Historical Materialism Essay Example for Free

Historical Materialism Essay Social structures fall and crumble, and new ones take their place. This is a fact of civilization that has been with humanity since before the beginning of recorded history. Marxist theory takes this concept of change and asks an important question of it. Why do societies revolutionize themselves? Marxist theory, in this particular vein of thought, concerns itself with society’s motivations for change. In answer to this question Marxists use two distinct yet related forms of Materialism, Dialectical Materialism and Historical Materialism. They seek to use these concepts to apply logic to a seemingly random event, and there are indicators in history that this interpretation works. The important question to ask afterwards is do these interpretations still apply in a modern context. First, though, it is important to understand the Marxist concept of how revolution occurs. The Marxist interpretation of Materialism can be roughly broken up into two groupings, Dialectical Materialism and Historical Materialism. The aims of both of these concepts are the same though. Based on Marxist ideals these two concepts aim to explain the development of human history and give concrete motivation as to significant changes in human history. By considering both concepts in tandem one gains a full understanding of the Marxist interpretation of Materialism. Dialectical Materialism is based in two separate concepts, Dialectics and Materialism. Dialectics is one of the three original liberal arts, first developed in the classical world by the Ancient Greeks. (Saksena p543) Together with Rhetoric and Grammar, these liberal arts were developed as a means to fully understand the art of persuasion. Dialectic itself refers to the logic behind the argument, having a sound backing for your points. As such it is heavily grounded in logic. By combining this with materialism, the monist concept that everything in existence is made up of matter, you get a unique understanding of the basic makeup of Marxism. (Saksena p544) This is the lens through which the Marxist views the world, analytical and logical, with all things made up of a base product. When considering this with history, Historical Materialism is formed and Marxist understanding is applied to historical developments. Historical Materialism concerns itself with asking why and how Social progress is driven. The basic idea of this theory is that Human Society is based around how humans work to produce the means to live, and that all actions present in history are intrinsically tied to this. (Sober p310) There is also, in tandem with this, the concept that labour is divided into social classes, and that class division is dependant on the means of production. Finally, in terms of social movements, this theory states that these actions only occur when the dominant class is displaced by a newly emerging one. Eckstein p912) There are a series of ideas that go along with this concept of Historical Materialism. First and foremost is the concept that social progress is directly related to material progress, without some advancement in the process of production, social change will not occur. (Crimmins p523) Innate to this, it should be mentioned, is the concept that humans are involved with production. By tying societal progress intrinsically into manufacturing process, it ties the development of humanity, at its base level, to the worker. The worker then, becomes the means through which social progression is achieved, and also has some power over how humanity develops as a society. This power is not to be ignored, as this power is the central means to change in the Marxist view of history. By giving the workers this power it puts the means to change directly into their hands and makes them responsible for the future, and also for the past. But there is still the question of how this sect of society is motivated to action. Two distinct and yet related forces act in the concept of Historical Materialism, Production Relations and Productive Forces. Production Relations, here, can be understood to refer to the interaction between those producing the product and those paying the labourers to produce the product. (Manicas p241) Productive Forces refer to the actual labour pool that powers the productions. (Manicas p241) Understanding those two distinct terms, there is another sequence of required concepts in Historical Materialism that go along with those two concepts. Production Relations, it should be noted, develop relative to the development of productive forces. Manicas p244) An emphasis on production determines the speed of production force development. In other words, social progression is inversely relative to the way workers are treated. The change, for Marxist theorists, comes from dissatisfaction with the current state of affairs. If the workers are happy they will have no desire to change the situation. If the current state is not in their favor, however, they will be motivated to action. This of course will result, op timally, in a change in society. That is what is central about this concept, the impact it has on society. The theory believes that the structure of a society is intrinsically tied to the mode of production, or in other words the structure of a society is an expression of the mode of production. (Manicas p245) For example, a society built around a production structure heavily dependant on mechanical production will find an increase in the repair and maintenance industry, whereas a society based around manual labour will require a large number of individuals working to achieve its product. Stating that the product developed by a society has an impact on its structure can essentially sum up this whole concept. Moving beyond simply the types of jobs that would be desired, this speaks towards what the educational system of that society would be like, what the pay scale would be, what the living conditions would be at. This is all relative to the skill of the labour and the amount of education necessary to do the job. If the market is based around specialized jobs that require immense amounts of schooling, then the pay scale and standard of living for that society will be higher than a manual labour society which requires little to no education for the job. To put it simply, the more difficult the standard job for the society, the better off that society will be. But what of the problems that would arise form this formation. Critical Marxist theory believes that these concepts are tied in to some of the problems present in societies. Every state, they believe, is an institution of the ruling class. (Mayer p143) As such the laws and values of that state would seek to reinforce the means to profit. They would be utilizing everything down to the structure of the state to optimize the goal of the collective. In a capitalist structure, for example, the value structure is built around profit. As such, according to the Marxist theory, the values and systems inherent to this state would reinforce this ideal. Taking into account modern corporate practices of exporting service and manual labour to other countries where it is cheaper to attain, one sees the profit-based value structure of the capitalist system affecting their policy. The second important factor in this consideration is that State power is usually only transferred through upheaval. Sober p323) This is an extremely destructive means to achieve change, and this should be noted. It does not make it untrue, however. This violent upheaval, combined with the obliteration of the previous system, combine to show the means to change. As upsetting as it may be to think that our system is based on a wholly violent means to achieving its end, every indication through history shows this factor working time and again. Finally, this particular mode of production has to give out at some point as new technologies discover more efficient means of production. Thus the final belief of the Marxist Historical Materialist perspective is that when current production relations no longer function, progress is either stalled, or there is revolution. (Stiermotte p112) So the final catalyst, the straw that will break societies back, will be the death of production. This idea makes perfect sense when taken in terms of the whole of the argument. If motivation for change were present in the means to production and the relations between producer and employer, then the death of production would mean the end of that society producing. That is a perfect catalyst for setting off change. If there is no profit then the system, inherently built on it, fails and must be replaced. This is the full circle of Marxists Historical Materialism, the concept that when production fails, revolution will occur to re-imagine production systems to increase profit and thus advance that society. The hard question, however, is to what extent does this view of Historical Materialism apply today? Is it still a prescient means to understand societal development? If it is then perhaps it can be applied to see the future of society, maybe as a means to ensure we are not heading down a path we would not agree with. The system that comes afterwards is based in the values of those who are generally in opposition to the ruling class they have just ousted. As such they, logically, would seek to be as contrary to the original as possible. Before revolution occurs, one must contemplate what the most likely scenario would be and whether it is favorable. But before that can even occur, the question of whether this theory does indeed apply or not must be answered. As such there are four basic questions that must be answered in the affirmative for this to be the case. Is the motivation still present? Is there still a need for change? To this the answer would be affirmative. Present still in this world are primary causes for change; poverty, social inequality. These motivators are still present as a means to have the â€Å"poor† class desire change. The best example would be the rising unemployment rate in the UK. As is stated in the article, the rate of employment in the UK has descended from a â€Å"low unemployment economy to the high unemployment reality of the present era. (Leslie p371) So not only is there the sort of motivator to initiate change, the situation is actually getting progressively worse. Are there current social classes? Is there immense inequality between the classes? Yes, there are rich and poor classes in our current time and there is a distinct difference between them. Moreover the capability to move between classes is but a faint hope and it is not often that this occurs. Are these classes developed based on the mode of production? If one observes the poorer classes and their particular jobs, then one must see that their poverty is indeed tied in to the mode of production. Most often the only means of employment is to work for the rich class in a company owned by them. (Mayer p144) The ruling class here is utilizing the labour forces as a means to production. Is the state an institution of the ruling class? Does it enforce their values? In a capitalist society the values are based around profit. The values inherent to the state thus reinforce the values of the ruling class, the desire for profit before any other considerations. This is seen through the mutually declining state of employment and also health care in the UK. Through putting profit before the welfare of the employee, considerations that should normally be considered mandatory are lost by the wayside. Healthcare, in particular neonatal health care, declines as suicide and para-suicide rates increase. (Cook p73) All together this forms the impression of the powers in charge of production being unmoved by the plight of the labour force they are using. The factors for change, as outlined through Historical Materialism, are still present in current culture. Action, however, is not present. But this action, according to Historical Materialism, will only be sparked when production fails. This failure will either stall production or bring about revolution. Production, at this time, has not stopped so the final motivation for revolution is not present. But Marx never did suppose that any progress would be instantaneous, rather he stated quite the opposite. His logic was grounded in the development of the world from a proto-communist/tribal society, through ancient civilization, to feudalism, to capitalism, and finally to the ideal communist state. Marx’s worldview is that humanity is slowly progressing towards a communist state of peace, yet by his own admission; the world actually began in a proto-communist state, and then progressed away from this. Is the end state of Communism actually a step back, or is it a cyclical view of the world wherein, upon reaching the communist state at the end, the cycle begins anew and humanity goes back to ancient civilization. Progression does not necessarily entail constant forward movement in the Marxist view, only that a new class will replace the ruling elite, and society will be accordingly supplanted with a new structure. Nowhere does it emphasize this progress as a positive development. What we must really ask ourselves is, is this the future we want for our society? Do we want to go back to where we began? Do we want to develop the same way we have for years or have the myriad of problems that have arisen accordingly shown us that perhaps searching for a better means to development is the best option? Do we want history to repeat itself, or do we want to shape it?

Comparing Relationships in Susan Minots Lust and Coraghessan Boyles C

Comparing Relationships in Susan Minot's Lust and Coraghessan Boyle's Carnal Knowledge  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      "After the briskness of loving, loving stops"-Susan Minot  Ã‚  Ã‚   This quote from Minot summarizes the love affairs in her short story "Lust" and T. Coraghessan Boyle's short story "Carnal Knowledge." The protagonists in these stories go to great lengths to please their significant others hoping to find loving, fulfilling relationships. They make sacrifices and relinquish certain degrees of power to find happiness, only to discover that this happiness is temporary. Both authors use literary techniques to enhance these themes. The short stories "Lust" and "Carnal Knowledge" maintain that relationships that lack an honest, loving foundation and a lack of balance of power end abruptly and cause pain and loneliness. The love the narrator hopes to find in Minot's "Lust" continually eludes her. The story consists of a young female narrator recollecting her numerous sexual experiences with numerous partners. Her motivation is not licentious, nor is she proud of her experiences, she is only struggling to find comfort and emotional fulfillment. Unfortunately, her experiences only take her further and further from the love and acceptance she yearns for. Sex initially makes the narrator feel loved, appreciated, and valued. She loved feeling "safe, at rest, in a restful dream" (258), as she would feel when he would first begin touching her with tender caresses. It becomes almost an addiction for her, a necessity for happiness. Ironically, it is an addiction that does not satisfy the need. Like a drug, sex brings the narrator a temporary means of escape and a temporary "high", yet after the the "high" is gone, she feels empty, alone, and ... ...d the last few paragraphs have no mention of Alena. This also helps to demonstrate how she flew in and out of Jim's life. Her effect on him was very short-lived and impermanent, and he is able to return to his old way of life after she is gone. Both "Lust" and "Carnal Knowledge" examine very brief love affairs. The relationships depicted in each story lack a solid foundation, therefore they cannot last. Power imbalances exist in these relationships that intensify the pain of the protagonists. Both characters initially derive great pleasure from the relationship only for it to slip away and leave them feeling empty and lonely because "After the briskness of loving, loving stops." Works Cited Boyle, T. Coraghessan. "Carnal Knowledge." The Compact Bedford Introduction to Literature. Ed. Michael Meyer. 5th ed. Boston: Bedford/St. Martin's, 2000. 242-255.

Jim’s Nobility in Huck Finn

Houlihan 1 Mike Houlihan Ms. Fledderman English H April 15, 2013 Nobility at the Bottom of Society Someone who is noble is defined as a distinguished person noted for feats of courage and heroism. The character of Jim in  Huckleberry Finn  by Mark Twain certainly fits that description. He risked his life in order to free himself from slavery, and in doing so, helps Huck to realize that he has worth. Huck becomes aware of Jim's sense of love and humanity, his basic goodness, and his desire to help others.Jim faces discrimination based on the color of his skin and is faced with the challenges of racist stereotypes. Twain characterizes Jim as a sincere yet naive character, representing the runaway slave as a fatherly figure who maintains his integrity as being one of the sole characters of the novel who wouldn't be described as hypocritical, despite the fact that Jim also retains a childlike mentality. Throughout the novel Jim expresses nobility through his selfless nature, his stre ngth to good while resisting evil, and his ability to bear with any misfortune that may befall on him or his loved ones.Mark Twain allows Jim to break racist stereotypes by showing more human qualities of him when he expresses his selfless nature. by assuming a role as a father figure to Huck, who he watches over throughout the bulk of the novel. Jim protects Huck by shielding his view from the dead body that turned out to be Huck's father Pap. â€Å"I went in en unkivered him and didn't let you Houlihan 2 come in? Well, den, you kn git yo money when you wants it kase dat wuz him† (320).This show of consideration and paternal care for Huck makes Jim out to be more humane. Jim demonstrates his humanity by not only caring for Huck physically, but also mentally and emotionally in shielding him from a sight that could have been mentally or emotionally strenuous on someone like Huck. Jim’s actions are partly a result of his inability to distance himself from the society whi ch he has been conditioned. There are countless opportunities for Jim to leave Huck during the story, yet he remains by Huck’s side.When Huck and Jim are separated in the fog, Jim says â€Å"When I got all tired out wid work, en wid de callin you, en went to sleep, my heart wuz most broke because I was los, en I didn’t kyer no mo what became er me or der raf† (85). Jim’s freedom is then not worth the price of Huck’s life, and let’s people know that he would readily risk his life for Huck. Twain represents Jim as a paternal figure who maintains his integrity as being one of the only sincere characters of the novel, while contrasting this quality with the typical stereotypes of an uneducated slave during the American slave era.Jim is one of the sole characters of the novel who wouldn't be described as hypocritical, for he has the integrity to do what’s right when everyone around him choose not to. After Jim and Huck decide to travel tog ether on the Mississippi river; the pair has to depend on each other for survival as they encounter  people who cause obstacles and jeopardize Jim’s freedom. For example when Jim is forced to accompany the king and the duke during their scams he says â€Å"But Huck dese kings o ourn is jus reglar rapscallions; dats what dey is deys reglar rapscallions† (153).Although Huck is simply putting on an act and appeasing them in order to prevent turmoil. Jim thinks that it is ridiculous for someone to be entitled to a servant and recognizes that this is wrong by calling them â€Å"rapscallions†. This could also be twain making a jab at slavery, which is Houlihan 3 ironic because Jim has been a slave all his life without asking questions. When Jim talks about his family, he mentions his daughter whom he had hurt due to the misunderstanding that she was deaf and dumb; this proves to be pivotal point in the novel to see what kind of man Jim truly is. Oh, she was plumb de af en dumb, Huck, Plumb deaf en dumb en I’d ben a treatn her so† (156). Jim, like most fathers wanted his child to have manners and due to his ignorance of his daughter’s condition hurt her, for he believed she was just being rude. After coming to the realization of her condition, he begins to feel guilt for being unintentionally cruel. By being simple minded and at the very bottom of the social order, Jim is able to see right wrong, while others who claim to be above him cannot see this. Jim continues to show his nobility by enduring the hardships that he is faced with throughout the novel.He talks about how he feels to Huck to the extent where he forces Huck to stop and think over how he treated Jim. After talking down to Huck after playing a trick on him, Jim tells Huck how he feels and Huck even thinks that â€Å"I wouldn't done that one if I'd a knowed it would make him feel that way† (142). After thinking this, Huck himself subverts the racist stereo type by humanizing Jim and acknowledging that the black man has the capacity to feel, and Huck allows his mood to be negatively influenced by the thought that he hurt the feelings of a man he considered his friend.Jim's condition as a human being is improved even more when Huck considers Jim as his friend, making him equal to a white boy. By making Jim equal to himself, Huck is able to humanize Jim and break the cultural perception that Jim is bound to. Another example of how the book illustrates this theme is when Tom kept Jim locked up as a slave when he clearly could have been set free at any moment. Tom was aware Jim was freed from being a slave but decided to keep it a secret. This caused Jim unnecessary poor treatment. Houlihan 4He was forced by Tom to do things he didn’t want to do. This is shown when Tom forces Jim to have rats, spiders, and snakes in his room. Tom says to Jim â€Å"But Jim, you got to have ‘em- they all do. So don’t make any more fuss a bout it† (263). This was cruel because Jim was forced to live with the creatures that traumatized him in his past. Though Mark Twain breaks some racist barriers with Jim, other stereotypes about blacks in the era are reinforced throughout the novel and Jim still maintains the strength to endure.Throughout the novel, Mark Twain both reinforces and disputes racist stereotypes of the time period through the portrayal of Jim as a noble character. Jim is depicted as a genuine yet unsophisticated character. Twain represents Jim as a selfless, paternal figure that is able to see right from wrong and maintains his integrity as being one of the only sincere characters of the novel. Twain contrasts this quality with stereotypes typical of an uneducated slave during the American slave era.Though he is a stoic character, Jim is able to span the entire novel as a father figure who protects Huck both physically and emotionally and, even after Huck plays tricks on him, forgives Huck and cont inues to protect him. Nobility is reinforced when Jim's simple nature is revealed in various parts throughout the novel. Jim's gullibility and his language relay the stereotypes of the antebellum south that blacks were somehow not people and were much lower than whites. These ideas become relinquished in the end, for readers are able to see the distinguished human being that Jim characterized.

Capital Punishment A Deadly Mistake Essay - 1342 Words

Johann Kailey-Steiner English 1020 Ms. Campbell 15 November 2016 Capital Punishment: a Deadly Mistake Robert Ladd raped, robbed, and murdered Vickie Ann Gardner in 1996 and was sentenced to death based on sufficient DNA and fingerprint evidence at the crime scene. Ladd was later given an IQ test that would determine his mental capability. If he tested below 70, he would be considered, scientifically, mentally ill. He received a score of 67. This should have disqualified Ladd from capital punishment under the Supreme Court case Atkins v. Virginia which determined that, â€Å"Executions of mentally retarded criminals are ‘cruel and unusual punishments’ prohibited by the Eighth Amendment.† (Atkins v Virginia). Texas has been widely ridiculed for their highly subjective approach to determining mental illness. They based their assessment on Lennie Small from Of Mice and Men rather than scientific evidence of mental disability. So Texas continued to seek death regardless of the proof because Ladd didn’t act like Lennie. In a l etter written on January 5, 2015 to Hamilton Nolan, a journalist for Gawker.com, Ladd wrote (with assistance), â€Å"It s clear that the judge in my case R. Schell, and the 5thcir (sic). are clearly BIAS in their opinion again this is about REVENGE and justice† (Nolan). On January 29, 2015, 28 years after his sentence, Ladd was executed via lethal injection. His last words were â€Å"Stings my arm, Man!† Texas got their revenge. This case is a prime example of theShow MoreRelatedCapital Punishment : A Deadly Mistake1244 Words   |  5 Pages CAPITAL PUNISHMENT: A DEADLY MISTAKE. Imagine being asked to state your last words. What would they be? The execution of a human being is irreversible and should not be allowed anywhere. The death penalty is a crime in itself and should not be used as a form of punishment. 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Usually the capital punishment is being done to teach people not to kill and not to rape; because when they know that killingRead MoreEssay on Death Penalty Should Not Be Practiced904 Words   |  4 Pages Capital Punishment The death penalty is capital punishment given by the legislature of a nation, to individuals who have perpetrated repulsive criminal acts like manslaughter, and so on. The death penalty has been a method for rebuffing individuals since ages. Despite the fact that there are a few nations that have canceled capital punishment from their law, there are still numerous which still practice the demonstration of executing an individual for wrongdoing. The death penalty is common inRead MoreHow Do We Justify Killing?1450 Words   |  6 PagesCapital punishment, also known as the death penalty, is defined as the pre-meditated or planned taking of a human life by a government in response to a crime committed by that legally convicted person. 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And at nearly the last minutes of the film he tells the truth. Though he tells the truth of his sin, he is still put to death by lethal injection. nbsp;nbsp;nbsp;nbsp;nbsp;The purpose of this film, I believe, was to show that capital punishment is not right in all circumstances, but the redemption and preservation of the human soul being better. Tim Robbins tried to show how most people and even more accurate, Christian people tend to always want vengeance for a crime. Most of themRead MoreThe Death Penalty Should Be Legal1590 Words   |  7 Pagesthey either end up in a life sentence in prison, or they will receive capital punishment, or the death penalty. The death penalty is where a murderer is put to death by lethal injection or other forms of killing. Some say it is what the murderer deserves, while others say it is a â€Å"cruel and unusualâ€Å" form of punishment. Some states, like New Jersey have already banned the death penalty while others have decided to keep the punishment. 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The Last Samurai Essay - 1057 Words

The Last Samurai â€Å"The perfect blossom is a rare thing. You could spend your life looking for one, and it would not be a wasted life† (Zwick). These are the words of Katsumoto, an important samurai warrior. The movie The Last Samurai directed by Edward Zwick is about an American War Captain named Nathan Algren who is hired to train, lead and modernize a group of Japanese soldiers to defeat a rebellion of the countrys remaining Samurai in 1876. Algren is captured by the Samurai and soon becomes part of the village he is being held hostage in. There, Algren learns from the Samurai and comes to respect them. He finds that his true warrior is becoming unleashed as he trains to become a Samurai with the very people we once called his†¦show more content†¦Another example is the final battle that was between the samurai and the modernized army. As a whole, this battle can be seen as old Japan against new Japan. The samurai represent the old Japan because they are fighting for traditional customs and trying to keep things the way they are. The modernized army represents new Japan because they are using weapon technology from the west. The samurais are trying to protect old beliefs. They are devoted to the old ways that their ancestors followed. A third example is when Katsumoto, Algren, and all the other samurai ride horses into the city to go to the council. The reason for their visit was to protest about the modernization of Japan. The samurai did not like the fact that the Emperor is going to disturb old traditions for western ways. The samurai felt that their own ways are pure and that is what makes them truly Japanese. Another example is when the emperor refuses to sign the trade agreement. Emperor Meiji said this, â€Å"I dreamed of a unified Japan. Of a country strong and independent and modern... And now we are awake. We have railroads and cannon and Western clothing. But we cannot forget who we are. Or where we come from†(Zwick). He is refusing to si gn the treaty because he wants to preserve the old ways of Japan (Zwick). Another major aspect of imperialism that appears throughout the movie is ethnocentricity, like how the Japanese did not likeShow MoreRelated The Last Samurai Essay746 Words   |  3 Pages â€Å"The Last Samurai† is a film centered around the idea of journeying physically, spiritually, emotionally and mentally. We witness these journeys not only through observations of a character going through a personal transformation but a whole culture around him who is likewise in turmoil. This film allows us to join in on an adventure and journey of the character, the world he enters and the people he meets. The story is based on a time just after the Civil War, a time when the modern westernRead MoreEssay about Garden State, Cool Hand Luke, and The Last Samurai959 Words   |  4 Pagessweat, and tears in the soul of the movie, not just thrown together at the end just to make the quick buck are the ones worth seeing. Movies that are made up from filmmakers not money hungry producers, like Garden State, Cool Hand Luke, and The Last Samurai are the ones you remember. These movies to me were movies made with a particular purpose and not just to make as much money as possible, even though they did.   Ã‚  Ã‚  Ã‚  Ã‚  Garden State is a movie that is about a troubled twenty-something-year-old kidRead MoreEssay On Knights Vs Samurai1433 Words   |  6 PagesKnights vs Samurai essay From researching about knights and samurai, I believe that in a battle between a knight and samurai, the knight would have a greater chance in winning. This is because knights focused more on fighting techniques and how to improve them, rather than focusing on spiritual beliefs and traditions as well, which is what the samurai did. The knights also had very strong and good armour which helped a lot in battles, while the samurai’s armour changed a lot but wasn’t ever as effectiveRead MoreThe Unnatural Theatre849 Words   |  4 Pagesprocess. Exploring the idea of the theatre of imitation this essay will look at how predisposed expectations consequences in actors not being given enough opportunities to look at a text more critically. Therefore, this essay will focus on whether this method which is used in the despised, much-attacked commercial theatre is creating unnatural theatre which doesnt connect with its audience. 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Analysis Of Maya Angelou s I Know Why The Caged Bird...

â€Å"There is no greater agony than bearing an untold story inside you.† By Maya Angelou, I Know Why the Caged Bird Sings. This is the quote my mom has been telling me every day since I was 13 and able to understand it. Maya Angelou wrote this poem in 1969 and it still speaks to millions of people today. Millions of people who have everything to say but never speak. This is just one example, my example on how relatable poems are even if they are hundreds of years old. Being able to relate to a poem after such a huge time gap in what makes a poem timeless and even the poet in specific cases. To be timeless means to â€Å"not be affected by the passage of time or changes in fashion.† Timeless is beautiful and rare in a world where everything is constantly revolutionizing. Maya Angelou is timeless. I find her work to also be timeless even as she explains that the utmost pain you can endure is the pain of bottling up emotions and experience’s you would rather just bury then verbalize in I Know Why the Caged Bird Sings. This simply speaks volume and can be applied in any era of time. In the 1800’s in particular states men could legally beat their wife with anything item no wider then a thumb and I’m sure women kept quiet about it because they would believe no one would care because it was technically legal. Women of today’s era would keep domestic violence situations and their own emotions about that traumatic experience bottled up for several different reasons. The woman or man couldShow MoreRelatedAnalysis Of Maya Angelou s I Know Why The Caged Bird Sings1575 Words   |  7 Pagesto feel different, and wish they were someone or something â€Å"better†. In Maya Angelou’s autobiography she demonstrates what its like growing up in a racist community and how it feels to be the outcast. 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Supply Chain Anagement of Fmcg Companies free essay sample

OVERVIEW OF FMCG SECTOR IN INDIA A Supply Chain is a network of facilities and distribution options that performs the function of procurement of materials transformation of these materials into intermediate and finished products and the distribution of these finished products to customers. It is the process used by the companies to ensure that their supply chain is efficient and cost effective. It also basically a collection steps which a company follows to transform raw materials into finished products the five different stages are Plan Develop Make Deliver and Return Plan A plan or strategy should be developed to address how a given good or service will meet the needs of the customer. A significant portion of the strategy should be on planning in order for the supply chain to be profitable Develop It involves building a strong relationship with suppliers of the raw materials needed in the making the product the company delivers. This stage not only identifying the reliable suppliers but planning for shipping and delivery are also involved. Make In this phase the product is manufactured, tested, packaged and scheduled for delivery Deliver This is the logistics phase the goods ordered by the consumers are delivered according to the delivery plan return . This is the reverse logistics stage where the defective items are returned to the company. GODREJ CONSUMER PRODUCTS LIMITED Overview Godrej also have a strong emerging presence in markets outside India. The major overseas acquisitions include Keyline Brands of the UK, Rapidol and Kinky Group of South Africa and Tura of West Africa. Supply Chain Process Supply Chain process for Godrej begins with the forecast made at the branch level and then the next consolidation of the forecast made at each branch level will be scrutinized in the head office. Once the e Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13. 1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. According to a study by the McKinsey Global Institute (MGI), Bird of Gold: The Rise of Indias Consumer Market, Indian incomes are likely to grow three-fold over the next two decades and India will become the worlds fifth largest consumer market by 2025, moving up from its 2007 position as the worlds 12th largest consumer market. India ranks second in the Nielsen Global Consumer Confidence survey released on January 7, 2010—an indication that recovery from the economic downturn is faster in India with consumers more willing to spend. The survey showed that in addition to the emerging markets of Indonesia and India, eight of the top ten most confident markets in The fourth quarter of 2009 came from the Asia Pacific region. The FMCG market is set to treble from US$ 13. 1 billion in 2009 to US$ 33. 4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer upgrading in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food processing industry. According to a FICCI-Technopak report, despite the economic slowdown, Indias fast moving consumer goods (FMCG) sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018. The report states that implementation of the proposed Goods and Services Tax (GST) and the opening of Foreign Direct Investment (FDI) are expected to fuel growth further and raise the industrys size to US$ 47 billion by 2013 and US$ 95 billion by 2018. As socio-economic changes sweep across India, the country is witnessing the creation of many new markets and a further expansion of the existing ones. According to Pradeep Kashyap, chief executive officer of MART Rural Solutions, speaking at the Calcutta Management Association Rural Marketing Meet, over 300 million people would move up from the category of rural poor o rural lower middle class between 2005 and 2025 and rural consumption levels are expected to rise to current urban levels by 2017. Functions of Intermediaries: ?To accumulate right kind of goods, aggregating and sorting to meet consumer needs at POP ?To believe in routine and simplified transaction and work with large no of products, so that the distribution costs could g et minimized. ?To buy a large variety of goods and can compare costs and prices and make the right recommendations to their customers ?To be aware of the environment in which they operate and hence isolate companies from the direct impact of these local conditions To reduce the no of touch points. The company will be able to meet demands of thousands of customers directly and hence needs intermediation. ?Help manufacturer to effectively run trade and consumer promotions Provide credit facilities to their buyers SUPPLY CHAIN MANAGEMENT OF HUL: Hindustan Unilevers distribution network is recognised as one of its key strengths. Its focus is not only to enable easy access to our brands, but also to touch consumers with a three-way convergence of product availability, brand communication, and higher levels of brand experience. With nearly 1000 products, HLL distributes them nationally through a network of four warehouses, more than 40 agents, 7,500 wholesalers and a number of large institutional customers. HLL, in its endeavor to move from the existing push-based planning system to a pull-based system, wanted to build a Supply Chain Management (SCM) solution that would ensure informed decisions are made during procurement, manufacturing, replenishment and distribution. Specifically, the distribution operation was suffering because of a high margin of errors. There were frequent instances of excess finished-goods inventory reaching HLL’s distribution centers. This problem was compounded by increasing instances of out-of-stock inventory, which led to demand-supply mismatches. Finally, the system was not able to handle the dynamic nature of the company’s source-destination network, and adversely affected the demand-fulfillment rates. HLL needed a solution that could provide visibility across its supply chain. Considering the diverse nature of the company’s customer base, the solution needed to prioritize the demand-fulfillment process based on individual profiles. The company also required precise vehicle loading plans for the source-destination lane in tune with its dynamic network. Tool Selection In an effort to streamline its distribution network, HLL initiated a comprehensive project to seamlessly integrate its supply chain and promote collaboration. The key objectives of the initiative were: Implementation of a Supply Chain Planning and Optimization Tool. Development and implementation of a Web-enabled solution to extend visibility across the company’s network of wholesalers. Adexa’s iCollaboration Suite 5. (Supply Chain Planner and Strategic Planner) was selected as the tool for production, distribution and materials functions. The Supply Chain Planner’s (SCP) powerful constraint-based planning capability delivers detailed-level plans. On the other hand, Strategic Planner allows HLL to decide on the product mix and manufacturing locations, and optimizes the source-destination network, on a long-term basis. HULs produ cts, manufactured across the country, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets. The distribution network directly covers the entire urban population. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Unilever services each with a tailor-made mix of services. The emphasis is equally on using stores for direct contact with consumers, as much as is possible through in-store facilitators. At the supermarkets: Self-service stores and supermarkets are fast emerging in metros and large towns. To service modern retailing outlets in the metros, HUL has set up a full-scale sales organisation, exclusively for this channel. The business system delivers excellent customer service, while driving growth for the company and the store. At the same time, innovative marketing initiatives are taken to provide consumers with experience of our brands at the store itself, through product tests and in-store sampling. In the villages: HUL has also revamped its sales organisation in the rural markets to fully meet the emerging needs and increased purchasing power of the rural population. The company has brought all markets with populations of below 50,000 under one rural sales organisation. The team comprises an exclusive sales force and exclusive redistribution stockists, under the charge of dedicated managers. The team focuses on building superior availability, while enabling brand building in the deepest interiors. HULs distribution network in rural India already directly covers about 50,000 villages, reaching about 250 million consumers, through about 6000 sub-stockists. Harnessing Information Technology: An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. The objective is to catalyse HULs growth by ensuring that the right product is available at the right place in right quantities, in the most cost-effective manner. For this, stockists have been connected with the company through an Internet-based network, called RSNet, for online interaction on orders, despatches, information sharing and monitoring. RS Net covers about 80% of the companys turnover. Today, the sales system gets to know every day what HUL stockists have sold to almost a million outlets across the country. RS Net is part of Project Leap, HULs end-to-end supply chain, which also includes a back-end system connecting suppliers, all company sites and stretching right upto stockists. Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience. In the end it could be said that HULs SCM is one of the best in the world and it is quite difficult for any company to challenge it. In India if we see, we will find that LUX is vailable everywhere and it is through this SCM only that HUL is able to do that. From sourcing raw materials to delivering the end product, our technologically advanced supply chain underpins our growth, providing service excellence at competitive costs. Customer Service – Front end Understanding customer needs. The main purpose of this area is to understan d customer needs and work together to solve joint logistical challenges such as on shelf availability. Roles include order management, working at the interface between warehousing and transportation, and ensuring the right products arrive in the right place at the right time. Customer Service – Plan Unique individuals. Our Planners are unique individuals who use great analytical and interpersonal skills to help bring innovations to market. Working with all business functions, they are key to our sales and operations planning process. Demand planning uses models as well as market knowledge to determine potential sales. Using this data, supply planning ensures factories are able to meet these sales on time in the most cost effective way. Supply management Intelligent sourcing. This is about optimising the cost and quality of what we buy and how we buy it. Intelligent sourcing of raw materials, packaging and non-production items helps reduce costs and make our business more effective. The team explores new ways of working with suppliers and plays an important role in technology innovation. Manufacturing Output and costs. Our manufacturing record is one of the most envied in the world, with many of our facilities considered the best in their country. You’ll help factories improve efficiencies and adapt to the changing needs of customers and consumers. As a manager, you might be responsible for a team’s quality, output and costs. In engineering, you could be designing and building high-speed production lines. Career progression As one of the worlds largest consumer goods companies, the scale and importance of our supply chain operation offers many fascinating career paths. Access all areas As your career progresses, you’ll have opportunities to work within the full spectrum of disciplines, roles and areas. Youll gain exposure at global, regional and local levels across a broad range of categories, markets and technologies. Youll take on different responsibilities that allow you to directly impact business performance. And through world-class professional learning programmes, you’ll develop the expertise necessary to become highly effective in your specialisation. Qualities skills Youre exceptionally organised with a hands-on approach and excellent IT skills. Youre good at managing people, projects, information and change. You have an entrepreneurial mind when it comes to innovation and cost saving. IN VILLAGES: HUL approached the rural market with two criteria ? the accessibility and viability. To service this segment, HUL appointed a Redistribution stockist who was responsible for all outlets and all business within his particular town. In the 25% of the accessible markets with low business potential, HUL assigned a sub stockist who was responsible to access all the villages at least once in a fortnight and send stocks to those markets. . Evolution over Time The HUL’s distribution network has evolved with time. The first phase of the HUL distribution network had wholesalers placing bulk orders directly with the company. Large retailers also placed direct orders, which comprised almost 30 per cent of the total orders collected. The company salesman grouped all these orders and placed intent with the Head Office. Goods were sent to these markets, with the company salesman as the consignee. The salesman then collected and distributed the products to the respective wholesalers, against cash payment, and the money was remitted to the company. The focus of the second phase, which spanned the decades of the 40s, was to provide desired products and quality service to the companys customers. In order to achieve this, one wholesaler in each market was appointed as a Registered Wholesaler, a stock point for the companys products in that market. The company salesman still covered the market, canvassing for orders from the rest of the trade. He then distributed stocks from the Registered Wholesaler through distribution units maintained by the company. The Registered Wholesaler system, therefore, increased the distribution reach of the company to a larger number of customers. The highlight of the third phase was the concept of Redistribution Stockist (RS) who replaced the RWs. The RS was required to provide the distribution units to the company salesman. The second characteristic of this period was the establishment of the Company Depots system. This system helped in transhipment, bulk breaking, and as a stock point to minimise stock outs at the RS level. In the recent past, a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents (C). The C as act as buffer stock? points to ensure that stock? outs did not take place. The C system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery. The most important benefit has been improved customer service to the RS. The role performed by the Redistribution Stockists includes: Financing stocks, providing warehousing facilities, providing manpower, providing service to retailers, implementing promotional activities, extending indirect coverage, reporting sales and stock data, demand simulation and screening for transit damages. The distribution network of HUL is one of the key strengths that help it to supply most products to almost any place in the country from Srinagar to Kanyakumari. This includes, maintaining favourable trade relations, providing innovative incentives to retailers and organizing demand eneration activities among a host of other things. Each business of HUL portfolio has customized the network to meet its objectives. The most obvious function of providing the logistics support is to get the company’s product to the end customer. Distribution System of HUL HUL’s products are distributed through a network of 4,000 redistribution stockists, covering 6. 3 million reta il outlets reaching the entire urban population, and about 250 million rural consumers. There are 35 C in the country who feed these redistribution stockists regularly. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Unilever provides tailor made services to each of its channel partners. It has developed customer management and supply chain capabilities for partnering emerging self? service stores and supermarkets. Around 2,000 suppliers and associates serve HUL’s 40 manufacturing plants which are decentralized across 2 million square miles of territory Hindustan Unilevers distribution network is recognised as one of its key strengths. Its focus is not only to enable easy access to our brands, but also to touch consumers with a three-way convergence of product availability, brand communication, and higher levels of brand experience. HULs products, manufactured across the country, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets. The distribution network directly covers the entire urban population. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Unilever services each with a tailor-made mix of services. The emphasis is equally on using stores for direct contact with consumers, as much as is possible through in-store facilitators. At the supermarkets: Self-service stores and supermarkets are fast emerging in metros and large towns. To service modern retailing outlets in the metros, HUL has set up a full-scale sales organisation, exclusively for this channel. The business system delivers excellent customer service, while driving growth for the company and the store. At the same time, innovative marketing initiatives are taken to provide consumers with experience of our brands at the store itself, through product tests and in-store sampling. ?Direct marketing means selling products by dealing directly with consumers rather than through intermediaries. ?Traditional methods include mail order, direct-mail selling, cold calling, telephone selling, and door-to-door calling. More recently telemarketing, direct radio selling, magazine and TV advertising, and on-line computer shopping have been developed. ?The main advantages of selling direct are that there is no need to share profit margins and the producer has complete control over the sales process. Products are not sold nearby those of competitors either. ?There may also be specific market factors that encourage direct selling: ?There may be a need for an expert sales force, to demonstrate products, provide detailed presale information and after-sales service ?Retailers, distributors, dealers and other intermediaries may be unwilling to sell the product Existing distribution channels may be owned by, or linked to, competing producers (making it hard to obtain distribution by any other means than direct) ?However, there are significant costs associated with selling direct which may be higher than the costs associated with using an intermediary to generate the same level of sales. There are several pote ntial advantages of using an intermediary. ? More efficient distribution logistics ?Overall costs (even taking into account the intermediaries’ margin or commission) may be lower ? Consumers may expect choice (i. e. he products and brands of many producers) at the point of sale ?Producers may not have sufficient resources or expertise to sell direct. In indirect distribution It is the system the marketer reaches the intended final user with the help of others. These resellers generally take ownership of the product, though in some cases they may sell products on a consignment basis (i. e. , only pay the supplying company if the product is sold). Under this system intermediaries may be expected to assume many responsibilities to help sell the product. Indirect methods include: Single-Party Selling System Under this system the marketer engages another party who then sells and distributes directly to the final customer. This is most likely to occur when the product is sold through large store-based retail chains or through online retailers, in which case it is often referred to as a trade selling system. Multiple-Party Selling System This indirect distribution system has the product passing through two or more distributors before reaching the final customer. The most likely scenario is when a wholesaler purchases from the manufacturer and sells the product to retailer. New distribution channels Project Shakti This model creates a symbiotic partnership between HUL and its consumers. Started in the late 2000, Project Shakti had enabled Hindustan Lever to access 80,000 of Indias 638,000 villages . HULs partnership with Self Help Groups(SHGs) of rural women, is becoming an extended arm of the companys operation in rural hinterlands. Project Shakti has already been extended to about 12 states ? Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, Uttar Pradesh, Orissa, Punjab, Rajasthan, Maharashtra and West Bengal. The respective state governments and several NGOs are actively involved in the initiative. The SHGs have chosen to partner with HUL as a business venture, armed with training from HUL and support from government agencies concerned and NGOs. Armed with micro? credit, women from SHGs become direct? to? home distributors in rural markets. The model consists of groups of (15? 20) villagers below the poverty line (Rs. 750 per month) taking micro? credit from banks, and using that to buy our products, which they will then directly sell to consumers. In general, a member from a SHG selected as a Shakti entrepreneur, commonly referred as Shakti Amma receives stocks from the HUL rural distributor. After being trained by the company, the Shakti entrepreneur then sells those goods directly to consumers and retailers in the village. Each Shakti entrepreneur usually service 6? 10 villages in the population strata of 1,000? 2,000. The Shakti entrepreneurs are given HUL products on a `cash and carry basis. The following two diagrams show the Project Shakti model as initiated by HUL. PROJECT STREAMLINE / STREAM LINE DISTRIBUTION: To improve the efficiency of a process, business organization by simplifying or eliminating unnecessary steps, using modernizing techniques, or taking other approaches. To cater to the needs of the inaccessible market with high business potential HUL initiated a Streamline initiative in 1997. Project Streamline is an innovative and effective distribution network for rural areas that focuses on extending distribution to villages with less than 2000 people with the help of rural sub? stockists/Star Sellers who are based in these very villages. As a result, the distribution network directly covers s of now about 40 per cent of the rural population. Under Project Streamline, the goods are distributed from C F Agents to Rural Distributors (RD), who has 15? 20 rural sub? stockists attached to him. Each of these sub? stockists / star sellers is located in a rural market. The sub? stockists then perform the role of driving distribution in neighbouring villages using unconventional means of transport such as tractor and bullock carts. Project Streamline being a cross functional initiative, the Star Seller sells everything from detergents to personal products. Higher quality servicing, in terms of frequency, credit and full? line availability, is to be provided to rural trade as part of the new distribution strategy. DABUR SUPPLY CHAIN MANAGEMENT: Over its 120 years of existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause one’s harm. The trust levels that this brand enjoys are phenomenally high. While Rise and Trout may ask â€Å"What does Dabur stand for—shampoo or digestive tablets? † The answer is fairly simple, it stands for India’s fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally, and which has an annual turnover of over Rs 15 billion. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur is an investor friendly brand as its financial performance shows. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). There’s a great sense of responsibility for investors’ funds on view. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. Supply chain management: Chains of intermediaries each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the distribution chain or the channel. Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end user. Channels: A number of alternate channels of distribution may be available: †¢ Distributor, who sells to retailers †¢ Retailer (also called dealer or reseller), who sells to end customers â € ¢ Advertisement typically used for consumption goods Channel membership: 1. Intensive distribution Where the majority of resellers stock the product (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. . Selective distribution This is the normal pattern (in both consumer and industrial markets) where suitable resellers stock the product. 3. Exclusive distribution Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the product. Channel motivation: It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive: the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a competition is offered to the distributors sales personnel, so that they are tempted to push the product. Monitoring and managing channels: In much the same way that the organizations own sales and distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, many organizations use a mix of different channels; in particular, they may complement a direct sales force, calling on the larger accounts, with agents, covering the smaller customers and prospects. Bases on which the data’s are analyzed: I’ve collected numerous data’s regarding- †¢ Sales promotion †¢ Consumer buying behaviour †¢ Availability of various brands †¢ Accessibility of the distribution sources to the distant rural population †¢ Mode of transport the rural consumers opting for purchasing the products Supply chain: Dabur has steadily improved its procurement and distribution systems to achieve a significant reduction in material costs. Dabur has an extensive supply chain and distribution network that has grown and spans 29 factories, 47 stocking points, 4 zonal offices, a dozen manufacturing locations, six mother-warehouses and over 50 Carrying and Forwarding Agents(CFAs) that distribute more than 1,000 SKU’s to several thousand stockists and dealers. MIS: An in-house developed, easy-to-use, Intranet based data-warehouse displays as of-yesterday sales, stock, receivables, banking, and other MIS. Over 5,000 ASP pages meet almost all reporting requirements and make this a single source of MIS for all levels of decision makers. URBAN DISTRIBUTION CHANNEL [STOCKIEST] This is divided into two parts, viz: above 5 lakhs of population and between 1 to 5 lakhs of population. This segment is totally covered by the direct stokist. In the segment of above 5 lakhs there are three ways of covering the market, viz: Beat wise, Line wise Channel wise distribution while in the segment of 1 to 5 lakhs of population there are two ways, viz: Channel wise Beat wise. CHANNEL WISE DISTRIBUTION Here the total product is divided into different channels like, Health care product, Personal care products, Home products etc. LINE WISE DISTRIBUTION Here the total product is divided into different lines like, hair care, body wash, coconut oil, nutrition food and etc. BEAT WISE DISTRIBUTION Here total market is divided into different areas where the total products are served to all the outlets exist in that area. RURAL DISTRIBUTION NETWORK [SUPER STOCKIEST] Under rural distribution network, the whole market is served by three parties, viz: Substokist, Rural Direct Stockiest and by the Dabur network itself. The Sub stockist get the required product through the super stockist who again covers the Dabur itself segment. The Rural Direct Stock segment is covered by the direct stockiest who serves the whole urban distribution. The Substokist uses the Sub van mode of transportation while the Rural direct stockiest uses the Direct Van to cover his area. (See the picture above). Dabur is continuously monitoring its channel members to ensure the speed and accuracy in its service to its ultimate customers. The key customers for Dabur are Whole seller, Small Outlets and the Chemist. Dabur has continuously focusing on these key customers and tried to satisfy them over the years to sustain in this industry. Dabur tackled the secondary supply chain. In 2001, Dabur decided to tackle its extended supply chain of over 30 factories, six key warehouses, and 52 stocking points distributing over 1,000 SKUs to 10,000 stockists countrywide. The company needed a system to accurately control distribution and sales forecasting to reduce inventory in the pipeline. Dabur went ahead and built a system using Visual Basic and ASP with SQL Server 2000 as the database. It decided not to use a packaged SCM solution due to the high cost and relative lack of complications in its supply chain. The initiative: An in-house developed, easy-to-use, Intranet based data-warehouse displays as-of-yesterday sales, stock, receivables, banking, and other MIS. Over 5,000 ASP pages meet almost all reporting requirements and make this a single source of MIS for all levels of decision makers. This success paved the ground for the companys supply chain initiative. Fifty-five Ku Band TDMA VSATs were used to link primary distributors to the system. Factories were hooked up using PAMA (Permanent Assigned Multiple Access) VSATs. At some locations VPNs had to be used because it was not possible to set up a dish. The zonal offices in Mumbai were hooked up in a similar manner. The hardware is mostly owned by the primary CFA (Carry and Forward Agent) except for the networking equipment, which is owned by Dabur. In the case of the secondary systems, stockists wholly own the hardware. The primary rollout began in April 2001 and took 16 months. The first six months were used to create a business model common to all divisions (family products, healthcare, ayurvedic products, and pharmaceuticals), and testing and piloting the same. The Innovation The integrated primary and secondary system has a number of unique features. The features like tight integration of schemes, stockists credit limit control, automated banking of cheques, and online cheque reconciliation have obvious advantages in the primary distribution. These are basically extensions to the MFG/PRO ERP system and not core customizations. Daburs stockists supply to 1. 5 million retailers. Seventy percent of the sales are accounted for by the top 500 stockists. The incorporation of these top stockists into its supply chain is a first for any FMCG company in India. The average sale of each stockist and the current stock are the two parameters. A My Page allows the stockist to see the as-of-yesterday details pertaining to the in-transit shipments, transporter details, back-orders, account statement, cheque status, credit notes, and claim settlements. Details are collected from stockists on a weekly basis. In case of primary distribution points, an incremental backup is sent to the central location when the CFA closes operations for the day. These are computed at night in a process called ‘cubing’. And when managers come into office in the morning the information is ready for them. The integrated system allows each Area Manager to plan for the months sales forecasts, stockists performance, and sales officers performance. The integration allows better control on pipelines in primaries and secondaries, brings down inventories, and offers better control on production and sales against a confirmed forecast. â€Å"The company has added an SMS interface that lets authorized phones query the system for aspects like stock status, credit limits, current outstanding, and division-wide sales. An access control list of mobile phone numbers is used to restrict access to the system. Salespeople can get responses to their queries in a minute with this system, said Gopal Shukla, Chief Information Officer, Dabur India Limited. The problems The Internet connectivity had to be provided to secondary stockists and wasnt always reliable. Daburs solution was to offer the option of downloading software, working offline, and connecting later to send in updates. Power was another issue. The company laid down stringent standards. Every stockist had to have an UPS, and in cases where the power shortages are chronic, a genset. The Benefits By integrating its primary and secondary supply chains, Dabur intends to reduce the days of inventory carried in the pipeline by four days from the present 29 days. It aims to save Rs 5 crore by means of this system. Beyond this, the system lets it forecast seasonal spikes in sales and manufacture accordingly. The aim is to shift focus to the stockists rather than the CFAs to get a true picture of whats happening in the market and react faster. Future Roadmap Schemes based on secondary volumes will help control secondary pipelines and sales. Primary sales will therefore come from a resultant pull from secondary replenishments. Sales order servicing can be further improved by taking orders through the Internet, and by setting stocking norms and replenishing stocks to improve ROI of stockists. Sales officers targets can be set against a measure of secondary sales and pipelines to further improve control and avoid stuffing of CFAs to meet targets. SUPPLY CHAIN MANAGEMENT OF PG: Procter Gamble, a world leader in consumer packaged goods, sells nearly 300 brands in more than 160 countries. It has sales of $40 billion a year and 130 manufacturing sites around the world. PG measures consumer satisfaction at two levels, which it calls the two â€Å"moments of truth. † The first moment of truth occurs when the consumer reaches the shelf and finds that the desired product is, or is not, available. This is a critical moment, because if the product is not immediately available, the consumer usually moves on to buy a rival product. The second moment of truth depends on the buyer’s satisfaction when consuming the product. This, too, has a crucial impact on consumer loyalty, but is beyond the scope of this case study. Detailed consumer surveys in July 2000 told PG that in 55% of cases (75% for promotional items), consumers were not satisfied when they looked on the shelf for the products they wanted. The exact product variant, in the size and packaging the shopper sought, was available less than half the time. Something had to be done. Responsibility for having the product on the shelf every time a shopper wants it used to be seen as purely a matter for the retailer. If retailers got their forecasts wrong and ordered the wrong volumes, the manufacturer was not aware of the problem, or at least otconcerned about it. But, at the end of the day, both the manufacturer and the retailer were losing. PG was ahead of the pack in realizing the significance of this, though other manufacturers are now also focusing on the end consumer, which is one reason why the industry is seeing so many new CPFR (collaborative planning, forecasting and replenishment) and VMI (vendor-managed inventory) programs. Top manage rs in PG began to realize that the company’s supply network needed to be re-engineered so that it was genuinely responsive to consumer demand. This was especially important for promotional items, because of the cost of merchandising and promotional activities, and the long-term negative impact of stock-outs on consumers. After customers have been unable to buy the desired product and have switched to alternatives, it becomes hard to persuade them to return to buying the initial product when they go shopping again. PG decided that sophisticated demand chain management, establishing direct connections between sales and supply chain business processes, could be the key to maintaining its leading position in the consumer packaged goods industry. As a result, a multi-level initiative was launched, which PG calls its â€Å"consumer-driven supply network† (CDSN) program. Retail changes put pressure on the supply chain For the major consumer packaged goods manufacturers, the strategies that are currently being pursued by the world’s most competitive retail chains are changing the game in two important ways. †¢ As consumers come to expect a greater assortment of product options, retailers are responding with greater product differentiation, driving up service level expectations. Cash requirements are creating pressure for shorter order-to-delivery cycles and a move towards flow-through distribution networks. These trends are already beginning to eliminate the safety stocks that used to be held in reserve in the retail supply network. This situation creates several new problems that PG and other manufacturers need to come to terms with. †¢ Reaction times across the supply network have been compressed. †¢ Current processes cannot move fast enough to deliver what retailers need. †¢ Supply decisions require timely, detailed information that is not usually available today. Optimizing supply chain performance demands a radical new look at the way the partners in the supply network collaborate, involving retailers, manufacturers and service providers. PG’s aim has been to create adaptive, responsive supply networks that will link together sales and supply processes, inside and outside the organization, to improve product availability. This will allow it to develop demand chain management capabilities, especially for promotions. Promotional items are the highest priority, because of the large amounts of money involved in marketing programs. If manufacturers cannot deliver the product, they lose all the growth that should be generated by their marketing promotions, however much demand is stoked up. New thinking, new techniques, and new technology PG’s vision of a consumer-driven supply network has two essential elements. †¢ Building collaborative supply chains at several levels (local market and global markets, for example). †¢ Ensuring that manufacturing sites serving both local and global supply networks are highly responsive to changes in demand, based on real-time data from the stores. Links between supply chain planning and supply chain execution processes are critical. In the transportation area, PG expects a lot of change, including improved collaboration with logistics outsourcers and more use of techniques such as cross-docking. This system, under which inbound trucks are unloaded and the goods are sorted and loaded straight onto outbound vehicles, without ever being put into store, can be used to cut inventory and handling costs, as well as delivery times. Daily planning will give way to continuous planmake- ship processes, which will demand improved loading techniques to make efficient use of vehicles as lot sizes become smaller. In the short term, PG expects to see supply networks based on relationships, rather than entirely owned by manufacturers. This kind of collaborative organization offers the flexibility to vary capacity according to short-term or last-minute needs. End-to-end optimization is essential, as there is no point in optimizing one component (e. g. production responsiveness) at the expense of another (e. g. delivery and transport costs). In export markets, with their longer replenishment lead times, this kind of improvement canbe difficult to manage. But these are the very markets that may also offer the biggest rewards in terms of inventory reduction and improvements in availability. In PG’s vision of the consumer-driven supply network, daily demand updates provide timely warning of changes in product consumption. To make the CDSN work, this information must then be rapidly integrated into replenishment plans, internally and for partners and suppliers. PG is also piloting new distribution requirement planning techniques that will make it easier to understand product requirement implications across the distribution network. For the CDSN idea to become a reality, some organizational changes were necessary, asexisting processes could not keep up with the new business targets for customer and consumer service. But it was also clear that there were technology issues that must not be forgotten. The battle cry of â€Å"Business strategy first, technology second† is now accepted wisdom, but changing the business strategy would not have been feasible without changing the technology, too. Achieving â€Å"optimization† across the supply and demand chains requires network collaboration between partners, and a set of tools that will help and facilitate that collaboration. These tools must include a harmonized business applications portfolio, including, in PG’s case, a globally standardized ERP platform predominantly based on SAP software. The final element required to make the CDSN concept work is technology for real-time tracking of products, cases and pallets within a manufacturing operation. PG is one of the sponsors of MIT’s Auto-ID Center, which is working to develop cheap radio-frequency ID tags that can be built into packaging to provide real-time demand monitoring from the retailer’s shelves all the way back through the supply network. Out-of-stocks cost you one sale in nine Though the consumer buys from the retailer, and not directly from the manufacturer, the manufacturer cannot afford to ignore the problem of shortages at the store or shelf level. PG’s direct customers are the retailers, and today’s supply chain structures were originally developed to supply retailers’ warehouses with goods, according to plans laid down and orders placed in advance. But at a time of highly volatile consumer demand, doing this reliably is not enough. Service at the consumer level is becoming the key strategic metric, and out-of-stocks need to be monitored very closely. PG’s research has shown that retailers lose 11% of sales due to out-of-stocks, and that same-brand substitutions win back less than 25% of those lost sales for a manufacturer. From the CDSN pilots it has run so far, PG has already discovered that effective collaboration in non-linear supply chain environments is a demanding discipline—and that it is important to force the pace of change. Systems and technologies may not yet be ideal, but PG has learned that it is not worth waiting for perfection. It has identified the main requirements for successful network collaboration under four headings: †¢ The potential to move large volumes of data fast. Data should be handled automatically, without needing to be transformed or translated on arrival. †¢ An adaptive, dynamic approach that uses new business applications to monitor, alert, evaluate and, where appropriate, trigger action. †¢ The ability to establish connections quickly on demand, if necessary within hours. †¢ Enhanced back-up and recovery strategies for all the systems involved. The technical challenges cannot be ignored, because batch processing windows soon narrow right down. This is especially critical if these harmonized business applications are going to be deployed on a global scale. PG is working with its IT suppliers to develop additional functionality and to resolve thescalability problems inherent in most new applications. But it has also learned the value of assembling and making a firm commitment to a small group of technology partners for such an ambitious global project. Getting down to the practical detail It is still too early for PG to be able to point to business results and ROI figures in connection with this work, but several programs have already been approved and launched. These projects are already contributing tangible business benefits in several planning areas. †¢ Demand planning: PG has launched a new demand planning system, which is now used to forecast 80% of the company’s sales volume. It is already showing that it can produce forecasts with significantly improved accuracy. †¢ Rough-cut capacity planning: PG has introduced a pilot to support rough-cut capacity planning processes in its detergents business. This has already succeeded in cutting out-of-stocks by three-quarters and reducing inventory levels. Distribution requirements planning: Among others, there has been a successful pilot project in PG’s North American cosmetics manufacturing facility, supporting a daunting 10,000 permutations of product and distribution channel. PG has also developed private e-marketplace facilities for both suppliers and customers, allowing its key business partners to see its inventory levels and production plans and perform real-time transactions via Web-enabled front-end systems. This approach has produced inventory savings across the whole supply chain, and allowed the introduction of other improvements, such as automatic invoice processing. Improved responsiveness to events has enabled PG to increase promotional product volumes, but still be left with less residual inventory when each promotion is over. At its manufacturing sites, PG is experimenting with early pilots to support produce-todemand capabilities. These involve superimposing real-time demand signals onto the production plan, and integrating real-time shop-floor and warehouse data. It is also piloting a â€Å"dynamic distribution requirements planning† system, in which the planning cycle is automatically triggered by major events, such as changes in demand or inventory, and could be run many times a day. Though the pilots are still in early stages, incorporating these highly responsive processes into the supply chain will eventually cut costs and lead to real improvements in consumer satisfaction. SUPPLY ITC Overview ITC is one of Indias foremost private sector companies with a market capitalisation of over US $ 22 billion and a turnover of US $ 6 billion. * ITC is rated among the Worlds Best Big Companies, Asias Fab 50 and the Worlds Most Reputable Companies by Forbes magazine, among Indias Most Respected Companies by Business World and among Indias Most Valuable Companies by Business Today. ITC ranks among Indias `10 Most Valuable (Company) Brands, in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asias 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards Specialty Papers, Packaging, Agri-Business, Packaged Foods Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods Confectionery, Branded Apparel, Personal Care and Stationery. As one of Indias most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration a commitment beyond the market. In his own words: ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part. ITCs diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITCs Agri-Business is one of Indias largest exporters of agricultural products. ITC is one of the countrys biggest foreign exchange earners (US $ 3. 2 billion in the last decade). The Companys e-Choupal initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Companys marketing reach. ITCs wholly owned Information Technology subsidiary, ITC InfoTech India Ltd, provides IT services and solutions to leading global customers. ITC InfoTech has carved a niche for itself by addressing customer challenges through innovative IT solutions. ITCs production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 26,000 people at more than 60 locations across India. The Company continuously endeavours to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 3,53,000 shareholders, fulfil the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: Enduring Value. For the nation, Shareholder. ITC FMCG Supply chain ?Consists of diverse categories with different priorities ?More than 1000+ SKUs ?Buying Value $68 MM ?Warehousing space of more than 3. 5m SFT around 55+ Locations ?Products manufactured at 45+ plants ?More than 650 trucks moved every day ?Direct distribution from factories to Distributors. ?Indirect movement through RDCs ?Combination of Rail/Road/Sea movement within the country depending on the product type. e-Choupal E-Choupal is an initiative of ITC Limited, a large multi business corporation in India, to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns. E-Choupal was conceived to tackle the challenges posed by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries. The programme involves the installation of computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information. Problems addressed: Commodities were procured in mandis, where the middleman used to make most of the profit. These middlemen used unscientific and unfair means to judge the quality of the product to set the price. Statement of a farmer: Who is a member of E-Choupal: Before ITC introduced us to e-Choupal, we were restricted to selling our produce in the local mandi. We had to go through middlemen and prices were low. Today we are a community of e-farmers with access to daily prices of a variety of crops in India and abroad – this helps us to get the best price. Effects of e-Choupal ITC Limited has now provided computers and Internet access in rural areas across several agricultural regions of the country, where the farmers can directly negotiate the sale of their produce with ITC Limited. This online access enables farmers to obtain information on mandi prices, and good farming practices, and to place orders for agricultural inputs like seeds and fertilizers. Each installation serves an average of 600 farmers in the surrounding ten villages within about a 5 km radius. Since the introduction of e-Choupal services, farmers have seen a rise in their income levels because of a rise in yields, improvement in quality of output, and a fall in transaction costs. Even small farmers have gained from the initiative. At the same time ITC Limited has obtained benefits from the programme: 1. elimination of non value added activities 2. differentiated product through identity preserved supply chains 3. value added products traceable to farm practices 4. e-market place for spot transactions and support services to futures exchange There are presently 6,500 e-Choupals’ in operation. ITC Limited plans to scale up to 20,000 by 2012 covering 100,000 villages in 15 states, servicing 15 million farmers. Manufacturing firms The module in the distribution network of ITC cigarettes are the manufacturing units located at Bengaluru, Muner, Kolkata, and Saharanpur. These manufacturing units use the raw materials and other available resources to manufacture the various brands of cigarettes. Zonal Offices and Warehouses The second level of distribution channel are the zonal offices . Each of the zonal office is situated in different regions like North, South, West, East, North-west region etc. hat are like the branch of organization opened for the smooth functioning of the supply chain management of the product in the market. Main task performed by these offices are acting as an intermediate between the manufacturing firm and local distributors who are involved in actual distribution of products to the different selling points in the market. They invigilate the storage point for the company, i. e. warehouse where large amount of stock is stored depending upon the sales in that particular region. Wholesale Distributors The next level of the channel constitute of distributors. It mainly refers to the agency holders of the company who act as the company representative in the market and supplies the product to the different selling points in the market. They are the most important module in the distribution channel of Cigarettes as on the one hand they are representing company in the market and on the other hand they are involved in promotional activities of the product (due to restriction on advertising and promotion of the Cigarettes using media types). The distributors are available in almost each city and other important areas of the market to increase the availability of the brand in the market and compete against the competitors. Wholesalers The next level of the channel in the distribution is the wholesalers. They help in â€Å"bulk breaking† from the local distributors and also supplies to the retailers in the in and around its periphery. They also help in promoting the company and other promotional activities through various visual merchandising. Retailers The last intermediate that is available before the Cigarette reaches to the customer are the retail outlets. With reference to the Indian perspective, different retail outlets are present in different forms in the market like:- a)Pubs/ Bars: These are not basically the retail outlets of Cigarette but are included under this category because few of the super premium brands are available in each Pub for the facility of the customers coming to that particular place. Also, these places act as point of promotion and launch of new brands. ) Convenience stores (Kirana shops): Small and big shops present in every locality providing the basic necessary products to the nearby people or the locality in which it is located. c) Pan shops: Small corner shops that are known with the name of Pan Shops but contributes large share in total sales of Cigarettes in the market. d) Kiosks: Small outlets in big Malls like Forum, which only sells Cigarettes of different brands of the same company like ITC. Kiosks are being used by the companies to increase the visibility of the brands. ) Large format stores (LFS): It refers to the big retail outlets that are available in the local markets selling the daily need goods and other middle range of products that are required by the customers for the fulfilment of basic needs like vegetables, grocery, kitchen appliances etc. Ex. Spencer’s, C3 etc. f) Multi Branding Outlets (MBO’s): The outlets opened in the Malls and other shopping areas, which are similar to the â€Å"Kiosks† but the only with a difference that products from different companies are also available at one place with addition to different brands. Channel Member Management Monetary and Non Monetary Methods of Rewarding As per the HR policy of ITC ltd there are no monetary or non monetary rewards given to the channel members, they are the distributors and retailers. Target Setting Mechanism ITC Ltd sets target for the distributors in terms of M-S, where 1 M-S is equivalent to 12000 sticks and 1 case is equivalent to 12 M-S. The distributors are given a target of 200 M-S per week. No targets are set for the retailers. Monitoring Mechanisms The distributors are monitored by the Area Sales Manager and the retailers are monitored on by the Area Executives. The parameters on the basis of which the distributors are monitored are (a) Visibility of the products (b) Availability of the products (c) Maintenance of the existing displays (d) Weekly sales. Training and HR Inputs The distributors are not given any training or HR inputs by ITC ltd Field Force Management Monetary Method of Rewarding As per the HR policy of ITC Ltd the field force is monetarily rewarded on the basis of the number of bills drawn on the distributors. Non Monetary Method of Rewarding The field force of ITC Ltd is given unlimited medical benefits in terms of non monetary methods of rewarding. Target setting Mechanism The field force is given targets in terms of the number of bills generated by an individual. Monitoring Mechanism The members of the field force reports to their immediate supervisor and this follows throughout the hierarchy. Training and HR Inputs The sales men of the distributors are under the payroll of ITC ltd. In case of mass recruitment the new sales force is given training by the HR department of ITC Ltd. As per the HR norms, ITC Ltd provides training to its own employees of the distribution network at regular intervals.