StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Sales and Purchase of Items - Essay Example

Cite this document
Summary
The paper "Sales and Purchase of Items" highlights that sales and purchase of items are part and parcel of daily life and efficient processing of the same is vital for good customer relationship and business growth. ‘Sales order captures demands for the firms’ product and services’…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Sales and Purchase of Items
Read Text Preview

Extract of sample "Sales and Purchase of Items"

A sales order processing system is a very important tool that facilitates not only the sales and purchase process with efficiency and accuracy but also helps to generate all the relevant information that is required by the administrative and managerial heads of the companies. The information thus generated promotes better management of the inventory as well as helps to devise strategies and plans to increase its growth and enhance its public support. Hence the data that is entered initially during the sales and purchase process is very crucial for the firm.

These processes can be broadly classified into six main areas;
1. It first creates a sales order number that is unique so that the sale or purchase can be easily identified in case of any dispute or otherwise.
2. The system then differentiates the mode of sale and categorizes it into direct sale orders or internet-based orders. This gives the management to make appropriate strategies and plans for their existing or emerging market.
3. With category and brand specified, it then checks for the stock status so that in case of any shortfall, alternative brands can be suggested or sold. This information (category and brand) also helps to market other products that may add value to the items asked for.
4. The system then checks for any special offer or discount that the item might have at that particular time. This is an important process because the current market scenario has necessitated the introduction of special schemes to attract customers to maintain their competitive edge. ‘The ultimate schedule (discount) maximizes the suppliers’ resultant economic gain but does so at absolutely no added cost to the buyer’ (Monahan, 1984).
5. If the mode of payment is other than a cash transaction, the system performs a credit check for the customer and accordingly, informs and suggests the customer for alternatives for payment schedules.
6. The system then confirms or refuses the sale/ purchase order sends the same information to the terminal and generates an invoice or sale/ purchase receipt.

The completion of a sales order is but the first of many other requisites of the input information that are essential for the management of the company. The growth and the prospects of the business depend on the input data as they can divulge vital information about the products and the customers. The sale processing data helps the management to disseminate information that can be categorized into the following output formats;

1. The input data helps to generate current inventory status so that the products that need fresh stocks can be ordered much in advance.
2. The data also helps the management to assess the order flow pattern of the products and services so that the management can take appropriate steps in meeting the demands of their customer either by increasing the shopping hours or employing more staff to deal with the rush. This helps the management to maintain a high level of customer satisfaction and general efficiency. This applies both to the days of the month and the specific hours of the day, during which there is a marked difference in the sales and purchase pattern.
3. The data also help in finding out the popular items which are sold or purchased as well as the brands that are preferred thus helping the firm to introduce items or products that add value to the ones that are already popular.
4. The management can also maintain its client base by making efforts to personalize its service and send new birthday greetings to the customers as well as new information regarding the sales and services of the products and the company.
5. The sales order system facilitates the most crucial of all reports which is the sales and profit report that shows the current financial status of the company.
6. The sales order system is also important because it helps the management to know about the preferences of the customers and forecast the sales of products and services that are popular with the public. It can then make strategies and plans so that new market spaces can be explored or created through effective advertisement and marketing strategies.

The sales order is a very important schedule in the business information system. ‘A company can outperform rivals only if it can establish a difference that it can preserve. It must deliver greater value to customers or create comparable value at a lower cost, or do both’ (Porter, 1996). The initial data gives a vital clue about the personal preferences of customers and also about the various products and services that are popular amongst the masses. The input data creates a huge scope for the business and the products which are then exploited by them. It can therefore be concluded that for a business to succeed in this competitive time, the input sales data must be highly relevant and entered with precision and accuracy. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Sales and purchase Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Sales and purchase Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/business/1513695-sales-and-purchase
(Sales and Purchase Essay Example | Topics and Well Written Essays - 1000 Words)
Sales and Purchase Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/business/1513695-sales-and-purchase.
“Sales and Purchase Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1513695-sales-and-purchase.
  • Cited: 0 times

CHECK THESE SAMPLES OF Sales and Purchase of Items

Analyzing Purchase and Consumption Patterns

Situational influences purchase of goods made during the period could broadly be divided into four categories: convenience good; shopping goods; specialty goods; and unsought goods.... The perceived need for the goods and services can be triggered by memory of the advertisement or otherwise that can contribute towards effective decision making for the purchase of the good.... purchase of iPad was bought for this reason!... Maybe, reducing the consumption of cigarettes and keeping away from the temptation of going to sales and goods exhibitions would compensate the luxury buy!...
5 Pages (1250 words) Lab Report

Consumer Remedies for Poor Quality Goods

When the goods are fairly returned, the retailer is required to refund all the money that had been paid for the purchase of the goods.... One of the major statutory rights of a consumer is that the items purchased are expected to be of reasonably good quality.... Damages Consumer Remedies for Poor Quality Goods Introduction One of the major statutory rights of a consumer is that the items purchased are expected to be of reasonably good quality....
4 Pages (1000 words) Essay

Consumer Behavior Assignment

For high value items like a DVD player or a car or other low frequency purchased products this is the process we would take.... nce the consumer decide about the need of purchasing he will definitely go for information regarding the product he wanted to purchase.... “Sources of information could be family, friends, neighbours who may have the product you have in mind, and alternatively you may ask the sales people, or dealers, or read specialist magazines like What DVD to help with their purchase decision....
5 Pages (1250 words) Assignment

The Phenomenal Growth in the Internet User Database

ales and purchase of items are part and parcel of daily life and efficient processing of the same is vital for good customer relationship and business growth.... The e-business activities, especially in the area of sales and purchase greatly facilitate the creation of unique database of customers that need to be exploited to create niche position in the market.... ne of the most important features of the e-sales and purchase process system is the database of customers whose personal information is used to create appropriate market strategies to increase the clientele....
10 Pages (2500 words) Essay

What Is the Difference between a Smart and a Mediocre Seller

Indeed, Sales and Purchase of Items are part and parcel of daily life.... Efficient processing of the Sales and Purchase of Items is vital for good customer relationship and business growth.... sales primarily involve trading of goods and services for monetary benefits.... 'sales order captures demands for the firms' product and services' (Scott, 2004).... hese philosophies are highly relevant to the desired sales result....
1 Pages (250 words) Coursework

Legal Rights of Customer in terms of Refunds / Compensation

This essay focuses on the UK law protected customer's rights.... For example, If goods taken from dealers are not in line with the desirable quality, mismatch with the description, the seller is bound to get the things streamlined.... The responsibility cannot be shifted to the manufacturer.... ....
7 Pages (1750 words) Essay

Men vs. Womens Shopping Habits

The aim of this paper "Men vs.... Womens Shopping Habits" is to demonstrate that measurable and quantifiable differences exist in online shopping behavior between males and females and that many of these discrepancies are not due to gender socialization but to other factors.... .... ... ... This research will begin with the statement that there is not much argument about how much women like to shop....
25 Pages (6250 words) Research Paper

Data Mining Demographic Information and Transaction Data of a Large Retail Company

The data is gathered had the following fields; age, number of children, household income, marital status, average price of items, and amount of money to buy items, and total cost of items.... The individual items have data such as cost, tax charged, number of items and price paid for the item.... For example, where ‘soda' intersects with ‘detergent' shows value ‘3' which means that the set of items at the basket may contain 2 sodas and 1 detergent....
8 Pages (2000 words) Research Proposal
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us