Paul Saxton mentioned that “right now we give too much flexibility to our sales people, who like to get on the phone and play “dial-a-deal” (page 4). The difficulty is that the sales staff gets evaluated on the basis of product gross margins, which ignores the costs of handling, storage and transportation.” Spartan is not the first company to be faced with logistical challenges while trying to meet the demands of the sales team, nor will they be the last. The difficult part is convincing the sales team that not every sale is going to be beneficial to the company's bottom line. People often do not look at the cost of running a supply chain in from beginning to end; especially those in other departments who may not fully understand how a supply chain operates. That is why it is important for us to offer solutions that people in other departments may not be aware of.
Paul Saxton mentioned that “right now we give too much flexibility to our sales people, who like to get on the phone and play “dial-a-deal” (page 4). The difficulty is that the sales staff gets evaluated on the basis of product gross margins, which ignores the costs of handling, storage and transportation.” Spartan is not the first company to be faced with logistical challenges while trying to meet the demands of the sales team, nor will they be the last. The difficult part is convincing the sales team that not every sale is going to be beneficial to the company's bottom line. People often do not look at the cost of running a supply chain in from beginning to end; especially those in other departments who may not fully understand how a supply chain operates. That is why it is important for us to offer solutions that people in other departments may not be aware of.