Jitd
Ans3
JITD program created some conflicts both external (i.e. from the distributor perspective) and internal (i.e. from the sales perspective) which are explained below.
JITD- Internal Conflicts JITD created some internal resistance within the organization. Sales and marketing department opposed the plan of JITD. They had many fears related to implementation of JITD. There concerns can be explained in the following ways.
1 Sales representative felt that their responsibilities would be reduced if such a program was implemented.
2 They feared that the new program will decrease the sales because their relationship with distributors would be weakened.
3 Another fear was that if JITD was implemented, in case of increased promotion it will be risky for the organization to adjust the shipments quickly to change in selling pattern.
4. They concerned that most of the distributors were not ready to handle this kind of complex relationship which the new program will create.
5 They feared that if shelf space is freed up in distributor’s warehouse, the inventory of their product will decrease so that place can be filled by competitors and distributor can start selling more product of competitor. Secondly because of fewer inventories, in any emergency case, like in a strike the chances of customer stock out of their product will increase.
6 They also believed that they would not be able to run trade promotions with implementation of JITD because it would be extremely difficult for them increase trade promotion without offering some incentives to distributors.
7 There was uncertainty regarding reduction in cost even after implementation of JITD because they believed that if distributor decreases its stock , then the company will have to keep more inventory due to lack of manufacturing flexibility.
JITD –External Conflicts
There was resistance from distributors also in implementation of JITD which can be described as given below
1 Unconvinced distributor: When
JITD program created some conflicts both external (i.e. from the distributor perspective) and internal (i.e. from the sales perspective) which are explained below.
JITD- Internal Conflicts JITD created some internal resistance within the organization. Sales and marketing department opposed the plan of JITD. They had many fears related to implementation of JITD. There concerns can be explained in the following ways.
1 Sales representative felt that their responsibilities would be reduced if such a program was implemented.
2 They feared that the new program will decrease the sales because their relationship with distributors would be weakened.
3 Another fear was that if JITD was implemented, in case of increased promotion it will be risky for the organization to adjust the shipments quickly to change in selling pattern.
4. They concerned that most of the distributors were not ready to handle this kind of complex relationship which the new program will create.
5 They feared that if shelf space is freed up in distributor’s warehouse, the inventory of their product will decrease so that place can be filled by competitors and distributor can start selling more product of competitor. Secondly because of fewer inventories, in any emergency case, like in a strike the chances of customer stock out of their product will increase.
6 They also believed that they would not be able to run trade promotions with implementation of JITD because it would be extremely difficult for them increase trade promotion without offering some incentives to distributors.
7 There was uncertainty regarding reduction in cost even after implementation of JITD because they believed that if distributor decreases its stock , then the company will have to keep more inventory due to lack of manufacturing flexibility.
JITD –External Conflicts
There was resistance from distributors also in implementation of JITD which can be described as given below
1 Unconvinced distributor: When