| During the Sales Call ( Visit to the Customer ), the | | | | every SKU individually, it is important to take many |
| most important task of the Salesman is to Generate | | | | things separately: sales history, trends and |
| Order. Here we put stress on word "Generate" | | | | expectations, seasonality, strength of the brand, safety |
| instead of "Take" order. To take is passive way by | | | | stock, etc. |
| definition of the word. This means that in this case | | | | The Inventory Management model of "Rule 1.5" offers |
| Salesman mostly just pick the order given and | | | | you a good balancing of Order Generation, taking into |
| prepared by the outlet owner. To generate is an | | | | account History, Trend and Safety Stock. The Formula |
| active process where the Salesman leads the | | | | for the Rule 1.5 is: |
| process. He assess the needs, propose order quantity, | | | | ORDER = WEEKLY SALES x 1.5 - STOCK |
| create back-up Profit Story that will support him with | | | | Explanation: Order is created on the base of the last |
| his proposal, overcome objections and conclude the | | | | week sales, but is increased by 50% for case that |
| sales. | | | | sales increase, than is reduced by the current stock. |
| In order to really master this process, the Salesman | | | | This is in accordance with the policy of keeping of |
| must be equipped with specific tools and sets of | | | | Safety Stock. In case that sales increase in the next |
| knowledge. One of the most important thing is the skill | | | | period, the stock is safe until the next sales visit. If the |
| and knowledge of Inventory Management in the outlet. | | | | opposite happens, meaning that the sales in the next |
| By default you may think that this is the job of the | | | | week is lower than in previous, there is no fear of |
| outlet owner, since he orders, he pays product, store it, | | | | overstocking, since the formula will balance the next |
| sell it further etc. The truth is that outlet owner is | | | | order (reduce it). |
| managing too many things at same time: outlet | | | | The orders are increasing while the sell-out goes up, |
| premises (rent, utilities, maintenance ), staff | | | | but also decreases in the period when the sell-out is |
| (employment, training, supervision), legal obligations | | | | declining. This makes this mechanism of Inventory |
| (accounting books, taxes ) and on top of all this he | | | | Management very useful for both, the Supplier and |
| have many product categories, among whom your | | | | Customer, since it secures fluent supply of products, |
| portfolio is one out of many. | | | | avoid OOS, balance capital invested, decrease |
| From this it is clear that the outlet owner can never be | | | | obsolete stocks, increase consumer's shopping |
| more focused and trained than your properly trained | | | | experience and maximize profit. |
| Salesman. During the process of Order Generation, for | | | | |