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Battle over overs ...
June 24, 2008

Question: What is a good practice/policy to use in handling the issue of “overs” in a plant? We have a large room full of overruns that the sales people always tell the bindery to keep for samples and because the customer may need some. We have a large amount of square footage not making money.
Answer: Your issue is quite common. First, you need to clear out the room. The way to do this is to take an inventory and put a cheap price on everything, then offer the salespeople a 50% commission if they can sell it in four days. If it is still there on day five, scrap it. Likewise, for all new jobs, the bindery supervisor should do a count, sales management should put a cheap price on it and give the salesperson three days to sell t at a 50% commission. On day four, scrap the overs. Is the commission generous? Yes, but you are selling tomorrow's garbage.
Readers, please e-mail your questions to Ray.
Posted by Raymond Prince on June 24, 2008 | Comments (1)