At the present time I work in a financial company in charge of the purchase and sale of securities and depending on the type of client, previous study and economic analysis we grant loans of personal or commercial character.
However, there is a collateral business that allows us to obtain other income from the commercialization of high quality cleaning products. This is possible because the manufacturing company belongs to the same economic group as we do and we maintain very good commercial relations.
The approach of the business at first sight is very simple, the manufacturing company leaves us at cost the value of the product and we proceed to commercialize it to small self-markets and to the public in general. The price that we offer being wholesale sales is quite affordable, and that same price we apply to combos of products that we offer to the general public. The price of sale to the public in the supermarkets will depend on the level of profits to which each business aspires, (in Venezuela these margins are usually very exaggerated).
The volume of boxes that we receive is very small, approximately 300 boxes of 12 units each, approximately every two months, and they contain the following products: chlorine, bleach, bleaching agents, air fresheners, dishwashers, liquid detergents, powder detergents, stain removers and fabric softeners.
A Sales Manager was appointed to offer the product throughout the city of Caracas and part of the satellite city of Guarenas. During the first months of commercialization, a Chevrolet Grand Vitara van was used, which was beginning to show mechanical defects. To support the Sales Manager, two salesmen were added on a piecework basis, who were paid a percentage of the sales they made.
The first problem arises when receiving the shipments of products from the manufacturing plant, our offices are on the third floor and the elevator, which is not a freight elevator, has been out of order for 10 years due to lack of spare parts. The consequence of this is that the administrative staff has had to collaborate by taking the product up 3 very long floors, generating complaints from the employees, some of them have even suffered back pains.
Secondly, there is the problem of product storage, the boxes fit perfectly in the yard where they rest, but climatic conditions related to the heat cause the product containers to bulge, the contents to lose their color and even some product containers to crack and consequently lose their contents. For these reasons, many of these boxes have had to be moved to the administrative offices of the company, thus avoiding in some way the loss of product.
Another problem has been observed when a product is requested and it is not in stock because the inventory was not updated in a timely manner.
The work of the salesmen has been effective, so we have been able to successfully market the great variety of products, however, the lack of maintenance of the transport vehicle affected the volume of sales, since it stopped working and we do not have the adequate means to deliver the merchandise to the buyer.
The aforementioned causes the accumulation of inventories in the company and their rotation decreases because they cannot be distributed, so the company's profits also take time to arrive.
But in a way we have been lucky because we have been able to continue marketing the products through combos (12 products) and raffles that have given an excellent profit margin when the total cost of these products to raffle amount to an average of $ 28 and we get income from raffles of up to $ 400.
We have had to deliver merchandise by public transportation and even using the subway.
Clearly the problems lie in a bad logistic conception on the part of the organization, where the distribution of the stock and the delivery process were not planned. We can also observe an inadequate management of the warehouse, since the stock of merchandise is not inventoried in a timely manner and we do not take care of the loss of the merchandise.
For now, we are close to the month of December and it was decided in the short term to acquire a vehicle for the logistics of distribution, as for storage, it was decided to roof the patio where the merchandise stands and even close it and adapt air conditioners to prevent the heat from damaging the product. This yard will have adequate safety conditions, so that the products will be kept in optimal conditions for their commercialization.
There is a commitment that orders will be prepared in a more appropriate manner and the needs of some will be adequately informed in order to request the product from the plant so that there is no shortage at the time of shipment.
Arrangements are being made between the companies and the tenants of the building to repair the elevator and avoid possible damages to the workers given the physical effort they are making.
There is still a long way to go in terms of logistics, the positive thing about all this is that the company is willing to invest in material and financial resources to obtain more effectively other financial income, despite the economic and inflationary crisis in my country Venezuela.
I say goodbye to the WorkLife community, hoping that this small publication will somehow contribute something to the work that each of its members perform. Good luck to all of you, thanks for stopping by.
