• What is sales organisation??

A sales organization is a group of people who work together to market and sell products and services for a company. They are responsible for the sale and distribution of goods and services, and represent the selling unit as a legal entity.

Sales organisation is a structural framework, specifying the formal authority and responsibility between persons working in the organisation. It consists of group of individuals working jointly to attain qualitative and quantitative selling objectives.

In the words of H. R. Tosdal, "A sales organisation consists of human beings working together for the marketing of products manufactured by the firm or the commodities which have been purchased for resale."

• Sales organisation is a part of the total enterprise dealing with sales activities.

• It consists of a group of people engaged in selling activities.

• It works for the attainment of common objectives of selling.

• There exist formal and informal relationships between persons engaged in selling activities.

• It defines the duties, responsibilities and rights of people in the selling jobs.

• It establishes departmentalization of selling activities separately.

• It is a means to the efficient execution of the sales functions and accumulation of resources to perform those functions.

• The success of sales organisation depends on the unified and coordinated efforts of salespersons.

• The selling organisation acts under the direct control the sales manager.

• To achieve sales target

• To achieve coordination

• To maintain customer relation

• Motivation for team work

• To maximize profit

• To increase market share

• Reasonable span of control

• Stable but flexible organisation

• Proper balance and co-ordination

• Decentralisation

• Unity of command

• Informal relations

• Information flow

• Should be based on activities and not people

• Proper authority and responsibility relationship

• Defining the objectives: Sales, profitability, growth

• Determining activities

• Grouping activities into positions

• Assigning of personnel to positions

• Delegation of authority

• Provision for coordination and control

• Planning: Setting sales objectives; Formulation of sales plan; determining organisation structure; Sales forecasting; sales budgeting; selling policy

• Administrative: Recruitment & Selecting salesmen; training, Directing, Motivation, Remuneration of Salesmen.

• Executive: Sales Promotion; Sales Routine

• Formal & Informal

• Horizontal & vertical

• Centralization & Decentralization

The sales department in a business must work collaboratively with other departments to achieve success. They must build a relationship with marketing, finance, production and the supply chain to allow them to operate in an efficient and effective way.


Marketing

Marketing and sales work together very closely in a business. The role of marketing is to attract a customer to the business and develop an interest in their products. Marketing will also ensure the sales department are selling products and services that meet the wants and needs of customers.


Finance

The finance department provides a budget and an amount of money that will allow the sales department to function effectively, whilst also monitoring the sales made and the revenue achieved. Finance will also closely monitor any costs that the business has, and ensure the sales department are selling enough products for the business to achieve a profit.



Production

Production must communicate effectively with the sales department to inform them of how many products they are able to make within a certain time period. This will allow the sales department to inform customers of any delay and avoid disappointment.

Production will also have to ensure that their products are of a high quality and represent the brand effectively. This will avoid complaints and returns by customers, and make the role of the sales department much easier.


Supply chain

The supply chain must gain information from the sales team to allow them to supply the right goods and services to the correct customer. The supply chain will also want to ensure they have enough stock and that customers receive it within the time period promised by the sales team.

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The relationship between a Distribution Network and other departments within an organization is integral to the overall efficiency and effectiveness of the supply chain. Here’s how a Distribution Network interacts with various departments:

Sales and Marketing: These departments rely on distribution networks to ensure that products are available where and when customers want them. They work closely to forecast demand, plan promotions, and manage product launches.

Manufacturing: The production schedule must be aligned with the distribution network’s capabilities to ensure that goods are produced in the right quantities and at the right time to meet customer demand without excessive inventory costs.

Procurement: This department must procure raw materials and components that meet the quality and quantity requirements of manufacturing, which in turn must align with the distribution network’s needs.

Finance: The distribution network impacts cost management and profitability. Finance departments analyze the costs associated with transportation, warehousing, and inventory to optimize the financial performance of the distribution network.

Customer Service: They coordinate with the distribution network to manage order fulfillment, handle returns, and ensure customer satisfaction with delivery times and product availability.

IT: Information technology systems are used to track inventory, manage orders, and optimize routes. IT supports the distribution network by providing the necessary data and analytics for decision-making.

Human Resources: HR manages the workforce needed to operate the distribution network, including hiring, training, and compliance with labor laws and safety regulations.

Each department’s actions and strategies can significantly impact the distribution network’s performance, highlighting the importance of cross-departmental collaboration and communication to achieve the organization’s overall goals.