Is there any opportunity to take advantage of the scanners? Should Keith dismiss this option so quickly?
There is an opportunity for Keith to take advantage of the scanners. Scanners are useful in any business since they can be efficient and reliable as they do not require a phone in order to work like in the case of faxes. There are numerous advantages that come with the use of scanners, for example, environmental benefits. Scanners are environmental friendly when compared to other forms of technology in use in the office environment. They create digital copies of work files, sales documents and even photos on the computer which can be emailed to other people and stored for future use. Scanners lessen the amount of paper used in conducting sales business thereby being environmentally friendly.
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However, Keith should dismiss this option of using scanners since they are most important for his outside sales but not the inside sales. The outside sales were now comprised of smaller distributors with smaller customers therefore not taking as many orders as the inside sales. In addition to this, Keith's inside sales were taking orders through other media like phone, fax, and e-mail. Looking closely at the percentage contribution of sales of each media; the phone accounted for 40 percent of sales and the fax 50 percent implying a higher success rate for these three kinds of media, thus no need to continue with the use of scanners. Lastly, abandoning the use of scanners for use of other media is the best way forward for Keith due to the availability of new software that could be applied to capture faxes in an electronic format which would be an ideal investment for the business.
Is the report for the inside sales force to check pricing, inventory and credit status a good investment? Should he buy the fax software? Does the fax software decision affect the inside sales force report decision? If so, how?
Yes. The report for the inside sales force to check pricing, inventory and credit status is a good investment since a majority of his inside sales that were coming in required someone to key in the orders. The three media namely phone, fax, and email could not be effective on their own and therefore the need to employ an inside sales force to check pricing and customer credit standing which is vital to increasing the overall sales. The inside sales persons could in addition offer inventory management services which make it possible to track orders, inventory and supply information and just with a tracking number, information on where a product is on the system can be found (Madu & Kuei, 2005). Investing in a sales force is also a good idea as they could draft a report to improve the selection of suppliers basing on their buyers’ criteria.
Keith should also buy the fax software as he is already aware of the fact that fax contributes to 50 percent of his company's inside sales. The new software would increase the efficiency of the fax machine as it could be used to capture faxes electronically which is Keith's utmost priority. The new fax software would ensure rapid document transfer which is cost effective and saves precious time. Moreover, the fax software would ensure there is proof of sending because a receipt would be issued to the sender after the document moves through the fax process.
The fax software decision affects the inside sales force report decision since the process (taking of sales orders) which was initially cumbersome will have been made easier by the acquisition of the fax software. This would positively affect the inside sales force report decision by making their report better and even more effective in the electronic storage.
Discuss the cost/benefit relationship of the contact management software. Draw up a plan for the implementation that will keep Keith on track on achieving his contact management benefits.
The cost benefit analysis is a mechanism of analyzing the strength and weaknesses of the available options (Tregarthen & Rittenberg, 2000). Keith would require a plan to keep him on track on achieving his contact management benefits. The plan would first and foremost determine operational costs. This entails choosing technology that is much cheaper and cost effective instead of an extravagant one which might increase operational costs. The second step of the plan is to calculate the benefits. In calculating the benefits, things such as tax rates and other factors help to provide an estimate of the business’ benefits. Knowing the value of the assets will be of importance in gauging the achievements of the business. The third step of the plan entails comparing of alternatives. In this step, opportunity cost comes in handy. The next best alternative is chosen over one which is less profitable (Mishan, 1994). Reporting a plan of action is the fourth and last step in drawing up of a plan to achieve management benefits. A report helps to finalize all the details and suggest recommendations. Recommendations can be made for areas which are not well performing or technology which proves ineffective. For instance, the report developed by this plan would suggest whether Keith should continue using scanners or not, and if not, make a proposal of what to be used. If all these steps are included in the plan, then Keith would achieve his contact management benefits.
References
Madu, C.N., Kuei, C. (2005). ERP and Supply Chain Management . Fairfield: Chi Publishers Inc
Mishan, E. (1994). Cost-benefit analysis . London: Routledge.
Tregarthen, T., & Rittenberg, L. (2000). Economics . New York: Worth Publishers.
