Sales and Distribution

Sales and Distribution amalgamate as key marketing mix components.

- Sales management enables achieving sales force goals via a series of steps including planning, hiring, training and controlling the resources of an organization.

- Distribution management on the other hand, designs a channel, selects and motivates the members of the channel for product promotion via the channel. S&OP, an acronym for Sales and Operation planning occupies a dominant position, determining the success of the manufacturing sector. It helps to understand a business demand and is measured by the sales orders.

In S&OP planning, the main components are setting objectives, developing strategies and evolving action plans/ tactics.

The sales goal always remains increasing the volume of sales. A strategy development includes marketing and sales strategy like entering the export markets and domestic markets, improving sales force training and even identifying countries and deciding on distribution channels. The action plans include adding channels and hiring professionals, training them, delegating sales targets, planning an incentive scheme etc.

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To initiate the process of sales and distribution, the following steps are to be considered prior:

  • Identifying the number of sales orders, updating on a delivery date and deciding on the quantity
  • Acknowledging the acceptance of the orders to customers by checking on availability of materials and reviewing on production capacity for an allocated order
  • Managing the demands based by using Master production Scheduling
  • On time in full or OTIF to customer
  • Conducting the action plans for sales and distribution with an effective S&OP planning
  • Dispatching the products to customers and invoicing them

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