Future 3Party Logistics Trends

Overall, the task of understanding the success of 3Party Logistics relationships is difficult. The results of the 3PL study once more have identified variety of areas within which 3rd Party Logistics Providers are viewed as making important profit, and hence price, for 3PL users. However, there seems to be no shortage of areas where improvement is desired.

One key learning from the main focus cluster sessions was that the 3Party Logistics corporations seems to be experiencing traditional shifts because the market grows and matures—customers like what they’ve purchased, see the advantages, and currently wish one thing bigger/better. Being in an exceedingly service business, maybe 3PL Logistics suppliers are attempting to supply enhancements (added value) on an advert hoc basis. A a lot of ancient approach evident at several producing enterprises is to possess a separate analysis and development (R&D) department, instead of attempt time when time to form new worth offerings for individual customers one at a time.
Results from the 3Party Logistics study, combined with our focus cluster sessions, identified many business trends over succeeding 3 to 5 years. a number of these key trends are:
1. Evolution toward a broad provide chain answer supplier versus a transportation and warehouse supplier.
2. Increased outsourcing of transaction-based user activities to 3 Party Logistics Providers (e.g., order taking).
3. Continued increase in 3PL Logistics Provider technology skills.
4. Be customer-needs targeted (provide the proper answer, be concerned in consumer integration designing, and perceive the consumer industry).
5. Continued activity in updating, enhancing, and improving/extending the Third Party Logistics Provider-user relationship.
6. Continued growth, acquisition, and consolidation of the 3rd Party Logistics Companies.
7. Expansion of worldwide markets and 3PL Providers’ skills to produce necessary services.
8. More clarity to the 4PL solution.
9. Longer-term relationship management capabilities and thinking beyond a two-year contract.

Last, keep in mind that vital challenges can perpetually exist when measuring and quantifying the worth created by a 3Party Logistics provider for its purchasers. although the kinds of advantages from employing a 3 Party Logistics will be accurately identified, the conversion of benefit-tovalue in monetary terms usually isn't a straightforward task. because the level of the taking part in field within the 3PL arena continues to rise, each Third Party Logistics Providers and 3PL users ought to be higher ready to accurately determine and quantify price.

Road to Wealth : Review-Update Financial Investments & Enjoy your Investment

We have written about the long road to wealth in the previous three issues and we now come to the final part of this article. Previously, we dealt with seven topics :

1. Regular health check up.

2. Start your saving today.

3. Look after your property.

4. Take out a life insurance.

5. Think about retirement.

6. Make a Will.

7. Tax Planning.

We now discuss two final steps:

8. Review and Update your Financial Investments

In the old days, Thai families stay together under one roof and it is common that there are three generations who are 1) grandparents, 2) father and mother, and 3) children. Nowadays, they are more independent. Many children who graduated from college will move out either by renting or buying a condominium and live on their own. In addition, divorces among Thai become more common. Therefore, you should review and update all your investments taking into consideration the changing circumstances:

1. When the marital status change either you get married to your love one or have a separation or divorce from your spouse, you should check your marriage certificate, divorce papers and birth certificates of all your kids. Make sure that your life and personal accident insurance policies are valid with enough coverage for yourself and family including the naming of beneficiaries therein because those beneficiaries may change due to your divorce or that some of them may grow up and are able to stay on their own. Then younger ones should make a bigger share of your estate.

2. Investment instruments including land title deeds, share certificates, certificates of investment in mutual fund, etc. should be properly kept, accounted for and identified. If you rent a safe deposit box from a bank, make sure you have the key or the combination. Last but not least, review the value of your portfolio regularly because it may go up or down depending on the economic condition, interest rate, exchange rate as well as type of investment instruments. During a period with high interest, debentures and bonds would be attractive due to relatively higher return. However, during an economic boom, value of stock and real estate are likely to go up much faster. If there is a crisis either natural or man made, gold is the most attractive investment.

3. Update your will. As discussed above your marital status could change or that you have more children, then make sure that the will is updated. Especially if your wit itemizes all the assets stating which pieces go to whom, every time you acquire or dispose of assets or there is a change in the heirs, then you need to revise your will accordingly.

9. Enjoy your Investment.

Experts advises that among the various type of investment either real estate, bonds, stock and gold or foreign investment, you should decide which category that you prefer to invest because some people like gold so they focus on this precious metal. Some are intelligent stock investor, so they put more weight on equity. Many people prefer real estate either land, houses or condominium. Therefore you should invest in something that you really enjoy.

If you are not a smart investor because you are a sales person and would like to do marketing or an engineer would like to work on mechanical design, then you have to outsource by either hiring a financial planner or invest in mutual fund.

Finally, you invest in something that you enjoy. Recently, many Thai shifted their portfolio into shares of modern trade because they are market leader and whether or not there is any crisis or economic boom, people still shop at modern trade as a new trend in lifestyle.

In conclusion, there are nine steps altogether that will lead you to wealth. However, I need to remind you that this is a long and winding road that you should start pursuing today. Do not wait. On the average, it could take 20 years to reach the target. Good luck to you all.

Proactive Purchasing Orders for Risk Mitigation

In this issue, it will be the related article which is the ending methods for risk mitigation in the business. Even if anything is happened, the business will prolong at least without harming. Or the splendorous word that always uses is "Business Continuity Management (BCM)".

Try to revise that we, now, are in the midst of many risks, for example, flood, earthquake, strike, close the airport, riot, bombing, storm, airplane falling, IT system disorder, water resource dirty, rubbish problem, pirate, political problem, Tsunami, epidemic, strike parade to close the road, danger of terrorist, set a fire, accidental bombing in factory, thunderbolt, electric black out, communication system disorder, loss the key personnel, toxin leaking, nuclear leaking, world economy slow down, partner stop the business.

The said above example disasters are Natural disaster and Man-made disaster, not only what the disaster is occurred, the damage will be created a lot. Now, all over the World believe that many disasters often come and be stronger. If any business doesn't pay attention for the risk of supply disruption. when the disaster is occurred, the business will get the cause of effect very seriously in treating to solve the problems.

So, in order to get at least a little damage, the proactive working is necessary to be done for the risk avoidance and risk mitigation by planning the work of purchasing and finding in the proactive systematically which is called Procurement Contingency Plan. There are totally 8 means as following:

To set a plan for the work of relation with the supplier rapidly and correctly in order to see whom is more or less important for the company. So, we can make a correct decision to see whom be created the relationship as an alliance or must be as a common. The separation of the relationship in a correct way must be learnt well before by the purchaser on the subject of SRM-Supplier Relationship Management. It is not to be making friend as an alliance with all the common suppliers.

To check for sure that our significant suppliers also do the same plan as us for the prevention of risk mitigation or not. Due to the fact that, if the disaster is happened and our significant suppliers are damaged seriously, the bad effect will cause successively through our company too, because we will have no enough supply to consume. In case of our company has a good plan for prevention and mitigation, but if the customers can do nothing, we certainly can not survive.

To adapt the strategy for finding the new selling sources. Certainly, the purchaser always use the Single source system which means buying from the particular customers because of a good service, knowing each other, fair price, and good quality. But for this era which is not a normal era, because we are living in the midst of risks that are said on the above mentioned. The Natural disaster and Man-made disaster are tended to visit us and be more violent than before. We ought to adapt the methods of thinking and working by checking well to see which way the cat jumps. The method of purchasing from many sources is may be substituted from buying from one place. Each source will be spreaded out to the difference region, otherwise the cause of flood, or earthquake, or fire, is got together.

To estimate the new method of stock keeping. When the passed disasters, such as flood, Tsunami, earthquake, were happened, some supplier could not supply goods for us or supplied for us less than our want. The consideration of  the increasing stocks to be higher than before was necessary. On the other hand,  the thinking to reserve for the case that the disasters were happened, our customers might want less merchandises from us. Then, it might cause an effect to our stock inventories. We should have a great deal of surplus of the inventories. All these things, we shall have a meeting to consult with the management division in order to plan for the future to what and how merchandises and raw materials are tended to get more or less the effect. So that, the new method in adaptation for keeping the stocks is being loosen the weightiness to become light.

To estimate the place where the settlement of each of significant customers whom we need to depend on is established. The settlement place of the customer must be analyzed and estimated for the risk opportunity of the disaster which has more or less. Do not look over about the epidemic and the infectious disease. The buying from the countries where the wages are cheap, it is good for us in the capital mitigation. Each of these countries always has the risk in health and the disobeying against the CRS (Corporate Social Responsibility) which will cause the effect to us too.

To give the law division checking the condition of purchasing that hires us to do about the article concerned in the method of operation when the accident is occurred. Normally, when the accident causes any person who cannot work according to the contract, that person must not respond. Do not forget that, sometimes we may not get the damage directly from the natural flood, but the customers are got the damage by flood, they also cancel all our purchasing orders. For us, we will have the right for asking to cancel the purchasing orders of raw material too. If we do not well indicate this matter, we may respond to buy the raw materials that we order now, but there are no any purchasing order from the customers.

To prepare well for the emergency plan in the matter of human being. When the disaster is occurred, some of our staffs may die or get the accident to be cure or cannot go to work because of the problem of the communication is cut. The in advance consideration must be considered for anybody who can take place for working especially the significant position as "IT System".

To join together with all the divisions. If the disaster occurred, it is necessary to transfer the system and the work of every departments to work outside the company. How can we communicate? Is there any IT system which can help or not? At least, it must be done for a while, 3-4 months, before turning to the common situation.

For all the said above, somebody or some company may think that it is horrible. But for the passed experience of flood last year, it was proofed that the company which thinded and planed for the Worst Scenario system. Suppose, if it happened in the worst case, he would get the least pain. For one who thought for the best living, he would get extremely hurt.

What Purchaser Should do in Thailand Flood Crisis : Supply Chain Affected

Mega Flood Crisis of Thailand in 2011 caused a great disaster similar as a loosed country in World War. Many Industrial Estates were destroyed, and the production, the purchasing, and the selling of the whole country were Illsฐo confused. Therefore, anybody who was not being directly as ooded victim had been effected as same as the indirect way which a great disaster would be also another affected cause. The loosing of millions of million bahts would be a nightmare which was hardly to forget.

The Insurance Journal, issue of 14 November 2011, contained an article about Flood in Thailand. It was indicated that this Mega Flood would be affected to the Global Supply Chain, for instance, the mouthwash factory in Thailand, which could be count as the important source of production in Asia region, when it was flooded, the Wal-Mart Department Store in Japan would be affected by the lacking of the mouthwash to be sold. For the hard-disc factory in Thailand which had been flooded, the production of computers was effected to worldwide in the first quarter of the year 2012. None the less, the 20% would be lost in businesses. That is to say, some industrial business, however, is not get the effected cause by flood, but it will be got by the Supply Chain affected. According to this magazine which indicates how to carry on nowadays business that must realize on the spreading of the Supply Chain to the different areas in order to reduce the risk of the business loosed when the nature disasters are occurred' such as flood and earthquake, which will be more often occurred. So, the source of Supply Chain may not be clustered at the same area.

My company is running on the Training Seminar Business. The head quarter is situated at Asoke Road where the Flood cannot be affected any more. My staff officers are not affected by Flood also. The hotel where the seminar is run will not be flooded. But my business has got the effect and trouble because many training courses which the customers apply for are mostly canceled due to the inconvenience coming from their homes. Therefore, the customers evacuate to the safety places for a while, but their mental healths are not properly to learn and are said to. be "Moody". No one intends to train for seminar. My income from the Training Seminar in October and November will disappear all at once.

For my information brochures which publicize for the new courses in December and January have been already printed by the printing house. But it cannot be delivered to me in time because of the flood that caused the car unable to enter or exit the company. So, I do not have any brochure for my customers. How my customers can know what and when my courses are managed for. It means that in December and January, my company will have no income, but I still pay the office rented and the salaries to my staff officers. That is to say, the only expenses consist of, but the incomes gain no any profit. These are the Supply Chain affected.

Another training company told me that he was quicker than me in sending his brochures to the customers. Whereas, all brochures were piled up as a hill at the Post Office, because the post men could not distribute to other areas, so this company would also be likely damaged as same as me. This was also the Supply Chain affected.

In the conclusion, the Mega Flood in Thailand caused many great disasters which were affected to both the internal country and the worldwide foreign countries. In such a huge damage, the purchasers might realize and prepare in mind that the tired working would be more after the flood reduced. These are the remarks or the consideration points which the purchasers ought to prepare earlier in order to help the company to carry on the business with the least of the problems.

1. To know that the customers may ask for the damages or the fine amounts for the merchandises that cannot be delivered to the customers. And we may ask for the damages or the fine amounts from the suppliers who cannot deliver the raw materials to us. Do not be frighten and rashly to do anything. If it is an uncontrollable cause (Force Majeure), the law indicates that the responsibility of anybody must not be accepted. You must consult with your Law Section and try to understand deeply about the uncontrol-lable cause that how the meaning it is. You must understand, this Mega Flood, some damage will be a scope of the uncontrollable cause which does not take the responsibility. But, something is not. You must find the knowledge first.

2. To contact and consult with the Account and Finance Section. In this crisis, our company has a problem in the circulated current cash on hand or not. It is a necessary thing to contact the suppliers in order to ask for the extension of the credit term or not. If the asking for the extension of the payment time, the trouble of the supplier must be responded. They may have the same trouble like us or not. For, they may cause by flood or the flood is not directly caused, but the indirect affected will be or not. Do not think to get. Doing business must think carefully and look forwards to the far distance and put yourself in their shoes too.

3. To check the suppliers. The purchaser must check every list of his suppliers. If some is troubled by flood, the checking of how the damages are caused more or less and how it will effect to the production, the delivery, and to forecast when it will turn to the usual situation.

4. To inspect the Upstream Chain. It is said to be that the suppliers of supplier must be checked in which the flood is caused or not. And it will cause the effected chain with any supplier. Foresee when it turns back to the usual situation.

5. The purchaser must gather the data of Pending Orders which are our order documents that has been issued, and the merchandises were not yet delivered to the customers. Even if the purchasing orders are in home country or foreign countries. To consider that we still want those merchandises according to the amount ordered or not. Or we want to reduce some amount. Or we ask to postpone the date of dispatching. Or we cancel all the orders.

6. The purchaser must join closely together with the Sale Section and Production Plan Section about the forecast of using figures and looks for what figures that must improve. Because our customers also have the same problems. So, our production and the Purchasing Plan Section must improve to change in time.

7. I can see that some company has rented a small meeting room, 40 square meters, in the hotel for the using as an office. Because, their company is also flooded. I can see both Thai and Japanese people, men and women, sit in the crowded room. Everybody uses computers, notebooks, and smart phones. They use all means of technology for their communication and run their business at one point while the flood is not reduced. As you are a purchaser, you must contact to find out about prices and expenses, and propose to our company for the establishment of a temporary office.

8. The purchaser who cannot enter the company because of the flood, and doesn't have a temporary office, do not be carelessly to trip around in the provinces. The using of all the communication technologies are required to consult with other Sections in the company in order to brain Strom for planning the works and prompt to jump to the air when the sky is clearly.

hope that the 8 subjects that are mentioned to be the consideration points that will light and increase the ideas for the purchaser who can show their skill, and concentrates to work when the company is in the difficult situation. It is more in precious than in the usual time. Under this crisis, the chance will always happen.

Purchasing and Supply Chain

I would like to persuade the purchaser rethinks about your previousness on the past relationship with the suppliers in order to place the condence in what any the level is, or to impose on how the to place the condense in what any the level is, or to impose the ghting is. All these behaviors will be the indicators of the smooth work in the long run period which will lead to the perfect success, not the inattentive success which is full of revenge.
For the work of purchasing, the normal people mostly think that good purchasing will possess the excellent negotiation, the deep knowledge in the bought materials, and well understanding of the market situation. These are very significant things, but, Dr. Tom DePaoli said that all these things, therefore, were the instruments which brought the work of purchasing towards the end of the result. One thing, not much more than, is a very important point, everybody frequently tries to look over or tries to forget for those which are the creation of the solid relationship and the trust between the purchaser and the supplier. For this exceptional factor will lead the work of purchasing towards the success.

Dr.Tom had an experience in the duty of purchasing from Junior Buyer and climbed increasingly step by step until Vice President. This man had an experience in Supply Chain Reengineering and also possessed the well knowledge in e-procurement software. Hence, he could analyze the work of purchasing and the Supply Chain as a practitioner, not a theorist. Dr. Tom also was a writer who wrote a textbook, "Common Sense Purchasing", which content was very impressed by the purchasers.
Dr. Tom said that the pure mind of relationship would come first and was the most important energy that brought to the business alliance. He also reminded that the dedication of money over the limit for softwares was prohibited by the neglect and uninteresting to the rooted basis on the creating of good relationship and harmony with the suppliers. Software is not a miracle thing which can change something to another and makes the dream comes true. Whenever, the internal company is hollow and sloppy, the hundred million bahts of software cannot help anything.

Good relationship cannot pretend. You can't order to start it. You can't use the money to buy everything for your satisfaction. Purchaser must sincere to build a strong relationship with the suppliers continuously step by step. Honest must be possessed and do not even think to betray. The dignity and honesty of the supplier which fulfill in the mind can be measured by the suppliers because of the performed action. And these will cause the effect to the suppliers for their confidences, impressions, and unsuspicious, and the purchaser is also effected both direct an indirect way for the well slept without nightmare all night long.

The purchaser with high graduated will has a good credit. The purchaser who graduates with a diploma or a certificate in the purchasing field will be a good matter and be impressed, and to make sure that who is a real understanding worker. Dr. Tom confirms that even it is good, but it cannot help for the purchasing work with its best efficiency, if there is not a development of the strong relationship and a keeping promise with the suppliers. The using time to continue the relationship will get a good result. It is always worthy for every concerned party. Whenever, the cracking or the suspecting of the relationship is happened, it is mostly impossible to blend the cracking track or to erase the bitter vision for the returning back as usual. So, please don't leave for this important point and don't do anything carelessly for this matter too.

The easiest and the best method in making the relationship and trusting with each other must start from you by keeping the words. To do according to the words which are agreed by yours. Besides, the cooperation together with the suppliers can help to solve the problems, even it is their problems or our problems. This method is a very high power for the making of impression and appreciation with each other. During the cooperation for the solved problems, the sympathy, the understanding, and the supporting, will be the unforgettable impressions that anybody can't destroy or distort them. A person will remember with the unforgettable memory when there is somebody helps him in the difficult period. If you can approach to help anybody while the serious crisis is occurred, that person will surely look at you with the gratefulness and keep confidence forever. The just passed flood in Thailand last year, 2011, was a crisis that you could bring to make a good chance.

Don't forget the conscious rule which states that, "To behave for the others as to wish the others behave for you", which can be always used. So, it will not be lost in vain, if you always use it all the time, even in the serious period or in the peaceful time.

How Should Purchase Department do to touch CEO's Heart

Good working of purchase is difficult to see from outside but problem is more obvious the reason is bad image in previous still impress in people's mind especially suspicious in purchase circles which was occur all over the world and also the way purchase department preparing their report is less effective than the other, so these are two main issues made purchase department become an evil senseless.

What should purchase department do and how to touch CEO's heart, so you  should look back what do they expecting from purchase and then you have to do everything to fulfill their needs, otherwise no matter how you work hard it will not be effective. Next issue is efficiency of purchase in CEO's eye and purchaser should understand and follow their expectation:

1. Make every baht paid worth Do not surprise why everyone bossy you or keep asking about cost and sometimes talk about inappropriate cost over the year or the way the purchase cannot describe clearly about paid money is it reasonable and worth or not.

2. Represent the company to negotiate with the supplier wisely and successfully This does not mean that purchaser need to bargain everything or stingy, you should understand that to succeed the negotiate is to win-win and understand to choose the relationship level suitable to each supplier to plan the right negotiation plan and the important thing is purchase should be capable to analyze cost-price otherwise negotiation will have to aim.

3. Be an important part to support the company work run smoothly Purchaser should realize that there is a problem everywhere occurs from customer, supplier, and each department within the company, for example lack of raw material due to customer needs a product unexpectedly or production department planned it wrong, purchaser should be hurry to solve the problem with their best and do not for get to make a report to show what you have done and how to reduce lost to the company.

4. Able to suggest management to understand the result of situations such as when EU have a problem or USA economy crisis or going to have a problem with ASEAN Economic Community, these will effect our company neither in negative or positive way.

5. Able to corporate with relevant parties purchaser should be able to input data and propose opinion or give an advice follow request because purchase normally contact to market status closely in every day which is the best center to help every department.

6. Able to make a report and propose to management effectively purchase work such as hurry to follow the product to deliver on time sue to customer need, negotiate with the supplier to accept return goods because of wrong prediction of Sales, save cost from negotiation and planning strategy in purchaser, these things are important for manager to realize in a way of monthly report or some may in weekly.

7. Tell about purchase improving plan Purchase department should think about improve working to be more effective by indicate about what to do and how to do such as Purchase have a plan to do as the following item:

• Increase a company profit by reduce main material cost such as ... by ... Increase flexibility of every departments will shorten purchase cycle

• To get a better price than competitor, Purchase will ...

• To make a good quality follow 100% need purchase have a measure to ...

• Will provide an invade strategy in choosing supplier by ...

• Will reduce cost lying in stock by ...

• Increase customer satisfaction by ...

These improving plan should appear obviously in Purchase report with due date and report the progress.

7 items said above are the efficiency of Purchase in CEO's eye and if you start doing as I advice, I guarantee that you will touch their hear.

How important is an Electric Productions Inspection with International Trade Regulation?

Electric and electronic productions are one of the main export products of the country and the expansion of its value has surged continuously every year, total export volume was over 30,000 million dollars. The main markets are China, the United States, Japan and European countries. With the global economic recession, export markets have been slowing down which require entrepreneurs to adapt themselves in order to get through the crisis. However, besides the reduction of consumer’s needs and the confrontation of competitive pricing, another compelling factor which could potentially hinder future exports is the international trading regulations called Non-Tariff Barrier / Measures (NMTs) that act as trade barrier. The NTMs lead to the following restrictions : safety, products, production processing, raw material, and energy-saving standards. Therefore, entrepreneurs must inevitably follow the defined restrictions of trading regulations which will increase the number of products inspections accordingly.

Why do we need Inspections?
Products inspection is directly relates to enforcing NTMs regulations in which NTMs can be viewed as technical obstacles and can be separated into several enforcement standards. The standard determination can be divided into many levels :
1. Company Standard including Toyota and GM which will be accepted as a company levels.
2. Industry Standard including JASO (Japanese Automobile Standards Organization), JSMA (Japan Spring Manufacturers Association), ASME (American Society of Mechanical Engineers).
3. National Standard including JIS (Japanese Industrial Standard), DIN (Deutsche Normen), TIS (Thai Industrial Standard) which will be accepted in some countries.
4. Area Standard including EN European Standard.
5. International Standard including ISO (International Organization Standardization), IEC (International Electro Technical Commission), ITU (International Telecommunication Union).

As such, each trading measure was found to be continuously associated with the product life cycle from
1. raw material availability related with RoHs and REACH.
2. production processing related with GMP, HACCP and Eco Design.
3. products associated with LVD, EMC, CE-mark, and Energy Labeling
4. Waste related with WEEE. Therefore, if entrepreneurs want to produce products conforming to the trading regulations of each market, they need to consider several standards thoroughly

Inspection and Certified Approaches
For the inspection and certification of any products, manufacturers must know where their product market shares are, and consider if there are trading regulations, rules, or measures that are being enforced in a particular market. Then manufacturers should consider planning to inspect and certify products which involves testing, calibration, and inspection methods covering every step of production in a wide range of design, raw material supply, production processing, and inspection after production. Therefore, a perfect preparation  could result in an effective inspection, save costs, allow the products to easily to the regulation, save inspection time, and lower the number of inspections. However in products inspections, having reliable equipment, tools, certification, along with accreditation are musts.

The inspection and certification can be done by an elected association of each market. Currently, there are both government and private parties including an electric and electronic institute, the Electrical and Electronic Products Testing Center : PTEC, and an automobile institute

The Effect of Non-confirming Products
Regulations can affect many entrepreneurs including manufacturers, suppliers, products importers, and sales people. If they do not follow the regulations, the effect can be the following : delayed entry of goods into markets, cancelled distribution, revoked distribution rights, returned goods to the original export countries, imposed fines, wasted production time, and wasted expenditure costs due to reproduction of goods. Therefore, entrepreneurs have to continuously follow news in order to adapt their production to correspond with upcoming measures.

However in the future, the tendency of international agreements will be rising. The agreements could reduce tax restrictions, but would increase technical restrictions instead. Sale able products must have excellent quality. Therefore, efficient inspection is an elimination of trading claims, helps upgrade products to be safe to consumers and the environment, and results in products acceptance which helps gain market share automatically.

Miscellany about minerals and Mining

Characteristics of minerals
Over 2,000 types of minerals discovered on earthy are in any of the 4 forms ;
1. Solid inorganic compound.
2. Liquid compound such as mercury, bromine and water.
3. Compound which is a product of the transformation of once living organism(s), such as petroleum.
4. Pure elements, i.e. gold, platinum and silver.

Primary ore deposits

1. Stream of mineral deposits in mountainous areas are formed by the cooling of igneous rock into vein. Magma or lava in narrow, enclosed space directly crystallizes into minerals. Chemical interaction of existing vein, i.e. change in temperature, may raise mineral contents. Examples are base metal (such as tin, tungsten and zinc) and non-metal (such as fluoride).
2. Mineral deposits in layers of rocks are formed by sedimentation or stratification, such as gypsum, rock salt, charcoal, oil and petroleum.
3. Mineral deposits composed of nodules are formed by decomposition of igneous rocks causing the embedded minerals to break into small chunks which are then washed away by water to foothills, river basins, or coastal plains. An area with accumulated minerals is called placer, such as tin placer, or a placer of antimony, precious stones, diamonds and gold.

Minerals being utilized can be grouped into tree types ;
1. Base metal is mineral that must undergo smelting. It is durable and opaque, has electrical and thermal conductivity and a melting point. Example are tin, steel, manganese, copper, lead, aluminum, magnesium, gold, silver and wolfram.
2. Non metal can be used without smelting, has no thermal conductivity, and is translucent or brittle, Example are fluoride, phosphate, rock, sand, salt, sulfur, potassium, calcium and kaolin.
3. Energy or fuel mineral is mostly formed from fossils, such as charcoal, crude oil and natural gas.

Mining methods in Thailand
1. Dredging is the mining method used for fertile placers. Minerals are dug and washed on dredging boats.
2. Gravel pump mining is operated in placers which are not so fertile. The areas are drilled or blasted by human labor or high-pressure water. The mixture of  minerals, sands and rocks are pumped up for separation.
3. Ground sluicing is operated along foothills or slops using human labor, high pressure water and excavators to disintegrate the soil and then the materials are transported through a sluice.
4. Open-pit mining is operated on foot-hills or hilly areas. The areas are shaped into terraces and human labor or machines are used to transport rocks and minerals for separation on lower ground.
5. Hydraulic mining is operated in placers near main waterways on highland. A dyke is built to block a waterway and away soil and rack mixed with minerals and carry them downstream for separation.
6. Underground mining is done when minerals are too far underground. Minerals are mostly low in volume but scare, such as gold. The areas are blasted and drilled to create intersecting “rooms”. Beams are installed to hold up thr roof for safety.

Centralized Purchasing, Decentralized Purchasing, Integrated Purchasing - [advantage and disadvantage]

Many company understand that if they manage the purchasing to be centralized purchasing should be more effective to control and convenient and to hold the purchasing in one spot should create a negotiation power than the pother method and the company not allow each department to do their own purchasing, so all departments must submit their inquiry to purchase departments to processes these makes purchasing into a system and also good because purchasing by acknowledge people

This understanding is right but not always true because there are many factor and cases that makes centralized purchasing not effective and may lead to be disadvantage.
Disagree people or against it always claim about the delay because there are many procedure until receive the order and claim that purchaser will get the right thing and negotiate to get the reasonable price if purchaser have never use it.
People who agree with this system also claim that to let each other do by their own or as we call Decentralized purchasing will leak and cause a corruption because it is difficult to control and not throughout.

But for people who agreed with Decentralized purchasing is even worst because of high value will create a power then a huge corruption.
If you ask for my opinion, I will give you an explanation that it can be happen however if the system and control is not good for both type and the suspicious is not only occur within purchase department only but it can be happen with every department, please do not wastes your time on accusing as the quote “there is nothing under the sun which can not be cheat”
So let’s consider about advantage and disadvantage of purchasing system carefully as following so we can have an idea before making a decision otherwise it will like flee a tiger meets a crocodile.

Decentralized Purchasing ;

If it is a big company with branches in many countries or many provinces, Decentralized
Will give a power to each branch to do their own purchasing and it is good because fast and convenient and they should have their supplier database in own area better than people from the center.

Decentralized power to each branch making decision by their own will force them to be responsible, they will brainstorming among relevant parties to solve the problem although to find the best solution. They will buy when needed, decide the quantity and quality and follow up to get the products within the period limited by themselves and gain the direct experience them be cautious is planning and preparation.

The important advantage should be a faster purchasing time since the documentation is reduce, approval process and not wasting time for information inquiry when changing or return problem goods.
But do not neglect disadvantage such as to find a supplier information by their own will be a work repeated, waste the time more than centralized purchasing and each department have to use their resource and less expertise than resource of purchase department which is normally well trained in purchasing and feel sure that they can manage this effectively.

Centralized Purchasing ;

This purchasing type comes from bring amount of acknowledged people in purchasing as a center and work for every department in the company, so staff in other department can concentrate their own responsibility without wasting their time in finding source, supplier estimation, negotiation and follow up goods to be on time.

Even though it is a big company with many branch in many countries but also can use this method. The center purchaser will coordinate with each branch to find a data of source worldwide, quantity needed in short term and long term which are total the purchaser will see and in this case purchase will have a very good reputation when negotiation with supplier.

But when we look for disadvantage, Centralized purchasing is to give a giant power to a small group of people. Hand every purchase work to them to do, if there is no effect IT system enough to reduce documentation purchasing work will emphasize in documentation management more than to create a strategy purchasing and if lack of people to working and less knowledge not consistent with the work and not skillful enough both internal and external work then you will see a disaster or a company’s nightmare is soon.

Integrated Purchasing ;

This method is in the middle, foreigner call as a Hybrid or integrate means have both center purchase and purchasing for each department with the specific working frame and good coordination among them. Center will limit the overall purchasing policy for every branch to know, management of branch purchasing will be under their own branch but due to they have to follow rules and policy of center so they have to report center, for this method CPO-Chief Procurement officer is needed and supported by CEO.

Normally every company concentrate on Cost saving and raw material purchasing for production, purchasing MRO or expensive parts, travel expense, PR and marketing cost and IT thus CPO should plan a strategy carefully to work effectively.

For a single company without any branch also can use a concept from integrated purchasing such as purchasing contact to sign agreement to buy an office furniture and stationary cover 1 year period and let each department that center sign but should be within the budget and policy of the company or allow engineering to order some parts by their own but under supervision of factory manager without passing purchase department.


Conclusion ;

Centralized purchasing have an advantage in from the high total than other method bring a discount and beneficial condition to the company and the purchasing staff are well trained and acknowledged than other department but the disadvantage is slowness of procedure and the staff inpurchase department may have less knowledge or not careful enough.

Decentralized purchasing have an advantage in flexibility and also knowledge in flexibility and also knowledge in what they are going to buy or employ because they are user but disadvantage is lose the negotiation power because total amount is spread among the company and not attract the company and less skill than staff who working directly.
Integrated purchasing is the answer by looking for weakness and strength and choose strength that you got utmost and avoid all weakness

In conclusion, policy of three method also good but you have to choose the right one and fit to your company, do not follow other peoples without a serious analysis in what we have got but they don’t.

What is ISO 26000 Guidance on Social Responsibility

Corporate Social Resposibility (CSR) integrated into business conduct has recently been gaining  increasing amounts of attention. There is no clear evidence being measured to determine how much each organization has embraced its responsibility to society. The International Organization for Standardization (ISO) has developed a social responsibility guidance standard called “ISO  26000” and plans toe formally release a complete version of the ISO 26000 guidance standard in the middle of 2010. To be well prepared for the final standard publication, this issue of “Manufacturing Tip” presents topics for ways to primarily evaluate how much your organization has come across the boundary of the ISO 26000 guidance standard.

The ISO 26000 standard of social responsibility is a voluntary standard and guildance, is not a certification requirement, and is aimed to be an operationalizing program for Corportate Social Responsibility to organizations who decide to practice this standard. Prior to stepping up to operate by an international standard, the Department of Industrial Works established a standard called Corporate Social Responsibility Department to Industrial Works (CSR-DIW) referenced by ISO 26000, Working Draft 3rd issue (WD3) to prepare for the finalization of the ISO 26000 standard. We can follow the ISO 26000 guideline to develop organizations. There are seven core issues being addressed by the CSR-DIW standard that entrepreneurs should consider.
1. Organizational Govemance includes: an organizational structural management and a decision making process that operates in a responsible manner, which are transparency accountability. In addition to those manners, appropriate and effective application of financial, natural, and human resources promoted balance among the demands of organizations and stakeholders.
2. Human Rights: Businesses should Inspect and evaluate the risk of every activity that could potentially violate human rights, to avoid joint wrongdoing that could harm human rights, and to solve problems from fair claims under the principles for righteousness, reason, equality, and clearness. Entrepreneurs should provide special treatment for females, handicapped people, children, native people, and refugees and should respect human rights relevant to politics, education, economics, societies, religions, and cultures.

3. Labour: Practice is to provide legitimate employment by establishing employment agreements with legally accepted organizations, provide an equal employment opportunity for all employees, provide fair compensation, provide safely and hygiene at workplaces, and constantly arrange training to develop employee’s capability.
4. Environment: Businesses should determine preventive measures in generating pollution, disclose the type and volume of toxins emitted into the biosphere, effectively promote lasting and renewable resource consumption, decrease the impact from climate change, and restore the nature by implementing preventive procedures.
5. Fair operating practice: addresses the areas o f anti-corruption, responsible political cooperation, fair competition among rivals, the promotion of social responsibility for organizational stakeholders, and the respect of intellectual property rights.
6. Consumer issues: providing data of merchandise price, providing quality inspection reports and actual warrantee conditions, acting under a fair agreement to consumers, issuing preventive safety and hygiene measures for consumers, promoting consumption of environmentally friendly products, using recycled packaging, determining preventive measures, resolving disputes among consumers by lengthening warrantee periods to be more than the one imposed by law, protecting consumer’s privacy rights, and  maintaining and improving systems constantly to prevent service from being paused.

7. Community involvement and development: is to consult with community representatives in running community development projects, to promote academic quality development and people skills in the community, to preserve and guard the local cultural heritage, to develop technologies for communities, to build jobs for a source of income for communities, to promote access to basic health services that are necessary, and to invest in useful projects for communities.