growing concern about the usability and usefulness of the material people were adding. As a result, Ford created a “Knowledge Domain Team” to build complete information in nine areas that were identified as vital to the business. The process Ford took was based on surveys and specialists input in how people perceive information, and what is considered vital and what is distracting in the structure of Ford’s website. The aim behind the initiative was to reduce the time individuals spent in searching for information through proper indexing of the website content, and making sure that what was important could be accessed in due time, and what is trivial did not overwhelm the researcher with thousands of results.

Business Re-engineering

In the area of organization’s re-engineering process innovation is the set of activities that achieve substantial business improvements. Companies seeking to benefit from process innovation go through the regime of identifying the processes, the factors for change, developing the vision, understanding the current process, and building a prototype for the new organization. History shows that organizations who define their processes properly will not have problems managing the issues and developing the change factors [9]. When introducing technology, business redesign is necessary. The industrial fields have been using Information Technology to remodel processes, control production, and manage material for generations. However, it is only recently that companies recognized that the fusion of IT and business would go beyond automation to fundamentally reshaping how business processes are undertaken [10].

When foreign companies were allowed to compete in the U.S. market, Ford understood that to succeed in business in a competitive arena it needed to implement strategies that competitors find difficult to imitate [11]. As a result, Ford bought Sweden Volvo to enter the European market, and partially owned Mazda to have a competitive edge with Japanese cars1 [12]. To achieve that it re-engineered its production development activities and global corporate organization and processes for dramatic cost reduction. Furthermore, it understood that expansion requires collaboration and alignment, and thus planned to establish the IT infrastructure through a WAN that connected all the offices. In the process of innovation and re-engineering, Ford has set policies to manage the cost of establishing the network, built models for continuous implementation, and organized global meetings to align all parties with the process. Adding to that, when it came to managing the website, Ford facilitated an awareness campaign for all the branches to understand that Ford is using the web to collaborate and research and adapting information technology as a way to maximize its business value. The goal for Ford was to maintain its leadership in the market and to do that in the most efficient and cost effective method that is there.

Supply chain management

Supply chain management (SCM) is about coordinating between suppliers, manufactures, distributors, retailers, and customers [13]. The basic idea that SCM applications revolve around is providing information to all those who are involved in making decisions about the product or goods to manage delivery from the supplier to the consumer [14]. Studies show that reducing errors in supply chain distribution, increases revenue, enhances productivity, and reduces the order-to-fulfillment period [15].

Ford often compared its supply chain process to that of Dell’s, in an attempt to close the gaps in its own process and reach the level of success Dell has reached. The difference in the distribution model between Dell and Ford lies in the middle link of using retail shops. Since Ford cannot skip retail as a focal distribution point, it worked on establishing a network of retail shops that it owned. Ford made sure shops are not affecting each other in terms of sales, and gave them all a standard look and feel to establish itself in the consumer’s market as a prestigious cars sales retail company. Furthermore, extensive re-engineering initiatives were undertaken to enhance Ford external network by eliminating the correlation with smaller suppliers. In that way, Ford made sure that key suppliers have access to forecasting data from customers’ purchasing trends and production information to enable a faster order-to-delivery cycle. Ford vision was to create a model that allowed flexibility, predicable processes and delivered the product at the right time to the right consumer.

Conclusions

Ford is an example of how traditional organizations can mature to adapt what is current and maximizes the business value. The process that Ford went through necessitated the continuous support from management. In addition, it depended on alignment between those involved as a key for success. The correlation was not restricted to internal staff; it extended to cover competitors to reach mutual benefits, to work with suppliers to maintain similar grounds and adequate infrastructure, and to create training programs to educate all on the vision and organization’s objectives.

Ford technical progress came at a time where the Internet was yet to reach its full potential. The introduction of Fiber-optic cables in the late 90’s and the substantial increase in bandwidth would have helped Ford and cut on the cost in endured connecting its own offices. Furthermore, the ISP services that provided hosting servers were limited to only few players, which explained why Ford preferred to manage its own web server and maintain the overhead of the 24 hours uptime and backup.

From this case study, I understood the level of commitment large firms have to maintaining their position in the market. These companies know the revolving nature of business in the sense of how easy it is to fall back if they did not keep up with the change. The Ford process also shows the need for quick and resourceful thinking when faced with situations that might seem to be unfavorable. The way Ford ventured into the foreign market by acquiring local manufacturers was a strategic decision that did not only enabled Ford to merge with different technologies, but it also saved it the additional cost of establishing production centers in Japan and Europe.

Recommendations

  • Maintaining leadership in the market requires innovative organizations willing to reengineer to succeed.
  • IT fusion with the business means restructuring and remodeling to understand the role IT would play to meet the business objectives
  • Planning and modeling is vital when coordinating work with large teams.
  • Constructing websites is not about content; it is about understanding what adds value and how humans interact with information.
  • Knowledge management is a plan that companies need to develop as part of their initial business process modeling
  • It is not wrong for large firms to try to adapt to successful processes implemented by other firms.

References

  1. Robert D. Austin and Mark Cotteleer,”Ford Motor Co.: Maximizing the Business Value of Web Technologies.” Harvard Business Publishing. July 10, 1997. harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml;jsessionid=WDARNHINBSYKSAKRGWCB5VQBKE0YOISW?id=198006 (accessed July 30, 2008).
  2. Computer History Museum, Internet History 80’s. 2006. computerhistory.org/internet_history/internet_history_80s.shtml (accessed July 30, 2008).
  3. Darren Wilksch and Peter Shoubridge, “IP Convergence in Global Telecommunications.” Defense Science & Technology Organization. March 2001. http://www.dsto.defence.gov.au/publications/2400/DSTO-TR-1046.pdf (accessed July 30, 2008).
  4. Computer History Museum, Internet History 80’s.
  5. H. Joseph Wen, “From client/server to intranet.” Information Management & Computer Security (MCB UP Ltd) 6, no. 1 (1998): 15-20.
  6. R. Boutaba, K. El Guemioui, and P. Dini, “An outlook on intranet management.” Communications Magazine (IEEE), October 1997: 92-99.
  7. Joseph M. Firestone, Enterprise Information Portals and Knowledge Management (OXFORD: Butterworth-Heinemann, 2002), 169.
  8. David J. Skyrme, “Knowledge management solutions – the IT contribution.” ACM SIGGROUP Bulletin (ACM) 19, no. 1 (April 1998): 34 – 39, 34.
  9. Thomas H. Davenport, Process Innovation: Reengineering Work Through Information Technology (Watertown,MA: Harvard Business Press, 1993), 28.
  10. Thomas H. Davenport “The New Industrial Engineering: Information Technology and Business Process Redesign.” Sloan Management Review 31, no. 4 (Summer 1990): 11-28, 12
  11. Gary M. Erickson, Robert Jacobson, and Johny K. Johansson, “Competition for market share in the presence of strategic invisible assets: The US automobile market, 1971-1981.” International Journal of Research in Marketing (Elsevier Science) 9, no. 1 (March 1992): 23-37, 23.
  12. Austin and Cotteleer, “Ford Motor ” , 2.
  13. Henk A. Akkermans, et al. “The impact of ERP on supply chain management: Exploratory findings from a European Delphi study.” European Journal of Operational Research 146 (2003): 284-301, 286
  14. Thomas H. Davenport and Jeffrey D. Brooks, “Enterprise systems and the supply chain.” Journal of Enterprise Information Management 17, no. 1 (2004): 8-19, 9.
  15. Kevin B. Hendricks, Vinod R. Singhal, and Jeff K. Stratman. “The impact of enterprise systems on corporate performance:A study of ERP, SCM, and CRM system implementations.” Journal of Operations Management 25, no. 1 (January 2007): 65-82.

India – A Future Warehouse of the World

Abstract

India has the world’s second largest population and one of the fastest growing economies in the world. India has a promising future, given the unprecedented growth in economy and its clout in the global issues. India is now riding on the wave of a gigantic boom in computer driven new economy. Many developed countries of the world are seeking the huge pool of English speaking talented software professionals in India. As the world is transforming towards knowledge society, India too is moving proportionately competing with the world. With the increase of Internet users and the advancement of information and communication technology in India had boasted the development towards e-commerce in global economic society. In IT sector India is booming as a super power. In the last few years India has made rapid strides in the IT sector especially in the software services and IT enabled services. In this paper we analyses the picture of IT industry in a very near future in India & contribution of India in world’s Information Technology Sector.

Introduction

From the 1950s, IBM had a virtual monopoly of computers in India. The 360 series release in 1960s was the major workhouse of the large organizations. They even maintained a chain of programmers who could write down software’s for their machines. However in 1978, when George Fernandes, ministry of industries at that time, commanded IBM to take local shareholders into its subsidiary, the company refused strictly and went back after winding up its all operations in India. Its ex-employees then set up Computer Maintenance Corporation, with the primary object of maintaining IBM computers.

During the period of 1995-2000, the Indian IT Industry has recorded a C.A.G.R. (Compounded Annual Growth Rate) of more than 42.4 percent, which is almost double the growth rate of IT industries in many of the developed countries. For Details contact AMCHAM National Secretariat, New Delhi Foreign companies particularly American companies have played a vital role in making India an emerging IT super power in the world. These MNCs account for nearly 22 per cent of Indian software exports. According to the latest NASSCOM estimates, in 2001-02, multinational infotech companies exported software worth Rs. 6500 crore from India. Country’s total software export was pegged at Rs. 29400 crore. In terms of investment and growth, U.S. companies like Cognizant Technologies (largest export revenue earning MNC) IBM, Oracle, GE, Cisco, Compaq, Intel amongst others lead the MNCs in the Information Technology sector. Nine out of top 20 Indian IT firms are from United States. These account for over 37% of the turnover of the top 20 firms operating in India. Despite their significant contribution to the IT sector, these companies have to face a number of procedural and operational problems in India.

However, the volume of e-commerce, in India, is far below the levels achieved in USA, which was about 1 percent of the total GDP in 1999. Further, the expected volume of e-commerce in India in 2001 (US$ 255.3 million) is also below the levels expected to be achieved, which in comparison to Australia (US$ 3 billion), China (US$ 586 million), South Korea (US$ 876 million) and Hong Kong (US$685 million) is quite less.

Time has changed the way businesses are carried out. What was supposed to be known to few and limited to the home towns, appears to be an ancient methodology of carrying out the work. The present day brands work on world wide scale, that is they are successful in not just one particular region but have deepened their roots to all the corners in the globe that you can think of.

Information Technology is what constitutes the most important sector in the present day trend of carrying out business. It is because you can not be present everywhere to monitor the work, but with networking and communications, you can always stay in contact with the other business sites of yours.

ICT Approaches of India

A spate of reforms-post-1991 economic crisis-have given impetus to the Indian economy, particularly to the ICT sector. As part of the reform agenda, the Indian Government has taken major steps to promote ICT including the creation in 1988 of a World Market Policy, with a focus on software development for export; telecommunications policy reform; privatization of the national long-distance and mobile phone markets; and development of a more comprehensive approach to ICT. Although India’s success is commanding increasing attention and investment, it has yet to result in the distribution of social and economic benefits across a broader base of the population. Challenges-including the perception of an unfavorable regulatory climate, an overloaded judicial system, poor infrastructure and costly access, and limited use of ICT-remain. The emerging shift in government strategy, toward knowledge-intensive services, has created a climate more conducive to addressing enterprise, domestic infrastructure, education and the use of ICT to meet development needs.

Policy: India’s focus on self-reliant industrialization in the 1970s and 1980s has been replaced with reforms aimed at positioning India in the world economy: the foreign direct investment process has been streamlined, new sectors have been opened up to foreign direct investment and ownership, and the government has exempted the ICT industry from corporate income tax for five years. These reforms have helped India to become increasingly integrated into the global economy through growth in the export of software and skill-intensive software services, such as call-centers.

In 1986, the Indian government announced a new software policy designed to serve as a catalyst for the software industry. This was followed in 1988 with the World Market Policy and the establishment of the Software Technology Parks of India (STP) scheme. As a result, the Indian software industry grew from a mere US$150 million in 1991-1992 to a staggering US$5.7 billion (including over US$4 billion worth of software exports) in 1999-2000-representing an annual growth rate of over 50 percent.

The establishment of the Telecommunications Regulatory Authority of India (TRAI) was a key step towards effective implementation of telecommunications reforms. In 1992, the mobile phone market was opened up to private operators, in 1994 the fixed services market followed, and finally in 1999, national long distance operations were opened to private competition. Prior to these reforms, the Department of Telecommunications had been the sole provider of telecommunications services.

In addition, to attract foreign direct investment, the government permitted foreign equity of up to 100 percent and duty free import on all inputs. Government-created technology parks also offered professional labor services to clients, a cost-effective program for India since ICT labour is so inexpensive by global standards.

Infrastructure: Teledensity in India has reached 3.5 percent of the population. Approximately 1 percent of households have fixed line connections, compared to 10 percent in China. The mobile sector has approximately 3 million users, growing at 100 percent per annum, and is expected to outstrip the fixed line market in the near future. The number of Internet accounts is around 1.5 million, growing at 50 percent per annum. India also has very high penetration rates of terrestrial TV, cable and radio. Voice and data wireless solutions, for both domestic and export markets, are increasingly produced and used locally.

Access to telephones in Indian villages has improved in the last five to six years through the introduction of the Public Call Office (PCO) run by local shopkeepers. More than 60 percent of the villages in India have at least one phone. This also includes over 800,000 Village Public Telephones (VPTs). Worldtel is undertaking a pilot in four states to secure financing to upgrade the Village Public Telephones so they will soon be Internet-accessible.

In some urban locations, India’s Software Technology Parks (STPs) provide infrastructure, buildings, electricity, telecommunications facilities and high-speed satellite links to facilitate export processing of software.

India also has a number of progressive computerized networks in place, including a stock exchange, the Indian Railways Passenger Reservation System, and the National Informatics Centre Network (NICNET), which connects government agencies at the central, state and district levels.

Enterprise: India’s well-established framework for protecting intellectual property rights has been an important inducement to business investment: well-known international trademarks have been protected by Indian laws, even when they were not registered in India. In 1999, major legislation was passed to protect intellectual property rights in harmony with international practices and in compliance with India’s obligations under TRIPS.

Much of the initial domestic demand stimulus for ICT and ICT services industries in India has come from government: 28 percent of total IT spending to date can be attributed to government and public sector expenditure. Major areas of government expenditure include: financial services, taxation, customs, telecommunications, education, defense and public infrastructure. As a result of the growth in ICT use in India, the ICT industry itself has also increased its domestic economic activity, for example, a number of ICT companies have developed accounting and word processing packages in Indian languages. The potential impact of this growth on the domestic economy is much broader than developing software for export only.

Human Capacity: In spite of relatively low literacy rates among the general population, India has several key advantages in human capital: a large English-speaking population and world-class education, research and management institutions-a direct result of investment in self-reliance in science and technology. In addition to establishing Indian Institutes of Technology in various cities around India to create a large pool of technical skills, the government has a computer policy to encourage R&D in personal computers. The IT training sector continues to grow at a rapid rate: total training revenues in 1998 were estimated at US$225 million, 30 percent up on the previous year. However, one of the biggest challenges to the Indian software industry remains the difficulty in attracting and retaining talented professionals.

Content and Applications: India has a large population with great linguistic diversity. Creating and maintaining locally relevant content for a country with 418 languages is a challenge. Nevertheless, local language content is slowly making ICT more relevant and accessible to a broader cross-section of the population. For example, India’s Center for Development of Advanced Computing has recently launched a scheme called iLEAP-ISP to create a free multilingual word processor to be made available to all Internet subscribers. On other fronts, some states such as Tamil Nadu have launched their own initiatives to support the standardization of local language software through interface programs that can be adapted to word processors, dictionaries, and commercial keyboards for use in schools, colleges, government offices and homes.

An emphasis has also been placed on the development of relevant e-government applications in India. Some states such as Madhya Pradesh and Andhra Pradesh have started to introduce applications which allow citizens to have faster and more transparent access to government services-for example, the provision of information on laws and regulations, and the procuring of licenses and official documents online.

Strategic Compact: Public-private partnerships, catalyzed by the IT Ministry, have played a key role in India’s ICT-related development. One of the positive results of this effort has been the IT Act of 2000, which was based on the recommendation of the National IT Task Force, and aims to set the overall strategy for the IT sector. In addition, the government and the private sector are starting to come together to foster ICT development. For example, a joint effort by the Computer Science Automation Department at the Indian Institute of Science and a Bangalore-based private company have developed Simputer-a cheap micro-computer that enables illiterate users to browse the Internet.

India’s development and contribution in world’s information technology sector is of highest reputation. Cities like Bangalore have become the favorite(most preferred) destinations of all the big banners like HSBC, Dell, Microsoft, GE, Hewlett Packard, and several Indian multi national firms like Infosys Technologies, Wipro, and Microland who have set up their offices in the city. It is because the city offers good infrastructure, with large floor space and great telecom facilities. This can be judged on the basis of the high growth statistics of India and the changing outlook of the companies towards India .

It is because of this growth many popular brands that have not yet build up there rigid offices in the country are making it fast to have a destination in India too. For example, Sun Microsystems, a global IT major, announced in Bangalore to double the present workforce of the company’s Sun India Engineering Center (IEC) from the present 1000 to 2000 in the next two years time. IEC, which is the largest R&D center for Sun outside the US , would also focus on developing products in India to suit the needs of the Indian market, which would be benchmarked globally.

This speedy growth of IT Sector is undoubtedly due to the efforts of Indian government and the other developments that took in the other parts of the globe.

The country has seen an era when after the IBM shutted its shop in India in 1950, the mainframes that were imported into the country were all from Russia . Western computer could not be imported because of an American embargo on export of high-technology equipment to India , which was considered an ally of the Soviet Union .

Slowly, with the time the country could develop its first powerful parallel computer in 1991 known as CDAC, by connecting together a string of less powerful computers.

With time and the continuous growth across the world, the country continued struggling and came up as the world leader in Information Technology Sector.

The industry has grown up to US $ 5.7 billion (including over $4 billion worth of software exports) in 1999-2000, with the annual growth rate not sliding below 50 percent since 1991.

It exports software and services to nearly 95 countries around the world. The share of North America ( U.S. & Canada ) in India ‘s software exports is about 61 per cent.

The Indian labor is not only cheap but is technically skilled too to the world class level. It is due to the Indian Education System that includes in its course curriculum the practical knowledge of the latest technology that is developed in world along with the fluency in English Language that imparts compatibility in an Indian technician to communicate and work through out the world.

Further the geographical location of India serves it the advantage of being exactly halfway round the world from the US west coast, which is another reason why India is preferred destination of many big brands.

Also, The presence of a large number of Indians, especially engineers, in the US gave India an easy entry into the US software market.

What adds more to the dominance of India in Information Technology Sector is the government policies like the enactment of cyber laws to protect and safeguard the interest of software companies in India .

Setting up of the Software Technology Parks of India (STPI), by the Ministry of Information Technology, Government of India and the International Technology Park in a joint project by the State Government, the TATA Group and the Singapore Consortium to promote and facilitate the software exports is another major step towards the growth of Indian Information Technology Sector.

Similarly an industrial park, known as Electronic City , was set up in 1991 takes more than a hundred electronic industries including Motorola, Infosys, Siemens, ITI, and Wipro, in an area of around 330 acres.

The Export Promotion Industrial Park , built near International Technology Park , gives an exclusive 288 acres of area for export oriented business. GE has its India Technology Center located at this park and employs hundreds of multi disciplinary technology development activities.

The other promotional activities that brought up India to this position include the IT Corridor project. Conceptualized by Singapore ‘s Jurong Town Corporation Private Ltd, the IT corridor Project was initiated by the Department of IT and the Bangalore Development Authority in order to develop state of the art facilities for the development of knowledge based industries.

Thought’s of some World’s IT leaders about India

“Economic growth will force better governance, and better governance will feed more economic growth”

SV, NYC, USA

The people and communities at large feel that they don’t have the ability to make a difference

Juzar Singh Sangha, Bedford

India has to take more care of the village population who are still struggling to live properly

John Karondukadavil, India, Living in Poland, Jaslo

India can become a superpower if she concentrates on the technology market niche

Devyani Prabhat, Jersey City, USA

India must counter its skills and wage crisis

Pallavi, Sydney, Australia

Hopefully India will lead the world towards a more humane and tolerant future

Nilesh, Antwerp, Belgium

India needs to take strong and clear cut decisions to emerge as a global player

Nivedita Nadkarni, Madison, USA

India is a country gaining economic ground in the world

Justin, Bristol, UK

Indians now have to develop a sense of national pride

Leila, USA

India will never be a superpower, much less a global power

Jonathan, Boston, USA

India has had a sharp increase in the estimated number of HIV infections

Sezai, Eskisehir, Turkey

India’s economic success is built on the sacrifices of previous generations

Shekhar Scindia, Edison, NJ, USA

While India’s economic growth is encouraging, its sustainability is doubtful

Sigismond Wilson, Sierra Leonean in Michigan, USA

Conclusion

India is a perfect solution for all those companies, which seek for cheap, yet technically skilled labor who have innovative minds and state of art to work over a project. The ample of facilities provide in a perfect working conditions. For rest, cyber laws are there to monitor and safeguard everyone’s interest related to IT sector.

All these reasons contribute for India to be as the most adored destination to many companies. . So we can conclude:

•India poised for an explosive growth in ICT

•India emerging as a global R&D Hub

•From brain drain to brain gain

•Millions of jobs will be created in ICT & other emerging technology areas

•Quality issues will have to be addressed

•Private Sector world class institutions will emerge with global collaborations

•India will reclaim its ancient heritage of the world’s most advanced knowledge-based civilization called “Bharat”.

India will become Warehouse of IT in the world

.

References

1. Goodman, Seymour E.; Burkhart, Grey E.; Foster, William A.; Mittal, Arun; Press, Laurence I.; and Tan, Zixiang (Alex), The Global Diffusion of the Internet Project, Asian Giants On-Line, Chapter 3 (India) and Chapter 4 (China), The Global Information Technology Assessment Group, Fairfax, VA, November 1998.

2. Press, L., Developing Networks in Less Industrialized Nations, IEEE Computer, vol. 28, no. 6, June 1995, PP 66-71.

3. [http://www.stpn.soft.net]

4. An Indian Perspective on IT & Engineering Programs ,Vijay Bhatkar, International Institute of Information Technology, Pune, India

5. Nasscom

6. Anuranjan Misra ” Software outsourcing from India” National Seminar on Strategies in Business Process Outsourcing”, IIMS, Bareilly, INDIA, Dec. 08-09 2004.

7. Anuranjan Misra” India – An Emerging IT Super Power” International Seminar on India 25 Years and Hence, IIMS, Bareilly, INDIA, Fev. 08,2006.

Diversification in Agriculture Sector: A Catalyst For Sustainable Economic Development in Nigeria

Agriculture involves the cultivation of land, raising and rearing of animals, for the purpose of production of food for man, feed for animals and raw materials for industries. It involves forestry, fishing, processing and marketing of these agricultural products. Essentially, it is composed of crop production, livestock, forestry, and fishing.

Agriculture is the mainstay of many economies. All over the world, the development of an enduring economy goes hand in hand with agricultural development thus, there is a need for Nigeria to exploit her various agricultural resources to full potential in order to accelerate her quest and efforts to achieving sustainable economic development.

Agriculture is considered a catalyst for the overall development of any nation; development economists have always assigned the agriculture sector a central place in the development process, early development theorists though emphasized industrialization, they counted on agriculture to provide the necessary output of food and raw materials, along with the labour force that would gradually be absorbed by industry and services sector. Much later thinking moved agriculture to the forefront of the development process; the hopes for technical change in agriculture and “green revolution” suggested agriculture as the dynamo and magic wand for economic growth and development.

The industrial revolution of the Nineteenth century which catapulted the agrarian economies of most countries of Europe got their stimuli from agriculture; the sector in recent history has also worked a tremendous miracle in countries like Mexico, India, Brazil, Peru, Philippines and China where the Green Revolution was one of the great success stories. Indeed, the importance of agriculture in any nation’s economy cannot be over emphasized, for instance, in United States of America, agriculture contributes about 1. 1% of the country’s Gross Domestic Product.

The above statistic indicated that the more developed a country is the lower the contribution of agriculture to Gross Domestic Product. Economy diversification is an economic development strategy characterized by increasing the numbers of the revenue base of an economy. The Nigerian economy is a mono-cultural economy depending on crude oil as the main source of her revenue, it is crucial that government should not keep on believing that oil provides an endless source of revenue.

As a matter of priority, Nigeria government must encourage the rapid diversification of Nigeria’s economy as this is the only sustainable way to survive the current environment of global economic uncertainty of international oil price volatility and shocks, unfavourable quota system and depletion.

Diversification in the agriculture sector is therefore suggested for Nigeria as a developing economy to ensure food and nutritional security, income and employment generation, poverty alleviation and to encourage industrialization, ease pressure on balance of payment, reliable source of government revenue and overall economic development of the country.

Prior to the political crisis of 1967-1970, agriculture’s positive contributions to the economy were instrumental in sustaining economic growth and stability. The bulk of food demand was satisfied from domestic output, thereby obviating the need to utilize scarce foreign exchange resources on food importation.

Stable growth in agricultural exports constituted the backbone of a favorable balance of trade. Sustainable amounts of capital were derived from the agricultural sector through the imposition of several taxes and accumulation of marketing surpluses, which were used to finance many development projects such as the building and construction of Ahmadu Bello University (Zaria) and first Nigerian skyscraper-cocoa house in Ibadan. The sector, which employed 71% of the total labor force in 1960, employed only 56% in 1977, the number stood at 68% in 1980, falling to 55% in 1986, 1987 and 1988; and 57% annually from 1989 to 1992, and has continued to nosedive into 2000s as the result of the neglect of the sector.

To channel itself on the path to modern development, Nigeria should examine what factors hindered the development of its agricultural sector, which was the backbone of the Nigerian economy before the era of oil boom. It should rectify the mistakes it made in over 54 years by immediately putting these strategic plans into action. The people of Nigeria can uplift themselves from poverty and distress by eradicating corruption and devoting themselves to strive for progress.

The 2020:20 initiative will keep Nigeria focused on improving their economy and combined with a significant effort to reducing food imports and to increase food production within their own country, Nigeria can witness a timely turn around in their investment. Nigeria has the necessary components in place to return to an agricultural-based economy. Research has demonstrated that a return to an agricultural economy is not only possible, but will greatly benefit the entire country of Nigeria.

To achieve sustainable economic development and to lift the dormant and continuously dwindling contribution of the agriculture sector, Nigeria needs to have some recommended pre-requisites diversification policies such as provision of financial resources to sector to get it up and functioning; a combination of government provision of subsidies, improved and high yielding seedlings and breeds for private companies and small scale farmer producing as large as 85% of the sector’s agricultural output are needed to boost the agricultural market.

There also need to revise the current import and export regulations to make it more convincing for other countries to accept agricultural products from Nigeria. It is an established fact that with the population of over 170 million, vast cultivatable farmland, a conducive climate and soil, Nigeria has the necessary productive resources required to have a strong welcome back of the agriculture sector as an engine to achieving sustainable economic development.

It is therefore plausible for Nigeria to diversify into the agriculture market in their effort to become more self-sustainable and be recognized as one of the world economic power.

How to Increase the Lifespan of Your Conveyor: The Smart Tips

Correct tracking of the belt is important. Most conveyors are built with PVC or PU belts. These belts need to be installed and tracked correctly after first installation. A lot of people do this with every conveyor before it leaves the factory. Therefore no major adjustments should be needed after the conveyor is set up on-site. It is important that you double check the tracking of the belt before the conveyor starts the production. It is also a good idea to periodically check if the belt tracking is correct. This will greatly increase the serviceable lifespan of any conveyor belt.

Conveyors are designed with heavy-duty drive and idler rollers. These rollers are slightly crowned according to belt manufacturer’s specifications. All conveyors are delivered with belt stretch/tracking adjustment bolts on either side of the idler rollers. To adjust tracking, simply loosen the bolt that holds the idler side-plates in position and tighten the adjustment bolt on the side the belt is moving towards too. In other words, if the belt is to far on the left, tighten the left adjustment bolt. The amount of tension needed depends on the size and speed of the belt. In general, it can be said that only small adjustments will be needed. A quarter turn of the adjustment bolt can make a huge difference. So be careful not to over compensate. Give the belt a bit of time to settle in its place and make fine adjustments if necessary. After the belt has settled in, don’t forget to tighten the side-plates. Some conveyor experts observe a periodical check to make sure the tracking is still okay.

Tracking of a belt on a conveyor is normally done via slightly crowned rollers. This approach works really well in most applications and conveyors utilizes this approach on all standard conveyors. There are however, a few circumstances where this approach is not reliable and other solutions need to be implemented. Conveyors with a width to length ratio of less than 1:2 for instance will not track properly with crowned rollers. Conveyors where the direction of travel changes should also not rely on crowning.

The Smart Strategy – A Conveyor with a Tracking Strip

It is now possible to order belt conveyors online where the belts themselves are fully guided. This is done via a tracking strip joined onto the underside of the belt, which in turn runs in the base extrusion T-slot and a location groove machined into the rollers. This feature offers the opportunity to integrate standard belt conveyors into an automation solution, which up to now would have demanded the use of a modular belt conveyor. In most cases those would be substantially more expensive.

With clever and innovative solutions such as the fully tracked belt conveyors, several online conveyor shops are again able to help you save money. Fully guided conveyors can still be shipped within two working weeks, fully assembled!

Dyestuff Industry In India And China

World demand for dyes and organic pigments to touch $10.6 billion in 2008

According to a study on dyes & organic pigments, the worldwide demand for organic colourants (dyes and organic pigments) is projected to increase at $10.6 billion in 2008 form 4.9 per cent annually in 2003.

Generally, the dyestuff industry comprises three sub-segments, namely dyes, pigment and intermediates. The dye intermediates are petroleum downstream products which are further processed into finished dyes and pigments. These are important sources in major industries like textiles, plastics, paints, paper and printing inks, leather, packaging sector etc.

Leading players in dyes

Textile dyes have been used since the Bronze Age. They also constitute a prototype 21st-century specialty chemicals market. Three large manufacturers namely DyStar, Ciba Specialty Chemicals and Clariant are leaders in the dyes market. The biggest, DyStar, was established in a series of mergers of some of Europe’s leading textile dye businesses in the 1990s. Worldwide excess capacity and price burden, fueled by the immediate growth of Asian manufacturers, have shifted most dyestuff chemistries into commodities. Regulatory barriers have nearly stopped the progress of the opening of fundamentally new dyestuffs. Despite this DyStar, Ciba Specialty Chemicals and Clariant have grown over the past 10 years with innovative products and new chemistry is being set to endure reactive and dispersant dyes as well as in older dyestuffs such as sulfur dyes.

In 2001 the biggest individual company market shares in colourant production were DyStar (23%), Ciba (14%), Clariant (7%), Yorkshire Group (5%), Japanese (5%) and other traditional groups (3%)., and various dyestuff manufacturers comprise the largest group at 43%.

The only way to growth and to keep Asian bulk dyestuff manufacturers at bay, they say, comes straight out of specialty chemicals strategy to distinguish product offerings through collaborative work with customers and charge a premium price for particular products that gives a perfect solution. This is an effective method, provided that these suppliers produce in China, India, Pakistan, and Brazil as well as in the U.S. and Europe, and that most of the textile producers aim to maintain uniform quality and product performance across worldwide.

Europe is facing the problem of overcapacity of about 30 to 40 per cent in the market from Asia, especially China. But, experts believe, Asian manufacturers manufacture a limited number of low-cost, basic dyestuffs. Most of experts of this field believe that growth lies in innovation and differentiation. Though, of the 180,000-ton-per-year worldwide market for dispersed dyes, specialty dyes consist only about 5,000 tons.

DyStar is a major manufacturer of reactive dyes, which were developed 50 years ago at ICI. DyStar was recently purchased by Platinum Equity, is made up of the dyes business of the original ICI, as well as those of Bayer, BASF and Hoechst. DyStar has developed deep-shade dyes for polyesters. New chemistries are emerging for controlling staining from azo and anthraquinone dyes, including thiophene-based azo dyes. DyStar has also developed benzodifuranone dyes for heavy red shades. It modified azo dyes to keep up their performance when applied with the new detergents. The company also set up secrecy agreements with the leading detergent producers to test new detergent chemistry and do the required dye reformulation proactively. It has added the number of reactive groups in its fluoroaromatic Levafix CA reactive dyes. The company has also been functioning on strengthening the chromophore or color component of the dye for improved lightfastness.

Recently, DyStar has made new red dye for cellulosic fibers, Indanthren Deep Red C-FR Plus, is a new speciality dye for medium to heavy shades of red and Bordeaux, suitable for the coloration of cellulosics on continuous and yarn dyeing units as well as cellulosic/polyamide blends. DyStar Textilfarben GmbH has also introduced the classic cold pad batch dyeing process (cpb). Key developments in cold pad batch technology were started in 1957 and are still ongoing:

-Development of dosing pumps (Hoechst)

– Introduction of sodium silicate as a fixing alkali (Hoechst)

– Development of microwave and oven lab fixation method (Hoechst)

– Mathematical determination of pad liquor stability under practical conditions (Hoechst) —

Optidye CR (DyStar)

– Development of silicate free alkali systems (DyStar)

The dyestuffs industry of China

In the first half of 2005, China gained a growth of 4 per cent in dyes and 11 per cent in organic pigment output. A report stated that China’s demand for dyes and pigments is expected to increase at 12 per cent annually by 2008 and output of dyes and pigments will rise by 13 per cent annually by 2008.

According to statistics, in 2004, the production volume of dyeing stuffs and pigments in China reached 598,300 tons and 143,600 tons, an increment of 10.4 per cent and 13.3 per cent over that of the previous year. The total imports and exports of dyeing stuffs and pigments were projected to be 291,200 tons and 138,800 tons; an increase of 10.64 per cent and 16.15 per cent over the same time the previous year. Hence, China has developed to be a large manufacturer, consumer and dealer of dyeing materials, pigments and dyeing auxiliary.

China becomes top importer for Bangladesh

During July-September 2005 Bangladesh imported dyes and chemical (combined) worth 3.73 billion taka ($57.5 million) from China against 2.53 billion taka ($38.9 million) from India.

DyStar expands China facility

Recently DyStar has announced to invest around USD 55 million in a new textile dyes facility at Nanjing to extend its production base in China and step up its focus on this key growth market. Situated about 300 kilometres north-west of Shanghai, Nanjing is the capital of Jiangsu Province, a key area for textile production. It will be DyStar’s third production unit in China, alongside Wuxi, where the production capacity was tripled last year, and Qingdao. This new production site will increase their growth in China. At the same time it will strengthen their international competitiveness and boost market leadership. This investment is a clear sign that DyStar is continuing to invest in its core business and will remain a reliable partner for the textile industry in the long term.

At the new production complex in Nanjing, DyStar will produce dyes for cellulosic and synthetic fibres. In-built flexibility will permit the manufacture of other dyes and extension of the infrastructure in line with requirements. That means DyStar will be able to respond quickly to the rising demand in China. The inauguration of the first plant is scheduled in the first half of 2006.

Indian dyestuff industry

In India the dyestuff industry supplies its majority of the production to the textile industry. Huge of amounts exports of dyes and pigments from India are also done to the textile industry in Europe, South East Asia and Taiwan.

Currently, the Indian dyestuff industry is completely self-dependable for producing the products locally. India presently manufactures all kinds of synthetic dyestuffs and intermediates and has its strong holds in the natural dyestuff market. India has come up as a global supplier of dyestuffs and dye intermediates, mainly for reactive, acid, vat and direct dyes. India has a share of approximately 6 per cent of the world production in dyestuff products.

Structure of dyestuff industry in India

The Indian dyestuff industry has been in existence since about 40 years, though a few MNCs established dyestuff units in the pre independence era. Like the other chemical industry, the dyestuff industry is also widely scattered. The industry is functioning by the co-existence of a few manufacturers in the organised sector (around 50 units) and a large number of small producers (around 1,000 units) in the unorganised sector.

The spreading of these units is slanted towards the western region (Maharashtra and Gujarat) accounting to 90 per cent. In fact, about 80 per cent of the total capacity is in the state of Gujarat, where there are about 750 units.

There has been a huge development in the dyestuff industry during the last decade. This has happened due to the Government’s concessions (excise and tax concessions) to small-scale units and export opportunities generated by the closure of several units in countries like the USA and Europe (due to the implementation of strict pollution control norms). The duty concessions provided to small-scale producers had given in the large ones becoming uncompetitive to some extent. Price competition was strong in the lower segments of the market. Liberalisation of the economy and large-scale reduction of duties have given the decrement of margins for smaller producers. Closing of many small-scale units in Gujarat due to environmental reasons has also helped the organised sector players to grow further.

Over six hundred varieties of dyes and organic pigments are now being produced in India (both by the organised and the unorganised sector). But the per-capita consumption of dyestuffs is less than the world average. Dyes are soluble and basically applied textile products. Pigments, on the other hand, are insoluble and are main sources of products such as paints.

During the past few years, the dyestuff industry was overwhelmed by a series of fast changing upshots in the international platform. The largest market for dyestuffs has been the textile industry. The hold of polyester and cotton in the global markets has positively created the demand for some kinds of dyestuffs. Furthermore, the demand for polyamides, acrylics, cellulose and wool has been close to stagnant. Discrepancy in the regional growth rates of textile products too influences demand. The Asian region has seen the highest development in textile production, followed by North America, Latin America and Western Europe. This shows the change in the global textile industry towards Asia. Subsequently, Asia offers dyestuff production both in terms of volumes and value, with about a 42 per cent share of the global production; the US is next with 24 per cent and Europe has around 22 per cent. Due to a wide use of polyester and cotton-based fabrics, there has been a change towards reactive dyes, applied in cotton-based fabrics, and disperses dyes used in polyester. These two dyes have been leading in all the three regional global market, particularly Asia. Moreover, the change in textile application pattern and regional developments is the amount of over capacity in the global dyestuff industry.

Within India, the leading producers in the pigments industry are Colour Chem and Sudarshan Chemicals while in the dyestuff industry the major players in terms of market share are Atul, Clariant India, Dystar, Ciba Specialities and IDI. The Indian companies together account for nearly 6 per cent of the world production.

Almost 80 per cent of the dyestuffs are commodities. Since not much technology is used, copying of products is also easy as compared to specialties. Though in the recent past, there have been efforts by global producers, with some achievement, to shift to the specialty end of the product profile. Vat dyes have always performed as specialty products, with technology working as a vital function. Now companies are focusing on the higher end of the reactive dyes segment. The inclination is now changing from supplying mere products to colour package solutions. More importance is given to innovation, production range, quality and environmental friendly products. Manufacturers are collaborating with equipment producers to offer integrated solutions rather than products.

Fiscal policies and modification in the application pattern of the global dyestuff industry have revolutionized the market shares of Indian companies. Excise concessions for the small-scale sector in the mid and the late 1980s generated many units in Maharashtra and Gujarat. At one point of time, there were in the unorganised sector nearly 1,000 units, with most of them situated in Gujarat and Maharashtra.

Though, since the early 1990s, there has been seen an ongoing decrement in the excise duty rates applicable to the organised sector. From 25 per cent in 1993-94, the excise duty rates were decreased to 20 per cent in 1994-95, and 18 per cent in 1997-98 and further decreased these rates to 16 per cent.

This continuing decrement in the duty rates smoothened the competitive edge of the unorganised sector. The organised sector, with high product range, technology and marketing reach was capable to raise its market share. But more noteworthy changes have gained through the German ban on many dyestuffs, enforced to the local pollution control laws. While the organised sector has been capable to regulating the manufacturing of dyes based on the 20 banned amines by the German legislation, many in the unorganised sector were moved out. This was amalgam by the local pollution laws, which need to establish the effluent treatment plants, and drive out companies in the unorganised sector.

The capacity and production of dyes and dye stuff was 54,000 MT and 26,000 MT respectively in the year 2003-04. The capacity and production of dyes and dye stuff was 54,000 MT and 26,000 MT correspondingly in the year 2003-04. The small scale units offer major share in dyestuff production while large units focus producing dyestuff intermediates.

Disperse and Reactive dyes represent the greatest product segments in the country covering about 45 per cent of dyestuff consumption. In the coming time, both these segments will lead the dyestuff market with disperse dyes possibly to have the greatest contribution followed by reactive dyes. These two segments will hold a greatest share in order to lead textile and synthetic fibers in dyestuff consumption. Vat segment is also projected to prove healthy growth in future.

Exports and Import of Dyestuffs

In the year 2004-2005 the exports of dyestuff industry has touched 1109 million US dollar. Exports of dyestuffs in the year 2000-01 reached to about Rs. 2365 crores and accounted to about 5 per cent of the total world trade of dyestuffs. The main markets for Indian dyestuffs are the European Union, U.S.A., Indonesia, Hong Kong, South Korea and Egypt. The following table provides data export and import of dyestuff during last few years.

Technology

The technology for dyestuff production changes largely from relatively simple (direct azo) to sophisticated (disperse and vat) dyes. Despite the fact that technology is locally available, most of it is out dated. The setback is further compounded by the fact that the nature of the process differs from batch to batch and, hence, managing the process parameters becomes complex.

The dyestuff industry is one of the largely polluting industries and this has lead to them closing down internationally or changing the units to the emerging economies. Majority of the international producers have shifted the technology to developing nations like China, India, Indonesia, Korea, Taiwan and Thailand. This shift of manufacturing capacities is because the industry is supposed to work as a high-cost and low return one. The batch processing also formulates it to a labour- intensive industry. Hence, the competitiveness of developing economies gets a boosts.

Though, in the past decade the Indian industry has made considerable development in terms of technology and production.

Restructuring

Restructuring of the Indian dyestuff industry which started a couple of years ago is still in progress. The movement was initiated by the market leader Colour-Chem Ltd. It has also come into a toll manufacturing agreement with Dystar India Ltd. There have been other arrangements, which would give improving capacity utilisation at manufacturing facilities and also to have better exposure of export markets.

Ciba India and IDI have signed a deal to market polyester and cellulose dyes. IDI has also started work with Ciba for the production and marketing of dyes and pigments. Atul products has received the acquisition of Zeneca’s 50 per cent stake in Atic Industries Ltd and started work with BAS, Germany to market 50 per cent of its manufacturing of vat dyes.

Your Guide to Resin Flooring

There are many different flooring solutions on the market today, so choosing the best one for you can be a tough decision. If you are looking for a floor which is cost-effective, strong, and customisable then you should definitely consider resin flooring.

We’re going to explore the characteristics of two of the main types of resin flooring systems – epoxy resin flooring and polyurethane flooring to help you figure out which would be more appropriate for your space.

What is resin flooring?

Resin flooring is made up of a synthetic resin (a plastic) and a hardener. When this is applied to a surface it cures to leave a strong resin coating. There are a variety of resin products to pick, and each has a slightly different curing period.

You can get resin flooring in many different colours, and it is possible to add a flake finish for some extra decoration. The flake finish consists of adding small flakes of colored vinyl to the final layer of the resin. This is a popular customisation to floors you would see in commercial spaces, hospitals and schools.

A standard resin flooring system requires around 3 coats, depending on what it will be used for, what the floor will have to endure, and how thick you need the floor to be.

What makes resin flooring better than concrete?

A resin floor can be customised to suit your taste, whilst the customisation of a  concrete floor is limited. Also, resin floorings are resistant to chemicals which for many industries is a fundamental requirement for their flooring systems.

With resin floorings it is also simple to make them non-slip. This is done by adding an aggregate to the mix.

What types of resin flooring are there?

To help you choose the right resin flooring, we’re going to explain some of the properties associated with the two main types – epoxy resin and polyurethane. Different ones have different benefits that come with them.

Epoxy Resin Flooring:

  • Water based, solvent based, or can come solvent free
  • Strong and durable.
  • Has a high elasticity so it can withstand heavy loads.
  • Resistant to chemicals.
  • Customisable

Polyurethane Flooring:

  • Water or solvent based.
  • Strong and durable.
  • Very wide temperature resistance.
  • Customisable.
  • Quick installation.
  • Very high chemical resistance.
  • UV stable.

How To Boost Your Agency Profits With A SEO Reseller

Most SEO agencies find themselves engaged in a constant tug of war between innovation & expansion. Multiplying profits in this trade calls for expansions that are risk-free, credible & yet effective.

If you are a growing agency looking to multiply profits with minimal risks, perhaps it’s time to consider an SEO reseller. Ensuring that your new client SEO accounts are successful can become as taxing as plucking a goose.

A highly customized SEO package with an affordable price tag is not only rare but requires a “Midas touch”. Getting organic rankings for clients requires good understanding of Google Algorithms.

It is evident that, since its last update – Mobilegeddon – Google has taken up a more open approach of announcing its upcoming updates well in advance. Search engine optimization is an extremely dynamic niche & calls for staying in sync with the latest industrial shifts lead by Google.

Dissecting SEO Reseller strategies & making sure that your future partner adheres to the latest crawler tantrums is of paramount importance. However, the question arises how can you be sure that you are making a wise choice?

It’s not only about a website’s structure optimization, the quality and quantity of back links contributes to a winning SEO Strategy for your customers. Hence, it’s important that you evaluate what are you being offered as a package before you up sell it to your clientele.

Reselling is easy, delivering results is complex and results are all that matter when it comes to Search Engine Marketing. Though it’s a time taking process, organic SEO can be a tricky trade as it involves deep understanding of where the web is heading with each Google Update rolled out. Especially due to the fact that Google boasts of having a cracking 67% of Search Engine Market share.

So how exactly can an SEO Reseller service help your business?

More like a back-end office, most professional SEO reseller agencies offer NDA protected, white-labeled packages. They provide you the ability to expand your client base by making more sales & providing you a complete technical backing for your customers. So while you handle the report circulation & billing – your partner agency does all the execution.

White-labelled reporting reduces your in-house staffing requirements and brings down the management spending that your agency might otherwise incur on a day to day basis with each new account being acquired.

Benefits of a professional SEO reseller partner

• Expand your clientele

Search engine optimization is imperative to increasing the visibility of a website in the SERPs of popular search engines. Adding such an important aspect of internet marketing to your offered mix of online marketing services is bound to help you expand your customer-base.

• Lesser expense on providing SEO services

An SEO reseller program is sure to cost you considerably less than acquiring in-house professionals for handling the SEO requirements of your clients. The money you save can be invested in the growth of your business.

• Outwit your local business competitors

Not all internet marketing agencies have adept SEO professionals on board. Get an edge over local competitors with your comprehensive range of internet marketing services.

Outsourcing your clients’ SEO projects to competent SEO reseller agencies is one of the most smart business moves you can make in today’s thriving internet marketing industry. Several SEO agencies are known to offer an amalgamation of acute awareness of Google’s latest algorithm updates and meticulous SEO plans to support their knowledge. The affordable prices of these SEO reseller agencies only adds to the desirability of hiring one for your clients’ SEO requirements. For More info visit http://www.clixlogix.com/services/organic-SEO-services/SEO-reseller/

Indian B2B Clients – An Insight on Procurement Behavior

Although a common man might see consumer market much bigger than business-to-business market place. In fact, B2B is much more bigger than B2C markets. Whether we talk about commercial markets, trade industries, government organizations or institutions, all are involved in B2B transactions, either directly or indirectly.

Some firms focus entirely on business markets, while some sell both to consumer and business markets. Infosys, Satyam, TATA, IBM, WIPRO, Logitech, Epson, HP, Canon, LG, Samsung for example. Business-to-Business markets deal with business purchases of good & services to support or facilitate production of other goods & services, either to facilitate daily company operations or for resale.

According to Reeder et al (1991), all marketing strategies must begin with a thorough understanding of Organisation Buying Behaviour as this entails a different knowledge about the buying situation, process and criteria to apply when making purchasing decisions. Also, the understanding of Organisational Buying Behaviour is fundamental for the supplier of an industrial firm in order to perceive how to satisfy customer demand in an optimal way.(Baptista, Forsberg, 1997).

Further, Haas (1995) stated that organisational buying is not simply the action someone takes. It is actually the outcome of interactions between purchasing professionals. And those who are involved in the process may in one way or another influence what is being purchased and supplied. The evolution of technology has changed the traditional way of business purchases. New tools have opened a new era and new opportunities in every part of market. The arrival of internet as a multifaceted tool continues to change the performance of the organisations.(Smith, Berry & Pulford, 1998)

Rational Nature of Business Market

Like consumers, business purchase/ procurement is done to fill needs. However, its primary need i.e. meeting the demands of its own customer- is similar for all organizations.

Organizational buying differs largely from consumer buying. One of the salient features of organizational buying is that it is basically a rational buying process. i.e it is based purely on Utilitarian concept. There is nothing called hedonic buying. By, principle, organizational buyers do not bring emotions in their buying process and as such emotional appeals do not make any impact on their buying process.

Moreover, there are some other distinctions, which can be stated as:

  • Geographical concentration
  • Fewer, but larger buyers
  • Vertical or horizontal markets
  • Derived demand : derived from consumer demand
  • Price Inelasticity : Unaffected by price changes in short run
  • Fluctuating demand

Like a manufacturer buys raw material, machinery, etc. to create company’s product while a wholesaler or reseller buys products to resell. Similarly, institutional purchasers such as government agencies and non-profit organizations buy things to meet needs of their constituents.

As far as business market is concerned, it is completely rational by nature and there is no scope for impulse buying. This all is due to environmental, organizational, interpersonal & buying centre factors, which influence B2B markets. Moreover, budget, cost, profit considerations all play parts in business buying decisions. Also, business buying process typically involves complex interactions among many people.

Now, B2B markets are diverse, transactions ranging from order as small as box of paper clips to deals as large as parts for an automobile manufacturer.

For sake of simplicity business markets categories can be defined as:

1. Commercial Market

  • Sells raw material used in production
  • Sells product which aid in production
  • Sells maintenance supplies

2. Trade Industry

  • Wholesaler
  • Reseller

3. Government organization/ Public Sector Unit

  • Under Central government
  • Under State government
  • Under Foreign government

4. Institutions

  • Hospitals
  • Church/ Temple,etc
  • College/ university
  • Museum
  • Not-for-profit organisations

Commercial market: It is one of the largest segment of business market. It includes all individuals/ firms that acquire goods & services, either directly or indirectly.

When Air India buys aircraft, when IBM purchases software to produce new software or hardware products and when purchase manages orders light bulb for a factory. These all transactions take place in commercial markets.

Typically we can divide the products/ services as:

  • Used as raw material (like CD, DVD, etc.)
  • Help in production (like desktops, laptops, etc.).
  • Used for maintenance.

The commercial market includes farmers manufacturers & other members of resource producing industries, construction contractors & provides of such services as transportation, public utilities, financing, insurance & real-estate brokerage.

Trade industry: It includes retailers and wholesalers that purchase goods for resale to others. We can also term them as resellers. These markets include software, hardware, clothing, appliances, sports equipment, automobile, etc. products.

Government organizations/ Public Sector Units: It includes domestic units of government- central and state, as well as foreign governments. This is also one of the most important segment which purchases wide variety of products, ranging from highways development to social services.

Institutions: Both public and private, are the fourth component of business markets. This category includes wide range of organizations like hospital, temple, church, college, school, university, museum, not-for-profit organization, etc.

Some business follow standardized purchasing & selling procedures, while others may employ less formal buying practices. B2B marketers often have to set up separate divisions to sell to institutional buyers.

B2B Market Segmentation

B2B markets include a variety of customers optimal strategy can be made by applying market segmentation concepts to groups of business customers. The overall process of segmenting divides markets based on different criteria, usually organizational characteristics and products applications.

We can mainly segment the markets on basis of:

  • Demographics (size, geographic location).
  • Customer type.
  • End use application.
  • Purchasing situation.

Demographic segmentation

Based upon demographic, firms or business can be grouped by size (either sales revenue or number of employees). Even different strategies can be developed for Big and Small corporations with complex purchasing procedures and another strategy for small firms where decisions are made by one or two people. Now-a-days, small and medium businesses have caught the eye of business-to-business marketers. This fast growing segment offers tremendous potential according to business analysts like Microsoft, SAP, nucleus, etc.

Segmentation based on customer type

B2B organizations can group customers based on broad categories like manufacturer, service provider, government agency, not for profit organization, retail and much more, which can further be subdivided as per the need.

In fact, customer based segmentation is a related approach which is often used in B2B markets. Moreover, organizational buyers tend to detail much more precise product specifications than ultimate consumers do. This all is required to meet specific buyer requirements, creating a form of market segmentation.

Segmentation based on end use application

This approach focuses on a precise way in which a business purchases will use a product. For e.g. a mineral manufacturer may serve markets ranging from paints to cosmetics to inks to paper to government departments. Each end use of the product may dictate unique specifications for performance, quality and price. This can prove a good approach for small and medium enterprises, so as to concentrate on specific end use market segments.

Segmentation by purchasing situation

Purchasing procedures for Big organizations in fact structure their purchasing functions in specific ways. Some organizations have centralized purchasing departments while others have decentralized purchasing. Similarly, purchasing may be done by 2-3 persons in a small or medium enterprise while a big organization may involve more number of persons for taking purchasing decisions. A supplier may deal with one purchasing agent or several decision makers at various levels. All of these structures result in different buying behaviour. When buying situation is one of the criteria, one has to consider whether customer has made previous purchases or if this is clients first order. Like Birla soft might use a different marketing approach to sell to its existing customer than to a potential new customer who is unfamiliar with its offerings.

Today’s internet era has become a useful tool for businesses. Internet provides products and its information to potential buyers and gives marketers an opportunity to make available virtual catalogues, forms, product information, etc. Samli, Wills and Herbig (1997), stated that, in future the WWW is expected to offer a much broader range of benefits to both suppliers and customers, due to improved international communication generated by the Internet.

Unlike the traditional media, internet is characterised by interaction and it facilitates tow way communication as well. Though this interaction is not physically face to face, but diminishes the boundation of time or any geographic location. This means that people can, without any face to face contacts still be able to meet each other and manage their regular work such as communication, businesses and even negotiations.

Haas (1995), says that the way organisations purchase products is one of the most important questions to the business marketing managers of today. The buying of goods and services by organisations is complex and difficult to analyse. Over the years, many models have been developed in attempt to explain Organisational Buying Behaviour. Without the understanding of this, the marketing strategies and the tactical programs cannot be optimally developed. Moreover, Haas (1995) describes that it is the business marketing managers who are the one that are involved in this complex process with the following tasks:

  • Describe the process by which customer organisations buy goods and services.
  • Discover who in the customer organisations participates in this process and at what stage of the process each becomes involved.
  • Find out what each of those people is seeking from the purchase, i.e. what their buying motives are.
  • Discover what factors influence the interaction of the participants in the process.

Which means that one cannot simply focus his/her effort towards purchasing departments of businesses, but has to take care of the external factors along with whole decision makers web.

Each and every organisation has its own way of purchase procedure which can be better called as “organisational buying process”. There are many persons involved in the process and according to Haas (1995) – “a good definition of a buying influence is anyone within the purchasing firm who not only has the power to make a decision in favour of the product involved, but also may be able to cast a negative vote against that product”. Once, the composition of a buying centre is determined the business marketer faces the problem of determining the relative influence by each member. If marketing manager can determine what characteristics differentiate the key buying influences from the others, it may be possible to identify them and focus the marketing efforts in their direction to win the race.

Moreover, the purchase of new task products can involve significant investments of money, time and personnel without any guarantee of a successful outcome. But using the internet technology as tools in a certain way can provide new opportunities. In recent years access to new techniques is easier and cheaper.

More and more companies are adapting their system to this revolutionary superhighway communication system to the extent they can. The Internet provides opportunities for an organisation to enhance its business in a cost¬ effective and fruitful manner. That is, the Internet can be used to conduct research, reach new markets, serve customer problems, and communicate more efficiently with business partners. The Internet is a practical tool for gathering information concerning customers, competitors, and potential market. It is also useful when communicating information about companies and/or products. (Poon, & Jevons, 1997; Quelch, & Klein, 1996).

David Roberts (1999) stated in an article that the Internet could be used to “re-engineer” a company in a way that will have impact on revenue and cost, however, one that is difficult to measure. Moreover, several new opportunities appears for those who want to use this new opening to new markets where companies can reach selected customers with information that is of value. Kasper, van Helsdingen and de Vries (1999) discuss on one hand that the Internet has a communication and a distribution function and also the way companies offer their services via Internet. On the other hand they indicate the effect that the Internet has on the purchaser’s buying decisions, due to the fact that the Internet change the traditional way of communication.

Characteristics of B2B markets

Business must understand the needs of business i.e. vendor should put itself in place of buyer to better serve the latter. In order to do that, characteristics of B2B markets should also be understood which includes:

  • Geographic concentration.
  • Size & number of buyers.
  • Purchase decision process.
  • Buyer seller relationship.

Geographic concentration

Indian business market is more geographically concentrated than consumer markets. Industries are developed at places where either raw material is available or where finished product is sold or may be sometimes cheap facilities are available (like electricity, tax benefits, etc.).

Identifying geographical concentrations of customers enables business marketers to allocate resources effectively. A SME may choose to locate sales office or distribution centres in these areas to provide more attentive service.

Size & Number of buyers

Business markets feature a limited number of buyers with bigger sizes. Most of the business markets are large organizations served by small and medium enterprises. Segmenting markets based on size and number may help in development of strategies.

Purchase decision process

To market effectively and efficiently in business markets, one must understand the importance of organizational purchase process. In most of the organizations more than one decision makers are involved and at each and every level of purchase, they may influence upon. Also, purchase process is more formal and professional than consumers purchase. Even, time frame is much more longer in B2B buying with much more complex decisions. Based upon the technical requirements & specifications, proposals must be made. Also, decisions require more than one round of bidding & negotiation. So, is the need to take care of purchase decision process.

Buyer seller relationships

One of the most important characteristics of B2B markets is the relationship between buyers and sellers. Such relationships are more intense, require better communication and often long lasting.

Basic purpose of B2B relationships is to provide advantages that no other vendor can provide like lower price, quick delivery, better quality and reliability, customized product, service, etc.

Close relationships not only help in long run success of an enterprise but also provides a way to increase revenues through broad customer base.

Buying Process in B2B Markets

Further, according to Haas (1995), the conceptual model of the Organisational Buying Process is described as an eight stage model starting with “Using department” and ending with “Follow up”. However, this eight stage model is widely known as Buygrid Framework, which comprises three buy classes or buying situations, with eight progressive stages in buying or we can call them buy phases. The buy phases are an expression of thoughts and activities that a Buyer goes through in the sequence of activities leading to a purchase according to Robinson, Faris and Wind (1967).

The Buy phases consists of:

  • Anticipation or Recognition of a Problem (Need).
  • Determination of the Characteristics and Quantity of the Needed Item.
  • Description of Characteristics and Quantity of the Needed Item.
  • Search for and Qualification of Potential Sources.
  • Acquisition and Analysis of Proposals.
  • Evaluation of Proposals and Selection of Suppliers.
  • Selection of Order Routine
  • Performance Feedback and Evaluation.

While Buy classes consist of:

  1. Straight rebuy.
  2. Modified rebuy.
  3. New task buy.

Business buying behaviour responds to many purchasing influences like environmental, organizational, interpersonal and buying centre factors. The behaviour also involves the degree of effort that the purchase decision demands & the levels within the organization where it is made. B2B marketers can classify the buying situations into three general categories or buy classes, ranging from least complex to most as stated above.

Straight rebuy

It is the simplest buying situation, where purchaser are continuing or recurring and either little or no information is required. We can also say that, a recurring purchase is done in which an existing client places a new order for familiar product that has performed satisfactorily in the past. As delivery is prompt, quality is consistent and price reasonably competitive. So is the demand of situation.

Mostly purchaser of low cost items like paper clips, pencils for office are typical examples of straight rebuys. Even in industries with continuous need of raw materials, this option is exercised, but if the vendor concentrates on maintaining a good relationships with the buyer by providing excellent service & delivery performance, so that competitors find it difficult to offer better sales proposals to break the chain.

Modified rebuy

In modified rebuy, decision makers see some advantages in looking at attractive offerings like quality improvement or cost reduction. While, business marketers should induce current customers to make straight rebuys by responding to all of their needs but, competitors on the other hand should try to induce buyers to make modified rebuys.

New task buy

This is one of the most complex category which requires considerable efforts by decision makers due to first time or unique purchase situations.

Problem recognition may be triggered by internal/ external factors & new product line may require purchase of new equipments, parts or materials. Even, change in customer requirements may necessitate purchase of new machinery.

This situation often requires a purchase to carefully consider alternative offerings & vendors. The new task buying would require several stages, each yielding a decision and that decision would include development of product requirements, search of potential suppliers and evaluation of proposals, etc.

Even a fourth purchase category may be included i.e.

4. Reciprocity buy.

Reciprocity

A policy to extent the purchasing preference to suppliers that are also the customers. We can also say it as a type of barter system. Like a SME might supply raw material to paint manufacturer. But at times may need paint for its office refurnishing in that case reciprocity principle might be in use.

Stakeholders of Buying Centre

According to Webster and Wind (1972), members in buying centre may assume different roles throughout the organizational purchase process. The identification of the roles they play helps marketers to better understand the nature of interpersonal influences in the buying centre. These roles can be categorized as:

  • Users
  • Influencers
  • Buyers
  • Deciders
  • Gatekeepers

User, are the one who will actually use the purchased product/ service. Their influence may range from negligible to most important. They may at times initiate purchase actions, help develop specifications, etc.

Gatekeepers, control information that is reviewed by buying centre members. They may provide access to some and deny access to others.

Influencers, affect the buying decision by supplying information to guide evaluation of alternatives or by setting buying specification. They might be a technical staff such as engineers, quality control specialist, R&D personnel, etc.

Deciders, chooses a good or service. He/she might be the top authority or the person with authority to take purchase decision.

Buyer, is the formal authority to select supplier/vendor and to implement the procedures for procuring the product or service.

In order to develop an efficient procurement system, purchase department people should clearly identify the various roles in buying centre. They must also understand how these members interact with each other and outside the business.

How to Enhance Procurement / Purchase Decisions through Tools?

In today’s localized global markets purchase decisions are not just taken by Gut feelings but various tools support the decision making. Some of these are:

  • Value Analysis Tools
  • Vendor Analysis Tools

Value analysis examines each component of procurement in an attempt to either delete the item or replace it with more cost effective substitute.

Vendor analysis provides evaluation of supplier’s performance in categories like price, orders, delivery times, etc.

Factors that Influence Buying Behaviour in Businesses

Business buying occurs within a formal organization’s budget, cost and profit considerations. Moreover, B2B buying decisions usually involve many people with a number of complex interactions among individuals & organizational goals. In order to understand this, marketers require in depth knowledge of influences on the purchase decision process, the stages in organizational buying, types of buying situations, etc.

Lets have a look at influencing factors:

1. Environmental.

  • Economic : Price, cost, inventories, credit, etc.
  • Political : Tarrifs, quotas, defense spendings, lobbying, etc.
  • Legal : State, Central regulations, etc.
  • Cultural : Corporate as well as personal culture.
  • Physical : Climate, Geographic location, demographics, etc.
  • Technological : Procurement related to inventory, etc.
  • Ethical : Guidelines, norms, regulations, philanthropy, etc.

2. Organizational.

  • Tasks : Buying task performed to achieve corporate goals.
  • Structure
  • Technology
  • People

3. Interpersonal.

  • Buying Centre and its roles
  • Power Relationships
  • Differing evaluation criteria, rewards, responsive marketing strategy, information processing, memory, anticipation, individual / group decision making.

4. Individual.

  • Motivation of Buying Personal
  • Perception of Buying Personal
  • Learning of Buying Personal

5. Product Specific

  • Perceived risk
  • Type of purchase
  • Time pressure

6. Company Specific

  • Size
  • Degree of Centralisation

Business to Business Buying Process

  • Anticipate or recongnise Need/Problem/Opportunity along with a General Solution.
  • Identify the Characteristics and Quantity of Product /Service.
  • Describe those Characteristics and Quantity in detail.
  • Search for and qualify Potential Sources/Vendors.
  • Acquire Proposals, Analyse and Evaluate them.
  • Select Suppliers and Finalise the Specific Order Routine.
  • Obtain Feedback and Evaluate Performance.

A B2B buying situation requires a complex sequence of activities due to its rational nature. This model can be generalized to most of the B2B buying situations.

B2B Organisational Purchase Process starts with the anticipation/ identification of either need, problem or an opportunity based upon the circumstances ( may be either current or futuristic).

Now, Businesses are not just made to run but there is a rational benefit being sought in each and every business, which can be either:

  • Improvement in Efficiency/ Productivity
  • Improvement in Quantity
  • Improvement in Customer Service
  • Cost Reduction

Based upon the expectations of various stake holders involved, which can be a mix of:

  • Technical Committee Members
  • Users
  • Engineers
  • Influencers
  • Consultants

Also, as far as the match / mismatch between rational benefits and expectations of stake holders are concerned, alternative strategic solutions help to a great extent. The source of information for these solutions includes:

  • Company Websites and search engines
  • Marketing Executives
  • Word of Mouth Publicity
  • IETF/IITF Exhibitions
  • Seminars & Conferences
  • Industry References
  • New Employees from Rival Organisations
  • Business Magazines like Business India, Economic Times, Hindu, Hindustan Times, etc.

Further, specific company deciders i.e. R& D, Purchase, Finance Departments, etc., their strengths and preferences plays an important role along with their background and previous Vendor as well as customer experiences.

Now, once the exact expectations are decided, budgetary quotations and product literature from vendors are asked in order to draft specific tenders or RFP specifications and bid document. Also, any process is incomplete unless and until funding and budget is provided. So, is the next step in purchase process.

After this, Vendor Eligibility Criteria i.e.

  • Minimum Size/ Turnover
  • Past Experience
  • EMD/Purchase Receipt

And Product Specific Requirements i.e.

  • Inspection Requirements
  • DGS&D/NCCF
  • Quality Parameters

Are identified and described to the extent possible, along with the competitive market requirements and vendor/ proprietary purchase preferences.

Now, the process can be further divided into Govt./PSU purchases & Corporate/MNC Purchases.

In case of Govt./PSU purchases tender notice is published in leading newspapers / websites inviting technical bids and purchase bids, while in case of Corporate/ MNC purchases, RFP is prepared and sent to the prospects, inviting proposal from vendors.

Once, the bids or proposals are acquired, then their evaluation takes place, along with a demo/ presentation & reference verification. In all these processes, file movement should be properly monitored in order to get the best results. Further, T1 and L1 vendor/s is/are found out, where T1 is Technically acceptable and L1 is Lowest Acceptable Price.

Now, comes the stage of negotiation with T1 and L1 vendor/s. As far as negotiation is concerned, if differences occur, then they can be sort out by negotiation, arbitration and litigation, etc. also.

Once, negotiations are thorough, then comes the stage of B2B contract, which is further approved and signed by H.O.D or authorized signatory. Now, contract is accepted by vendor with the deposition of security as finalized in contract.

Further, vendor delivers the product/ service as per terms and conditions, which is then accepted by the user department or stores after a quality and quantity check along with feedback submission and which completes the B2B Purchase process.

Conclusion

Each and Every businesses should have a look at the way their B2B clients (like Satyam, Wipro, Tata, Inforsys, for eaxmple.) in Indian Industry. The rational nature of B2B markets in commercial, trade, PSU’s and institutional businesses needs to be worked upon. Further, businesses can concentrate on their markets based upon the segmentation like demographics, Customer type, End use application or purchasing situation., Even, the characteristics of B2B markets should be known to the vendors. Lastly, The Buying Process of B2B, the stake holders involved in purchase/procurement, the tools they use, the factors they consider and the process they follow, must be known to the all businesses for a healthy and long run relationship.