While a decade ago sales management was known as a process that used to track stocked products and sold products only. But nowadays, the dynamism of the sales channel has changed a lot and so does its management process. In the 21st century sales management means incorporating all the factors that are directly connected to sales.
Generally, a company manages its sales channel in two steps. One is primary sales and the other is secondary sales. So, managing both sales channels manually is a complex job that is sure to make thousands of blunders in account! As a solution to this chicken and egg problem, companies are now looking for sales automation software.
Sales automation software is an important tool for businesses that are looking to increase productivity and optimize their profitability. While it may sound complicated, sales automation software can be used by companies to automate and monitor primary and secondary sales activities which includes products stock and inventory management, order management and interaction between field sales reps and different sales points. This is the phase where companies need to have high productivity in order to enhance their profitability.
What Is primary and secondary sales:
Primary sales: The sale which is made by a company to the distributor is called primary sales.it contributes to company’s revenue and profit, so companies main focus is to increase the primary sales.
Secondary sales: The sale which is made by the distributor to the retailer is called secondary sales. In this transaction distributor keeps a profit margin and sells the product at dealer price.
Challenges in managing Primary sales:
Primary sales automation takes place at the beginning of a sales process. Here products are sent from the manufacturer’s warehouse to the dealer’s inventory. Without a systematic approach, the distribution channel is hampered.
-In general, the more distribution channels a company has, the more difficult it becomes to manage the distribution process; thus, keeping track of primary sales gets more difficult.
-Little to no protocols for tracking and measuring primary sales data over a longer period of time, and so there is no way to analyze sales and rectify the weaknesses.
– No forecasting of product stock updates, which is a major issue while handling the primary sales. This happens due to no reporting system of secondary sales from the dealer’s end.
– Insufficient information about secondary sales longing for higher inventory handling time which increases financial risk for manufacturers who are unable to forecast stock levels accurately.
– Because there are no records of the movement of goods between various levels of the supply chain, inventory management becomes difficult as well.
– A lack of control in managing secondary sales results in poor management of primary sales.
Challenges in managing Secondary sales:
The challenges of managing secondary sales are significant and costly. As a company’s distribution network grows, the challenges of determining product availability across channels become exponentially more difficult with each new channel added to an organization’s supply chain.
-Lack of visibility in secondary sales, especially with retailers due to high demand and low supply during the holiday season.
– As a result it becomes difficult to keep track of inventory and product stock.
– challenges with product stocking management because the company may have to deal with a shortage due to insufficient inventory.
– increasing number of sales reps in different distribution points with manual coordination is a pain in the neck for any supply chain network
– lack of common or central database
– unorganized supply chain operations lead to revenue loss
– no market survey or market research data from field force that can directly communicate with higher authorities
– lack of visibility in trade promotional campaigns also effects secondary sales
Why is sales management important?
Sales management is something which lies in the heart of every business. A poorly established process results in most of the profits being lost. Planning sales, distribution management, and order management are all part of it and everything should be as smooth as a running clock.
Can measure the efficiency of distribution channels:
Sales managers can understand which areas will be the most profitable for sales, with which distributors and dealers are better to interact with and how efficiently the whole process is running
Sales department management
Making better plans, developing motivation systems for employees, evaluating their work and comparing results, and motivating them to become more involved in achieving the company’s goals. All these are part of sales management.
Adjustment of the sales system
The sales system works like a body which consists of many other departments. Logistics, inventory, delivery etc. etc. all are part of sales management. To function properly we need to analyze them, evaluate their results, draw up plans to improve sales efficiency, and correct mistakes.
Organization of Sales:
An effective sales management strategy depends on the availability of everything necessary. The sales department has several important things to organize: stocking enough during the holiday season, forecasting future sales for raw materials, and ensuring sales reps are present in the market.
How to get rid of those challenges?
Everyone is well aware that sales help to keep a business operational, but there are many more reasons to be concerned with how they are carried out. Sales issues can lead to complications between departments and companies, decrease productivity due to understaffing or overworking existing staff, negatively affect the morale and work ethic of employees, result in low morale among customers, and cause a decrease in sales.
Automate Your Primary And Secondary Sales With Sokrio DMS
Primary and secondary sales are both essential for a company’s survival, yet they are often unmanaged in many industries. Whenever we deal with the challenges of sales, we are expected to find solutions that ease the pain. Despite this, very little attention is paid to transforming the traditional sales management processes and implementing automation to streamline both sales and distribution channels.
A web based platform is used by the manufacturer’s end to manage primary sales, which is about balancing the movement of goods between dealer and manufacturer. Dealers use this app to send the order to manufacturers end and respective manufacturer or anyone who is responsible from the company’s end receives the order. Then goods are prepared for dispatch and receives cash/ cheque and finally delivers the product to the dealer’s end. Sokrio DMs makes the whole process visible and every cash flow is monitored through it. It also helps to manage inventory and reduce product departure time.
A company mainly depends on secondary sales. If there are no secondary sales dealers or distributors will not buy products as a company won’t be able to make primary sales. So, it will end up with no revenue.
To manage the secondary sales, Sokrio app monitors all the activities of field force and helps to integrate with primary sales. Sokrio tracks things in the following sequence:
1. The sales reps visit market or retail outlets, gives a check in and mark that outlet in the app
2. Shows product and details along with promotional discounts through the app to retailers
3. Takes order and sends it to the distributor’s end, and makes an invoice with the help of app.
4. Payment is also notified when it is done and also shows the dues that are left
The circle continues every time whenever a secondary sale is made for every other retail outlet.
Benefits of using Sokrio DMS for Sales management:
Using the Sokrio distribution management system you can track, manage and automate your primary and secondary sales management. A primary function of the software is to provide visibility to movements of goods in different sales channels and monitor each sales rep’s activities, and instant reporting on how they are performing.
The app creates a parallel connectivity between sales managers, dealers and field sales representatives, which leads companies to have a better visibility in their sales channel. In turn, this allows them to allocate resources strategically in order to improve functionality of overall sales operation by addressing the weak areas with solutions that will increase productivity.Here are some awesome benefits you get when you automate your Primary and Secondary sales with Sokrio distribution management system:
1. Inventory Control: With proper use of sales automation software, you get complete visibility into your inventory across all channels. You also gain access to real-time reports that help you make informed decisions regarding when to replenish or restock products.
2. Forecasting & Planning: Using advanced analytics capabilities, you can predict demand trends and plan accordingly. This enables you to avoid any last minute surprises and ensure smooth operations throughout the year.
3. Market monitoring: In real-time, the app sends data about a sales rep’s position when they visit the market. As a matter of fact, their presence on the market is assured.Therefore, using this software you can get daily sales reports of individual sales reps and also get daily sales activity reports. So, you have everything in control.
4. Sales control: Sokrio helps you to maintain proper sales control through regularly evaluating important indicators that contribute to sales. Implementing sales targets, rotating products between different channels, making sure that employees are following predefined route plans, and improving distribution efficiency are just some of those.
5. Visibility and Transparency: As everything is now automated, you have complete information regarding your secondary sales, as well as the stock updates at the dealer’s end and regular updates from field force. In this way, the entire sales and distribution process is transparent.
6. Central database:
This application automates the collection and systematization of data of manufacturers primary sales and distributors’ secondary sales. The data is transmitted to a single storage on a daily basis through a simplified process. Again, thousands of retail outlets data, invoices, orders all are managed by Sokrio cloud system. This brings immense flexibility and relief for the sales team.
7. Speed up sales operation: The traditional pen and paper based system had a long manual verification process. That includes adjustment and reconciliation of sales data between the manufacturer and distributors which inevitably delays the business operation which results in loss of revenue. Sokrio sales management automation eliminates those manual processes, speeds up and simplifies the process of interaction between sellers and buyers. This makes sales operation fast and easy.
The challenges in managing primary and secondary sales can be overcome by using the Sokrio Distribution management system. This collects data manufacturers and dealers end and helps to properly manage stocks and updates them in real time. It also collaborates between sales representatives and manufacturers companies to boost their secondary sales efficiency and generate the company its desired revenue. This tool takes care of your retail sales distribution channel by implementing automation in different sales stages. Therefore, it helps to manage your sales operation in every way.