Does Your Company has a Sales Prevention Dept?

Sanjay, a Distributor in a mid level FMCG company is fed up of calling company office again and again for his pending claims with the company A. 

Claims involve money.

Investment in claims is investment too and it affects his working capital requirement. 

Reduction in working capital = less money to buy company goods as per market demand= less sales = less profit.

He is fed up of this delayed claim settlement by company.

He has made up his mind to leave distributorship of the company as soon as his claims are settled. 

Sunil, distributor of another OTC company B, is frustrated for not receiving stocks even 10 days after making advance payment.

He has experienced this delay in his orders every time he placed sales order to the company.

Company is based just 300km away from his town. At maximum he should receive stocks against his order within two days of advance payment being credited to company account.

But it does not happen.

Sunil is in talks with other company C marketing similar products for its distributorship.

He has made up his mind to leave company B after establishing products of company C in market.

Meet Junaid.

He is MR in pharma company D. 

It is 15th of the month and he is yet to receive his last month salary.

Delay in salary = less motivation for Junaid= less efforts by Junaid in market to promote company products = less sales for company.

The above three stories are common in most of pan Indian companies and regional companies.

All such avoidable issues happen due to working of certain dept.

Welcome to unseen Sales Prevention Depts (SPD) in most companies.

Such depts often masquerade as Sales Support Dept.

Because of their masks such dept. are tough to find in organizations.

Some of Frenemies of Sales are:

- Logistics dept responsible for timely and accurate supplies become SPDs if they falter in timely supplies and supply inaccurate sales orders.

- Accounts dept too act as SPDs when they do not provide customers with timely account statements.
lack of transparency in accounting practices have ruined reputations of many companies.

HR dept delays salary processing= late salary disbursal=demotivated sales team= unhappy customers= sales preventiom.

Sales support dept processes customers' genuine claims late= unhappy customers = sales loss.

SPDs breed inefficiency in sales organization.

They cause sales loss and reputational loss for companies.

Such companies not only loose sales but they do not get moderately capable employees.

Poor quality of employees will always affect all operations of companies in negative way.

No wonder such companies see high level of employee churn and distributor churn.

Setting up processes can reduce, if not eliminate, sales loss that these SPDs cause.

#sales #Fmcg