Currently, Kellogg Company has been experiencing tremendous success in their new marketing strategies. Their savings are up and they are continuing to make profits in view of their employee efficiencies and coordinated sales and operations planning process. In connection to this, we would like your company to experience the same turn around in terms of sales and profits by adopting a new strategy pattern after the Kellogg’s marketing strategy, in order to address current problems relating to sales orders, pricing, delays, missed deliveries and so forth.
Kellogg’ experience As you may not know, Kellogg experienced the same problems that you are facing. Upon management evaluation, they found out that despite the huge peak in demand, it didn’t translate into an increased profit. This was because even though Kellogg’s sales personnel were making sales deals that moved a lot of cereals, but transactions were at terms that did not necessarily made profits. Sales forecast were frequently incorrect, and distributions were often inefficient resulting most of the time to redeployment of product to fulfill the order.
Upon careful evaluation, it was found out that much of the products are wasted and /or damaged as production personnel were determined to produce more cereals in order to avoid changeover because of missed deliveries. Given the success which Kellogg has experienced over the past years using a new strategy, we would like to draw your attention to the importance of a sales and operation planning process. We understand that Fitter Snacker is having the same problem even though you have enough personnel to run the sales of the company.
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We honestly believe that developing an effective sales and planning process will help not only towards addressing the problems but most importantly in increasing the savings and profits of the company. As you know, process has been very important towards any corporate activities. Process is everything else in the group including how the group is discussing the activity, who talks or in the case, who is effectively doing things, and who does not. Business process therefore is simply an integration of the functional areas of the company.
That is, it will facilitate sharing of data effectively and efficiently between and within functional areas. Developing sales and operation process will certainly improve Fitter Snacker’s sales performance because it will help avoid much of the problems confronting the company such as incorrect pricing, excessive call to the customer for information, delays in processing orders, missed deliveries, and so on because details and other information regarding customer’s concern is not monopolized by a single department. In other words, every department can be functional to address this concern.
Shared information on customers concern is doing business on the customer’s point of view which more effective. In order to work well on this, you may need to check on the benefit of Enterprise Resource Planning (ERP). ERP programs “help to manage company wide business process, using a common database and shared management tools” and it supports the “efficient operation of business processes by integrating throughout a business tasks related to sales, marketing, manufacturing, logistics, accounting, and staffing” (Chapter 1, 1). Work Cited Chapter 1 “Business Functions and Business Process”
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