Mike,
In this current economic climate, there is limited business available. Our competitors are all falling over each other in a bid for business; often even if it is strictly turning dollars. Our potential customers are seeking efficiencies in costs of operations and cash flow improvements knowing that new business is scarce. Without current business to occupy their hours, they have the time and the willingness to listen to salesmen whom they would have waved off in busier times. Use this opportunity wisely.
I would advise business owners to have their sales staff invest as much time, if not more, on gaining an in-depth understanding of their accounts needs not only now but equally important, when business does improve. Business owners are much more likely to provide details of their operations since they are desperately seeking partners who can keep them in the black. While many salesmen are clamoring for an order today, do not limit the scope of your meeting with what you can do today. You must also look further into the future and tailor proposals with a view to the prospect's longer term projects. Offer to investigate and to acquire answers for any other area of opportunity the customer is contemplating. You will be poised to be the solution not only now but in the future as well. If you are thinking ahead parallel to your account, you are you are "in the loop" from the beginning.
Standing inventory is always a problem. At the same time, competitive pressure dictates that you have material when it is needed. Additionally, both from a cash flow position and the ratios you present to the bank, you must keep inventory as slim as possible. These dueling factors run against the stereotypical habit of your salesmen who paint too rosy a picture for the quantity of their customer's purchases.
Special emphasis should be placed on sales to be more accurate in their forecasts. They must be more diligent in obtaining real numbers from their accounts. Having a nice lunch and speaking in generalities will not get the job done. When they return to the office and insist they need product; they need hard evidence beyond a hunch or the optimistic landscape painted by an account who has no reason not to tell them to have stock for him. What level of purchase commitment can your salesmen obtain from the account? Make any commitment a win-win situation.