30
Nov

FIX THE SALE

Escrito el 30 noviembre 2009 por Jesus Guerro en General

According to research the cost of returning a product is 9 times the cost of distributing it. Althugh return rates grow day by day cause of the increasing bargaining power of customers and the increasing presure of environmental normative; many managers remain considering this mater unimportant.
It is obvious that managers tend to be lazy on thinking in advance about processes and procedures to carry out when something may go wrong. Nobody wants to foresee non ideal situations, but we should do it. It is our job.
Masive returns use to stay in forgotten areas of warehouses loosing its value day by day whereas nobody takes decisions about how to proceed with those goods.
To apply agressive commercial strategies in the sales channel may seem a success at short term but maybe it will be a disaster at a medium term. Wether Demand is not able to abosorb supply or we do not help the Chanel to take products out, they will go back home, the sale will be annuled, the margin turned negative and the vaule of goods wasted.
So that, it is essential today to keep visibility over our sales partner’s inventory in order to proactively manage tied up inventories before they get obsolet in front of our back door.
New commercial relationships should be built progressively taking feeling from end consumers and permiting our distributor to acquire the learnig curve of our product as well as of our strategy.
The use of Vendor Management Systems along with the encouragement of trust building relationships, are essentials factors to succeed in global environment. Once again the capability to organise partners constitutes the most valuable skill for companies and managers in the new paradigma.
So, Sales force should change the way in which it faces its job. It is necessary to shift from a Selling to a Fixing the Sale approach. Nowadays a product is not sold until it is consumed. Our goal does not consists just of convincing distributors to help us in our expansion but to help him to understand the way in which we support operations, promotions and follow up.
Never forget that all products are likely to be returned. To analyse causes to identify point of improvement and responsible area, work in cross functional teams and empower information sharing and support between partners are the keys to properly fix the sale. The ending objective of our whole company.

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