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HSS (Company has (Monthly Sales Plan & aligned production plan (If…

- - - - Impossible to supply
        distributor or regional warehouse
      - resulting in lost sales
      - product not available when customer wants
  - - - 2.3.1 Increasing inventory
        (Of distributor)
      - 2.3.2 capitol is blocked
        
        3.1 Providing credit to market decreases
        
        3.2 Distributor restrict his supplies
        to regular payment retailer
        
        3.3 Customer is moving to another brand
        
        3.4 competition is getting traction in market
        
        3.5 company loose the market share
        
        Distributor is getting blaimed
        
        Distributor will collapse
        
        sales will consider distributor as incapable
        
        They will appoint a new distirbutor
        
        Not the company policy
      - 2.3.3 capitol for next month purchase is reduced
        
        2.3.3.1 Less sales
        
        2.3.3.2 Loss to company
  - - - change is promo or product is not possible
      - Either company compensate at discount
      - Distributor takes the hit with obsolete or dead stock
        
        Capital reduces
        
        lesser buying
        
        Lost Sales
- - - - 1.3.1 Distributer must have cash to pay
      - 1.3.2 Companies have credit period
      - 1.3.3 Money is always blocked for distributor
  - - - 2.1.1 Production to be planned accordingly
      - 2.1.2 Dispatch to be planned accordingly
- - - - Hockey Stick
      - Normal Industry Practice
    - - Damage
        
        High level of stock
      - Accepted Practice
        
        Operation, Distribution, Sales