Inventory - Direct-Selling Industry Eemsb

2.

The new competition for direct selling may very well be e-commerce from online retailers. The expansion of e-commerce has changed the selling landscape. Market share is shifting from traditional forms of commerce such as retail stores to more online forms that challenge everyone engaged in the marketing of a product or service. E-commerce allows anyone to have much of the look and feel of a direct-to-consumer relationship. Those utilizing e-commerce as their exclusive channels of distribution are setting a new customer service standard and becoming the new benchmark.  This new form of personalized service as a wake-up call for direct selling, and a tremendous new opportunity as the new tools are embraced and implemented in creative ways.

Sponsor public events. If EEMSB host or contribute to a charity event, it can prominently display the name of company or product to consumers with disposable income. In addition to the benefit of having name or logo of the company in front of these potential customers, the company and products may be seen in a favorable light for contributing to charity.

3.

The direct-selling industry EEMSB also faces tough challenges, as the weakened ringgit had raised the cost of the raw materials used in the production of healthcare products. It leads to eroding in company’s profit margins. EEMSB have to pay more to import the raw materials used in manufacturing healthcare products. To maintain the software and hardware for GST documentation, small and medium-sized direct selling companies have to fork out a sum of money to bear the cost incurred, which eroded the margins. Moreover, EEMSB also not able to rise the selling price of products to maintain competitive advantage.

Risk committee of EEMSB should implement a risk-mitigation plan. Risk management strategies should focus on three key areas:

1. financial hedges to help avoid significant unexpected price increases;
2. operational hedges, such as design changes
3. end-product pricing changes, and inventory management,

 to control how raw materials are purchased and price increase controls that rely on a team with strong analytical and negotiation skills to protect against increases and reduce costs when raw materials pricing decreases.

4.

Inactive outlets or distributor in the direct selling. This is because of the EEMSB did not provide the training program mean that lack of training. The industry requests the downline or distributor to watch video as training. The company did not provide discuss their products and educate their downline. Therefore, the outlet or distributor became inactive. Besides that, the customers only enjoy the discount and not bothered to sell or market the products to their social.

EEMSB should improve effectiveness of training program. It should identify the skills that employees need to perform their jobs, identify gaps between where they are and what they need, and focus training on resolving the gaps. In skills training, need to be used by learners immediately upon returning to their work environments. For example, the EEMSB provide the skill training to their distribution, so that they know how to communicate with social with the effective selling skill.