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Chapter 3

                                                      Sales
             52                                      order
                                                                           Warehouse
                                             Sales                              Pick,
                                   Price                                      pack, and
                                   quote                                        ship


                                                    Fitter Snacker’s
                                                       sales process




                                  Receiving
                                                                               Invoice
                                     Returns
                                                               Accounting

                                                             Payment





                           Source Line: Course Technology/Cengage Learning.

                           FIGURE 3-1  The sales process at Fitter Snacker

                           Sales Quotations and Orders
                           Giving a customer a price quotation and then taking the customer’s order should be
                           a straightforward process, but at Fitter it is not. For a new customer, the sales process
                           begins with a sales call, which might be over the telephone or in person. At the end of the
                           sales call, the salesperson prepares a handwritten quotation on a form that generates two
                           copies. The original quotation goes to the customer, and the middle copy is first faxed and
                           then mailed to the sales office; the salesperson keeps the bottom copy for his or her
                           records. On the quotation form is a toll-free number that the customer can call to place an
                           order.
                               A number of problems can occur with this process, including the following:

                                  •   The salesperson might make an error in the sales quotation. For example,
                                      a salesperson in the Direct Sales Division might offer both a quantity
                                      discount and a discretionary discount. If the salesperson is not careful, the
                                      two discounts combined might be so deep that the company makes little or
                                      no profit on the order.
                                  •   Salespeople fax a copy of their sales quotations to the sales office, but
                                      sometimes a customer calls to place an order before the fax is transmitted.



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