Question 1: What
is ‘fair trade’? How does fair trade benefit consumers? How does it benefit
organizations?
“Every
business transaction is a challenge to see that both parties come out fairly.”
Adam
Smith, 1759
Reasonable Trade is a considerable measure of things: a
social equity development, an option business model, an arrangement of
worldwide commerce, an instrument for universal advancement, a confidence based
action.
It implies distinctive things to diverse individuals. There
is no single, administrative, legitimate body. Along these lines, people need
to investigate different models and ideas. Reasonable Trade's numerous
definitions do constantly revolve around the trade of merchandise focused
around standards of financial and social equity.
Fair Trade Benefit for Consumers:
For most items there is a Fair Trade Minimum Price that
points/ objective to take care of the expenses of practical generation,
actually when world business sector costs fall.
The Premium helps producers to improve the quality of their
lives. It is paid on top of the concurred Fair Trade cost, and producers choose
equitably how to utilize it. Normally they put it in training, human services,
ranch changes or transforming offices to expand salary.
Producers are involved in decisions that affect their
future. Fair Trade certified producers jointly own and manage Fair Trade
International. Through the Fair Trade International's Board, its Committees and
discussion forms producers can impact costs, premiums, benchmarks and general
method.
This is a goal of Fair Trade. Little rancher bunches must
have an equitable structure and transparent organization keeping in mind the
end goal to be ensured. Workers must be permitted to have agents on a panel
that chooses the utilization of the Fair Trade Premium. Both gatherings are
upheld via Fair Trade International to create their ability around there.
Customers can purchase items in
accordance with their qualities and standards. They can look over
a continually
becoming scope of incredible items. By buying into Fair Trade consumers
support producers who are struggling to improve their lives.
In 2012 sales of Fair Trade certified goods reached £1.3 billion,
a 12% increase on the previous year, demonstrate that people still want
ethically produced goods.
Stocking
of Fair Trade products can make your business more attractive to the consumers.
Your organization could benefit from increased sales and profitability.
Your
dedication to Fair Trade could build client maintenance which will diminish
your advertising expenses.
May
be simpler in the event that you reveal to you are a minding and moral head
honcho, and staff/volunteer maintenance might likewise increment.
Inform
the neighborhood press regarding your prerogative to Fair Trade, and also your
founders and different stakeholders.
More youthful customers anticipate that organizations will
work together morally and Fair Trade is restricted to begin with.
Reasonable Trade items are frequently high caliber as buyers
are paying a little premium for them.
An individual or a
firm, (for example, an intermediary or advisor) who goes about as a mediator on
connection between gatherings to a business bargain speculation choice,
arrangement, and so on.
For example: In
money markets, Money Market Dealers or Forex Dealers or a Firms are works as a
brokerage services for banks or other financial institution between depositors
and investors for seeking interest income and borrowers seeking debt capital.
Go-betweens
generally have some expertise in particular territories, and serve a course for
business and other sort of data.
In the above
example; it is true fact that the broker or mediator service firm has to have
their commission which is the cost of their expense is included and this may
cause the cost of borrowing and lending will be increase rather than direct
dealing with among the parties.
Same as this
position will be reverse if in case mediator is not involved in any dealing and
the deal is direct between two or more parties will be the reason of final
price / cost high just because of no involvement of broker or mediator service
firm as they have full expertise and having good knowledge of the market and
large client list to negotiate.
Here is some sample of three separate markets:
a) Print
market: Prior to the
Internet, practically all books were sold through physical retail operations
that act as intermediaries in the traditional market and may cause of price
increase of original cost.
The move to the
Internet was at first theorized to substitute conventional retailers by
electronic retailers. Besides wholesalers, distributers or even creators would
have the capacity to get immediate electronic access to the client, and this
may build the market and openness and value control
straightforwardly which may come about value low.
b) Music
market: In customary
markets, music is dominatingly sold through mediators (retail outlets) that
match the offerings of record organizations with the inclination of shoppers.
In electronic markets, things were at first anticipated that will change.
Record companies
were hypothesized to move towards direct sales since the costs associated with
electronic distribution of a digital product are almost negligible.
c) Flight
ticket market: Right now, 80-90% of all tickets for planned flights are sold by means of
travel operators in spite of the way that machine reservation frameworks (CRS),
presented in the 1970's (Hopper 1990), can be utilized as a specialized
foundation for immediate deals. It was conjectured that run deals via aerial
shuttles would turn into the command conveyance model.
The requirement for constant stock
at all stages in Fast Moving Consumer Goods (FMCG) is a continuous requirement
for all Logistics, Information Technology Managers and Operators involved in
the Supply Chain.
As I have a
speculation bank work formerly and they have also the product for consumer for
financing for different purposes which is called consumer financing.
Given below is to
elaborate the stages for FMCG Product: -
In this stage the
marketing / sales team approached by or themselves the clients and give the
brief of benefits about the product.
Also this team is
responsible to maintain the database of the entire client either existing or
historic clients, which also may help to create the analysis.
After mutual
agreement with the client of the product the proposal will be made and submit
for acceptance to the prospect client.
Once the client
accepts the proposal after changes in terms by mutual agreement the proposal
sent to the operation department to the make the contract to finalize the terms
and necessary documentations.
Contract is the
document in which the agreed terms and financial between client and the FMCG
Company will be documented under necessary checklist which was already adopted
by the company as system operating procedure (SoP).
Contract is sent
for approval for the credit committee for final approval to disburse.
After approval of
Credit Committee the operation department is complete the documentation in
respect of given criteria, sent to the finance department for make disbursement
the said approved amount / money.
Above is the final
step for one side of transaction. Now the amortization / schedule of the pay
back the amount / money from the client to generate and sent to the operation
department to follow.
It is normal that
clients pay their installment / rental on time but in real world ups and down
came in the business, if any client unable to pay their installment / rental on
time than operation department analysis and make on judgment they will decide
to reschedule the terms to make transaction intact and fruitful for both the
parties or if found will full defaulter than they handover the case to recovery
department. The recovery department approaches the client and
engages the collaterals for make possible the recover the amount Fast Moving Consumer Goods (FMCG)
Company invest on them.
This is more
important area which FMCG have to the benefit from the
technology. The Management Information Reports will help in all
stages to make flow easy and filtered the client in the benefit of the Company;
moreover this may help to analyze the clients / groups for
future. The MIS reports will also help for operation and recovery
team to judge the pattern of inflow of payment / installments.
The MIS report will
also help for Credit Committee to initiate the approval based on its history or
running pattern in the market and its account statements.
MIS will also the
reports to submit to the management the footing of all the client(s) status
report to take the companies affairs and help to directive to be taken.
In these above case
the product which is money show the stages and flow of product is shown.
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