1. WHAT DOES CONTROLLING IN CHANNEL OPERATIONS ENTAIL? Utilize ROI as a tool to monitor performance Manage customer relationships

2. Understanding Profitability Income - Expenses Return On Investment = ----------------------------- Investment

3. Income Income from Sales = A + Income from Spares &service = B + Income from sales of scrap = C + Income from accident repair = D + Income from spares incentive = E + Income from free service coupons = G + Income from other sources = H TOTAL INCOME = A+B+C+D+E+F+G+H

4. Expense Manpower Infra Repair and Maintenance Establishment Administration Sales Promotions

5. Investment Security Deposit Average paid up stock (including spares) Average damaged stock Depreciated value of assets Gen Set Furniture and Fixtures Computers Tools and Equipment Others

6. Understanding Profitability Income - Expenses Return On Investment = ------------------------------- Investment Increase ROI by Increasing Income Reducing Expenses Increasing Income faster than Expenses Reducing Investment Increasing Income faster than increase in investment

7. Increasing Income Sales Income Accessories Income Value Added services Service Income

8. Reducing Expenses Identify expenses which are unproductive Identify waste and rework time Benchmark and track productivity Per manpower Per day

9. Increase Income faster than Expenses Identify expenses which will generate more revenue than the expenses These will be on Manpower training and development Manpower motivation and retention Customer Retention and satisfaction Customer Acquisitions Process streamlining and Removing bottlenecks

10. Reducing Investments Manage inventory better Manage receivables better However any drastic reduction in inventory/ receivables may also negatively impact business and reduce ability to handle sudden increase in service load

11. Increase Investments Infrastructure up gradation Sales Promotion to generate leads Value added services Productivity enhancement tools. Identify capacity bottlenecks and invest in removing them

12. Control and Review Targets and Achievement Planning Sales Funnel Sales Promotions Adherence to SOP’s Customer Complaints Stocks and Reorder