Revenue Maximization is a major component of Sustainable Profit Growth Framework (SPGF). Generating Sales is primary responsibility of Sales & Marketing Heads , however Finance Heads , as a part of Corporate Management has also to play an important part in this. Finance function arranges funds from Banks and Institutions on basis of some Revenue Projections. Hence Finance Head is an important stakeholder in ensuring that Revenue is Maximized.
Revenue Maximization involves following steps :
Realistic Sales Plans : It is observed that Sales Plans are made with optimistic mindset. This is the reason that most of the times Sales Targets are not met. Finance Head should ensure from an independent view that Sales Plans are based on ground realities.
Alignment with Production and Supply Chain : Finance Head as a key part of Annual Budget Team has to see that Sales Plan is properly aligned with Production , Manpower and Material availability.
Funds Availability : Finance has to ensure that sufficient funds are available for Long Term and Short Term Capital .
Control over Discounts, Credits and Price Cuts : Finance Head has to ensure that there is adequate due diligence given to discount and price cuts policy advocated by marketing department.
Achievement of Targets : Finance function has to keep watch on Achievement of Revenue Targets set for Month and Quarter. Any shortfall on targets has to be escalated by Finance to Top Management.
Developing dynamic Sales & Marketing MIS Framework
Developing Strategic Sales & Marketing MIS
Sales & Marketing is a critical function essential to achieve objectives of organization An effective Sales & Marketing function is vital to success of an organization.
MIS is system to ensure that goals to business are achieved in acceptable quality and cost norms. Strategic MIS ensures that activities of business are aligned to core Strategy of organization. SMIS helps in identifying the bottlenecks of business which prevent achievement of goals. It also helps to judge effectiveness of Strategy adopted and to make changes if required.
Developing a Strategic Information System involves following steps :
a) Goal Setting : Goals Of Organization at Macro & Micro Level.
b) Bottleneck Identification : Identifying bottlenecks which prevent achievement of goals.
c) Identifying Information required to help achieve goals and solve bottlenecks.
d) Identifying Inputs required to compile this information
e) Designing Formats to collect these information
f) Assigning responsibility to collect and compile this information
g) Analyzing the information received and applying to decision making.
h) Evaluation and Audit of Information System.
SMIS for Sales & Marketing Function :
Strategic MIS for Sales & Marketing function primarily measures synergy between Marketing and Core Strategic Objectives of organization. Marketing MIS starts from Demand Projection and extends to Marketing function performance from different parameters such as Sales Target Achievement, Sales Profitability, Sales Promotion Efficiency, Receivables Management etc. Key Sales & Marketing MIS reports which should be generated in every organization are indicated below :
A. Strategic Marketing MIS
Macro Environment Analysis – Marketing MIS
Competition Intelligence MIS
Market Needs Analysis
Sales & Marketing Objectives MIS
Product Life Cycle MIS
Market Segmentation MIS
Brand Management MIS
Market Size Report
B. Customer Relationship MIS
Customer Orientation MIS
Customer Grievances MIS – Detailed
Customer Grievances MIS – Summary
Customer Grievance Frequency Report
C. Sales Price MIS
Product Pricing Report
Sales Price Revisions MIS
Sales Price Verifications MIS
Price Verification Frequency
Price Composition Trend Analysis
Price Discount Efficiency MIS
Foreign Exchange Fluctuation Impact MIS
D.Market Communication MIS
Call Centre Effectiveness MIS
Public Relations Effectiveness MIS
Advertising Marketing Efficiency MIS
Mobile SMS Marketing Efficiency MIS
Email Marketing Efficiency MIS
E. Sales Revenue MIS
Revenue Maximization MIS
Sales Analysis Report :
New Market Sales MIS
New Product Sales MIS
Channel Sales / Performance Report
Tender Sales MIS
Sales Loss Analysis MIS
Product Despatch Loss Analysis
Pending Disputed Sales Report
Sales Return Notes Not Prepared MIS
F. Sales Order MIS
Sales Order Report
Pending Sales Order MIS
New Sales Order MIS
Orders Cancelled MIS
Customer Order Rejections MIS
G. Sales Expenses MIS
Selling & Distribution Overheads MIS
Sales Expenses Reduction MIS
Freight Cost Analysis
Demurrage Cost
Brokerage / Discount Control MIS
H. Sales Process MIS
Sales Order Issue Time MIS
Sales Order to Despatch MIS
Time Taken from Despatch to Payment Report
Emergency Sales MIS
Sales Authorization MIS
Sales Function Automation MIS
Sales Records Management MIS
Sales Process Time & Cost Standards MIS
Debtors Management
Customer Credit Worthiness MIS
Receivable Analysis MIS
Legal Debtors MIS
Customer Advances Analysis MIS
Customer Balance Confirmation MIS
J. Sales Team MIS
Sales Team Productivity Report
Sales Team Performance Report
Sales Team Performance MIS – KRA Analysis
Sales Team Performance MIS – Summary
Sales Team Development Report
Sales Team Deficiency Report
K. After Sales Service MIS
After Sales Service Efficiency MIS
After Sales Service Profitability MIS
Warranty MIS – Replacements
Warrant Management MIS – Product Wise
Warranty Management MIS – Invoice Wise
Service Material Return MIS
L. Miscellaneous S&M MIS
Goods Lost MIS
Stocks Not booked MIS
Slow & Non Moving Stock Analysis
Sales Employee Imperest MIS
Earnest Money / Security Deposit Report
Deposit Float Report
Deposit Float Report – Region Wise
Post Dated Cheque Register
Deduction Made From Invoice by Customer MIS
Debit / Credit Note Control MIS
Balance Sheet Analysis for Sales & Marketing
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