(Luận văn) inefficient sales plan at amann vietnam co , ltd

UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to International School of Business ng hi ep w n lo ad ju y th yi pl n ua al Vo Thi My n va ll fu m oi INEFFICIENT SALES PLAN AT AMANN VIETNAM CO., LTD at nh z z ht vb jm k MASTER OF BUSINESS ADMINISTRATION om l.c gm n a Lu SUPERVISOR: DR NGUYEN PHONG NGUYEN n va y te re Ho Chi Minh City – Year 2019 TABLE OF CONTENTS Executive Summary t to ng PART 1: COMPANY BACKGROUND hi Company introduction ep 1.1 Overview about Amann Group and Amann Vietnam Co., Ltd w 1.1.1 Overview about Amann Group n lo 1.1.2 Overview about Amann Vietnam Co., Ltd ad 1.2 Industry overview y th ju Symptoms yi 2.1 Negative profit pl al 2.2 Decrease in gross profit margin n ua 2.3 Increase in COGS 14 n va The initial cause-effect map 14 ll fu Updated cause-effect map 20 oi m 4.1 Expanding local business by import goods 20 nh 4.2 Recruitment process is not good 21 at 4.3 Ineffective system management 21 z 4.4 Inefficient sales plan 23 z vb A discussion to eliminate some potential central problems and focus on a ht jm central problem of interest 26 k 5.1 A discussion to eliminate some potential central problems 26 gm l.c 5.1.1 Expanding local business by import goods 26 om 5.1.2 Recruitment process is not good 26 a Lu 5.1.3 Ineffective system management 28 n 5.2 A discussion to focus on a central problem 28 n va PART – PROBLEM JUSTIFICATION 30 1.2 Measurement to measure the degree of the problem in the organization 31 Problem existence 32 y 1.1 Definition of “inefficient sales plan” 30 te re Problem definition 30 Problem importance 33 PART - CAUSES VALIDATION AND SOLUTIONS 34 List of real causes 34 t to ng 1.1 The initial list of causes of the central problem using the literature 34 hi 1.2 List of the new caused obtained from the company (via interviews) 34 ep 1.3 A full list of real causes of the central problem 34 w 1.4 The relative importance of the real causes 35 n lo 1.4.1 Lack of market orientation 35 ad y th 1.4.2 Lack of middle thread sizes 36 ju 1.4.3 Applying price centralized decision-making structure 37 yi 1.4.4 No factory in Vietnam 38 pl ua al The set of solutions 38 n Action plans 45 n va References 48 ll fu Appendices 52 oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re List of Tables Table 1: Export Turnover of Vietnam by Commodity Group in 2016 t to Table 2: Gross profit margin of AVN in 2017 and 2018 ng Table 3: Gross profit margin of AVN by month 2018 11 hi ep Table 4: Gross profit margin of AVN by product type in 2018 12 Table 5: Gross profit margin of AVN by customer in 2018 13 w Table 6: Amann available thread sizes 17 n lo Table 7: Overtime payment for employee in 2018 22 ad y th Table 8: Average selling price of AVN from 2016 to 2018 25 ju Table 9: GKA forecast of AVN from 2020 to 2024 30 yi Table 10: Competitor list of Amann Vietnam 32 pl ua al Table 11: Estimated costs for organizing meetings among top managers and junior n managers 42 n va Table 12: Estimated costs for proposal of price decentralized decision making ll fu structure 44 oi m nh List of Figures at Figure 1: Sales turnover of AVN from 2015 - 2018 z z Figure 2: 5-year sales plan 2018-2022 of Amann Vietnam vb ht Figure 3: Vietnam export structure of goods in 2016 jm Figure 4: Segmentation and value proposition k gm Figure 5: Income statement of AVN in financial year 2018 l.c Figure 6: Gross profit margin of AVN in 2017 and 2018 10 om Figure 7: Gross profit margin of AVN phasing by month 2018 10 a Lu Figure 8: Key garment types of Vietnam Textile & Garment export 2017 29 n Figure 9: Sales-Operation-Planning Framework 33 va n Figure 10: Antecedents and consequences of a market orientation 39 y te re Figure 11: Senior management factors and market orientation 40 List of Diagrams Diagram 1: Organizational structure of AVN in 2019 t to Diagram 2: The initial cause - effect map of Amann Vietnam 19 ng Diagram 3: Planning outputs by Henry et al 23 hi ep Diagram 4: The update cause - effect map 26 Diagram 5: The final cause - effect map 38 w n lo List of Pictures ad y th Picture 1: Amann headquarter in Bönnigheim ju Picture 2: Amann Vietnam Sales office in Hochiminh City yi pl Picture 3: Amann Vietnam factory n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re List of Abbreviation t to ng AVN: Amann Vietnam hi ep B2B: Business-to-Business BOM: Board of Management w CAGR: Compounded Annual Growth Rate n lo CEO: Chief Executive Officer ad y th CFO: Chief Financial Officer ju COO: Chief Operating Officer yi pl COGS: Cost of Goods Sold ua al CS: Customer Service n FOB/OEM: Original Equipment Manufacturer n va GKA: Global Key Account ll fu GKAM: Global Key Account Management k om l.c gm n a Lu TAS: Technical Advisory Service jm SOP: Standard Operation Process ht SMEs: Small Medium Enterprises vb SAP: System Application Products z S&OP: Sales and Operations Planning z RFC: Revenue Forecast at OT: Overtime nh JIT: Just-In-Time oi HR: Human Resources m GPM: Gross Profit Margin n va y te re EXECUTIVE SUMMARY For manufacturing enterprise, sales plan is very important because it provides t to ng operation team with the demand forecast for production, HR department headcount hi budget, financial department cash flow, etc The thesis indicates the central problem of ep Amann Vietnam based on analyzing income statement of financial report 2018 and w collected data from interviews of all sales members and related departments n lo There are relevant symptoms including increase in COGS, decrease in profit ad y th margin and negative profit The central problem is inefficient sales plan that comes ju from two main causes including lack of market orientation and applying price yi centralized decision-making structure pl ua al Two sets of solution are suggested in the thesis, they are: n • Narrow the gap between what top managers say and what they n va • Propose price decentralized decision-making structure ll fu Total cost of solutions is estimated at USD16,500 which can brings benefits in Enhance communication among chief executives, junior managers and at - nh Ø Qualitative oi m terms of both qualitative and quantitative perspective as followings: z vb Erase ambiguity of junior managers and other departments in business ht - z staff k jm strategy of the organization Adapt quickly to the changes at local market - Shorten price approval process to increase service level to customers - Increase work efficiency of sales people - Improve profit margin and profitability - Enhance the competitiveness in local market om l.c gm - n a Lu va Ø Quantitative n - Increase the number of customers from 150 to 200 in 2020 and to 300 in 2023 - Achieve CAGR at 38.5% for the period of 2019 and 2024 y Improve gross profit margin from 26% to 30% in 2020 te re - PART 1: COMPANY BACKGROUND Company Introduction 1.1 Overview about Amann Group and Amann Vietnam Co., Ltd t to ng 1.1.1 Overview about Amann Group hi Amann Group, which was founded by Alois Amann and Immanuel Böhringer ep in 1854 in Bönnigheim, Germany, is one of the global leaders in the manufacturing w and distribution of sewing and embroidery threads for a wide range of industries from n lo clothing and underwear sectors, shoes and leather goods, home textiles and technical ad y th applications The Group has been present in more than 100 countries worldwide with ju over 2,300 employees Its production facilities are located in Europe and Asia, which yi ensures the basis for maximum flexibility and customer proximity pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu operated as a trading company since August 2012 Its sales office now is located at y Amann Vietnam Representative Office was established in June 2011 and has te re 1.1.2 Overview about Amann Vietnam Co., Ltd n va Picture 1: Amann headquarter in Bönnigheim 1st Floor, Aloha Building, 68 Hong Ha Street, Ward 12, Tan Binh District, Hochiminh City t to ng hi ep w n lo ad ju y th yi pl Picture 2: Amann Vietnam Sales office in Hochiminh City ua al Amann Group organized a groundbreaking ceremony for its Vietnam factory n covering 45,000 square meters at Tam Thang Industrial Park (Quang Nam) on July 27, va 2018 n ll fu The facility will produce sewing threads for garment, leather and footwear oi m industry with a total annual capacity of 2,300 tons in 2023 Its investment capital for nh phase one is US$13.8 million and this phase will go into operation in June 2019 with a at capacity of 1,000 tons per year Phase two will be in line from 2023 with additional z z capital of US$6.2 million, raising the total invested capital to US$ 20million vb ht The factory in Vietnam will produce high-quality sewing threads in accordance jm with European standards, which also apply for all other production facilities of Amann k gm worldwide Therefore, Amann’s customers can trust consistent product quality l.c anywhere in the world n a Lu Puma, Nike, Hugo Boss, Prada, Coach, etc om Amann Vietnam (AVN)’s major customers are famous brands such as Adidas, n va y te re t to ng hi ep w n lo ad ju y th yi pl n ua al n va Picture 3: Amann Vietnam factory ll fu Organizational structure of Amann Vietnam oi m AVN is under the progress of setting up new factory in Tam Thang, Quang nh Nam Its current Hochiminh office will operate as sales office right after factory at construction complementation z z To build up human resources for AVN when the company is able to produce its vb ht products locally, it has recruited new sales team members who have enough k jm qualifications and great experiences in thread manufacturing industry gm Amann Vietnam (Hochiminh office) currently has departments: sales & l.c marketing department (including Global Key Account Team, Industrial Sales Team, om Technical Advisory Services Team, Customer Services Team), HR department, n a Lu Finance and Accounting, Production Department, and Project Department n va y te re References t to Vidal CJ, Goetschalckx M Strategic production-distribution models: A critical review with emphasis on global supply chain models European Journal of Operational Research 1997;98:1-18 ng hi Zuo-Jun MS A profit-maximizing supply chain network design model with demand choice flexibility Operations research letters 2006;34:673-682 ep w Hansen P, Labbe M, Peeters D, Thisse JF Facility location analysis Fund Pure Appl Econ 1987;22:1-70 n lo ad ju y th Vidal CJ, Goetschalckx M A global supply chain model with transfer pricing and transportation cost allocation Eur J Oper Res 2001;129:134-158 yi Lufman J, Kempaiah R, Nash E Key issues for IT executives 2005 MIS Quarterly Executive 2006;5(2):81-99 pl ua al n Kim GM, Won HJ HR BPO service models for small and medium enterprises Business process management journal 2007;13(5):694-706 n va ll fu Nordin JA Spatial allocation of selling expense The journal of marketing 1943;7(3):210-219 DOI: 10.1177/002224294300700306 oi m at nh Oliver EW Selling expense as a barrier to entry The quarterly journal of economics 1963;77(1):112-128 DOI: 10.2307/1879375 z z Sandoe K, Corbitt G, Boykin R Enterprise integration 1st ed New York: John Wiley & Sons; 2001 ht vb k jm 10 Thondavadi NN, Mascon AR Information management key to ISO 9001 Molding Systems 1999;56(7):20-5 gm om l.c 11 Gionata C Supply chain and quality management: The definition of a standard to implement a process management system in a supply chain Business Process Management Journal 2009;15(3):395-407 a Lu 12 Daniel SM Labor demand New Jersey: Princeton University Press; 1993:5-10 n n va y te re 13 Bureau of Labor Statistics, U.S Department of Labor Overtime pay in relation to costs and profits Monthly Labor Review 1941, Issue DOI: 10.2307/41816569 14 Henry DV, Patrick JR, James CC Management services: Financial management and controls Journal of Accountancy 1969;128(3):89-92 48 15 Jan O, Martin R, Joakim W Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning International journal of production economics 1999;69(2001):215-255 t to ng 16 Create a sales plan [document on the Internet] Business Queensland; 2017 [cited 2019 June 6] Available from: https://www.business.qld.gov.au/runningbusiness/marketing-sales/sales/sales-plan hi ep w 17 Cravens DW, Thomas NI, Raymond WL, Clifford EY The hallmarks of effective sales organizations Marketing Management (Winter) 1992:57-67 n lo ad 18 Kaplan RS, Norton DP Putting the balanced scorecard to work Harvard Business Review 1993;71(5):134-142 y th ju 19 Neely A Measuring business performance: why, what and how London, UK: The Economist Books; 1998 yi pl n ua al 20 The Cambridge English Dictionary Inefficient [document on the Internet] No date [cited 2019 June 14] Available from: https://dictionary.cambridge.org/dictionary/english/inefficient n va ll fu 21 Merriam-Webster’s dictionary Definition of inefficient [document on the Internet] No date [cited 2019 June 14] Available from: https://www.merriamwebster.com/dictionary/inefficient oi m nh at 22 Sam AE Measurement tools for a sales plan [document on the Internet] Chron; no date [cited 2019 June 6] Available from: https://smallbusiness.chron.com/measurement-tools-sales-plan-39792.html z z vb ht 23 Javier GM The lost link to make strategy work: Sales & Operations Planning (S&OP) [document on the Internet] Strategok by Javier Gonzalez; 2018 [cited 2019 June 6] Available from: https://strategok.com/the-lost-link-to-makestrategy-work-sales-operations-planning-sop/ k jm gm om l.c 24 Mark H factors that influence your sales results [document on the Internet] The sales hunter; no date [cited 2019 June 6] Available from: https://thesaleshunter.com/9-factors-that-influence-your-sales-results/ a Lu n 25 Ajay KK, Bernard JJ Market orientation: The construct, research propositions, and managerial implications Journal of marketing 1990;54:1-18 DOI: 10.1177/002224299005400201 n y te re 49 va 26 Barksdale HC, Bill D Marketers' attitude toward the marketing concept Journal of Marketing 1971;35:29-36 27 Ho T, Tang CS Product variety management: Research advances Norwell: Kluwer Academic Publishers; 1998 t to 28 Xia N, Rajagopalan S Standard vs custom products: variety, lead time, and price competition Marketing Science 2009;28:5:887–900 DOI: 10.1016/j.jom.2011.12.002 ng hi ep w 29 Xiang W, Philip TE, Martin ED Too much of a good thing: The impact of product variety on operations and sales performance Journal of Operations Management 2012;30:316-324 DOI: 10.1016/j.jom.2011.12.002 n lo ad 30 Anderson EJ, Bao Y Price competition with integrated and decentralized supply chains European Journal of Operational Research 2010;200:227–234 y th ju 31 Pelin P, Paul MG, Pinar K Centralized vs decentralized competition for price and lead-time sensitive demand Decision Sciences 2016 October [cited 2019 June 9] Available from: http://ssrn.com/abstract=2850018 yi pl ua al n 32 Anderson DM Build-to-order and mass customization Cambria, CA: CIM Press; 2004 n va ll fu 33 Pekgu ̈n, P, Griffin PM, Keskinocak P Coordination of marketing and production for price and leadtime decisions IIE Transactions 2008;40(1):12– 30 oi m nh at 34 Webster FE Rediscovering the marketing concept Cambridge MA: Marketing Science Institute; 1988:29-39 z z ht vb 35 Felton AP Making the marketing concept work Harvard Business Review 1959;37:55- 65 jm k 36 Levitt T The Marketing Mode New York: McGraw-Hill Book Company; 1969:244 gm om l.c 37 Argyris C Organization and Innovation Kassel, HE, Germany: Homewood, Illinois, Irwin; 1965 n a Lu 38 Aoki M Horizontal vs vertical information structure of the firm American Economic Review 1986;76:971-983 y 50 te re 40 Neil K Decentralized company business structure [document on the Internet] Chron: no date [cited 2019 June 10] Available from: n va 39 Thomas C Too many products: Decentralized decision making in multinational firms American Economic Journal: Microeconomics 2011;3(1):280-306 DOI: 10.1257/mic.3.1.280 https://smallbusiness.chron.com/decentralized-company-business-structure20629.htm t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 51 Appendices Appendix t to ng INTERVIEW GUIDE hi ep INTRODUCTION w n lo My name is My ad y th I would like to thanks for your time in my interviewing today ju Firstly, I would like to talk about present situation of our company Follow the yi financial report of financial year 2018, you may know that the profit is negative in pl ua al 2018, gross profit margin decreases and average selling price decreases compared with n previous years Therefore, I would like to discuss some questions with you about this n va situation ll fu The interview should take about 10-15 minutes I will record the conversation oi m in order to make sure the information you provided will not be missed for my analysis at nh after the interview Thanks for your supporting! z z General question vb ht Personal information Your job/ responsibility/position within the company? k jm How long have you been working in Amann Vietnam? gm Sale Department l.c In your opinion, which reasons lead profit in financial year 2018 negative? n How you evaluate current staff’s working efficiency? a Lu And what is the main reason and why? om Why does gross margin decrease? Why does average selling price decrease? n va Do you have recruitment process? How you think about the current What are difficulties of the company facing in the current situation of your business field? 52 y What is your company’s value proposition? te re recruitment process? How is your evaluation of your competitors? What are the product ranges of your company in positioning with your competitors? t to ng What are your difficulties in expanding customers? hi How you think about the current process? ep 10 How does the lack of middle thread sizes impact on your business in term of w technical point? Do you have any solutions? n lo Sales Support ad y th As feedback from Sales Director, sales expenditure has increased recently ju As a person who monitor sales expenditure, how is your though about it? yi Can you share the specific cases? pl ua al How is the quotation from supplier? n How much transportation costs in 2017 and 2018? n va Customer Service Department ll fu Where your company import threads to supply in Vietnam market? oi m What is the transportation methods you are applying at the moment? nh How useful the system that you are working on is? at How is the workload of CS? z z Do you usually overtime? Why? n a Lu What products will be produced in Vietnam? om What are current difficulties for AVN? l.c gm Question for Managing Director k How often does your staff work OT? jm How is the OT payment for staff currently? ht vb Question for General Manager n va y te re 53 THE ANSWER LIST t to ng hi Personal Question and Answer Note ep Can you introduce your name and position? Mr Shafiq Shafiq Zaman – Managing Director w Vu Hoang Chuong – Sales Director n Mr Chuong lo Dao Thanh Luan – GKA Manager Ms Liana Tran Tran Thi Lieu – TAS Manager ad Mr Luan Dao y th Vo Truong Duy – Deputy Sales Manager ju Mr Duy yi Le Quang Duc – Deputy Sales Manager pl Mr Duc Nguyen Thi Le Hang – Sales Support Ms Diep Huynh Ngoc Diep – Customer Service Manager n ua al Ms Hang va Nguyen Thuy Thao Vy – General Manager n Ms Vy 10 months Ms Diep years Ms Vy years Sales Department om l.c Ms Hang 10 months gm Mr Duc k 10 months jm Mr Duy ht months vb Ms Liana Tran z years z Mr Luan Dao at year nh Mr Chuong oi months m Mr Shafiq ll fu How long have you been working at Amann Vietnam? a Lu In your opinion, which reasons lead profit in financial year 2018 negative? Why does n gross margin decrease? Why does average selling price decrease? And what is the main va n reason and why? y te re 54 Mr Chuong Sales turnover in 2018 reached USD 1.5mil, an increase of 25% compared with sales target 2018 of USD 1.2mil However, profit is small compared with other production t to site like Bangladesh, and with competitor Coats Phong Phu ng hi at 40% - 42% profit margin This is a challenge for Amann ep Vietnam in the next years (2019 – 2022) There are some probable reasons of the decrease in gross w n profit margin and negative profit in 2018 lo ad 1/ Cost increase including Transportation cost, especially air shipment for urgent orders and urgent samples The cost of shipment ju y th - yi increased much in the last months of 2018 which pl - ua al impacts gross profit margin significantly I signed some proposals of visiting customers in recent n n va months I not know whether sales team members fu know how to visit plan or their skills of time ll management is weak Urgent car requests to visit m oi customer has increased for the North area nh I signed many overtime proposals for customer service at - z and admin department I am thinking about their time z vb management skills or system management of the ht company, which not support employees to complete jm their job in working hours Please investigate this k gm problem in your thesis and have solutions I want our l.c employees can complete their job in working hours and 3/ Local production 55 y require speed to market due to the change in customer te re compete with local suppliers Moreover, customers n apparel sector, it is a must to have local production to va Vietnam Regarding expanding business in Vietnam in n Amann is building the factory in the central of a Lu balance among work, family and individual om no longer sign for OT They need to know how to behaviors so leadtime is very important and manufacturers request quick delivery service t to ng hi ep w n lo ad How you evaluate current staff’s working efficiency? - y th Mr Chuong Sales forecast is not accurate due to sales people’s lack I expected sales plan is done better but it is under my expectation Sales plan phasing by month has a big yi - pl ju of forecast experience al n ua variation with actual sales recorded, especially for the va North area but I did not see any action plan taken by n sales people in the North Sales target should be fu ll achieved by the sales effort not by accident m Customer service department usually works overtime oi - nh Does it caused because of employee competencies or at z job description unclear so they not understand their z job requirements or system/SOP of the company ht vb jm Do you have recruitment process? How you think about the current k We are recruiting HR Manager and expect to have better recruitment process soon Admin and Customer Service What is your company’s value proposition? Amann always concentrates on high product quality 56 y sportswear and technical application te re SabaSOFT, SabaFLEX and Tech-X products for outdoor, n product Serafil and other special products like va Amann focuses on high segmentation with flagship n Mr Chuong a Lu employees were recruited before I join the company om l.c Mr Chuong gm recruitment process? What are the difficulties of the company facing in the current situation of your business field? Mr Duc and Mr - Amann does not have enough product ranges to t to Duy compete with competitors in Vietnam market, ng hi especially closed competitors such as Coats Phong Phu, ep A&E, Gunzetal and other local competitors such as Phong Viet, Toung Loong, Gitai, Khoi Chi Hung, w n Hung Long, Chin Shin, etc lo ad - There is no the middle sizes from the thinner to the y th coarser ones Major product types as below table are ju lack of thread sizes needed yi pl + SabaC: no middle size between Tex 105 and Tex 200 ua al such as Tex 120, Tex 150, Tex 180 for jeans/denim n + Rasant: no coarser sizes from Tex 105 to Tex 240 for n va jeans/denim fu + Universal: no middle size between Tex 150 and Tex ll 170 such as Tex 180 for jeans/denim or heavy garments m oi + SabaTEX and SabaSOFT: no sizes Tex 21 or Tex 24 nh at which is very popular in Vietnam market for overlock z and cover seams z vb How is your evaluation of your competitors? Our direct competitors are Coats, A&E and Gunzetal They Duy also have in nomination or approval list of Brand ht Mr Duc and Mr k jm om products l.c A&E supplies thread in VN market through import gm Coats is the leader with around 40% market share n They have a wide range of products that are popular in 57 y What are the product ranges of your company in positioning with your competitors? te re with Amann Mr Duc and Mr va Both A&E and Gunzetal have local factory the same time n has joined Vietnam market this year a Lu Gunzetal does not have representative office in Vietnam It Duy Vietnam market from normal products to high quality products They have enough sizes to apply for a wide range of fabric types and garment types t to What are your difficulties in expanding customers? ng hi Mr Luan Dao 1/ Product range: Amann does not have enough product ep ranges to compete with competitors in Vietnam market, especially closed competitors such as Coats Phong Phu, w n A&E, Gunzetal and other local competitors such as Phong lo ad Viet, Toung Loong, Gitai, Khoi Chi Hung, Hung Long, ju y th Chin Shin, etc 2/ Thread sizes: There is no the middle sizes from the yi pl thinner to the coarser ones Major product types as below ua al table are lack of thread sizes needed Every single case to approach new customer, sales team n va - n 3/ Price proposal fu VN has to double check with Global Key Account ll Management (GKAM) to know that if there is any m oi global offer to mentioned customer If yes, they must nh at follow global offer If not, GKAM will suggest selling z price based on local sales’ proposal or based on their z vb calculation by themselves It takes a few days to get the ht final one In some cases, local sales and GKAM jm k expectation on price offer does not reach to the gm agreement so local sales cannot gain that business Price l.c must be align with other countries so GKAM manages om and decides price offer for Vietnam, which is a Regarding new business development, Amann Group focus on high segmentation with its flagship product 58 y - te re Germany to Vietnam n agreement and transportation cost from China or va margin is small for existing customers due to global n is not competitive to gain the new business or profit a Lu disadvantage for Vietnam sales team because the price Serafil and other special products SabaSOF, SabaFLEX and IsaMET However, the demand of these products in Vietnam is small If the company wants to expand more t to business to gain more market share, approach to middle ng hi segmentation is more workable with popular products ep like SabaC, Universal, SabaTEX but the price of Universal and SabaTEX is too high compared with w n market price Therefore, the most difficulty of sales lo ad team in new business development is the product sizes ju y th and price of popular thread types yi pl It takes time to wait for approval from GKAM n va Duy n Mr Duc and Mr ua al How you think about the current process? ll fu 10 How does the lack of middle thread sizes impact on your business in term of The lack of middle thread sizes specially Tex 21, nh Ms Liana Tran oi m technical point? Do you have any solutions? at Tex 24 for SabaTEX and SabaSOFT causes many z z difficulties for Amann to pursuade customers to vb ht change to Tex 18 available size of AVN Customers k jm are familiar with these threas sizes for overlock and gm flat seams Croaser sizes can deliver higher will not accept higher price Therefore, AVN has to 59 y higher thread size Tex 35 but normally customers te re There is one solution to this problem, that is offering n machine productivity va stitches per minute minute only which decreases n Tex 18, they must adjust speed at 2500 – 3000 a Lu 3500 – 4000 stitches per minute If they change to om sewing machines can operate with high speeed at l.c productivity for the garment manufacturers because accept to lose the business because of unavailable middle thread sizes or lower margin due to providing t to thick size with price the same with small size ng Sales Support hi As feedback from Sales Director, sales expenditure has increased recently As a person ep who monitor sales expenditure, how is your though about it? w n The cost of renting car is different depending on the time lo and the location of customers that sales people visit ad ju y th Regarding cost increase in using car, there is only one case Sales requested car urgently without plan in advance so the yi company have to accept high cost for that visit Later on, pl there are always car visit booking in advance al Ms Hang n ua Can you share the specific cases? to visit customer n Ms Hang va Only one case happened in the North, requested urgent car fu ll How is the quotation from supplier? oi m I will share the quotation to you at nh Ms Hang z z How is the quotation from supplier? vb 2018: USD 40,000 k jm Ms Hang ht 2017: USD 34,000 om Where your company import threads to supply in Vietnam market? l.c gm Customer Service Department n va supply to customers in Vietnam n Ms Diep a Lu We are importing thread from Amann China and Germany to Germany or China, ship by truck from China to the Northern Ms Diep of Vietnam, ship by air for urgent cases 60 y There are methods of transportation: ship by sea from te re What are the transportation methods you are applying at the moment? How useful the system that you are working on is? The system is just used to key in the order to issue invoice It does not really help to follow up and monitor order process t to System can not run Back order to know the order situation ng hi Ms Diep Following up the order mainly by manual ep How is the workload of CS? w Because the system is not useful so it takes a lot of time to n lo follow up the order The process is also long because I need to ad double check with Amann China or Amann Germany to know ju y th available threads, then decide which transportation methods to there are many things to for an order pl Ms Diep yi ship to Vietnam in due time with the lowest cost Therefore, al n ua Do you usually overtime? Why? va It is not usual Only for peak season n Ms Diep fu ll General Manager m oi How is the OT payment for staff currently? nh Ms Vy at Overtime cost is small and irregular Therefore OT does not z ht vb How often does your staff work OT? z impact operation cost remarkably k jm Ms Vy l.c om What are current difficulties for AVN? n n va y te re It is not easy to find out qualified people in the central and sales people who have high qualifications and long experiences in thread manufacturing Therefore, the company accepts to recruit young and dynamic people then they will be trained and coached to be able to make the job done This problem not only happens in Vietnam but also happens in other countries like China and Bangladesh a Lu Mr Shafiq Managing Director gm OT only happens in the peak season in quarter and quarter What products will be produced in Vietnam? 61 Mr Shafiq We will produce threads that are mainly used in Vietnam market including Universal, SabaTEX, Serafil, Crown and Synton t to ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 62