home Management The organization of production - AS Kurochkin

The organization of production - AS Kurochkin

Methods of sales

There are two basic ways of marketing products businesses: through its own distribution network; through a system of independent (or dependent) marketers (distributors).

Own distribution network has always focused exclusively on the implementation of the company's own products in accordance with the implemented strategy. This allows the company to directly monitor the implementation of its own strategy in the market. Moreover, such a distribution system allows the company to maintain direct contact with the consumers of the products.

However, the organization's own sales network seems appropriate for a sufficiently large volume of sales in the market. At service of narrow market segments and individual customers to use their own non-permanent staff sales impractical because their maintenance costs increase dramatically.

The high level of costs constantly encourages companies to seek more sophisticated marketing techniques. It is obvious that the distribution function can be passed, but can not be excluded. the transfer of the functions of intermediaries is justified from the point of view of the enterprise to the extent in which they are due to specialization can perform them more effectively and at lower cost than the manufacturer.

System sales through independent intermediaries (agents, jobbers, distributors, brokers) is very effective. Their privileged position in the market with respect to the manufacturer due to specific factors:

• reduction in the number of contacts;

• economies of scale sales operations;

• a decrease in the functional inconsistencies;

• expansion of the range of goods;

• increase the level of service. Briefly look at each of these factors.

Reducing the number of contacts achieved by the organization of trade through a wholesaler. Here is an example: product group manufactures three of the manufacturer, and consume five consumers. There are two of the most simple scheme of sales of goods:

• without intermediaries, directly - each producer is associated with each consumer; .. The number of connections in such a scheme is the product of the number of manufacturers in the number of consumers, ie, 3 • 5 = 15;

• through an intermediary - each manufacturer and each consumer is connected only with the intermediary; the number of connections in such a scheme is the sum of the number of producers and the number of customers, t. e. 3 + 5 = 8 (a similar marketing scheme called centralized, more efficient, as it reduces the number of steps to ensure the coordination of supply and demand).

Economies of scale sales operations is obtained by grouping the proposals of many manufacturers. The mediator is able to perform certain functions at a higher level than a single commodity producer. For example, the cost of wholesale sales representative of the company may be distributed across multiple manufacturers. As a result, to perform sales functions costs are reduced compared to the situation where every manufacturer must have their own sales staff.

Reduction of functional mismatch between supply and customer sales organization is also provided through intermediaries. By purchasing a large quantity of goods, providing storage and division into smaller lots, wholesalers and retailers allow manufacturers and consumers to deal with more convenient for them to supply the scale. In the absence of intermediaries manufacturer would have to produce products in small batches, to adapt to the volume of orders coming from individual customers. In addition, he would be forced to build large reserves. If one organization undertakes two different types of activities (eg, production and sales), for which the optimal scale is different, it has to carry out at least one of these species on a scale greater than or less than optimal. The consequence of this will be to increase the cost as compared with the case when both operations are performed separately at some optimal level.

Expanding the range of products - one of the requirements of consumers. The range offered by the manufacturer, to a greater extent determined by the uniformity requirements in production of raw materials used, and other technological knowledge, while the range, buying interest is dictated by the situation of consumption and interchangeability of goods. Typically, customers need a variety of products in small quantities, while manufacturers produce a limited range of products in large volumes. Consequently, the role of intermediaries is to provide a variety of products to customers in one transaction could purchase multiple products, saving time and effort. Similar savings created and for the manufacturer. For example, a company that manufactures tools a certain kind, will not be able to open their own shops, if not begin to offer them a wide range of goods, usually available in the stores of this type. Obviously, it is easier to provide this merchant product range, referring to a number of manufacturers, particularly if they are competitors.

Increasing the level of customer service provided by an intermediary, because it is closer to the customer, better know the local conditions and the conditions of use of the product. Mediator easier to adapt to local conditions, to provide the best after-sales service and other services. However, this superiority of intermediaries is not steadfast. In a competitive intermediaries to constantly improve the quality of services and reduce costs.

The effectiveness of the considered schemes and other product sales is largely determined by the efficiency of inventory management of finished products, which can be based on "the fixed size of the order," or "fixed interval".

Sales Organization on the basis of "fiksirovannogorazmera order" is that by agreement between the enterprise-manufacturer of the product and the consumer (or other recipient of the product) is set a fixed amount of products ordered and the delivery time (of the order of performance) is variable. In this scheme, the delivery costs for optimized transport of finished products. "The point of the order" (supply date) will be the moment when the supply of finished products in stock reaches a predetermined size (Fig. 37). In such a scheme is regularly monitored by the amount of storage of finished products in stock.

Fig. 37. sales of finished products on the basis of "fixed size of the order" (supplied)

Sales Organization on the basis of "fixed interval" is that the orders (supply) should be carried out regularly at a predetermined time interval, however, the number of products each time may be different. In this case, the stock of finished products in stock must provide the consumer during a fixed interval (Fig. 38). By the time of the expiry of a fixed time interval set the number of products sold and produced a new need her number.

Fig. 38. Management of sales of finished products on the basis of "fixed interval" Package

Control questions and tasks

1. Objectives and supply organs.

2. Give the scheme of economic relations DITC particular company. Who is the mediator in it? Benefits of direct and indirect links.

3. Transit and storage forms of organization of production supplies. How can we justify the choice of forms of organization of deliveries?

4. How is the limit of a specific range of products? What is the Limit card?

5. The value of the logistical approach to management of material flows.

6. Contents of sales planning. In a specific example, calculate the total amount of deliveries of products specific to the consumer.

7. The sales on the basis of "fixed size of the order" and "fixed interval".

8. Methods of sales. Provide a specific example of any of them.