RADIO FREQUENCY IDENTIFICATION ( RFID )

WHAT IS RFID ?

Radio Frequency Identification or RFID is a term to any technology that uses radio waves to identify or track items. For example items are a container, an automobile, an animal or a person can all be automatically identified and tracked through RFID technology.

HOW DOES IT WORK ?

The RFID technology can be constructed in many ways, but the most common procedure is to store a serial number on a microchip and attach it to a coiled antenna. It is called inlays.

EXAMPLE COMPANY THAT USE RFID ?

Wal-Mart had required its top 100 suppliers to use RFID technology in shipping cases and pallets. But before it is announced, everyone questioned whether it really worked or not. Wal-Mart believes that it has the answer.

ADVANTAGE OF RFID

An RFID system provides many advantages for companies, suppliers and retailers. Below is a list of the benefits RFID can offer:

• ·        Reduced labor cost
• ·        Simplified business processes
• ·        Improved inventory control
• ·        Increased sales
• ·        Reduced shrinkage

ADVANTAGES OF RFID THAN BARCODE SYSTEM

• ·        A no contact, no-line-of-sight reading and tracking system
• ·        Reduction in the need for the manual scanning of products
• ·        Reduction the time required for labor-intensive duties
• ·        Reduce overall labor costs for companies
• ·        Reduce labor required for monitoring goods movement and inventory flow
• ·        RFID rags can be read through snow, fog, ice, paint and crusted grime
• ·        RFID tag also can be programmed to hold information such as the item’s serial number, color, size and current price

DISADVANTAGE OF RFID

• ·        RFID readers need high cost for company to implement.
• ·        RFID tags also quite expensives.
• ·        Active tags which use a battery to improve range and other capability also need higher costs.

RFID IMPLEMENTATION

Before implement the RFID system, companies should ask some question to themselves. Below are the example questions:

• ·        Does the company need RFID to keep pace with its competitor?
• ·        Will RFID offer a competitive advantage for the company?
• ·        Will RFID save the company money eventually (long term)?
• ·        Will RFID cost-effectively improve the ability of the company to serve its customers?
• ·        Will the company have the power to manage its business without accurate information about its processes and inventory that could be gained from RFID?
•     To integrate an RFID system successfully, a company must have a strong understanding of the basic elements of the system.

Supplier Selection and Evaluation

Assalamualaikum.

How a lovely day today is. We hope all of you are in the pink of health. Now, our group need to continue our task today which needs to submit the blog related to the purchasing. Our topic today is about Supplier Selection and Evaluation. In this topic, I will stress more about the Pure Supply Management Relationships. However, in this subtopic, there are four relationships which are Counterproductive, Competitive, Cooperative and Collaborative.

Firstly, counterproductive relationships. Counterproductive relationships are each organization buying and supplying is so focused on getting what is best for it each puts the other at a disadvantage. We can see that in this relationship does not have a good relationship with others. This type of relationship is undesirable because it does not promote a positive feedback or service between supplying and buying firms. Neither of these companies will achieve their goal. This relationship also discourages future dealing between the organizations. This relationship make both companies lose-lose situation.

Besides, competitive relationships. It is also known as a transactional relationship. This relationship which both buying and supplying firms to strive to get the very best arrangement possible in their negotiation and fail to see the benefits of both organizations obtaining their goals and objectives. Usually, the organization who has more power between those companies will win against the weak company. It is similar what we called a parasite. In transactional relationship, the buying and supplying firms will stop at nothing to make sure that they come out on top and do not care about the other organization’s situation.

Next, cooperative relationships. This relationship recognizes the potential value of both organizations getting what they want. It is also maximize the potential of having a long term relationship. This relationship make both companies in win-win situation. This relationship also give full cooperation between them to achieve their goals. They will struggle enough to achieve their goal to be fulfil. They also will come out the best or right decision for their organization. Besides, they have a strong relationship together.

Last but not least, collaboration relationships. It is usually found with the buying firm’s strategic supplier. It is almost same with the cooperative relationship. In collaboration, the two organizations truly realize the benefit of working together. It also wants to optimize outcomes for both organizations. They also will support each other. That is why they have more to long term relationship together. The two firms work together to develop a strategy to deliver a high-quality product or service on time and also under budget.

In conclusion, there are so many type of relationships can be creating by two or more organization. This relationship is made to achieve companies goals or companies mission and vision.

EDI system

Bismillahirrahmanirahim….

Assalamualaikum w.b.t

        Have a great day today, How you feel today ??  In this era of Globalisation, many things to be done quickly and easily. The emergence of the cyber world has been transfigured. This causes all the things that were previously difficult now been simplified. In business are also using technology that hass been created. Today, I will explain a new technology system that facilitates a business to get information from company@customer. In purchase,the system may be able to facilitate customers to communicate with the seller and usually used for the electronic transmission of orders, invoices, and payment betwwen buyer and seller. It is “EDI” system. Do you know what is EDI system ? most of the company are using this system in the present.

What is EDI ?

       EDI or Electronic Data/Document Interchange is the direct computer transmission of orders and other transaction  information. The main elements of an EDI system are computer hardware, software, computer compability between the sender and receiver, and subscription to a common network.

What the benefit of using EDI system ?

  There are many benefit to using EDI. For a smaller company, EDI may help keep a valued trading partner or customer or even gain. New ones, For larger firm, the main benefit is generally the cost savings, or to be known as a leading-edge company.

What the risk of using EDI system ?

   There are also have some risk when using EDI system that should be  considered. EDI is not inexpensive. The machine and training cost will add up to a large amount and cutting corners may cost a company more thanit saves. Security is also an issue. Procedural safeguards have not kept up with technology in this area. The problem is exposure to outside users, which opens up a doorways to false messages. These messages may come in the format a person who is not a supplier sending data or the data being interrupted and/or altered. Operational procedures need to have safeguards in place in order to avoid such situation. Buyers and sellers must interactively communicate, especially if a questionable transaction is received. An obvious risk is that current trading partners may refuse to use EDI. This is a situation that must be addressed by company policy. A decision must be made whether to trade singularly through EDI or use both EDI and traditional methods.

      If any constructive ideas can be added in the spaces comment below.That all.

THANK YOU for read 

MATERIAL MANAGEMENT

    The definition of material management is an approach for planning, organizing, and controlling all those activities principally concerned with the flow of materials into an organization.

   Although that involve about combined with labor, information, technology and capital. Furthermore, the five function of inventory are:

1. Pipeline inventories.
2. Cycle inventories.
3. Buffer stock.
4. Seasonal.
5. Decoupling.

       The most objectives of the Materials Management function ,often called the famous 5 Rs of Materials Management,

• Right quality
• Right quantity
• Right time
• Right source
• Right price

      Customer satisfaction that managers of integrated material system and have two objectives, which are customer satisfaction and minimum total material costs. There have element of satisfaction that following.

       Material availability its firm makes a products to order , customer service is measured by the which products are completed and shipped as promised.

     On-time shipment its has to do with the delivery promise made, and the quality of total products as a promised.

     On-time receipt which is customer place orders based on needs dates. Than calls to the supplier are answered with explanation about the product has been.

     Complete shipment its done delivery the products and customer will expected receive all items at the same time. Customer should be given the choice of split shipment or rescheduling of the order when the order cannot be shipped.

     Quality of receipt is the quality of material that between the time it leaves the production floor and the time it arrives at the customer's storeroom. The purpose of receiving inspection is to determine damages and begin the procedure to replace, repair, or claim compensation.

       Flexibility it is based on the customer want, supplier can accommodate a customer request. the need to be flexible blurs the distinction between make-to-stock and make-to-order.

        Responsiveness to inquiry customers want assurances that their order are on schedule, especially as the shipping date near.

         Customer satisfaction it is to fulfill customer requirements. although that summarize about:

• Short lead time
• Good quality.
• High value
• Customized products
• Post sale service

   The conclusion and purpose of material management in support the transformation of raw material and component part into the shipped goods and finished goods inventory. The function that include as (Material planning and control, Production scheduling, receiving, stores, traffic, disposal of scrap, quality control, and inventory control.

THANK YOU. 

The Legal Aspects of Purchasing

Bismillahirrahmanirrahim ...

Assalamualikum w.b.t

      how are you today ?? Today we want to share about  "The Legal Aspects of Purchasing". For example, Hasbi as a purchasing agent want to buy fax machine for his Murni Logistics Company. He buy 10  fax machine on behalf of his company with the Heng Sheng company. So, in this situation it involve 3 parties for this transaction between principal of Murni Logistics company, Purchasing agent(Hasbi) of Murni Logistics company and Heng Sheng company(seller). Based on the example given above the contract consider valid when it involve 3 parties in one transaction. The purchasing manager administers the purchasing function. The purchasing function consists of many tasks within the business entity, including supporting the company with the required
(1) Material
(2) Supplier
(3) Service

Authority of purchasing manager

  purchasing agent have three type of authority involve in purchasing. Firstly,express authority. Second, implied authority. Third, emergency authority.

Express Authority
   express authority is conferred to the purchasing manager by the principal. This authority usually occurs automatically when the purchasing manger is appointed.

Implied authority
   Implied authority is implied by the law at teh time the prinsipal grants express authority to the purchasing agent.Agent has the implied authority to negotiate the term of the contract. This include :

       - The Quantity
       - The Quality and other specification
       - The Delivery Condition
       - The Price
       - The Payment Date

Emergency Authority
  Emergency authority is used only when the purchasing manager must protect the principal's right or property When principal is imposible at the time we need.Furthemore, the purchasing agent does not have express or implied authority.


THE EXECUTION OF CONTRACT

The purchasing official has no personal liability providing that the following requirement are met:

1- name of the principal
2- all parties know that purchasing agent act on behalf on their company.
3- the agency relation is shown on the contract.
4- the purchasing agent act on scope authority given.

ESSENTIAL OF PURCHASE

- Passing title
- Buyer
- Seller
- Agreement of a contract.

THE REQUIREMENT OF CONTRACT

1.The parties must be capable
  - both parties must know what they are doing. The persons who enter into a contract must not insane person, alcoholic and drug addict.

2.Subject matter must be legal and valid
  - The contact must not against the law. The contract must be legal and not against public policy.

3.Consideration
  - something of value passes from one party to a second party in exchange for a promise of the second party.

4.The parties must reach an agreement by offer and acceptance
 - seller usually makes an offer and a buyer accepts,negotiates or rejects the offer.