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DISTRIBUTORS |
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What is your current inventory turn?
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How do you calculate your inventory turn; by
item or by total? Do you divide total inventory into total sales?
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What do you do to optimize your inventory?
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What amount of your inventory is obsolete?
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How do you control your inventory?
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By how much could your inventory be reduced
and maintain your present sales volume?
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How much additional volume could you do
without increasing inventory?
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What do you do to reduce waste, pilferage,
and theft?
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How do you determine your product mix?
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Are collecting accounts receivable a problem
for you?
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Do you have established credit/collection
standards?
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Do you use an inventory justification
system/How is your company organized?
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WHOLESALERS/DISTRIBUTORS |
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Good
Sales Effort Combined with Proper Controls |
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Equals
Ever Increasing Profits |
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Examine
your company in these key areas: |
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SALES
·
PURCHASING ·
INVENTORY |
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WAREHOUSE ·
DELIVERY ·
ADMINISTRATION |
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The
Desired Elements |
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SALES |
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WAREHOUSE |
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Sound sales
policies in selection, compensation, training, territorial
assignment and supervision.
Knowledge of
gross margin and profitability by account, product line, product,
salesman and sometimes by individual order.
- Scheduled
periodic reviews of results With present products and product lines
- And research
into potentially profitable
- Additions to
present lines.
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PURCHASING |
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DELIVERY |
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Clear cut
policies of authority and responsibility of those involved in
purchasing to prevent duplications and omissions.
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Maximum coordination starting with sales Forecasting, through
purchasing.
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Inventory control to assure optimum turns, while carrying minimum
dollar in inventory.
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All
this and maintaining excellent customer service.
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Exposure to all vendors to assure stocking most saleable items at
lowest costs.
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Routes studied and
scheduled to assure maximum time spent servicing customers and
soliciting new accounts and minimum in aimless driving or other
time-wasting activities.
Controlled
maintenance and repair costs.
·
Careful
check of leading and unloading to prevent pilferage and shrinkage. |
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