Driving Purchase Efficiencies through Terms of Payment

The Purchase function controls the cash of a company to a large extent as it is responsible for both the direct and indirect spent of the company. These are  numerous ways by which the purchase professionals can add value to the company but I shall limit the scope of this article to the Terms of Payment (TOP) that is the prerogative of the purchase department.

Terms of Payment governs the mode through which the payment to the supplier or service provider shall be made and the term and conditions related to it. All suppliers or service providers would like to receive the payment into the most convenient form as soon as the product or service is delivered. This helps them bring in cash to the business. Likewise most purchase professionals would like to make the payment as late as possible because it helps them bring in free cash to the business. The longer the payment is deferred the more working capital the business has. In most professionally run companies the Terms of Payment is a Key Performance Indicator for the Purchase Professionals and they are evaluated based on it.

Purchase professionals must be  extra careful while negotiating the Terms of payments as the quality and of the product or the service may be adversely impacted by a very demanding TOP. The Greater danger is of rendering yourself and your  company unattractive to the supplier. Before entering into a negotiation on TOP it's very important to have a thorough idea of the industry practices, the thumb rules, the product itself and the interest levels of the suppliers. This helps in having a fair understanding of the negotiation power that you enjoy and entering in a fruitful negotiation which leaves both the parties happy and more importantly you bringing in cash to your business.

WILL FDI in MULTI-BRAND PERCOLATE DOWN TO RURAL INDIA????

WILL FDI in MULTI-BRAND PERCOLATE DOWN TO RURAL INDIA????

"A re-orientation of the policy framework was the need of the hour and enhanced foreign direct investment (FDI) in multi-brand retail would transform the rural economy and generate massive employment and opportunities for both rural and urban youth". This is what Union Commerce and Industry Minister Anand Sharmahas to say.

Lets look at greener side;

1)The loss of jobs or displacement of small vendors. Instead, it would give a big thrust to the rural economy and small townships where infrastructure would come up and value addition would take place.

2)This will generate amazing number of opportunities to the rural and urban youth and also provide remunerative price for their produce to the farmers.

3) It will bring investment to much need of Indian economy, i.e the Rural/agriculture Infrastructure as release in economic time that India need investment of Rs 36,000 crores for proper storage of our food grains productions. and also this would get investments into sectors such as cold storage chains, agro-processing, food processing and drastically bring down post-harvest losses that now stood around 35-40 per cent.

5) The elimination of post-harvest loss of fruits and vegetables will also prove to have a sobering effect on the supply side. which will directly or Indirectly employee millions of farmers through this process and farmers will be well off.

6) The value addition will transform the face of the rural economy and farmers will benefit immensely by getting good price for their produce and reducing the role of middlemen.The other side;

1) won't it hurt the farmers and economy of the nation as a whole??

2)Small vendors and merchants will be ensured of products at wholesale prices and reasonable prices by the big chains..How will the government do it ????

3)What about the displacements small vendors??it will lead to job loss.

Investors commitments should be sought to make our people employable and create more jobs in both rural and urban areas"""Government need to study the inputs and comments of the stakeholders while finalising the policy. and then take a sensitive view of the situation. Hope the government take into consideration of all the underlining issue and see that the the policy does not only serve the Economy of the Nation but has Direct Advantage for the Farmers as well.

MANAGE boasts of 100 % Placements

Adding yet another feather to its cap, MANAGE or National Institute of Agricultural Extension Management, Hyderabad achieved 100 % placement in just a weeks time setting yet another record in the Agri Business Education Sector. The Institute has successfully placed all the students of the 13th Batch in record time in just 13 companies. The Companies include ITC, MARS inc. , Corromandel International, Monsanto, Dupont and other big names of the sector. The average CTC offered was 6.03 Lakhs which is the best amongst all the Agri-Business Institutes of the Country.