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.

Question

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Answer 1

The third goal of sales management is to use resources well, which involves two main areas: managing stock and managing debt. Stock management helps businesses avoid unprofitable small orders and balance customer service with inventory levels. Debt management aims to reduce outstanding payments by checking that clients are creditworthy and quickly handling overdue invoices. Companies know that even small improvements in using these resources can lead to big benefits.