The third objective of sales management is to use assets effectively, which includes two approaches: managing stock and managing debt. Stock objectives prevent businesses from taking on unprofitable small orders and help balance client service with inventory levels. Debtor objectives focus on reducing the amount owed by ensuring clients are creditworthy and promptly addressing overdue invoices. Companies recognize that even small improvements in asset use can lead to significant benefits.
Effective use of assets as an objective of selling is the third type of objective. There are
two forms that sales management can achieve: stock objectives and debtor objectives.
Stock objectives aim to guard the business from accepting or obtaining too many
small uneconomic orders that are not financially viable and to maintain a healthy
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balance between services to clients and keeping large inventories. On the other hand,
debtor objectives aim to limit the number of debts that a business has by keeping
an eye on the creditworthiness of clients and following up on problem invoices as
soon as possible. Businesses are increasingly realising the importance of the effective
use of assets, as even the smallest improvement results in significant returns for the
organisation.
paraphrase and make a shorter and simple sentence using simple vocabulary
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