There is also unsteady supply of tea that is less popular amongst the customers. There is also the issue of three months lead time given by one of the company’s supplier EML for a production run whereby two months are for acquiring the tea that has been selected from its sources in Asia and India and another one month for shipment of the stock to Cleveland. Jack has also been reluctant in approving marketing budgets thus unable to match the company’s …show more content…
This would greatly cut down the cost of sending and receiving invoices and more so reduce delivery time of the products to the consumers (Harland, 1996).
Cost cutting is very important for the company to make profits therefore TAM should consider supply chains that are cost effective. For instance the company should do away with bulk purchases and ordering and stick to small batches that are less costly and easy to manage.
Proper remuneration is also recommended to all sales staff this is because poor remuneration will de-motivate the team hence sales reduce and profits decrease in the long run (David, 2010).
For the company to put the recommendation in practice it ought to have in place a special body that will be mandated to oversee the ordering processes, distribution of products to consumers and monitor the operations of the sales team. This special team will also ensure that each sales staff has an accountability of his or her sales and that satisfaction of customers within his or her line of distribution is guaranteed. There is also the need for the company to study the market trends each and every time with the aim of ensuring that products are in line with the current consumer prevalence and tastes (Karren,