Institute of Cost Accountants of India

Check List Containing Action Plan To Improve Efficiency of Sales and Distribution: CMA Rajesh Kapadia

To improve efficiency of Sales & Sales Optimisation is essential as the entire basis of Profit Improvement Programmes & Profit Optimisation Planning rest on efficiency of Sales & Sales Optimisation.

So, it becomes imperative for management to Optimise Sales Revenue to remain  competitive in the market.

Here, CMA Department can play a very important role by preparing,  submitting & monitoring Check List Containing Action Plan to Improve & Optimise Sales & Distribution to help management in their endeavour to Profit Improvement Programmes & Profit Optimisation Planning.

Check List is mentioned in Annexure 1

This Check List should be prepared only for key finished products . I.e.A & B Category Finished Products constituting 70 % to 75 %

of total Sales Revenue.


Conclusion :

Once the Check List as mentioned in Annexures 1 is prepared , submitted, monitored and discussed with the management , it will facilitate taking up of appropriate and suitable corrective and remedial actions by the concern departments and authorities of the company to improve efficiency of Sales & which will ultimately enable the management to meet Profit Improvement Programmes & Profit Optimisation Planning.



Check List Containing Action Plan to Improve Efficiency of Sales and Distribution

Volume of Sales below operating tolerance





























Volume of Sales below operating tolerance



















Fall in Sales due to :

1.  General Fall in Market

( Seasonal fluctuations)

2.     Economic Pressures

3.     Price Too High

4.     Unfavourable Distributor Margin

5.     Quality below competitive value

6.     Deterioration in delivery

7.     Product Obsolescence

8.     Competitor Action

1.     Check Sales with Previous Years

2.     Keep abreast of economic and business trends. Adjust production to restricted demand

3.     Check price structure and price relative to that of other manufacturers

4.     Interview with distributors to compare margins

5.     Check specification and price against competing products.

6.     Examine delivery records. Check accuracy of delivery promises.

7.     Check if improved product alternatives result in decline in use of current product.

8.     Compare conditions and terms of sale.

9.     Consider all aspects of price, quality, utility and design.

10.                        Check effectiveness of sales effort both in field and internal administration.

11.                        Consider necessity of additional training.

12.                        Consider effectiveness of existing publicity.

High Volume of Customer Complaints



Analyse and classify complaints by :

1.     Price

2.     Quality

3.     Delivery

4.     Others

1.   Check validity of complaints.

2.   Compare service with that offered by competitors

3.   Take positive action after carefully considering all facts.

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