ROI
ROI = Returns
/ net investment
Returns =
earnings – expenses
Earnings =
gross margin of distributor or company
Expenses =
direct + indirect expenses
Direct expenses
= exclusively company concerned expenses
Indirect
expenses = expenses those are shared in case of distributor handles
distribution of many companies i.e. more than 1 company
Net
investment = Average closing stock + average market credit + average claims
outstanding
Calculations
of opening and closing stock of a distributor
WEEK
|
WEEKLY OPENING STOCK
|
PRIMARY RECEIVED STOCK
|
SECONDARY SOLD STOCK
|
WEEKLY CLOSING STOCK
|
1
|
100000
|
80000
|
100000
|
80000
|
2
|
80000
|
100000
|
80000
|
100000
|
3
|
100000
|
50000
|
80000
|
70000
|
4
|
70000
|
150000
|
140000
|
80000
|
AVERAGE CLOSING
STOCK = 80000+100000+70000+80000 / 4 = 82500
AVERAGE
CLOSING STOCK = Rupees 82500
Distributor Monitoring:
The
distributors are monitored by the ABM / ASM with the help of Area Executive or
Assistant Manager.
Retailers and wholesalers are monitored on by the Assistant Manager / Area Executives with the help of team.
Retailers and wholesalers are monitored on by the Assistant Manager / Area Executives with the help of team.
The
parameters on the basis of which the distributors are monitored are the
following:
(a) Availability
of the products in market
(b) Maintenance
of the existing stock level at distributor point
(c)
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