Sales | Achieve Higher Profit? You Need Smarter Sales Strategy!

Summary

This video module introduces the 'Manage Sales Order' feature in the business simulation, helping users efficiently process sales orders. It explains how to create, track, and manage sales orders for various customers, considering factors like pricing strategies, popularity deductions, tax, and overhead costs. The process includes creating an order, confirming it, delivering products, generating invoices, and receiving payments. The video also highlights key strategies to optimize sales, such as reducing overhead costs with effective management and acting quickly in competitive sales environments.

Takeaways

• 😀 Manage Sales Order feature helps efficiently handle sales by allowing you to create, track, and process orders across different customers and regions.
• Key takeaways summary😀 Sales orders can only be accessed by one section at a time, ensuring consistency in transactions and preventing conflicts.
• 😀 You can only sell to customers with an 'available' status. After a sale, the status changes to 'unavailable' and returns to 'available' in the next period.
• 😀 The sales order page is divided into three main sections: Processing Status, Create Sales Order Details, and Sales Order History.
• 😀 Key factors to consider when creating a sales order include price scales, popularity deduction, tax, overhead costs, ATP, and stock on hand.
• 😀 ATP (Available to Promise) shows the quantity that can be promised to customers, including products still in production but already released.
• 😀 Stock on hand refers to the actual quantity available in the warehouse, whereas ATP can be higher if products are in production but not yet in stock.
• 😀 Overhead costs like delivery, marketing, and storage impact the final profit, and choosing a sales manager can help minimize these costs.
• 😀 After confirming the order, the system generates a delivery document for the warehouse and proceeds to shipping and goods issue, reducing stock.
• 😀 After delivery, an invoice is generated, and once payment is received, accounts receivable is reduced, and cash in the bank increases.
• 😀 To optimize sales performance, reduce overhead costs with effective manager strategies and use speed to be competitive inSales order process summary a fast-paced sales environment.

Q & A

What is the purpose of the 'Manage Sales Order' feature in business simulation?

The 'Manage Sales Order' feature allows users to create, track, and process sales orders efficiently by handling customer orders, considering factors like costs, pricing strategies, and stock availability.

What happens if multiple users attempt to access the 'Manage Sales Order' feature at the same time?

If more than one user attempts to open the 'Manage Sales Order' feature simultaneously, a warning pop-up will appear, ensuring consistency in transactions.

What is the role of the 'Available to Promise' (ATP) metric in the sales order process?

ATP shows the quantity of products that can be promised to customers, including items still in production but not yet moved to the warehouse. It helps manage sales expectations by indicating what can be delivered.

How does the 'Price Scale' strategy work in the sales order process?

The 'Price Scale' strategy involves lowering unit prices as the quantity sold increases. This incentivizes larger orders by offering discounts based on order volume.

What are the five steps involved in processing a sales order?

The five steps in processing a sales order are: 1) Creation of sales order, 2) Sales order confirmation (only for gift packs), 3) Delivery, 4) Billing, and 5) Incoming payment.

What is the significance of 'Overhead Cost' in managing a sales order?

Overhead cost refers to indirect expenses, such as delivery costs, marketing, and storage, that can impact the overall profitability of a sales transaction. Managing these costs is crucial for optimizing sales performance.

What is the difference between 'Stock on Hand' and 'ATP' in the context of sales orders?

Stock on Hand refers to the physical inventory available in the warehouse, while ATP includes products still in production that are promised to customers but not yet moved to the warehouse. ATP can exceed stock on hand.

Why is it important to select the right sales manager during the sales order process?

Choosing the right sales manager can help minimize overhead costs and improve the efficiency of the sales process by leveraging their skills and expertise to optimize operations.

How can sales performance be optimized according to the module's strategies?

Sales performance can be optimized by reducing overhead costs through effective manager strategies and acting quickly in competitive sales environments to gain a lower cost by being the first to sell.

What happens during the 'Delivery' step in the sales order process?

During the Delivery step, the system creates a delivery document that provides instructions for picking, packing, and shipping the products. It results in a reduction in warehouse stock and is recorded in both material and accounting documents.