Coordination between the sales and non sales function of Black & Decker is essential. Any lack of communication would result in unacceptable backlogs of product, the potential of accounts receivable not being collected or slow collections, slow production of product, poor customer service and eventually the loss of sales. Each of the function listed will have a negative effect on the sales staff and will inhibit the forward momentum of the company. The role of the sales people not just to sell the product, but to sell the right products to the right people, without communication between the company as a whole, the sales people cannot effectively service the customers.
Every spring Black and Decker rolls out the pressure washers in Home Depots across the nation and encourages the Retail Specialists (RS) to sell, sell, sell. During this time the RS is required to meet a specified number of product orders in each store they service. However, as the RS continues to order the product the production of the pressure washers is slow and the product that is available is being carefully shipped to high volume stores. Here is where the problem lies; Each RS has met with store management to encourage them to order additional product and gain additional floor space only to see very few if any product arrive.
The lack of communication between corporate and the sales people has created a negative situation at the store level. The non sales function i.e. territory managers, production, shipping, have inadvertently created a negative situation for the sales people. Management required that all RS meet a certain quota and the production and shipping functions have put a strain on the relationship between store management, store sales people, and customers. Communication between production and corporate should have taken place before to ensure there was sufficient product available. Territory management should have communicated with the RS to obtain preliminary information on the required amount of units and forwarded that to the production function. In essence the RS cold have taken pre-orders and would not have had to make promises they could not back up.
Each function of a company plays a specific role in the success of a company. In this case the non sales functions had dramatic effects on the sales function. The role of the sales department of any company is to increase revenue, sell the right product to the right people and meet sales goals noted in the strategic plan. In the pressure washer situation Black and Decker was put into an inventory back log business and created a lack of trust between the RS and store management. This lack of communication between the sales and non sales disabled the company to utilize the strategic plan and put the company at risk of loss of sales in the future.
The sales department is the link between the customer and the company, to maintain or increase sales it is essential to keep communication open. This will allow the company to utilize the strategic plan and to increase the performance of the sales staff, thus increasing revenue and keeping the warehouse inventory to a minimum.
References
Reider, Rob., & Heyler, Peter B. (2003). Managing cash flow an operational guide. Hoboken, New Jersey: John Wiley & sons Inc.
