Manufacturers, distributors, wholesalers and retailers at times encounter declining sales or sluggish inventory due to changing consumer tastes, trends, needs and habits. These changes can often lead to excess inventory that can be detected when the ratio of inventory to working capital is out of line or inventory turnover to sales is low. If discovered early, corrective measures can be taken before cash flow is strained.
By incorporating the mechanics of analyzing past and present sales data and methods to determine what customers, consumers or sales outlets desire, an effective plan will reveal comparative values of competitive sources and activities. This can be effectuated through a Product Sales & Distribution Optimization strategy which:
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