INDIAN LOGISTICS INDUSTRY
Dr.D.Sathish Kumar, Professor, SIMS
Logistics is the back bone of the economy providing competent and cost effective flow of goods on commercial sectors. Logistics industry’s challenge is to reduce the cost of logistics. The logistics cost can be reduced based on the relationship of the various factors of logistics such as infrastructure and use of appropriate technology. In the recent scenario Indian logistics companies have been given a lot of attention by the policy makers and industry. Focus is on the infrastructure development which has an effect of creating the growth of an economy. There are many challenges and opportunities for Indian economy in logistics industry. The challenges faced by logistics industry are insufficient integration of transport networks, warehouse facilities and information technology. The difficulty to create networks is due to different regulations in different cities. Trained employees needed for the third party logistics and manufacturing companies are limited. Similarly the warehouse infrastructure facility is lacking which causes heavy loss for the logistics industry. Upgrading the technology used across the supply chain will help the logistics industry to do well. Latest technology should be used by the companies in this sector. The future of logistics will be in moving from traditional to modern setup, IT and technology will reduce the operations and cost and service demands. Indian logistics depends on education, training and policy both in soft and hard infrastructure.
Conversational marketing-Chat Bot
K.Thirugnana Sambanthan, Professor, SIMS
Most of the People love communicating with messaging since it is very fast, easy, and it gives the feel of conversing with each other. More than 90% of consumers want to use it to communicate with businesses in the same manner like chatting. To solve this problem Companies have started using Chat Bot technology.
A Chat Bot is a computer program that automates certain tasks, normally by chatting with a user through an interface. The chatbots are powered by artificial intelligence which helps in understanding complex request, responses and it can also improve interactions overtime. A Customer can place an order to the chatbot by simply typing what he wants. The chatbot can accomplish their task from start to finish with in a short span of time. Bots can be integrated with existing messaging apps like Face book, messenger, WhatsApp, viber etc.
Chat Bots can engage more leads through chats rather than through traditional method of filling forms. It can understand the leads needs in minutes instead of days. It can recommend the right step to move the leads to desired product.
The key benefits of Conversational marketing is
- Gives Human Interactive Buying Experience
- More details can be learned about the customer
- Conversion of Leads is high
- Sales cycle is shortened
Technology is making waves in marketing of products and service.
Fixed Deposit: Nominal interest rate or Real interest rate
Mr.S.Saravanan, Professor, SIMS
A recent advertisement by a popular bank offering 9.25% annualized yield on 36 month FD. The ad attracted my interest and I was sure it also attracted many people looking for high interest rate FD’s. but the bank has mentioned the annual yield not annual interest rate. The basic difference between interest rate and yield are given below with examples.
If I deposit Rs 1,00,000 with 8.25% interest for 36 months we get 27,760 as interest.
If we calculate yield = 27760/(1,00,000 x 3) x100= 9.25%
This is how the ads shows 9.25% instead of 8.25% interest rate. The annual yield is simple interest.
Whether the yield is useful?
There are cases when yield can be used for comparison. One case would be when you want to compare FD with same life years but having different interest rate and different compounding frequency.
We have two investment option with better returns
- Rs 1,00,000 with interest rate of 8.50% compounding annually for 2 years
- Rs 1,00,000 with interest rate of 8.25% compounding quarterly for 2 years
In the first option (a) the interest would be Rs 17,723 and in second option (b) the interest rate would be Rs 17,742 (difference between a & b is Rs 19). The yield would be first 8.86% and second 8.87%.
As investor we have to understand the interest rate and annual yield on fixed deposit. The ads do not give the accurate details about the returns, it is the investor responsibility to dot he calculation before investing.
Strategic promoting Vs Inspiration
NISHANTHI, Professor, SIMS
An advertising plan is the goals and ways of each marketing campaign. It keeps everybody in your organization on the identical track page regarding the direction and purpose of your promoting efforts one is working on. It additionally provides some way for you to live your success. While not an inspiration, you won’t very recognize whether or not you’re succeeding.
Apart from this inspiration, your company additionally desires a strategic promotional decide to guide your overall efforts. A strategic arrange identifies your business goals, the marketplace within which you contend, your audience, the way that you wish to succeed in the organisation, and the way you’ll valuate your success in your career. It integrates everything you say and do to grow your company along with your growth. A strategic promoting arrange isn’t a static document that gets tossed in a very prominent way once it’s written. Instead, an inspiration could be a living document that guides your work and is often updated to replicate changes in your business, your customers, and your competition.
The process of developing a strategic promoting arrangement is crucial to your business. You cannot produce strategic promoting while not strategic thinking. The clarity in your goals will determine wherever you see your business within the future, that ultimately strengthens you in providing a transparent map of your company’s goals and the way to attain them.
Getting all stakeholders to share a standard goal and a have a common understanding of your company’s opportunities and challenges. Identifying and meeting client desires with the proper merchandise within the right places. Growing your market share and products lines, resulting in additional revenue. Enable smaller firms to contend with larger corporations.
One caution: A strategic promoting arrange focuses on your goals for your merchandise and customers. the general business arrange, that outlines all of your company’s goals, ought to support the promoting arrange. If they don’t work along, neither arrange can succeed.
K.Thirugnana Sambanthan, Professor, SIMS
During the previous decade, customers were standing in long queues in shops to bill their products. Manual Billing took more time and customers have to wait for long period of time. Today we visit any department store or super market, buy number of things, and could bill the products in a short span of time. The technology which paved way for this speedy billing is the Barcode Technology.
Barcode technology evolved from punch card technology. A barcode is an optical machine understandable representation of data linking to the object to which it is attached. Barcodes systematically represented data by varying the widths and spacing of parallel lines, and may be mentioned to as linear or one-dimension. Now this technology has been evolved into rectangles, dots, hexagons and other geometric patterns in two dimensions. Barcode readers are used to scan the barcode content in the products.
Barcoding Number of different countries
The advantages of Barcoding are
- The Seller can easily identify Fast selling items and can order it at the needed time
- This software can also help to find out the slow selling items and can prevent inventory buildup.
- The effects of merchandising changes can be monitored, allowing fastmoving, more profitable items to occupy the best space.
In this age of technological revolution, the use of barcoding technology has become really dominant and the vast majority of major supermarkets worldwide have become reliant on it. The customer demands convenience and speed, the supplier has a robust emphasis on accuracy which is satisfied by this technology.
DIFFERENT WAYS TO ARRANGE MONEY FOR YOUR BUSINESS
Dr.D.Sathishkumar, Professor, SIMS
MONEY is important for all business. Money is the element to start and run the business successfully. Entrepreneurs find ways to arrange money for their business. Some of the ways that an entrepreneur seeks to fund his business needs are given below.
Self Funded: Easy and Best way of starting up and being an entrepreneur is your own money. Your personal money has no strings attached to it and you can very well do what you want to. Self funded is through personal savings and no limitations for investment.
Bootstrapped: When the Business is running in self funded, entrepreneur may choose bootstrap. This happens when the entrepreneur uses the cash generated by the business to keep it running and grow the business. This is an ideal way to run a business, the entrepreneur keeps complete control of the company and no charges to be paid for the investment.
Friends and Families: One more opportunity or method to raise fund is from their friends and families to start their business. This allows with a greater sum of money, without losing the control of the company. Similarly no charges or interest to be paid for the amount he has raised.
Angel funding: First level of institution investment, An angel investor is who funds a business for the equity in the company. Two or more investor joins hands to invest a large amount in a small company.
Venture Capital: Venture Capital generally comes from Angel investors with bigger cheques. Bigger amount at their disposal to invest and hence can help a business in providing the necessary money to scale up quickly.
Banks: Banks have been the traditional source to fund rising for small business and continue to play a crucial role. Before Venture capital, to raise funds banks were the only institution to source finance for small businesses.
Alternate Source of Finance: Alternate source of Finance is becoming popular in last two to three years. Alternate source of finance is P2P (Peer-to-Peer), Entrepreneurs who struggling to raise money from banks and other sources P2P is the alternate source for Finance. Individual lenders extend money as a loan to small businesses through online portal.
Role of HR in Business Value Creation
Dr.S.Sundararajan, Professor, SIMS
The state of the man’s evolution can be judged by the degree of value creation/addition in any man-made systems like manufacturing, education, marketing, governance, etc,. Man is the prime sources who create inanimate or animate resources. HR has been passing through different forms with the introduction of factory system in the 18th Century like Time Office, Personnel Management, Manpower Planning and Development, HRD, HR, Talent Management, etc., which helps to create all the secondary resources in general and human in particular. This underlines the significance of HR in all man’s activities. Hence value creation in HR business is more wanting than in other business function. Value addition by all to accommodate and handle change which is inevitable is the most urgent requirement of today’s business. The role of HR’s today are:
- Value Creation by HR is a hot topic these days. Voices in the board room are loud and clear. Expectation is that, like marketing, sales or research and development, etc., HR has to start creating value in business and if it cannot create value than its best suited to sit outside the organisation with an outsourced service provider of transactional activities.
- HR Must Lead Change – It’s no longer debatable. To become better business partners, human resource leaders must shed their tactical skins and transform into value-creating change agents.
- “Grow people + Grow business = Creating value” is the order of the day. HR should focus on this.
- Non-stop unforeseen turbulence, straining organisational objectives, risk management, situational problems and technology are disrupting the organization fast. The HR managers have to be agile and sharp to make appropriate decisions to handle all eventualities.
- New challenges, new capabilities, new qualities, people from different cultures with different expectations make the HR role more critical and strategic to the organization.
- HR managers have to integrate the Business Strategy in to the minds of the people through the HR activities and programmes to have a focused organization.
7 HR managers have the responsibility of training and guiding all the human resources(freshers too) of the organization to give their best. In case of difficulties, HR managers should take necessary steps to motivate the human resources to live up to the expectation of the organization.
- HR analytics plays an important role in the recruitment and analysis phase of the HR activities. Every HR manager is expected to be conversant with the new tools available to excel. 9. The HR managers have to get revolutionized to meet the challenges of the VUCA world. Their roles are going to be very important in shaping the future organization.
- People are the asset for any organization. The role of HR is to build the team and develop the new breed of leaders who are adoptable, flexible, people leader who own the organization and take responsibilities.
Storytelling a leadership Enhancer
Language has been one of the key tool for communication to put your mind into action. Stories are impactful as it has been a vital part of who we are and how to connect with the world. Stories are the most powerful tools that help elevate people’s sense of higher purpose by stirring their souls. One important hook that stories promote is its deepening leadership presence. When a leader shares his stories, people connect and relate it better. Storytelling is one of the integral design thinking for long-term growth of the business. This key turns a brand into a legacy and a leader to a visionary by winning the trust of employees.
Characteristics for successful storytelling
- Effective leaders need to examine the narrative quality of a piece.
- Leaders should revive and relearn from one’s crucibles and connect the dots of one’s life that tells a unique story.
- Storytelling has human bond with personal anecdotes that can increase relatedness and subsequently foster belongingness.
Storytelling as a tool is used to encourage communal feelings specific to organizational behaviours that augment its success. The leaders can do this is by conducting small storytelling sessions imparted with routine procedures such as an performance appraisal reviews that focuses on such as motivation, resilience etc.
A story must be precise and specific with its content- it should have a purpose and values that the leaders can impart through the narrative and must be easy to develop for the listeners. Storytelling serves as a tool and platform for exchanging views and ideas for improvement through the encouragement of active engagement of employees. The more the involved employees are, the more effective its outcomes. The human brain cannot function amicably; therefore, getting the listeners involved passionately during story telling will enhance their thoughts.
Storytelling, if done right is simple yet highly resourceful tool. It could reform the progress and effectiveness of leadership and prepare leaders to manage diverse in challenging obstacles.
Dr.B.Sudhakar, Director – SIMS
Career is referred to as a succession in the profession of an individual which is looked at in the chronological order through which an individual builds on.
Career satisfaction can be defined as the satisfaction levels individuals get from both the intrinsic and extrinsic aspects of their careers, which may include pay, advancement and developmental opportunities.
Career satisfaction is a matter of individual expectations which may be economic considerations, occupational considerations and family consideration. Economic consideration may include pay and perceived promotions and incentives of a job. Organisational consideration may be on human resources practices, policies of the organization and the working environment. Family consideration may be the work life balance possible in the job, flexibility and pride of the job.
Hence every individual needs to unlearn and relearn the requirement of building his or her career. Depending on one’s interest individuals can look at careers. Irrespective of the choices, aspirants need to have lot of confidence and energy along with strong interpersonal skills besides a strong passion to make dreams come true. What a person acquired as a skill or knowledge few years ago is not going to be the skill which will help him to grow. To prove oneself as a better person, one needs to equip with the skill set which will be unique and be a master of it. Someone who is looking for a career in a specific industry must have the hunger to learn new things every day along with the updated information on the latest developments in that industry. To keep updated one must closely follow up the events and programmes of that industry and participate in them to get the needed knowledge.
So Career can be defined as the jobs individuals pursue in which they use their individualized skills- be it communication, interpersonal relationship building or other skills to earn their livelihood.
Structure of Future Supply chain for 2019
Dr.D.SathishKumar, Professor, SIMS
Transformation of Supply chain is needed in today’s world. The external and internal factors of a company force them to look into the future supply chain structure and challenges. The factors which make an impact on future supply chain are
- Emerging technologies
- Supply chain visibility
- Shared economy
- Evolving customer channels
Emerging Technologies: Transportation in logistics is most important and unchangeable facts, but new methods or technologies are needed. Drones, Autonomous Intelligence and Robotic automation will ultimately transform logistics transportation and warehousing methods, which can create an impact on future.
Supply Chain Visibility: Internet of Things, Big data, Data Transparency are the tools which make the organization to view and gain the real time status and functions of supply chain network participants. It focuses not only on problems but prevent them more effectively. Data in supply chain can draw the short term and long term improvements.
Shared Economy: Demand for warehousing and demand for logistics will allow organizations to be more flexible in how they operate their supply chain. Lower Capex and higher flexibility will likely to be attractive for organizations that are in quickly developing industries.
Evolving Customer Channels: Vision and Mission of the companies are changing everyday. Companies are changing from traditional method to new methods of selling the products directly to the customers. This will have a major impact of the business and companies have to look into the evolving channels of the supply chain to be competitive.