Friday, 15 March 2019

What are the basics of Developing a Blockchain Applications (DAPPs)?



          The BlockChain is fully distributed peer to peer software network which makes use of cryptography to securely host applications data and easily transfer digital instruments of value that represents the real world money. Cryptography is an art of communication via coded messages. The Bitcoin and Ethereum are used to conjure one secure computing environment of thousands of similar machines running with no single authority and no single user. The term Ethereum refers to 3 different things. Those are,
1. The Ethereum Protocol
2. The Ethereum Network
3. Creating Decentralized Applications

Decentralized Applications:
DAPP is an application that runs on the blockchain. The blockchain enables apps to run without having a central location like web URL. Whenever we go to a web URL  or mobile app, it is going to interact with core functionality at a central point. All of the functionality will reside on servers or virtual servers and all of the data will be stored within that environment. Because of the centralized location, it is vulnerable to a distributed denial of service attack.  Every time you use centralized location, you're surrendering trust, paying fees, and giving up the data to whoever is operating that central location. When you look at the DAPP, everything is hosted through the Ethereum network. Because of that, you can access DAPP from any node that can access the blockchain. This opens up the huge global network of the Ethereum network.
        Decentralized applications are basically formed with the base of a blockchain. The blockchain is a fully distributed network that uses cryptography to host the applications. Decentralized applications like Ethereum which include blockchain as a data structure. Decentralized applications are those that every node is connected to the other node and every node work independently and does not rely on any other node. Applications which spread along multiple servers instead of focusing on a single. For ex, Bitcoin is the decentralized application which uses the data structure of the blockchain. The nodes of decentralized applications are distributed to which it becomes difficult to protect and prevent all of this centralized network from making any invalid or unauthorized changes to the application. Each and every decentralized application should generate tokens on the basis of a cryptographic algorithm which acts as a proof of value. DAPP(Decentralized Application)s are internet application whose backend comprises of the centralized architecture. It is the architecture that no single node has complete control or data that includes different data structures and modules which comprises of protocol for creating the web application.

An advantage of DAPP:
1. DApps are fault tolerant. The nodes and peers of the application are distributed by default and hence there is a meager chance of failure.
2. It prevents violation of net censorship and ownership as there is no authority can pressurize to append any changes.
3. DApps are IP independent. It can't access via particular IP address or domain. So, any official authority can not track any individual and shut them in particular case of emergency.
     Distributed applications are beneficial when application data and the volume of traffic increases at that rate. Centralized applications create an issue with the performance of the product in website and applications downtime. DApps overcomes the challenge to receive or achieve high availability of data. The basic examples of distributed applications are Facebook, Dropbox, and Slack.
The concept of Mist Browser: In the world of cryptocurrency software, there are essential types of nodes which are called wallets and footnotes. Wallets are software applications for desktop or mobile devices that hold the key to the EVM(EthereumVirtualMachine). It holds the money for all transactions like a debit card, or credit card or cash will be kept inside the wallet. Wallets also hold the keys. Keys correspond to an account by long account address. In Ethereum account, it does not store your name, your personal information. Anyone can create Ethereum account by connecting to the network with the help of client and that Ethereum client is mist browser. You can generate many clients the way you need it. Here, the cryptocurrency transaction is the settlement of particular trade.
    Mist is the client side module which manages all the necessary transactions. It is compatible with Windows, Linux, Mac and you can check out at Github for latest releases. It includes some plugins to support the transaction that can take place. Once the installation successful in your system, you can see the wallets and can create the contract. This contract is associated with Ethereum wallet.

Ethereum Virtual Machine: EVM is a single global 256bit computer in which all the transactions are local on each node of the network and executed relative synchronously. It is composed of lots of smaller computer. A giant computer has a node or wallet application can access makes it move
arbitrarily large amounts of value. A virtual machine is an emulation of a computer system by another computer system. It is based on the same computer architecture as the target of their emulation. This can be created as software or hardware or both. In the Ethereum context, the smart contracts are the agreements between accounts to render a transfer of ether when certain conditions are met and the assets in smart contracts are moved automatically. There are the various set of blocks and the first set of a block is called the genesis block which is also called as a canonical block. The transactions in the EVM is cryptographically signed data pocket storing a message which tells them EVM to transfer ether, create a new contract, trigger existing one or perform some calculation.

Introduction to Solidity: Solidity is the contract oriented, a high-level language for implementing smart contracts. It is influenced by python, C++, javascript and is designed to target Ethereum virtual machine. You can install a compiler for Mac, Windows, Linux or try it on the web with Remix. Take a look at the website State of the DApps to know others have built with Ethereum and solidity. Ethereum is the platform to build DAPPs and solidity is the language, Solidity supports types, inheritance, and libraries and aim at the EVM.


 Solidity Basics:  The first thing you need to do is go to Remix and feel free to erase everything and start programming with import solidity and the way you do that is keyword pragma, which means that we are going to load only once with the version number. Once you have imported the solidity file, then you can import any other file. Then,What you do is set up the contract. In the contract, you need to put the variables, functions, and code inside the contract.
    Contracts in solidity are similar to classes in the object-oriented language. It can contain state variables, functions, events, structype, and enum types. First, declare the state variables and the word state means that the current status of that variable. Also, you have functions and modifiers. Modifiers are conditions to the functions or conditions before we run the function. The last thing in the contract is an event. The events are basically the javascript events or any kind of programming language events.

Creating Simple Contracts Using Solidity: We can use remix to work on this example and leverage the compiler to run the contract afterward. First, we will create few variables and create an address which is the owner variable. We need an address because most of the contract comes with an address. Then, we will introduce a new constructor. Here, we are building the instance of the variable. The global variables that are available in messages, and then the properties that were coming from the messenger. The message will come with value, that we will pass it to money. Deceased will set false initially and pass the owner variable to the message sender. And, Set an array of address that we use and we call this as array wallets. Use the mapping to pass the integer to addresses inside of the inheritance.
    Now, you need to set the conditions of the contract with modifiers. Modifiers are conditionals to run the functions. So, put as many modifiers as we want as long as they are conditions to validate things that you want before you run the contract. Finally, go ahead do the functions that will actually run your contracts. This function will be public and will need one owner. Here, we are adding to wallets with push function. We are setting up the contract here, and then we are using inheritance and we create an array that holds the wallet with the inheritance.

        Finally, Test our sample contract to make sure that compiles and have a green compilation. Then, go to the run tab and make sure javascript VM is selected. the gas option is the cost to run the smart contract on Ethereum. For the test scenario, set the value of the contract. Now, We have the contract inheritance and we can deploy the contract and check the console to see that we have successfully created the contract and the contract on the righten side. In the deployed contracts tab, you can see the inheritance, deploy and setup. We need to set up the amount for each inheritor. Grab the contract address in the console and put in the setup such as address (comma contract of) 100 and click the setup. So, when you click this. it is going to set deceased true and then pay the money to the people in the wallet. This is how the smart contract work inside solidity.

Thursday, 28 February 2019

What are the fundamentals of Blockchain Use Cases and Cryptocurrency(Bitcoin)?

 
       Bitcoin is a cryptocurrency. It uses the cryptography which is advanced mathematics to essentially ensure validity, security, and the transaction of this currency. Cryptocurrencies are a digital currency and they are not backed by a single authority and a single point of failure that it differs from the conventional currency. There is a network of users help running the process. Another difference is that it's not issued with conventional currency. It is decentralized and distributed. Generally, the government would issue if they need more which would lead to deflation.
       Cryptocurrencies are created using the process called mining. Mining is the process of verifying transaction validity. For ex, Bob sends 5BTC to Joe. This needs to be validated to ensure that Bob did actually send it. New coins are generated as rewards for verifying a certain number of transactions. So, you generally need specific computer hardware like ASIC cards for truly do mining effectively and profitably.
       You can transact only x amount of bitcoins in the future then you want to limit the number of users. Theoretically, there is a way around this and built into the Bitcoin protocol itself. You don't have to transact a whole bitcoin, part of the coin can be transacted as 0.00407BTC whatever that value is wherever you are comparing it whether that's fee a currency or gold that is the amount get transacted. The smallest denomination is 1 Satoshi Nakamoto is equivalent to eight decimal points like 0.00000001 is the smallest coin or denomination of bitcoin that can be transacted any given time. The key feature is something called public ledger. It stores all transactions and is shared by the users on the network. Another feature of this corporate currency is called exchanges and wallets. Exchanges facilitate the sending and receiving of the coin and the wallets essentially store the Bitcoins.
Bitcoin Mining: Bitcoin is a Peer to Peer network and its not controlled by a single authority (government). Miners are rewarded with Bitcoin for solving the mathematical problem and they are not always rewarded. The mathematical problem has been so for is verification and improvement of Bitcoin transaction. This incentive attracts more miners. More miners make the system more robust and secure which leads to more adoption by the public. The bitcoin network automatically changes the difficulty of the math problem that depends on how fast the problem is being solved. So, it just ensures that not being too many coins are being issued. Normal CPU is sufficient for mining, but GPU system works faster at solving the problems. Basically, ASIC(Application Specific Integrated Circuit chips) processor designed for the process of mining.
BitCoin Use: If you don't know how to use Bitcoin effectively, it will useless to you as an individual. The first thing is to create an exchange account from the exchanges like Coinbase , blockchain.info etc., It also acts as a wallet to store, send and receive the cryptocurrency. It is your cryptocurrency bitcoin bank account.
    2. Next, Create your public address like an email. It is a unique id that facilitates public transactions. So, if you want to send some bitcoin, you should share the public address with them and they will send something to it.
   3. You can buy some bitcoin using normal fiat currency. You can do this via exchange and ultimately the exchange which facilitate the process from one currency to another currency that can be fiat currency or cryptocurrency.
 4. Finally, find Online(websites) /Offline(physical store) retailers that accept bitcoin or any other cryptocurrency of your choice that facilitates the usage of cryptocurrency. You can trade the bitcoin via currency to more specific applications and make money from the difference and ultimately to know the market what areas are working.

Blockchain UsesCases: Blockchain is exciting and powerful technology to really be adopted and accepted by the marketplace in the real world. We will focus on the use case that emerged out by using the ATOMIC framework. ATOMIC helps to memorize key blockchain use cases. ATOMIC covers use cases regarding assets, trust, ownership, money, identity, and contract topics. Different kinds of applications and things build with blockchains that will be useful for the industry, for people ,and for business in general.
     The first letter of ATOMIC - A stands for assets so the blockchain can help us secure the assets on a blockchain. T stands for trust. The blockchain is trustless technology. It doesn't require that the users of the blockchain trust each other. O stands for Ownership. it facilitates the proof of ownership, proof of identity and other use cases. M for money. The cryptocurrencies are most prevalent use cases of the blockchain. I for identity. Proof of identity is important use case in block chain. With blockchain, you can legitimate yourself as the person that you actually are. C for Contracts. Smart Contracts are well-known use cases in blockchain technology.

Asset UseCase: With the help of blockchain, digital assets can be created and safely stored on the blockchain. The assets can also be moved different users of the blockchain to facilitate the transfer or change of ownership of an asset.
Example Use Case:
 Colored coins: Colored coins are representations of real-world assets in the digital sphere that facilitate the handling and trade of these assets. Suppose, you bought a car and want to secure the ownership of the car in the blockchain and maybe in the future transfer the ownership of the car without the need to go some kind of intermediary of some kind of legal scholar to facilitate and setup all the paperwork. Now, you could use the blockchain to create the record of owning this car that contains all the information is required. And this record of an asset that you actually possess is a colored coin. It is a kind of digital coin that is colored with all the information of the actual physical asset. In the future, if you would like to trade the car instead of meeting somebody and giving him, you could just reassign the coin that represents your car on the blockchain to another person as a sign of transfer of ownership.The platform called "ColoredCoins" which stores asset meta data to the bitcoin blockchain and focuses on banking applications.

Trust Use Case: The key property of blockchain is that they trustless which means they do not require the users of the blockchain trust each other. Different rules of transactions can be embedded in the blockchain. It means that you can set the rules when creating the blockchain of how users will interact with each other and need to adhere to these rules in order to participate.
    For instance, In the central marketplace that ensured the transactions were being followed through the parties paid each other, the goods were actually exchanged and the central intermediary takes a certain fee in order to make that possible to provide the service. But, In the blockchain, this would not be necessary. So with the marketplace, you will be able to trade goods (physical or digital) without the need for a centralized institution. Open Bazaar is a decentralized marketplace where users can sell physical goods to each other with Bitcoins. It is something similar to eBay or some other similar services where you can sell goods online and the other will buy it and all operating on the blockchain.

Ownership Use Case: Blockchains can be really powerful when it comes to ownership because there can be a medium where proof of ownership can be stored. On a blockchain, you can read and register owners of digital and physical assets. You can use the blockchain for timestamp documents and transactions in order to prove that a given point in time this document has existed or you made some kind of change or amendment of the document. Whatever you register on the blockchain cannot be changed and tampered. First of all, it enables proof of ownership so we can insert proof of ownership in the blockchain that other people can look up and that is irrefutable proof for us.
     A platform called Binded for image copyrights. If you are a photographer you can upload a picture to the platform and then the picture will be stored on the blockchain and you will receive the proof that you are actually the photographer of the picture.
Money UseCase: The advantage of using block chains for money substitute is transaction speed by peer to peer transactions. In bank transfer, there would often take several business days in order for the transaction to be cleared. The blockchain is also protection against quantitative easing. It means that there is no central bank that can decide to just print lots of new bitcoins because of the feel that the economy would need it. The maximum number of bitcoins that will ever exist in the world is fixed. It is set a certain amount and it can never be exceeded without breaking the rules of the system. So we have an inherent protection against inflation and centralized institution floating up the value of your coin for some kind of political reasons or other agenda. The platform called "Bitcoin" is the first blockchain based digital money offering and is positioned in the store of value use case regarding the payments.

Identity UseCases: The beneficial to manage identity on the blockchain is tampered proof records. By setting them up on a blockchain, you can make sure that no other external party intervenes with records that you can put out there on the blockchain. It is a good and sound integer identity management system. Secondly, it can help you to merge online and offline identity systems. Due to the distributed nature of the blockchain, there is inherent trust and security in the identity management system.
    Through the reputation management use case, you can manage your reviews, identity, endorsement and other reputation based service that you may use online and build on the blockchain. Shocard is the identity platform for users and service providers that enable you to engage and make transactions with each other as the identity of your counterparty is verified by the platform.

Contracts Use Case: Blockchains can be helpful in order to enforce the contract. You can code the contract that is enforceable without relying on a third party organization. It directly agrees something on other person and then write the contract program in a way that contract is carried out automatically when certain conditions are met. In order to know the contract met certain conditions, you need to use something called "Oracle". It takes data from some kind of external data source and based on the input that is delivered to the contract in that way the contract is doing certain things based on the program.
     One use case is peer to peer lending, You could lend another person money and write a smart contract that clearly defines when the other person needs to make repayments that you can agree on the smart contract and making an active transfer but this can automatically handle by the blockchain. BlockStream is an infrastructure platform that enabling the smart contracts and you will also find scaling initiatives.


Friday, 15 February 2019

How Blockchain Technology propelling Businesses?


      BlockChain is the new technology to store and manage data across the internet and other computing networks. BlockChain or Distributed Ledger Technology(DLT) was created as a result of the introduction of Bitcoin CryptoCurrency. Fundamentally, it is not a complex technology, but it enables complex solutions. Blockchain technology can be used as a foundation for new generation software distributes code that enables a transaction between individuals and machines without the need for complex infrastructure. It is a peer to peer network architecture that all participants are equal in the role on their network. It does not just offer a new way to manage databases and support trust, but it creates new opportunity. For example, If you are a professional photographer and you register your photographs on the digital blockchain, it will be difficult for someone else to claim that they took the picture.
      Blockchain changes the world that is working right now. It means to increase trust and efficiency in the exchange of almost anything. The blockchain is the shared distributed ledger that facilitates the process of recording transactions and tracking assets in the business network. Assets can be tangible assets that basically respect to house, car, cash or land and intangible assets like patterns, copyrights, or intellectual property. Virtually, anything of value can be traded and tracked on the blockchain network reducing the risk and cutting the cost it is involved.
     In real-world uses the blockchain beyond its original use for bitcoin. There is a great interest in technology that helps to track stolen diamonds, in adding to knowing whether the diamond is associated with conflict zone. A startup called "Everledger" has begun to use the blockchain to store information on almost the million diamonds. Each diamond is scanned to glean 40 unique points that are condensed into a digital footprint. Each time, a diamond moves from a seller to buyer, a new block is created and over a secure digital trail of ownership is established. This adoption of this solution is growing and Everledger is attracting attention from investors.

The Concept of BlockChain:  Blockchain architecture gives participants the ability to share in their
joy and updated through peer to peer application. Peer to Peer application means that each participant is connected to other participant and nothing is centralized. It is like all the participants are equally responsible for the network. It is the main functionality in the distributed ledger. It also means that each participant in the network as the subscriber and publisher.
Features: Blockchain Technology has important features like,
* Each node can send or receive the transaction to the new one and the data is synchronized across the network as it is transferred. It is economical and efficient because it eliminates the duplication of effort and reduces the need for intermediaries.
* Blockchain network has a key characteristic called consensus. For a transaction to be valid, all the participants must agree on its validity and when it comes to provenance, participants know where the asset came from and how its ownership has changed over a period of time.
* Once the transaction is completed, it can not be changed. This feature is called immutability. No participant can tamper at the transaction after it is recorded on the ledger. If the transaction is an error, a new transaction can be used to reverse the error.
* The major feature is Finality. A single shared ledger provides one place to go to determine the ownership of an asset or the completion of the transactions.

Transaction in BlockChain: Basically, Every transaction data is represented in such a way of block in the blockchain. It also stores the transaction data. As the number of transaction grows so does the blockchain block record and confirms that time and sequence of transactions which are
locked into blockchain discreetness rules. Basically, each blog contains a hash as you see the hashes that are nothing but digital fingerprint or unique identifier stamp batches of recent valid transactions and the hash of the previous block is stored over here. The previous blocks link to the blocks together that prevent any blocks altered or block being inserted and tampered in a specific way. So, once the transaction is committed, it can not be changed the databases or messaging technology, or transaction processing of business. It is the proof of evidence of work in the blockchain. This benefit is far beyond traditional databases.
    There are 4 important concepts in BlockChain. Those are,
    1. Shared Ledger: It is a system of record with a single source of trick and shared among all participant in the net. Each participant has a duplicate copy of the ledger and the participant can only see the transactions they are authorized to view.
  2. Permission: It is the authority that is given to the nodes in the blockchain. In the permission blockchain, Each participant has a unique identity which enables the user for the constraint network participation and access to the transaction details. Permission blockchain is effective in controlling the data for confidentiality and anonymity.
  3. Consensus: In Business Network whose participants are trusted. Transactions can be verified and come to ledger through various means of consensus. It means, there are certain defined protocols loaded in blockchain and you have to follow the particular protocol and that we call as a consensus. It includes a multi-signature and proof of state which is useful to validate the transaction.
4.  Smart Contracts: Smart contract is a digital agreement or set of rules that govern the business transaction which is signed by both parties who are undertaking the particular transactions. It is stored on a particular blockchain and executed automatically as part of the transaction. The smart contract may have many contractual classes that can be partially or fully or self-executing.
    The main purpose is to provide security superior to the traditional contract but reducing the cost and delays in traditional contracts. A smart contract may find certain digital contractual conditions. It is like the set of digital signatures which takes place within the party. They agree on the particular agreement or digital agreement, later they can perform the necessary transactions which is needed.
    These four concepts will be going through whenever we will be creating the blockchain.

WorkFlow in BlockChain:  Blockchain is the new database. Instead of a single database residing on a single server in the data center, the blockchain database is installed on an individual computer used by the people. In fact, the identical database is installed in every computer of every user of that database. It is called as a distributed database. In order to create a new entry in the distributed database, all participating company must agree to the change and the consensus must be reached.
      Basically, the transaction in the blockchain is designed in such a way that the block has been taken as a transaction and this transaction is checked and verified whether it is valid or not. If it is valid, it is taken inside the blockchain network and it is considered as an importer. If it is invalid, then it is again sent to the particular client or exporter.
      When analyzing the business aspects of the blockchain, the business has multiple sources of friction. The institution and instruments of trust emerge to reduce risk in business transactions. Still, many business transactions remain inefficient, expensive and vulnerable. Blockchain Technology has the potential to remove market friction. Market friction is nothing but the speed bumps that throttle or stop the business. It is anything that impedes the exchange of assets or adds cost or delays such as taxes, regulations, bureaucracy, fraud, an involvement of intermediaries, delays in executing contracts and so on. Various types of market friction impact different industries in different ways in varying degrees that drag the global issues in trade of showing business or stopping it. Here are the various types of Market Friction eliminated by Blockchain Technology,
   * Information Friction: - Participants in a transaction don't have access to information. Giving one party unfair at an advantage, the information may also have been incorrect or inconsistent leading to bad decisions or delays while reconciling it. This incurs costs and damage brand reputation.
       By including the shared ledger who has the information shared among the network reduces the information friction and permissions help certain people conduct the transactions. Also, various types of cryptographic methods with advanced permissions that ensure privacy on the network to preventing unauthorized access of transaction details and deterring the fraudulent activity.
   * Interaction Friction: - Business transactions take days or costly to manage via intermediaries are the prime candidate for disruption by nimbler components. It is often managed by the number of interactions required.
       Blockchain peer to peer architecture reduces the number of interactions or the parties which are required to execute particular interaction. Blockchain consensus shows that all the transactions are validated before being appended to the block and it is highly tampered resistance. Smart Contracts which are nothing but a digital signature that will help you the interactions, or reducing the interactions friction.
  * Innovation Friction: - It is an internal or external type that compromises the organization ability to respond particular value for reducing the cost and delays in regulatory processes. So, the automation can take place by eliminating governance through regulation that can lower the cost and reduce the delays inherent in the regulating process. Blockchain has the potential to eliminate the complexity and ultimately redefining the traditional boundaries of a particular organization.


Thursday, 31 January 2019

What are the fundamentals of Successful B2B, B2C, ecommerce sales?



        B2B refers to companies and salespeople working at those companies who sell products and services to other businesses. B2B buyers have procurement rules that they have to follow. In B2B selling, you have many buyers to consider in the same sale. Marketing cares about how good the products are. Operations care about how easy to maintain the quality of the product are. And finance needs the cost to be predictable and within the budget. You need to build the support from these groups before getting signed the agreement. B2B sales require an understanding of complex buying processes, customized services, and demanding customers. The greater complexity and larger deal size make the work more challenging. In order to be successful in B2B sales, you need to understand the target market really well.
     B2B Roles: B2B sales professionals specialized on target industry, the target buyer, the type of product or the type of sales cycle. So, when you are looking for a job, it is important to know the unique parameters of each role. The sales pitch would vary differently if you are selling directly to the consumer than if you are selling to procurement specialist. The consumers care about how the features are and whether it will help him for his work. But, the procurement specialist has a list of required features with more focused on coming under his budget and getting good financial terms and return policies.
   B2B Sales Process: Depends on the size and complexity, B2B sales can take days to the year. But, the sales process include the same six steps. Those are,

  1. Qualify the Lead: It is to find out they have the mandate. It means the money to buy, the authority to make the buying decision, need for the product or services you are selling and desire to buy it. Weeding out the unqualified buyers saves time and effort that freeing salespeople to focus on real prospects.
  2. Explore the Objective: Have an open and exploratory conversation to understand your prospects objective. Why did they agree to meet with you? What are they trying to accomplish? What could mean the success to their organization and personally? These questions will help you to scope the solution and maximizes value for them.
  3. Scope the Offering: It is to get specific about what it is that you are going to deliver. It might a customized product or the right combination of commodities. It must be listed carefully in the exploratory phase.
  4. Develop a Verbal Agreement: It is ideal to scope the offering together in person and set a time to review your proposal. Before you leave the scoping phase, make sure you have the conceptual agreement.
  5. Close the Deal: The prospect has told you that if you provide a contract outlines what the two of you have discussed within the price range that you have agreed to, they will be ready to sign it. They don't need to bring anyone else into the conversation and nothing has changed since you initially qualified them. Once it is sure, you can go through the effort of all the details in place, terms, legalese and so on.
  6. Maintain the Relationship: You have the deal, but don't stop there. In many cases, the first signed agreement is the starting point of the long term relationships. You have to put so much effort into understanding your customer needs.

Market Place Analysis: As your business grows and the opportunities for your product or service increase, it is exciting to expand into more distribution channels. It requires careful analysis, sales strategies sync with specific segments of the business and ongoing quick decision making to ensure resources and staff are allocated appropriately. A key piece of overall business and the financial plan will be the sales plan. If you are head of sales for a company that has developed an exciting new product or a new type of service that has enormous potential, you have been tasked with preparing the sales channel, distribution channels, sales staff expenses, and revenue projections.
     The important steps in the sales process are planning, gathering information and preparation. It sets the foundation for the sales plan with an account. It is similar to survey the marketplace to determine the best strategy for selling the product or service. The solid market research is tracking your competition and asking customers for feedback. Here are a few ways to get information about competitors that are public for all to see. A corporate website which contains the valuable information in the investor relation page, product launch page, and in press releases page. In LinkedIn, your competitor may post the article regularly. When you signed up for the email updates, you would be amazed at what your competitors will say new products or services. There is also a source of information from your customer. These are all ties back to the basics of the sales processes.

  SWOT Analysis: SWOT( S - Strength,W - Weakness, O - Opportunities,T - Threats) analysis is
great for involving your team and preparing an outline of more in-depth reviews needed, You can do this with an overall view of your sales operations. Just do it with short, bulleted comments if you have your team involved and maybe some colleagues from other departments. It would be a good idea to give some direction as what you're trying to accomplish. There are so many advantages of doing the SWOT analysis that you can create a document with a clear message. Then, when you add in the financial reports, the real view of your business pros and cons are evident. SWOT analysis is a honest assessment of your business.

Managing the Channels: The sales channel management drives all the activities going forward. It requires you to stop for a while to put together the go forward plan. The go forward plan contains an issue we always face. We can't do at everything at once, because we could run the risk of overspending. Being unprepared for what our customers need will damage your brand that might take years to repair. A sales channel business plan is necessary. You should evaluate a few ideas on sales business plan preparation and follow the guidelines from your company. It is good to get feedback from key stakeholders, marketing, business department, operations, and finance. The plan begins with an executive summary, but you don't write that until the entire document is completed. It covers the key aspects of the sales channel plan, staffing and other resource need, timeframe for implementation, and revenue forecast by a channel that needs to be realistic. The strength of information makes or breaks the plan. The sales channel plan is your implementation document for your sales organization to follow.


Elements of Complex Sale: In B2B sales more people participating in buying decisions, and the buying process more formalized as buyers seek to reduce the risk.  There are 8 elements that you need to be aware of and help you to shorten your sales cycle.
1. Long Sales Cycle: Everything in the complex sales, it is making the part of the sales cycle longer. It could be 3 months to 1 year. You have to track and measure properly at different points from the first appointment. Measure the time from starting the prospect of getting the appointment. Also, it is to measure the time of appointment to closing the deal.
To-Do: It is to think about in your company that,
    * What makes it Long?
    * What can be done by your Company?
So, keep in mind the qualified lead that makes the relationship easier and shorten the sales cycle. It will also help with the next appointment and action.
2. High Dollar Stake: If you are manufacturing or selling services to the company, things are gotten more expensive. People have the budget to cover what they need now. So, you have to take into consideration in price variations and budget. If you want to close a million dollar deal, you must know all the influencers to develop a good relationship and help them with the budget.
To-Do: It is to think about,
  * Do they have a budget?
  * Who approves the Budget?
It is common that, everybody nerves on the budget. If the budget is not established the sales cycle will be longer.
3. Multiple Buying Influences: According to the research, 6 to 8 people are involved in the B2B buying decisions. You have to work with all the buying influencers and to figure out who they are, where they are and how they get them about.
To-Do:  Even the deal works for you, it is important to notice the followings,
  * Have you identified all the people involved in making decisions?
  * What do you know about them and best way to develop a relationship?
You have to do research and know them through social media or start to analyze the data with the proposals you won.
4. Perceived Risk: In the buyer, You have to understand the risk involved in making the decisions, It is not just about buying the product, but making any decisions, Big companies are afraid about the delivery of the product from small company.
To-Do: So, it is to figure out,
 * What risk they perceive in making the decision?
 * What risk they perceive in buying from your company?

5. Multiple Solutions:  For any deal, there is a competitor in them. If there are many solutions, it will be harder to choose. If your solutions are better than any other solutions, People will prefer for the price,
To-Do: Asks the questions of what other solutions to be considered and find out
   * Are there competitors?
   * Can they do it in-house?
   * Is doing nothing an option?
   * Is there any other way to meet the need?
6. Technical or Integration complexities: If you are selling any parts that must be integrated with other parts in the software or network integrates with a desktop, you have to be aware of technical complexities and how long it takes to integrate the parts etc.
To-Do: So, It is to find out,
   * What can prevent the sale?
   * Who has the deal with technical complexities?
7. Multiple Influencers on the Seller Team: There is a situation that you got the contract with a great deal and ready to go, the finance people, the legal people, CEO gets involved and freeze the contract. When the salesperson trying to make the deal, they may want to know this and that. It is a sales prevention.
To-Do: It is important to look out these departments to figure out where they are and do something about it with,
  * Who on your team prevent the sale?
  * Who do you need to bring in from the beginning to reduce the sales cycle?
8. Unique to your Sale: If it is a unique sale, how long the sales cycle is. It is to think your unique sales of the product and check out those items.
To-Do: Generally, it is to identify things like,
 * What else makes your sales complex?
 * What can you do about it?
It is important to understand and master these elements for successful B2B sales.




   

Tuesday, 15 January 2019

How to improve Supply Chain Customer Relationships?



    Customer Development focuses on understanding customer problems and needs, developing a repeatable sales model and refining the company to deliver customer demand. Product market means identifying compelling value hypothesis. It is a combination of feature you need to build, an audience who cares, and a business model that entices the customer to buy the product. Customer development broken into 4 phases. Those are,
    1. Customer Discovery
    2. Customer Validation
    3. Customer Creation
    4. Company Building
        The goal of customer discovery is to determine who you are your customers for your product and whether the problem you are solving is important to them. In the validation phase where you build the sales process that can be repeated by sales and marketing team. If you succeed in customer discovery and customer validation, you have a proven business model. In the customer creation which we build on the success found in customer validation and seeks to increase demand for a product. This will help you to fill your company's sales channel with new customers. In the company building phase, different departments are created to separate functions such as sales, marketing, and business development. By implementing these four phases, your company will be directed to success.
       There are some key differences between internal and external customer services. Internal customer service is the situation where we are serving an internal stakeholder, human resources, facilities management, accounting or IT help desk rather than the external customer. If anyone in your company who depends on you to get the job done is probably an internal customer. The goal is to help someone else do their job to an external customer ultimately receives better service. There are a few things that are unique to internal customer service. We might have more frequent interactions with our co-workers. Perhaps, you have coworkers to serve on a daily basis. It leads to a closer relationship than we normally have external customers.
     Building a strong workplace relationships takes time and effort. There are techniques that make easier to make a relationship with your coworker. One is proactively connected with a coworker by initiating conversation with the meeting or over the phone. Another technique is to personalize relationship. You can also develop strong relationships if you demonstrate caring for the other person. Try identifying your key customers and make a point to connect with personalizing your interactions.
      Responsive communication is another part of customer service. We can build trust when we respond quickly to our coworker and customer. The best way to be responsive is to focus on one conversation at a time. When you respond to email, give your full attention so that you can understand what other person wants. Respond thoroughly that reduce the need to go back and forth
and anticipate the next question they will naturally ask.

Exceeding Customer Expectations:  Customers evaluate service quality by how well the experience compare
to their expectations by good, poor or outstanding customer service. Good service is exactly what customer or co-worker is expected. Poor service that falls short of customer expectations, Outstanding customer service is the one that exceeds the customer expectations. You can create the impression of outstanding service with internal customers by these ways,
   * First thing is to do something extra
   * Second thing is to recover from the problem boldly. These heroic moments will not happen very often.
   * The last thing is to do consistently good at every day.
People don't notice the good service at first. Because it was they expected. But, over the time, you will be a go-to person who can always be counted on. So, focus on doing that as you develop a reputation for being a go-to person. The active listening technique of phone, face-to-face, email conversations helps you, what the other person is really trying to say. Also, it will help you to pick up additional meaning that you miss if you'd just quickly scanning the message.
     Sometimes, we need to help our customers to avoid unpleasant surprises by managing the expectations like your internal customer may propose an unreasonable deadline that will be impossible to meet or unforeseen event could make normal service delivery impossible such as delayed shipment from the vendor. So, it is important to look at your calendar for the to-do list and project plans regularly. There are techniques that you can use to avoid unpleasant surprises like,
    * The best thing you can do is be realistic to the commitments by carefully consider the time required when you agree to do something.
    * There will be the times when the things go wrong, despite our best intentions. So, you need to be proactive, especially with bad news. Your customer may not be happy when they hear the problem has happened, but it will be worse when they don't hear about the problem.
   * You can also soften the blow by having solutions ready when you share the bad news. The guiding principle is to help your internal customer avoid unpleasant surprises as much as possible.

Product Ownership: Ownership means taking responsibility for a solution. People who are great at internal customer service recognize the problem can be an opportunity and the chance to be the go-to person by taking ownership of the problem. It is doesn't mean to accept blame or create the problem. The key is making to get the things done. Taking ownership when the problem happens helps you to preserve the trust.
     The best way to solve the problem is to anticipate it and implement a solution before the problem actually occurs. While we can't anticipate every problem, many can be predicted with just a little research. Here are the steps to improve your ability to forecast your issues before they occur. First to think of recent problems. For instance, did you miss a deadline and get a surprising request? Step two is to decide whether it is likely that the problem can happen again. You might think that the error won't happen again. Step three is to identify ways to anticipate this problem should it happen in the future and either prevent it or lessen its impact.
        Angry customers are an unfortunate part of the service situation. People naturally become judgemental, defensive and less open to ideas when they upset. The LAURA technique helps to understand the customer need and allow them to resolve the issue. It Stands for
    L = Listen
    A = Acknowledge
    U = Understand
    R = Relate
    A = Act
 When you encounter your angry co-worker, You could apply this technique that will improve your ability and defuse the negative emotions too.

Supply Chain Management: Your company is part of the SupplyChain. Actually, it is a part of many supply chain. Each of your customers has their own supply chain and you play an important role in making all of them work. If you don't deliver your product or services on time, at the right quality level and for the right price then your customers have supply chain problem.
  Definition of Supply Chain: A supply Chain is a complex network made up of people, processes, and technologies that are engineered and managed to deliver value to the customer. The company makes money by being one link in the long chain of goods and services that are ultimately delivering something to customers who will be willing to pay for. If the chain works properly, every company in the chain makes money.
    If the chain breaks, everyone in the chain suffers. You can visualize the supply chain in 3 flows as
money, material, and information. Money flows from your customer upstream one link at a time all the way to the raw materials of the suppliers. Materials flow downstream, starting from the raw materials to finished products. Information flows upstream and downstream. So, If you are managing the supply chain, your job is to keep those 3 flows moving smoothly and quickly to minimize disturbance and turbulence. Inside the company, there are 3 groups that manage the supply chain related activities. Those are Logistics, Operations and Purchasing groups. Logistics team focuses on improving efficiency by filling trucks and shipping containers with as much material as they can. The operations team may be trying to implement lean manufacturing and just in time deliveries. So these two groups should agree to manage their supply chain effectively.

Sales and Operations Planning(S&OP): One of the challenging tasks in the supply chain is between inventory and customer service levels. Many companies use S&OP as a foundation for aligning the supply and demand in the supply chain. Your sales department drives the demand for your company. S&OP helps you to know that you are buying and making the right amount of product that meets your customer needs.  It has the following steps,
 * First, you need to decide how far in the future you should be planning.
 * If you choose the planning horizon of 1 year, for each of those 12 months you need to develop a sales forecast or a demand plan.
 * Once your sales team is ready to share the demand plan, your operation team review it and create a supply plan.
 * Now, it is to decide that if you have enough machines, peoples, or inventory to meet all of the sales goals. So, the operation team to identify the constraints.
 * Once the constraints are identified, it can be resolved by investing in new equipment or hire more people to do that.
 * Finally, you need to update a plan on a regular cycle. The more volatile the supply and demand are the more frequently you need to revise the S&OP plans.
       The perfect alignment will help you reduce waste, improve agility and create shared accountability for the performance of the entire supply chain.

Monday, 31 December 2018

How to Optimize Supply Chain Management for the Company?



      Supply Chain is the philosophy. It is a way of understanding how a company creates value and how it connects to the world.  Supply Chains are getting the right thing to right place at right time. Humans have always done some sort of procurement, operations, and logistics. But over the time, as communities developed and population grew, transportation and storage options improved, the business community developed and then it expanded around the globe.
        Modern Supply Chain management beyond purchasing, operations, and logistics. Marketing and IT helps to get the data needed to those integrated plans. Engineers and Designers tell how to make the products customer want. Accounting helps to discover the opportunities to cut costs. Finance helps the need for money to buy materials, build plants and hire workers. Supply Chain Management is all about lower costs, improve service, reduce risks, and increase your profits.
SCM Goals:
      Successful businesses can't operate in a silo. They need to collaborate with their customers and suppliers and coordinate their internal functions. Each business has at least one link in the supply chain process. Modern companies understand the supply chains help to drive revenue by making great products. The primary goal of the organization is to produce a profit. The profit equals revenue minus costs. These 3 goals connect the organization strategies and desires to what happens in the supply chain every day.
  * First, modern supply chains are dual contributors to profit. Drive revenue by making great products or services that get to the right place at the right time and control costs by eliminating waste.
  * Secondly, the best companies understand these 4 categories: Cost, quality, speed, and flexibility. Modern Supply chain must able to define what the customer desires in terms of cost, quality, speed, and flexibility. It is to understand what the consumer find valuable.
   * The 3rd set of the goal is to create value for the customer but eliminate waste so you can simultaneously drive productivity.

Supply Chain Inventory:  For the company, stuff means inventory and the key to happiness are having enough inventory but not too much. The most common definition of inventory is any company asset that is held for future use or for future sale. To be a good inventory manager, you need strong skills in 3 distinct areas.
    * First, you must be a good planner. Having the right inventory in the right place at the right time that involves some global partnership and strong management skills.
    * Second, you must be a good coordinator to manage inventory effectively. You must work with purchasing, operations, and transportations in a timely manner.
    * And third, you must be a good controller. It is important to maintain the right amount of inventory that allows you to satisfy the customer.

    Supply Chain Manager responsible for inventory needs to make the customer and marketing department happy, by always having products in stock. Managing inventory is a big responsibility. Having inventory available is what sets you apart from your competitor. It is just like a city must be ready to satisfy the water needs of population or supply chain ready to satisfy the demand of its customers. Does your supply chain have enough inventory to satisfy demand today, tomorrow and next week?

Manufacturing &Operations: Developing a new Product can be very difficult when you think what the customer wants. So, your task is to develop a paper plane that must fly well and looks good based on what the customer thinks. It's interesting to watch the different development methods the team use. Some try lots of design until they find one they like. When they manufacture the plane, they often forget about consistent quality. Often, they will reject the planes, if they aren't up to the prototype standards. So, it is to think about what our company makes, the performance, aesthetic elements of your product or service, and design of the item and required skill and training of employees.
Supply Chain FrameWork: Supply Chain Operations Reference(SCOR) model breaks supply chain processes into 6 main groups. Plan, the processes where you map out how everything in the supply chain is supposed to work. Source where you build a relationship with the supplier and buy your
materials. Make which includes all the processes for assembly or manufacturing. Deliver the processes for getting your products or services into the hands of the customer. Return those often overlooked processes for taking back products that your customer don't need. Finally, Enable makes all of the other processes that you need to keep supply chain working smoothly. A good framework is an essential part of aligning the organization around the common set of goals and successfully implementing the supply chain.

Supply Chain Challenges: Supply Chain Management is making about the
trade-off. You have to maintain the balance to meet the multiple goals such as keeping cost low, providing a high level of service and earning a profit for your business. Using the balanced scorecard to track the performance along different dimensions so that you can keep supply chain running smoothly. Managers often focus on a single number as the best way to measure success. An Inventory manager might focus on managing high service level. An operations manager focus on maximizing capacity utilization. And the CEO might focus on maximizing the company's profitability. By using the balanced scorecard, you can track multiple key performance indicators for this business.

         Supply Chain Managers have to make a lot of tough choices between competing goals. Let's look at two conflicts that occur in every supply Chain. The first conflict is Sales and Operations. Salespeople tend to be optimistic about how much customers will buy and it's harder to make a sale when you don't have a product available. Operations and logistics managers want to maximize the capacity utilization while avoiding waste, shutdowns and over time. So production plans are constrained by time and capacity limitations, and the operations department shrink inventories in order to save money. The result of OverProduction, which creates an unnecessary inventory or Under Production which leads to lost sales. We can resolve this conflict by using the process called sales and operations planning or S&OP.  The second conflict is between the customer and suppliers.  The customer wants the product when and where they need, but the supplier doesn't want to have more inventory. Collaborative Planning, forecasting, and replenishment or CPFR is a process where customer and supplier share information which helps to prevent stockout in the supply chain while reducing inventories.

Supply Chain Trends: One of the biggest challenges in SCM is that customer expectation that change quickly. Social media amplifies customer behavior by making it easy to share customer reviews, recommendations, and endorsements. When influencer recommends a product, the result can be huge in sales. So tracking influencers can help you understand historical trends and generate forecasts. This process of tracking online discussions is called social listening. Companies often listen to several social media platforms like Facebook, Twitter, Instagram, and Linkedin. It is an ongoing process and should be interactive. If someone provides recommendations for your product, you may want to thank him. Similarly, Someone criticizes the product, you should be ready to engage that person, to address the issue before it has a chance to spread. Another trend in the supply chain is eCommerce or Amazon effect. The amplification effect of social media combined with amazon effect of online ordering and fulfillment are big changes in the supply chain.

          The five important information technology capabilities supercharging supply chains. Those are an Internet of Things(IOT), customer proofing, big data, cloud computing, and analytics. The equipment like conveyors, pallets, semi-trailers are outfitted with devices that connect them to the internet. Connecting these things to the internet gives more control over what is happening in the supply chain. Also, we are able to learn a lot about the customers. By using the internet to collect data about their behavior and use this data to build a customer profile or persona. While collecting tons of data about your supply chain and the customer can be useful. It is often better to use servers that you access remotely over the internet. This is called cloud computing or cloud storage. Analytics involves using your data to gain insights about what is happening in your supply chain.

BlockChains: It is a new technology that becomes important for supply chain professionals. Supply chain describes a network of companies that buy and sell things one another. And these transactions are recorded in the ledger. The blockchain is the way to keep a list of information and the transactions that occur between people or companies, but the way that blockchains stores these transactions are unique. Once the transaction is added to the blockchain, it can never be changed or removed. Blockchains are shared and copied into many different computers are called nodes. When one node wants to add a new block to the chain, they need to get the other nodes to agree. This process is called consensus.
          Block Chains has the potential to address 3 common problems that we face in the supply chain. First, it acts as a universal connector for information from different systems. In other words, it could increase supply chain visibility and operability. Second, it can help with data reliability. The third issue is the trust between trading partners. Blockchains make it easier to hold everyone accountable to the agreements they make. Some Block Chains will allow you to build smart contracts that execute when the conditions are met.


Saturday, 15 December 2018

What are the Basics of eCommerce Supply Chain Management?



     The supply chain is the process of making and delivering the products to the customer. In the technical perspective, the supply chain can be understood as a system of organizations, people, activities, information and various resources involved moving a product or service from supplier to customer. The supply chain activities involve the transformation of natural resources, raw materials, and controllers into the finished product delivered to the end user.
      The supply chain is the heart of company operations. In order to make the best decision, managers need access to real-time data through the new technologies that have the potential to take over supply chain management entirely disrupting traditional ways of working. With a digital foundation in place, companies can capture, analyze and interpret high-quality real-time data. The data fuels the process automation, predictive analytics, AI and the technology will take over the supply chain management.
        Leading companies have used robotics, AI to digitize and automate labor-intensive, repetitive tasks and processes such as purchasing, invoicing, account payable and parts of customer service. Predictive analytics helps the companies to improve demand forecasting so that to reduce the volatility, increase asset utilization, and provide customer convenience at optimized cost. Sensor data helps the manufactures to better estimate when the machines break down so that they can minimize the downtime. Block-chains helps to transfer the title, record permissions, and activity logs so as to track the flow of goods and services between businesses across borders. Robots are improving productivity and margins in retail warehouses and fulfillment centers.


Linking & Applications are facilitating the Block Chain: The technologies by which the physical goods and materials are identified and linked with their digital representation on the blockchain( e.g barcodes, serial numbers, digital tags like RFID and NFC, genetic tags)  in uniquely identifying a physical good with its digital counterpart.
    By design, every transaction in a supply chain is fully auditable. Smartphone applications can aggregate and display information to customers in a real-time manner. Also, the strong integrity properties of the blockchain are genuinely trusted. A thoughtful user interface can empower better purchases and giving the user a true choice that they can exercise.
       Let's take an example and analyze for the supply chain perspective. In order to prepare a cup of tea, you need
the following ingredients like water, milk, sugar, tea leaves, and Ginger. The journey of the supply chain starts with purchasing the ingredients or raw materials and this process of purchasing are called Procurement. The next stage of supply chain management is called manufacturing and operations. In this part, you are moving all the ingredients to make a cup of tea. It includes boiling the water to constrain in the cup or container. This process of making a cup of tea can be described as a company. The 3rd stage of supply chain management is logistics and transportation. Suppose, you want to carry your homemade tea to your office with proper packaging is the transportation stage. Every product has the supply chain process cycle and the supply chain manager is responsible for successfully managing that cycle.


Supply Chain Professionals: When planning, purchasing, manufacturing, order fulfillment, and logistics are largely automated, the supply chain executive will need to shift their focus from managing people doing repetitive and transactional tasks to designing and managing information and material flows with a limited set of specialized workers. The supply chain analyst who can analyze the data, structure and validate data sets and forecast effectively will be high in demand. So a handful of specialists will be needed to design a technology-driven supply chain engine that seamlessly supports the ever-changing strategy, requirements and priorities of the businesses.

Global Supply Chain Management: The global supply chain is the one that is not contained within the country boundaries and it extends to all the possible foreign countries whether they are vendors or manufacturers or customers. The need for the global supply chain can be understood the following points,
  1. The concept of economics tells us that the main reason for the business to exist is to lower the costs while simultaneously increasing sales and profits. So when the business goes global, the likelihood of sales also goes up because business opens up the global market have consumers all around the world.
 2. The global supply chain allows businesses to reduce dependencies on the local and national economies because they have business in different nations that will help their economy to sustain even the economy of that nation falls down.
3. The global businesses considering all hours of the day with consumers from every point on the globe. The businesses can go for 24 hours a day, 7 days a week. 365 days a year with the number of internet users in the right way.
4. Good businesses are always directed in the motive of reaching as many customers as possible. The global supply chain allows the scope of expansion and reaches more customers as they enter into the market.



Elements of Supply Chain Mangement: Business experts narrowed down the elements of SCM into four categories. Those are Demand Management, Effective communication, Process Integration, and Collaboration.

  Demand Management: Demand management is a planning methodology used to forecast, plan for and manage the customer demand for product and services. Every aspect of the business should be focused on your customer. The success of demand management is all about pulling the supply and resources through the supply chain system in the same manner in which they are needed to meet the actual customer demand.
             The supply and demand of the product and services should always go hand in hand. In the competitive market, multiple companies have the capability of satisfying the customer. The supplier will create enough product to meet the demand of a certain price. So, when the supply exceeds the demand the price will go down, On the other hand, when the demand exceeds the supply, the price will go up. It is clear that consumers react to the price of the available supply.

Effective Communication: Effective communications are important in Businesses and Supply Chain. When the organization identifies the sources of demand, then the operational information will be disseminated to all the members, especially who are involved in the supply chain. Effective communication will help to remain their duties and responsibilities in the supply chain network so that they can deliver what is expected of them,

Process Integration:
SCM involves the integration of business processes in order to facilitate the continuous flow or movement of resources. In other words, SCM entitled collaboration and partnership between the players of business processes. It covers the relationship between the suppliers, buyers, product developers, and end users so that the information being shared or exchanged among them.
  It has the following processes,
  1. Customer Management: It involves customer relationship management and customer service management. The organization has to provide real-time information about its products and services such as availability, logistics and other information that customers may be interested in.
 2. Manufacturing Flow Management: The predictive value of the demand management process enables the organization to produce and supply products and services more reliably and in a more flexible manner. Depending on the demand, the organization can make a better decision related to the manufacturing processes such as scheduling, batches, lot sizes, and work intervals.
3. Procurement Management: It is more than a simple act of purchasing. There are a lot of details to pay attention to obtaining raw materials and products from suppliers outside the organization. It includes sourcing for suppliers, resource planning, assessing the need for supplies of the organization, order placement, transport, storage and warehousing of the purchased supplies. The important steps in procurement processes are to discover and select potential suppliers and develop & manage the supplier relationships.
4. Product Development:  SCM helps to shorten the product life cycles and decrease the time to market the products. Thus product development can easily be integrated with customer service and customer relationship management.
5. Inventory Management: Businesses has to maintain an inventory of their supplier or raw materials. Companies maintain the inventory or stock of the materials until it will be needed in the manufacturing process. The inventory management process covers to keep track finished goods that came out of the production process and awaiting delivery to the customers. Also, it will be conducted to keep the amount of wastage low, as well as the cost of storing inventory.
6. Supplier Relationship Management: It is related to the procurement process. The companies conduct procurement process smoothly and more efficiently that relies on the relationship of organization with suppliers or providers of the materials that are being procured.

Collaboration: It is the relationship between top management and its people, between members of the organization and partners in the supply chain. Maintaining a good relationship with suppliers will increase the likelihood of reducing the costs as well as they provide the quality of materials or product that they supply will be high. You might be seen the companies had partnered with certain suppliers for years or decades even. This is because of the excellent SCM, with a focus on collaboration and partnership.