Економічні науки/11. Логістика

KozekoA.

State Higher Educational Institution “National Mining University”, Ukraine

Key Concepts of Successful Enterprise Sales Management

Appropriate inventory turnover organization is very essential for any enterprise activity because the result of all previous efforts focuses precisely on distribution system. Each entrepreneur knows that company profit depends on sales volume: the more it sells the more it earns. A lot of modern enterprises are really interested in proper keys to reach their goals: sell more than it has planned and achieve the new qualitative level. In order to accomplish it, all of them need to make a great effort and use a few things represented below.

In the first instance it is necessary to understand meaning of the word “sales” and its role for an enterprise activity. So, sale is the management process through which goods and services move from concept to the customers with the highest level of service and minimal costs.

The role of distribution is defined as follows:

- the final assessment of enterprise performance arises in sales area

- the final preparation of goods for sale happen in distribution network

- direct contact with the customer, that provide the enterprise with valuable marketing information, occurs during the marketing activities

- successfully formed distribution network has a significant impact on competitiveness improving.

There is a growing dependence of the economic management on the external environment factors during the transformation process in different spheres of enterprise activity. Nowadays, every enterprise must plan output and sales volume based on market demand, purchase material and technical resources at market prices and search for customers by itself. Their situation is complicated by the lack of the necessary market infrastructure, imperfection of legislative base, the price disparity, suppliers’ monopoly of material and technical resources etc.

In these conditions, there are some keys to make the sales the engine of the business by using management.

1. Invest in Appropriate Management. Hire sales managers (leaders) who will be able to:

- quickly react to the impact of external factors

- make appropriate management decisions

- anticipate the most likely consequences of accepted tactics and strategy of control

- and neutralize the negative effects of different risks.

2. Make a network of active retailers. Enterprise revenue is tied directly to how many retailers it has and how active the retailers are at securing new business. A distributor should maintain a segment of end-user retailers and business-to-business resellers to have the broadest retail network possible. The strength of enterprise retail network is what helps to attract well-known manufacturers and other retail clients.

3. To help expand its network of active retailers, an enterprise needs to offer products from the manufacturers that end users want. Manufacturers often have guidelines they use to determine if an enterprise can carry the manufacturers' products. Spend time analyzing the application process for each manufacturer to understand what changes the enterprise will need to make to the business in order to be able to attract the manufacturers that will help grow revenue.

4. In some cases, retailers seek out an enterprise because of a referral from a manufacturer or based on the reputation. But one of the keys to a successful sales management is to have a proactive outside sales force that sells your company's services to retailers. It is a broader sales process because the enterprise is dealing with several products from many different manufacturers. But if the wholesale distribution business does not have outside sales representatives talking to a retailer, an enterprise can rest assured that the competition will.

5. Focus on geography. Sales management is often focused on reducing shipping costs. That is why larger enterprises have several different warehouses throughout the country. The closer the facility is to the customer, the lower the shipping charges. Because shipping is such a large part of the distribution cost model, the successful enterprises grow based on geographic coverage. Some manufacturers also limit the area where enterprises can ship products and prefer to deal with a series of regional enterprises as opposed to larger national companies. Analyze the costs to see if building a new warehouse facility makes sense to lower costs or if focusing on a single geographic region is a better business model.

It is also important to generate, in the context of distribution system, normal market relations with procuring and processing enterprises, overcome their monopoly and develop some adaptive production methods, which can quickly respond to the changing consumer demands.

Therefore, in the nowadays business environment it is so important to learn not only how to use lots of effective techniques, but also skillfully apply and combine them to achieve more powerful results.