Template:Overproduction: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) |
||
| Line 4: | Line 4: | ||
Don't make things ''before'' they are needed, or if they ''aren’t'' needed. Seems obvious, right? In the contract [[negotiation]] world, “manufacture” is [[sales]]-led and the negotiation process with direct client — you can’t negotiate without one, so there is buyer for every product, right? — so {{wasteprov|overproduction}} seems irrelevant. But is it? | Don't make things ''before'' they are needed, or if they ''aren’t'' needed. Seems obvious, right? In the contract [[negotiation]] world, “manufacture” is [[sales]]-led and the negotiation process with direct client — you can’t negotiate without one, so there is buyer for every product, right? — so {{wasteprov|overproduction}} seems irrelevant. But is it? | ||
*Many {{tag|contract}}s get negotiated, but never executed: the client may not be serious, it may change its mind, or it may not accept your fundamental terms. Some times this is foreseeable, but it should be [[Sales]]’ job to identify and weed out clients who are highly likely never to executed a contract. Finding out you have a deal-breaker after a nine-month negotiation is a ''huge'' waste of time and resources. | *Many {{tag|contract}}s get negotiated, but never executed: the client may not be serious, it may change its mind, or it may not accept your fundamental terms. Some times this is foreseeable, but it should be [[Sales]]’ job to identify and weed out clients who are highly likely never to executed a contract. Finding out you have a deal-breaker after a nine-month negotiation is a ''huge'' waste of time and resources. | ||
*Even where the contract is executed, the revenue that accrues is not a function of executing the contract, but ''trading'' under it. A {{tag|contract}} that is concluded but rarely or never traded under is an example of | *Even where the contract is executed, the revenue that accrues is not a function of executing the contract, but ''trading'' under it. A {{tag|contract}} that is concluded but rarely or never traded under is an example of {{wasteprov|overproduction}}. Again, Sales should be responsible for identifying good quality potential revenue, and should be [[incentive|incentivised]]<ref>This means penalised for costs the same way Sales is rewarded for revenues.</ref> not to introduce poor prospects into the funnel. | ||
'''Summary''': {{wasteprov|Overproduction}} is generally a [[sales]] problem. It is not easy to fix as it involves predicting the future, but the costs can at least be allocated to sales (in the same way that revenue is!) | '''Summary''': {{wasteprov|Overproduction}} is generally a [[sales]] problem. It is not easy to fix as it involves predicting the future, but the costs can at least be allocated to sales (in the same way that revenue is!) <br> | ||
Revision as of 17:19, 31 May 2019
Overproduction
Headline: Don’t make what you don’t need.
Don't make things before they are needed, or if they aren’t needed. Seems obvious, right? In the contract negotiation world, “manufacture” is sales-led and the negotiation process with direct client — you can’t negotiate without one, so there is buyer for every product, right? — so overproduction seems irrelevant. But is it?
- Many contracts get negotiated, but never executed: the client may not be serious, it may change its mind, or it may not accept your fundamental terms. Some times this is foreseeable, but it should be Sales’ job to identify and weed out clients who are highly likely never to executed a contract. Finding out you have a deal-breaker after a nine-month negotiation is a huge waste of time and resources.
- Even where the contract is executed, the revenue that accrues is not a function of executing the contract, but trading under it. A contract that is concluded but rarely or never traded under is an example of overproduction. Again, Sales should be responsible for identifying good quality potential revenue, and should be incentivised[1] not to introduce poor prospects into the funnel.
Summary: Overproduction is generally a sales problem. It is not easy to fix as it involves predicting the future, but the costs can at least be allocated to sales (in the same way that revenue is!)
- ↑ This means penalised for costs the same way Sales is rewarded for revenues.