SIMULATION

• Objectives of RA No.7394


  • Protection against hazard to health and safety
  • Protection against deceptive, unfair and unconscionable sales acts and practices
  • Provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer
  • Provision of adequate rights and redress
  • Involvement of consumer representatives in the formulation of social and economic policies
• Government agencies


  • Food and Drug Administration (FDA)
  • Bureau of Philippine Standards (BPS)
• Requirements for FDA Certificate of Product Registration

  • A valid LTO or License to Operate
  • A clear, scanned, and colored copy of loose labels of all packaging sizes for the products
  • Documents to support product claims
  • Certificate of Analysis stating essential details to determine product compliance
  • For food supplements, additional requirements include stability study and safety data
• The Bureau of Philippine Standards (BPS) provides for the standardisation and certification of products, both locally manufactured and imported, giving the consumers access to quality and safe products conforming to the relevant Philippine National Standards (PNS)
• BPS Mandatory Product Certification Schemes


  • Philippine Standard (PS) Quality and/or Safety Certification Mark Licensing Scheme
  • Import Commodity Clearance (ICC) Certification Scheme
• PS Quality and/or Safety Certification Mark License


  Granted to local or foreign manufacturer whose factory and product have successfully complied with the requirements of the PNS ISO 9001
• ISO 9001


  A globally recognized standard for quality management
• Import Commodity Clearance Certificate

  Issued to an importer whose imported products have shown conformance to relevant Philippine National Standard (PNS) through inspection and product testing
• Supplier partnership


  An arrangement between two companies or organisation to help each other or work together, to make it easier for each of them to achieve things they want to achieve
• Example of supplier relationships

  • Distributors
  • Retailers
  • Manufacturers
  • Suppliers
• 3 Key Factors in supplier partnerships

  • Regular communication
  • Performance monitoring
  • Commitment to shared goals
• Benefits of supplier partnership

  • Reduced costs
  • Cost savings
  • Reduction in delays, quality issues, availability challenges
• Questions to consider when working with a supplier-partner

  • Does the supplier-partner offer affordable prices?
  • Does the supplier-partner offer delivery service?
  • Does the supplier offer goods in a consignment basis?
  • Does the supplier replace defective products that are returned?
  • What is the lead-time for delivery of the purchased goods?
  • Is there a minimum volume for discounted purchase goods?
  • Is there a set-up cost for tools and equipment?
  • What is the set-up time for the tools and equipment?
  • Is there a required layout for the service delivery?
  • What is the area required for the recommended layout?
• 3 Basic categories of product costs

  • Direct Material costs
  • Direct Labor costs
  • Manufacturing overhead costs
• Direct Material costs


  Costs of raw materials or parts that go directly into producing goods
• Direct Labor costs


  Wages, benefits and insurance that are paid to employees who are directly involved in manufacturing and producing goods
• Manufacturing overhead costs


  Costs that are incurred when producing a product, such as the cost of machinery and the cost to operate machinery. It also includes some indirect costs such as indirect materials and indirect labor
• Top reasons why small businesses fail (according to CBinsights)

  • Pricing and cost issues
  • Losing focus
  • Running out of cash
• Steps to create a business budget for a small business


  • Analyze costs
  • Negotiate costs with suppliers
  • Estimate your revenue
  • Know your gross profit margin
  • Project cash flow
  • Factor in seasonal and industry trends
  • Set spending goals
  • Bring it all together
• Gross profit margin


  The cash you are left with after your business has dealt with all the expenses at the end of the year
• Two components of cash flow

  • Customer payments
  • Vendor Payments
• Strategies to encourage timely payments


  • Flexible payment terms
  • Payment channels
  • Strict business policies on paying late
• Republic Act No. 7394 "Act of the Philippines"

  • the policy of the state to protect the interests of the consumers, promote general welfare and to establish standards of conduct of business and industry.
• Certificate of Product Registration (CPR)

  ⬇️

  Food and Drug Administration (FDA)

  ⬇️

  Each item or variant, flavor, dosage will have its own certificate
• Before you can focus on the budget, you need to identify what aspects if your business you'd like to focus/improve.

  • short-term goals
  • long-term goals
• Analyze costs

  • research the operating costs involved in your business
• ANALYZE COST

  • Fixed costs - rent, mortgages, salaries, internet, accounting services, and insurance.
  • Variable costs includes cost of goods sold, commissions for labor

  For new business, start-up cost
• Factor in seasonal and industry trends

  • Identify the low season, high season
• Set spending goals

  • How well you spend your money determines how well your business will fare
  • Provide a system to check if your money is being spent on the right areas to avoid unwanted expenses.
• Bring it all together

  • Accounting system to generate financial reports, record of actual vs. budget.
• Budgeting

  • Is an essential process, especially for small businesses, as it allows business owners to estimate and allocate money for different business activities.