International School of Business
International School of Business
LIST OF CONTENTS
LIST OF TABLES
LIST OF FLOWCHARTS
EXECUTIVE SUMMARY
Company background
PART 1 – BACKGROUND
Figure 1: Company structure
1.1.5 Geographic distribution
1.1.6 Stakeholders
1.1.7 Current development and market analysis
1.1.8 Organizational performance
Figure 2: Sale and Profits of The Company and Fashion section from 2016 to 2018
Table 1: Fashion sale and profit growth rate from 2016 to 2018
Figure 3: Number of agency's complaints from 2016 to 2018
Figure 4: Portion of customer complaints in 2018
The importance of this symptom
Table 2: Transportation cost from 2016 to 2018
Table 3: Stock reconciliation at 31st December 2018
The importance of the second and third symptom
Table 5: Stock clearance and normal sale in 2017 and 2018
Figure 5: Fashion Sale, Cost of goods sold and GPM in 2016, 2017 and 2018
Initial cause-effect map
Figure 6: Initial cause-effect map
Potential problems:
Insufficient re-check from different levels
Human error in numbers and information input on the system
Inventory theft
Ineffective security control
Updated cause-effect map
Figure 7: Updated cause-effect map
Table 6: Participants of second in-depth interviews in March 2019
Manual input methods/ confused inventory codes
Unclear regulations for stock checking when deliver - receive goods
Unclear regulations of recording inventories – weak data access control
Untidy warehouse, uncategorised goods
Potential central problem (real problem):
PART 2 – PROBLEM JUSTIFICATION
Problem definition
Types of inventory
Responsibilities of entire company
Storage and warehousing
Inventory management techniques
Unsuitable storage and warehousing methods
Problem existence
Problem importance – consequences of the problems
Table 7: Inventory turnover days of fashion products
Figure 8: Amount of client’s orders during 2016-2018
Potential causes
PART 3 – CAUSE VALIDATION
3.1.1 Outdated and separated inventory control system
3.1.2 Insufficient inventory control procedures and regulations
3.1.3 Culture miss-match: No connection between relevance departments in inventory control
Causes existence
Table 8: Participants of third in-depth interviews in April 2019
Main causes of the problems
Figure 9: Final cause-effect map
Cause importance
PART 4 – SOLUTION AND IMPLEMENTATION
Alternative solutions
Solution evaluation
Option 2: Using Enterprise Resource Planning (ERP) system
Solution evaluation
Option 1: Extending current accounting system to consist of warehouse system Benefits
Costs
Option 2: Using Enterprise Resource Planning (ERP) system Benefits
Costs
Table 9: ERP’s estimated costs
Option selection:
Implementation
General approach
Table 10: ERP project schedule
SUPPORTING INFORMATION
Part 1: Introduction
Part 2: Main questions
First round of depth interview
Part 2: Main questions
Part 2: Main questions
Part 2: Main questions
Part 2: Main questions
Part 2: Main questions
Second round of depth interview
Part 2: Main questions
Third round of depth interview
7.3.1 Transcript 1: Interview guide – Warehouse keeper – Mr. Bui Van Long
7.3.2 Transcript 2: Interview guide – Fashion deputy director – Mr. Ho Ngoc Chung
7.3.3 Transcript 4: Interview guide – Chief accountant – Mrs. Nguyen Thanh Tam
7.3.4 Transcript 5: Interview guide – IT manager – Mr. Tran Nam Cuong
7.3.5 Transcript 6: Interview guide – Director – Mr. Doan Huu Thanh