Control Discounts, Expenditure & Inventory Carrying Cost using INFOMAN eDMS
Cost of sales is a crucial Financial metric that needs constant monitoring by the top management. The key to keeping the Sales cost under control is to maximize the efficiency of the sales effort.
INFOMAN eDMS offers 7 smart processes to reduce cost of Sales :-
- Define Discount Approval Limits : Helps to Control additional discounts given to customers without authorization and fixes accountability for exceptional cases. Analyse impact of discount (and overall margin on the deal) before an order is accepted.
- Fix Minimum Value Of Allotment : INFOMAN eDMS enforces collection of a minimum Booking Amount from customer without which the allotment is not allowed, thus avoiding unnecessary blockage of Vehicle for prospects, who may eventually not buy.
- Creation of Confirmed Bookings only on receipt of margin amount – Availability of genuine confirmed Bookings help in accurate forecasting of vehicle indents and correct picture of Pending bookings is known. This reduces cost of sales by controlling excess vehicles being indented.
- Reduce Inventory Carrying Cost – Using “Auto revoke Allotment” an allotted vehicle can be revoked automatically within a Pre-defined period, if the chassis is not invoiced in that time. The same Chassis is then available for allotment ( & Billing ) to other customers. This not only “Reduces Inventory carrying cost” but also results in better rotation of capital.
- Tighter checks to avoid GST Liability – INFOMAN eDMS ensures no INVOICE is pending for delivery for more than 7 days. Such cases are highlighted to top management for ensuring corrective action.
- Defined checks for Customer refund in Sales : Validations are performed by system before customer refund is processed, this ensures that genuine refunds are processed and paid to customer after due approval from top management.
- Mandatory Stock Transfer approval to reduce cost of unnecessary movement of Vehicles within different outlets : Transfer of vehicles is done only once it is approved by a Showroom Manager or Delivery Incharge to ensure no vehicle is moved un-necessarily from one location to another. This reduces cost of transport and protects vehicles from damage during movement.
Smarter management of Sales process in a Dealership helps it cut cost of Sale thus leading to improved margins. As it is done using technology, it does not require any additional personnel costs.
Do Get in touch with our consultants who will share Best Practices followed by successful dealerships to reduce cost and put efficient sales processes in place.
Mr Sanjay Koul
Manager Business Development,