New Product Proposal

Proposal

Date: March 12, 2007

To: Charles Anderson, Vice President

From: Sales Manager

Subject: Proposal to Establish Company Website and Synchronize Inventory Database

Recommendation

To enhance the operation and sales productivity, I suggest establishing a business to business structure website which allows our clients to research and purchase our merchandise online unlike the traditional way of faxing-in purchase order method. I also recommend uploading our merchandise catalog including specification to the new website and synchronize our online database with our inventory database, which will significantly lower the workload of our operation department and also save us approximately $4,000 per month.

Problem

With our current order processing department, we have a hard time keeping up with order processing and responding time to our clients. Order processing is inefficient and human errors appear way too frequent. We have six onsite order processor who process client’s order after receiving orders by fax, then they have to go to the warehouse to check the availability of the merchandise. After returned back from the warehouse, they have to input the order, fax order confirmation back to the clients, the client then have to double check the order then sign the order confirmation and fax it back to our order processing department, then finally after receiving order confirmation, operation department prepare a packing list and send it to our warehouse. Unfortunately this problem has already cost us several clients who has strong purchasing ability and quarter million dollar contract deals, not to mention those new clients and prospects that we might lose which will cost us great opportunities to grow as a company.

Solution

I recommend establishing a business to business company website that allows our clients to do their purchase, research and account management online. The website database it self will synchronize with our warehouse database which allows our clients to do stock check and make purchase anywhere, anytime even without fax machine next to them. The website will significantly reduce the work load of