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Question in Detail:-
A Sales person (Usually in FMCG or DIstribution company) "Dumps" stocks in Outlets, thus to reach Targets. As a sales manager do you justify it?
If Yes, Why?
If No,Why?
:-)
Yes,in order to reach the targets if you need to push little more stocks to your stockist it is O.K.But you have to take your stockist into confidence that you will do extra effort to liquidate these stocks.If you stand to your commitment and liquidate his stocks at the earliest after your final losing and target fulfillment then he will in future be a part of this process otherwise it will be failure.
You have to be carefully with dumping stock in your outlets as this me exhaust them with stock that they need along time to resell. The most healthy structure is to have a clear pattern in the buying behavior of your outlets: either stable or growing. This will make it easier to have a good forecasting for the coming periods.
No, they should wait till70% of the stock is sold. You don't want the outlet to sit with over stock.
April is the month which require a lot of funds for pending commitments and many kind of obligations like tax etc., it is a priority to recover the long pending receivable also. some kind of dumping of the stocks at the retail outlets will help to generate additional sales, so that the earlier payments can get released a little bit faster also. Usually, though it lacks a certain level of control over sales, sales manager's turn a blind eye over this matter- as he has to meet the sales targets and also with a view to ease pressure from the finance and accounts section indirectly to get release the earlier payments from the clients.
This is a common practice, especially around March. No justification (except that it happened last year too.)
Yes, the outlet concept is discounted concept, which mean its about displaying high volume of product to maximize the sale per Sq ft. , also abuosley its required some how to deliver the discount message for the customer.
Yes, Stock Dumping will not done in every counter, but counters with high potential only.It must be cleared off in the nxt month
Strongly No.
Sales person should sale right quantity to the outlet, and should have knowledge of what is right quantity.
For achieving target one should think of proper vertical and horizontal distribution.
its depend on the product moving and the situation.
No:
if promotion is going on its completely wrong to dump the stock with customer without there requirements.
Yes:
in case of slow moving and cash sales it will be highly recommended to dump the stock with customer
