Asked by Richy Amato on Jun 04, 2024
Verified
Improperly structured sales force incentives are a significant obstacle to coordination in the supply chain.
Sales Force Incentives
Rewards or compensation given to sales personnel to motivate them to achieve sales targets, including bonuses, commissions, and non-monetary benefits.
Supply Chain
The network of all entities involved in producing and delivering a product or service to the consumer, including suppliers, manufacturers, and retailers.
- Understand the significance of evaluating performance and structuring incentives for the alignment of supply chain activities.
Verified Answer
SB
Shelby BrysonJun 10, 2024
Final Answer :
True
Explanation :
Improper incentives for the sales force can lead to a myopic focus on short-term goals such as individual sales targets, which can negatively affect the overall performance of the supply chain. Properly structured incentives, on the other hand, can align the goals of the sales force with those of the larger supply chain network, leading to better coordination and overall performance.
Learning Objectives
- Understand the significance of evaluating performance and structuring incentives for the alignment of supply chain activities.
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