Manager & Marketing
Manufacturing Manager & Marketing Manager of Fitter Snacker The objective of this memo is to identify the shortcomings of the current state of the selling process being followed in the Fitter Snacker and to suggest improvements. Current state of affairs Fitter Snacker has two sales division viz. direct sales and wholesale division. These divisions are for target sales to large stores and small stores respectively.
It was observed that there have been many problems with the sales process of Fitter Snacker. Major issues identified were – Incorrect pricing, delays in processing the orders, excessive calls to the customers, missed deliveries etc. Root cause of these issues was identified as the lack of coordination between Sales, Production and Finance department. Drilling further, it has been realised that the lack of coordination had been due to the architecture of the IT systems of the Fitter Snacker.
The sales order system, warehouse system and the accounting systems do not talk to each other on a real time basis, resulting in delays in information exchange and subsequent confusions. Need of the hour To keep pace with the growth of Fitter Snacker, it is important to realise the need of Integration Management by employing the benefits of
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Integration Management Precedence at Kellogg Kellogg Company implemented the Integrated Business Planning (IBP), which primarily resulted in everyone focusing on how to make profits rather than how to improve department’s metrics. As, increasing departments metrics, e. g. Amount of good produced for Production department, Number of items sold for Sales departments does not result in profits. A coordinated approach is required to increase the profits of the company.
Thus, IBP implementation in Kellogg made it realise huge savings, increased efficiencies from coordinated sales and making the operations planning process better & effective. Kellogg could cut down on the time to market (TTM) its product from production to Customer, reduce stock outs for the retailers, could lower the freight and warehouse cost and significantly increased the cash flow. On financial terms, these improvements resulted in increased revenues, market share, profits and shareholder value.