The author extends thanks to fellow colleagues at Hai Nam Automation Technology Joint Stock Company for their continuous care and assistance during challenging times, from the initial pr
Reason for choosing the topic
After Vietnam’s liberation, it was a backward and underdeveloped country At that time, the nation not only suffered the aftermath of war but also faced numerous economic difficulties due to the U.S embargo This situation hindered the development of domestic industries However, in just over 40 years, seizing the opportunity when the U.S lifted the embargo on Vietnam in 1994, our country made significant progress Vietnam has become an influential nation in Southeast Asia and Asia as a whole The economy has developed, and the domestic manufacturing industry has made continuous advancements Alongside this growth, towering skyscrapers and large-scale factories have sprung up like mushrooms Numerous construction projects are underway, and M&E system play a crucial role in their success Switchboards and total power automation solutions are essential products related to providing power for these projects The market for switchboards and total power automation solutions is fiercely competitive To avoid being left behind, businesses engaged in switchboards manufacturing and total power automation solutions must constantly innovate and improve While there are many factors contributing to a company’s success, sales activities play the most critical role in determining its prosperity
However, not every business has the capability to establish optimal sales processes and policies Recognizing the importance of sales operations within a company, the author decided to focus on the topic: Improving the sales process for the sales department at Hai Nam Automation Technology Joint Stock Company.
Overview of the research
Domestic Research
Lý, H T (2021) Giải pháp hoàn thiện quy trình bán hàng của Công ty TNHH Sản xuất và Thương mại phát triển Việt Nam
Trần, M V (2013) Giải pháp cải tiến quy trình bán hàng tại khách sạn Grand Plaza Hanoi Đặng, T T L (2016) Biện pháp nâng cao hiệu quả hoạt động bán hàng tại công ty TNHH Vinafor (Doctoral dissertation, Fpoly Hà Nội).
International research
Çağlıaltuncu, M (2020) Evaluation of a Sales Process and Development Needs (Master's thesis).
Research objectives
The Research aims to study and understand the sales process of sales department at Hai Nam Automation Technology Joint Stock Company It involves analyzing the current sate of sales and policies of the sales staff within the company and exploring factors that influence the company’s sales activities Based on this foundation, the study provides evaluations, observations, and comprehensive solutions to enhance the sales process and improve overall effectiveness in the company’s sales operations.
Research Subjects and Scope
Research Subject: Sales process at Hai Nam Automatic Technology Joint Stock
Scopre of space: At Hai Nam Automation Technology Joint Stock Company
Scope of time: Statistical data on business activities of Hai Nam JSC from 2020 to 2022.
Research methodology and data
Secondary data sources include company reports spanning the period from 2019 to
Primary data is gathered through direct observation of real-world situations and active participation in the sales activities of the business
Data interpretation and analysis method:
Based on fundamental theories from the field of business activity analysis and general economic courses, the author analyze the collected data, processes, and sales policies
The author selectively utilize information from various sources such as books, newspapers, the internet, and personal experiences gained while working at the company These insights are then consolidated to complete the report.
Structure of the Thesis
The structure of the thesis includes 3 chapters :
Chapter 1: THEORETICAL FOUNDATIONS OF SALES ACTIVITIES
Chapter 2: ANALYSIS OF THE CURRENT STATE OF THE SALES PROCESS
AT HAI NAM AUTOMATION TECHNOLOGY JSC
Chapter 3 SOLUTIONS TO IMPROVE THE SALES PROCESS IN THE SALES DEPARTMENT
THEORETICAL FOUNDATIONS OF SALES ACTIVITIES
Theoretical foundations of sales activities
Selling is an economic activity aimed at selling goods from manufacturers to various consumer groups in society However, due to different approaches and research purposes, there are various interpretations of sales in practice
According to Philip Kotler, ‘Sales is a direct introduction to goods and services through exchange and conversation with potential buyers in order to make a sale.’
James M Comer defines sales as ‘a process in which the seller identifies, stimulates, and satisfies the needs or desires of the buyer to meet the legitimate, long-term interests of both parties.’
John W Ernest & Richard Ashmun believe that ‘Sales is the process of identifying the needs and desires of potential buyers, introducing products in a way that leads the buyer to make a purchase decision.’
Therefore, despite differences in expression and scope, these concepts share common elements Overall, selling involves more than simply meeting the needs and desires of buyers; it includes stages of understanding, discovering needs, and even creating needs before fulfilling them for the buyer
The essence of sales activities is not only to ensure the rights of the seller but also to safeguard the interests of the buyer Individuals in the sales force hold various titles, such as salespeople, sales representatives, customer relationship managers, and more
However, they all share the common characteristic of interacting with customers and being directly responsible for selling a company’s products or services
Selling plays an incredibly important role in business operations First and foremost, sales involve the fundamental task of directly moving goods from surplus locations to places with demand According to the law of supply and demand, in places where goods are abundant, prices tend to be low Conversely, in areas where goods are scarce, prices are higher Therefore, selling products in places where there is a shortage of goods results in higher profits compared to areas with surplus goods This dynamic motivates businesses to transport goods from surplus, low-priced locations to sell them in scarce, high-priced areas to maximize profits Consequently, sales are closely tied to the production and consumption balance, ensuring stability in market prices
Sales also serve as a critical function in achieving a business’s goals: profitability, market position, and operational safety For any business, profit is a long-term objective and a constant focus in day-to-day operations Thus, sales activities directly impact profit generation Successfully selling products, earning profits, and establishing a strong market presence contribute to the overall safety and stability of a business Furthermore, sales decisions influence and guide other business processes, such as market research, sourcing, service activities, and inventory management
Sales representatives act as vital bridges between businesses and customers, influencing trust, credibility, and the renewal of consumer demand Therefore, an effective sales force is a powerful competitive asset for any business
The AIDA theory is a communication framework based on the theory of mental states developed by E St Elmo Lewis in the 1890s The AIDA formula explains the communication process and is particularly applied in the sales process However, many studies have shown that in many situations, the steps in this formula may not be maintained in a fixed sequence or cannot be predicted in advance
A - Attention: This step aims to attract the customer’s attention through advertising, compelling headlines, or addressing issues that the customer is concerned about
I - Interest: After attracting attention, this step creates interest and curiosity from the customer by providing useful information, explaining the value and benefits of the product or service
D - Desire: This step creates a desire and want from the customer by establishing a connection between the product or service and the customer’s personal needs and desires
A - Action: This step encourages the customer to take action to purchase or perform the necessary actions to continue the purchasing process
In practice, the AIDA model does not apply to every sales situation This is especially true when customers are unfamiliar with the product, sales staff, or company
In cases where the customer is an organization, relationships between stakeholders have been built, and they are familiar with the product or service Therefore, sales methods need to be adjusted to suit the customer and the sales process Sales is not just about selling products but also about solving the customer’s problems
Overall, the AIDA theory in sales is a communication framework based on mental states, aiming to attract attention, create interest, desire, and promote purchasing action from the customer However, this model is not characteristic of every sales situation and needs to be adjusted to suit the customer and the sales process
The theory of problem-solving
Similarities between the seller and the buyer: A seller who understands the nature of communication between the seller and the buyer can achieve high efficiency in sales Origin, personal characteristics, health, and many other external factors can affect the sales process In retail situations, the similarity between the seller and the buyer has a greater impact on sales success than the reputation of the seller
Differences between sales based on conditioned responses and customer reactions: Sales is about solving the customer’s problems, not just selling available products The most effective approach in sales is to identify the nature of the customer’s problem, similar to how a company needs to conduct market research and develop new products For low-value products with little purchasing risk, traditional sales methods can be applied For most purchasing units, failure to assess their own needs can lead to significant costs Therefore, sales techniques must be based on customer feedback rather than conditioned responses
Conditioned reflexes are formed when the seller has been previously trained on how to handle problems and objections from customers during the purchasing process The content of the sales is the same, but the answers to the customer’s questions are prepared in advance and presented directly, which can increase the customer’s trust in the seller This technique is more beneficial for the company and the seller The company’s products are reinforced by the seller’s trust, and the information for different customers is similar, but the company can choose part or all for the seller to provide to the customer Sales training will be very fast, and the feedback from sales activities usually refers to specific problems rather than general issues
However, this method may be challenging to create motivation for the seller because they are not free to meet the various requirements of customers flexibly, leading to a lack of creativity and diversification in sales styles Another limitation is that customers may be persuaded and very impressed with the presentation at the moment, but later, when the seller leaves, they may cancel the order and sometimes have negative feedback
Sales Process
1.2.1 Role of the sales process
A sales process serves as a strategic roadmap for sales team, guiding them through the essential stages of the sales cycle From prospecting to closing deals, a well-defined process ensures that potential customers are effectively nurtured and eventually converted into loyal clients Moreover, the best sales processes incorporate steps or stages that emphasize maintaining and nurturing customer relationships over the long term
1.2.2 Objectives of the Sales Process
When establishing a standardized sales process, it brings practical benefits to the sales department in particular and contributes to improving overall business revenue:
A standardized sales process facilitates easy control and evaluation of the sales team’s activities by management and leadership
It enhances the company’s professionalism in the eyes of customers
It quickly bridges the gap in skill levels between existing and new employees Each business will have its own customized sales process diagrams that align with their industry, scale, and management approach
“Sales skills are the way salespeople find information, approach and persuade customers to buy products or services from their business” (Skills and sales management textbook, University of Technology and Education) Ho Chi Minh City Art, pages 81-93)
According to author Le Dang Lang (2005), to sell goods, salespeople need to apply a combination of skills to support persuasion and negotiation with customers Some basic skills such as: presentation skills, persuasion skills, objection handling skills
Customer service and customer care are activities that help satisfy customer needs continuously from the first customer contact to after-sales activities such as visiting and expanding relationships with customers row In particular, customer service is a system organized to create a continuous and systematic connection from the first contact with the customer until products and services are delivered and received and used, to continuously satisfy customer needs Customer care is all the activities of a system that has enough capacity to implement correct or standard attitudes and behaviors to bring customer satisfaction through connecting, strengthening and expanding Expand the relationship between businesses and customers
Human resources are the total labor potential of a country or a locality ready to participate in a certain labor job When talking about human resources, we are talking about the resources of each person, including physical and mental strength Physical fitness depends on a person's health, standard of living, income, regime, etc Mental strength is a human's potential source including talents, aptitudes as well as perspectives, beliefs, personality Human resource quality refers to the working quality of the human resources apparatus in order to bring high efficiency to the organization's operations
According to Parasuraman and colleagues (1988), the SERVQUAL scale model was introduced to indicate the factors evaluating service quality, including tangible means Tangible means are the external image of the company's facilities, equipment, machinery, staff demeanor, documents, manuals and communication system In a general sense, this is everything that customers can see directly with their eyes and their senses can affect this factor
CHAPTER 2 ANALYSIS OF THE CURRENT STATE OF THE
SALES PROCESS AT HAI NAM AUTOMATION
History of formation and development
2.1.1 General introduction to the company
Hai Nam is a powerful provider supplying contractors & clients from diverse industries all over the world with high-quality electrical switchboards, switchgears and panel as well as total power automation solution
Founded in 2002 in Southern HCMC, Vietnam, Hai Nam Automation Technology JSC now has 05 factories in South East Asia with 03 lines of production machines with a team of 500 employees including both University Degree & Postgraduate, College Degree and In-House Trained Employees The success which the Company has achieved is based squarely on the body of knowledge, skill and expertise of its workforce
Hai Nam is proud to be Schneider Electric’s top trusted partner and strategic partners of Siemens, Mitsubishi, Distech Controls and Rockwell Automation Hai Nam’s target markets include Asia-Pacific markets like Japan, Bangladesh, Australia and European nations such as Russia, Ukraine, UK and finally, United States of American
Hai Nam is justifiably proud of Hai Nam’s products, and Hai Nam strives to ensure that the customers have the switchboards that they need Hai Nam is looking forward to having a chance to work with customers all around the world
The core values of Hai Nam Automation Technology JSC are as follows:
Transparency: The author believe in openness and clarity in company’s operations Transparency fosters trust and enables effective collaboration
Long-Term Cooperation: The author seek enduring partnerships that benefit both parties Long-term collaboration ensures mutual growth and success
Community Responsibility: Hai Nam is committed to fulfilling our social responsibilities Hai Nam’s actions positively impact the community Hai Nam serves
Product Quality Focus: Hai Nam’s primary focus is on delivering high-quality products Rigorous quality control and continuous improvement drive our efforts
Image 2.1 Logo of Hai Nam Automation Technology JSC
Company Name: Hai Nam Automation Technology Joint Stock Company
Abbreviation: Hai Nam Automation Technology
Address: Lot I-10-6 Road No.D7, Hi-Tech Park, Long Thanh My Ward, Dist.9, HCMC, Vietnam
Representative: Mr Luu Cong Thanh (Born in 1973, Hanoi)
Managed by: Tax Department of Thu Duc City
Business Type: State-owned joint stock company
Email: hainam-panel@hainamswitchboards.com
Website: https://www.hainamsi.com/
Becoming a leading provider of electrical cabinets in Vietnam for energy and automation solutions
Becoming a reputable and influential enterprise in the Southeast Asia and international region
Superior Product Quality: Ensuring that all of the company’s electrical switchboard products meet or exceed the highest quality standards in the industry Expanded Product Portfolio: Developing and expanding the electrical switchboard product portfolio to meet the diverse needs of customers and the market Professional Consultation: Providing professional consulting services and customized electrical switchboard solutions tailored to each customer’s specific requirements
Enhanced Performance and Energy Savings: Focusing on research and development to create intelligent, high-performance, and energy-efficient electrical switchboard products, helping customers reduce operational costs
Excellent Customer Care: Building strong customer relationships through excellent customer care services, promptly and effectively addressing all requests
Technological Innovation and Creativity: Investing in research and applying the latest technologies to maintain product innovation and competitive edge
Compliance Focus: Ensuring that all products adhere to safety and environmental standards while promoting safety solutions in electrical switchboard design
Quality Management Enhancement: Optimizing production processes and quality management to ensure optimal performance and high reliability for every electrical switchboard product
Market Expansion through Exports: Exploring international market opportunities to expand sales volume and enhance global brand reputation
Employee Training and Development: Providing opportunities for highly skilled personnel to continuously develop their skills to meet the ever-growing market demands
Hai Nam’s mission is : ‘We make the differences’
Hai Nam will always continuously invest in technology to create market-leading products Not only that, Hai Nam's products are also extremely safe and environmentally friendly
Building a professional working environment involves providing cutting-edge technological products and delivering optimal solutions for electrical systems
2.1.5 History of formation and development
Image 2.1 Formation and Development of Hai Nam Company
2002: Hai Nam was established in the Hiep Phuoc Industrial Zone, Nha Be District,
2003: Hai Nam’s low-voltage switchboard received a Type-Tested Certificate from ASTA according to IEC 60439 standards
2007: Schneider transfered Blokset switchboards production technology to Hai
Hai Nam established a factory in Cambodia
2013: Siemens authorized Hai Nam to produce Simoprime medium-voltage switchgears
Hai Nam was recognized as an integrated automation system provider by RockWell
Hải Nam established a factory in Myanmar
2018: Hai Nam built main headquarters and main factory in District 9
The SSnR low-voltage switchgear designed and manufactured by Hai Nam was certified according to IEC 61439 1&2 and IEC TR 61641 standards by ASTA
2019: Hai Nam expanded into the Data Center field
Schneider authorized Hai Nam to produce Pix Easy low-voltage switchgear for the Myanmar market
Hai Nam became an Eco Expert for Schneider
2020: Hải Nam integrated Schneider’s Building Management System (BMS)
2021: Hải Nam established Spectrum, a branch specializing in affordable electrical cabinet products
2022-2023: Schneider granted Hai Nam the right to sell 24kV RM6 (commercial) and SM6 (Partly Assembly) medium-voltage switchgear Additionally, Schneider transferred Prisma switchgear production technology to Hai Nam
Hai Nam MSB: Hai Nam
Building Management System (BMS): Schneider, Distech Controls
Power Management System (PMS): Schneider, Distech Controls
SCADA (Supervisory Control And Data Aquistition): Siemens, Rockwell
PLC and Factory Automation: Siemens, Rockwell, Schneider, Mitsubishi
AHF (Active Harmonic Filter): Schneider, Delta
Data center: ATS, UPS, Cooling, Data Cubicle
Cable trunking: Cable tray, ladder, trunking, phoenix shelf, damper
In addition, the company also provides support services such as power quality analysis, thermal scaning, relay testing, harmonic measurement, and arc flash study
Focus on Key National Projects: Concentrate resources on critical national projects, such as the Long Thanh International Airport Successfully completing these projects will enhance the company’s reputation and provide substantial financial gains to navigate the challenging year of 2024
Small and Medium-Sized Projects: While pursuing major endeavors, do not overlook smaller projects These contribute to maintaining a minimum financial stability necessary for the company’s survival
Strategic Partnerships: Maintain strategic partnerships with major suppliers like Schneider, Siemens, Mitsubishi, Rockwell, and LS These relationships ensure favorable pricing policies from these companies
Collaborate with Construction Contractors: Cultivate strong relationships with prominent construction contractors such as Coteccons, Ricons, Newtecon, Sol E&C, and Unicons Their referrals can lead to participation in significant projects
Invest in Technology: Utilize company profits to continue investing in technology, particularly in the field of automation
Initial Public Offering (IPO): Consider going public on the stock market to raise additional capital for product development and international market expansion
Expand to Australia: Establish a manufacturing plant in Australia in the near future to tap into that market This move can also serve as a stepping stone for entering more challenging markets like Europe
Transition to Construction Contractor: Explore the possibility of evolving from a mere electrical panel supplier to a full-fledged construction contractor
2.1.8 Organizational Structure of the Company
Image 2.2 Organization Chart of Hai Nam Automation JSC
(Source : Human resources department of Hai Nam)
Strategic Decisions, Medium-Term and Long-Term Development Plans, and Annual Business Plans of the Company
Decisions on Investment Options and Investment Projects within the Authority and Limits as Prescribed by Law
Decisions on Market Development, Marketing, and Technology Solutions
Decisions on Organizational Structure, Internal Management Regulations of the Company, Establishment of Subsidiaries, Branches, Representative Offices, and Equity Participation or Share Purchase in Other Enterprises
Supervision and Guidance of the CEO and Other Managers in the Daily Business Operations of the Company
Guiding the direction of the business, defining the orientation, conveying vision, and inspiring the organization with necessary changes to move towards the future
Implementing strategies, monitoring operations, evaluating progress to meet expectations, and enhancing financial growth for the business
Exploring opportunities, finding ways to increase shareholder value
Discovering and negotiating acquisition deals to drive value for the enterprise
Receiving reports from departments to forecast future costs and understand the actual financial situation of the business
Participating in industry-related events to enhance the leadership capabilities of the CEO, reputation, and potential success for the company
Connecting and coordinating departments into a unified whole to ensure smooth and efficient work Making pricing decisions for critical projects
Search for and develop new business opportunities (new projects)
Build and maintain customer relationships
Promote and market products/services
Plan and execute sales strategies
Negotiate and sign business contracts
Monitor and evaluate sales performance
Conduct market research to understand industry trends and shaping
Find the solutions to win project
Build and manage the company’s image
Organize communication and advertising strategies
Create and maintain relationships with the media
Coordinate events and promotional activities
Manage online media and content
Ensure consistent and positive messaging about the business
Monitor and evaluate the effectiveness of communication strategies
Design materials for the company
Plan and monitor project progress
Assign tasks and manage work teams
Coordinate project resources and budget
Manage risks and resolve issues
Report and communicate with relevant parties
Ensure quality and achieve project goals
Conduct post-project evaluations and learn from experiences
Collaborate with clients to update progress and find solutions if issues deviate from the schedule
Monitor product quality and performance
Manage resources and production scheduling
Optimize performance and reduce production costs
Identify the company’s purchasing needs, inquire about prices, and purchase equipment components from manufacturers
Negotiate prices and contract terms
Plan and manage supply sources
Ensure quality and compliance with standards
Monitor prices and the market
Optimize procurement costs and increase efficiency
Manage employee information and records
Negotiate and implement salary and benefits policies
Organize training and development for employees
Resolve issues and handle labor relations
Execute processes related to human resources
Maintain and enhance personnel capabilities and performance
Establish and maintain quality standards
Monitor and control production processes
Ensure compliance with quality standards
Conduct product inspections and validations
Identify and resolve quality issues
Optimize processes to enhance quality
Design Revit Drawings to send to the production department for implementation Create customized product drawings based on sales requirements
Research and apply new technologies
Research and apply new mechanical technologies
Manage the production and machining processes
Maintain and repair mechanical equipment
Ensure compliance with safety and quality standards
Collaborate with other departments to achieve production goals
Record and process financial information
Prepare balance sheets and financial reports
Conduct financial checks and controls
Prepare and submit tax reports
Evaluate the financial performance of the business
Assist management in financial strategic decisions
Monitor security systems and reduce risks
Train employees on security and safety
Collaborate with relevant agencies and public security
Conduct investigations into theft and security violations
Develop emergency plans and disaster prevention
Plan and organize the transportation of goods
Coordinate transportation and delivery of cargo
Manage warehouse and logistics systems
Monitor and ensure timely delivery
Optimize routing and reduce transportation costs
Address transportation challenges and issues
Collaborate with transportation partners and logistics suppliers
Research and develop new products/services
Provide solutions for complex procurement projects
Test and evaluate advanced technologies
Create innovative and improved solutions
Collaborate with the Design and Production departments
Maintain innovation to stay competitive in the market
Protect intellectual property rights and research proposals
Extract equipment from the drawings sent by the sales department
Prepare quotations and commercial contracts for sales
Coordinate with the purchasing department, design department, and R&D department to create the most comprehensive price list
Ensure legal requirements for the project
Conducting on-site inspections to assess the situation and propose service solutions that the company can provide
The Electrical Department and the Treasury Department have now been integrated with the above departments
2.1.9 Hai Nam’s partner and customers
Hai Nam’s products are primarily sold through the bidding process, so its customers are mainly investors or large mechanical and electrical (M&E) contractors in Vietnam
Coteccons construction joint stock company
Ricons group construction investment joint stock company
Newtecons investment construction joint stock company
Ree mechanical & electrical engineering join stock company
Unicons investment construction company limited
An phong construction joint stock company
North star cconstruction - trading join stock company
Analysis of the sales process
The Sales department plays an extremely crucial role for the company, determining its success or failure The sales department decides the workload, revenue, and profits of other departments within the company through contracts and projects The Chief Executive Officer (CEO) heavily relies on the Sales department’s advice because it is the primary source of income for the entire company, and all business strategies and production plans are based on these contracts Therefore, the heads of the Sales Department are individuals who have been with the company since its inception, demonstrating unwavering commitment as they navigate the company through various ups and downs to achieve its current state Their success is built upon the relentless efforts of the sales team, a group of young individuals with dreams and aspirations The Sales Department includes:
Chief Executive Officer (CEO) Master 15 years
Deputy General Director Master (2) 8 years
Nha Be Sales Manager Bachelor 11 years
Automation Sales Manager Bachelor 5 years
Automation Sales Executive Bachelor 1 year
Nha Be Sales Executive Bachelor (3) 5 years (1)
Table 2.1 List of sales department employees currently working at the headquarters
(Source: Hai Nam’s human resources)
In Hải Nam’s main office, the sales department is divided into three smaller units: D9 Sales (included RMU Sales), Nha Be Sales, and Automation Sales However, this division is primarily for the ease of human resource management All employees within the Sales Department have equal authority and can sell all the products offered by Hai Nam Collaboration and mutual assistance among team members are encouraged, regardless of their specific subunit
Image 2.3 Sales Department with DEIF’s Board of Directors
For technically demanding products such as electrical panels and power automation solutions, the primary sales method employed is project bidding These are items that only a few suppliers in the market can meet the technical standards for These products are sold in quantities ranging from moderate to large scale through M&E projects, as manufacturing them is not easy; it involves significant costs, time, and resources While there may not be many competitors, winning a project is no easy task, especially for large-scale national projects that yield substantial profits To secure a project, the company must not only deliver high-quality products that meet technical requirements but also rely heavily on the company’s relationship-building and political capabilities
A The quotation process for customers
Image 2.4 Hai Nam’s quotation process
Step 1: Receive information from customers
At this stage, Hai Nam will reach out to existing customers in the company’s database or new customers that the company has recently identified Alternatively, customers may proactively contact Hai Nam to inquire about quotation when the project specifications, written by design consultants, include Hai Nam’s name in the vendor list These customers are typically main contractors or subcontractors in the M&E field who are preparing to participate in projects Convincing these contractors to review Hai Nam’s products and encouraging them to submit a quotation request to Hai Nam is essential
In the customer’s quotation request sent to the company, the customer will attach four main folders: Single Line Diagram (or AutoCad Diagram), Specification, Bill of Quantity, and Technical Data The task of the sales staff is to briefly review these four folders and discuss with the customer to understand the customer’s requirements for which products need to be quoted Additionally, they must also explore project information such as project names, project progress, project owners, other contractors participating in the bidding, and competitors
Image 2.5 Single Line Diagram of LTIA Project
Image 2.6 Specification of LTIA Project
Stage 3: Upload request for quotation on E-system
The E-system is a platform developed by Hai Nam to facilitate project information transfer between the Sales Department and the tender department Detailed project information and requirements, along with the four attached folders, are uploaded by sales staff to the E-system Determining the deadline for completing a quotation is a challenging task, as it involves balancing the time required for the tender dept to prepare the quotation and meeting the customer’s requested deadline
Stage 4: Tender receive the request
The tender department staff will see the projects on the E-system platform The tender staff will receive the projects on the E-system and download the four attached folders Next, the tender staff will extract the devices that need to be quoted based on the attached four folders
Stage 5: Tender asks for support from R&D and purchase dept
During the process of extracting devices from the drawings provided by the customer, there will be complex details and technical requirements (especially automation projects) The tender staff may not have the expertise to develop solutions, so they will request assistance from the research and development (R&D) department to devise solutions for the project The R&D staff will study the requirements and generate a Bill of Material (BOM) List, which is then sent back to the tender department The tender department will review the BOM list to check whether the devices listed already have prices If not, the tender department will continue to collaborate with the purchase department to request pricing for the devices The purchase department will gather information and inquire about the prices of these devices from suppliers, and then provide the prices back to the tender department
Once the tender department has all the information about the devices that need to be quoted and the prices for all the devices, they will make a quotation to send to the sales staff
Stage 7: Ask for design dept’s support if needed
For some critical projects, customers require 3D drawings or Revit drawings of the products before they are completed In such cases, the sales staff will need to contact the design department to obtain the 3D or Revit drawings of the product The sales staff will then send these 3D or Revit drawings to the customer
Stage 8: Send quotation to customer
The salesperson will receive a quote from the tender staff and will review the quotation once again After careful double check, the salesperson will send the quotation to the customer and schedule a meeting with them to discuss further project details During this stage, the salesperson must closely follow the customer, continuously explore their needs, and adjust the quotation to align with the customer’s requirements Useful information that can be extracted from the customer includes competitor prices and project updates
If the customer’s company wins the bid and becomes the main contractor, there will be another bidding round among suppliers If Hai Nam win this supplier bidding round, Hai Nam will proceed to the negotiation stage During this step, Hai Nam will negotiate prices and contract terms such as deposit amount, payment method, delivery time, insurance, and more This is the stage where Hai Nam has a firm grasp on 90% of the victory, and the company need to use our expertise to secure the most favorable terms for both parties
After negotiation and agreement on the contract terms, the customer will proceed to sign the contract Simultaneously, the salesperson will create a purchase confirmation project responsibilities will be handed over to the project management team, and the salesperson will have completed their task
Image 2.9 Summary project bidding process
Image 2.10 An example of the owner of Long Thanh International Airport Project
The owner is an organization that owns capital or an organization authorized to act on behalf of the capital owner The construction investor (hereinafter referred to as the investor) is an agency, organization, or individual that owns capital, borrows capital, or is directly assigned to manage and use capital to carry out construction investment activities The authority of the investor is supreme in the project Having a close relationship with the investor will enhance the chances of winning the project
Image 2.11 An example of the supervision consultants of
Long Thanh International Airport Project
A supervision consultant, often referred to as a construction supervisor, is an individual or organization responsible for ensuring that a construction project proceeds according to plan, meets quality standards, and complies with legal regulations and contracts Supervision consultants are typically experts with extensive knowledge of construction and have the task of assessing progress, monitoring work quality, and clarifying any issues that arise during the construction process Hai Nam should build a relationshop with supervision consultants to make sure that Hai Nam’s products can comply all the technical standards
Image 2.12 An example of the design consultants of Long Thanh International Airport Project
Analysis of key business performance indicators of the company phase 2020 – 2022
2.3.1 Net revenue indicators for the period 2020-2022
Table 2.1 Net revenue of Hai Nam
(Source: Hai Nam Sales Department)
Table 2.2 The Net Revenue Difference Between The Years During The Period 2020-2022
Image 2.17 Net Revenue of Hai Nam
Looking at table 2.3.1a,b and figure 2.3.1c, the author can observe that the company’s revenue fluctuated significantly over the three years: 2020, 2021, and 2022
In 2021, the revenue decreased by 11% compared to 2020 However, it surged to nearly
264 billion and increased by 40% in 2022 This 40% growth is remarkably impressive, especially considering the gradual economic recovery after the global COVID-19 pandemic Smaller and medium-sized competitors struggled to survive during the pandemic, which created favorable conditions for Hai Nam Company to secure numerous projects and achieve impressive revenue figures It’s essential to acknowledge
Difference -17,506,858,086 VND -11% 105,422,061,975 VND 40 the hard work of the dedicated individuals who remained with the company during that time, contributing to surpassing expectations
2.3.2 Indicators of operating capacity for the period 2020-2022
Table 2.3 Operating capacity of Hai Nam
(Source: Hai Nam Sales Department)
Image 2.18 Operating capacity of Hai Nam
The inventory turnover ratio is a critical metric that reflects how efficiently a company manages its inventory It quantifies how quickly inventory is sold and replenished during a specific period A higher turnover ratio generally indicates better inventory management
Interpretation: Hai Nam Company turned over its inventory approximately twice during 2020 This suggests effective inventory management
Interpretation: The ratio decreased, indicating a slower inventory turnover The company might have held inventory for a longer duration
Interpretation: The ratio improved, reflecting increased efficiency in managing inventory The company streamlined its inventory processes
The fixed asset turnover ratio assesses how effectively a company utilizes its fixed assets (such as machinery, equipment, and property) to generate revenue A higher ratio implies better utilization of these assets
Interpretation: For every unit of fixed assets, Hai Nam Company generated approximately 83.5 VND in revenue The utilization could be optimized further
Interpretation: The ratio declined slightly, indicating less effective utilization of fixed assets The company might need to enhance asset productivity
Interpretation: The significant improvement suggests better asset utilization The company efficiently converted fixed assets into revenue
Table 2.5 Indicators that affect operational capacity
Upon examining the data, it’s evident that the inventory index has consistently increased and nearly quadrupled over the course of four years This indicates that the company has focused on expanding its inventory to prepare for projects with urgent lead times In situations where suppliers are unable to deliver goods promptly for production, having a substantial inventory becomes crucial
The cost of goods sold has steadily risen over the four-year period, with a slight decline in 2021 This suggests that direct material costs, direct labor expenses, and overall production costs have increased One straightforward explanation for this trend is the company’s investment in manufacturing technology As a result, acquiring newer, higher-quality equipment has driven up costs Additionally, the impact of the global COVID-19 pandemic has played a significant role in cost fluctuations
The company’s fixed assets have consistently decreased over the four-year period The primary reason for this decline is the economic impact of the global COVID-19 pandemic As economic conditions shifted during this time, the company had to scale down its operations
2.3.3 Profitability indicators for the period 2020-2022
Table 2.6 Profitability of Hai Nam
Table 2.7 Profitability of Hai Nam
Image 2.19 Profitability of Hai Nam
In 2020, ROS was 18.3%, which increased significantly to 26.6% in 2021 but declined to 21.3% in 2022
The peak performance in sales efficiency was observed in 2021
ROE followed an ascending trajectory: 19.2% (2020) → 25.2% (2021) → 26.7% (2022)
This indicates effective utilization of shareholders’ equity for profit generation
Improved asset management efficiency and operational productivity
Variable operating costs or revenue changes may contribute
In summary, while some metrics fluctuated, ROE and ROA demonstrated promising growth trends Future focus should be on maintaining efficiency and optimizing costs.
SOLUTIONS TO IMPROVE THE SALES PROCESS IN THE
Enhancing technical knowledge for employees
A deep understanding of the products or services is fundamental Know the offerings inside out, including their features, benefits, and unique selling points This knowledge allows saleperson to provide personalized recommendations to customers, address their queries, and build trust
Sales staff graduated with a technical degree
Sales staff graduated from other major
Table 3.1 Table of number of technical sales staff
Sales staffs have good technical knowledge
35 options 12 options minimize costs for customers in 2022
Average percentage price reduction compared to the original quotation
Percentage of closing deal in 30 recent projects have V.E options
Table 3.2 Table comparing the ability to offer V.E options between good - technical sales staffs and normal sales staff
Looking at Table 3.1, we can see that the current sales team of the company consists of two main groups: those who graduated from electrical engineering and those who graduated from other fields The number of graduates from electrical engineering is
7, accounting for 47%, while the number of graduates from other fields is 8, accounting for 53% This demonstrates that operating this sales team effectively is not an easy task, especially when dealing with technically knowledgeable customers who are highly interested in technical matters In Table 3.2, we can further observe how salespeople with good technical knowledge compare to those with only basic technical understanding Salespeople with strong technical knowledge can negotiate prices that are 12% better than the initial prices sent by the tender department, whereas salespeople with limited technical understanding can achieve only a 3% improvement Consequently, salespeople with solid technical knowledge have nearly double the deal-closing capability compared to those without a firm grasp of technical concepts
The products of Hai Nam Company require a fairly high level of technical knowledge If the salesperson has a good understanding of the technical aspects, they can proactively propose replacement equipment options or eliminate unnecessary devices in the quotation (referred to as Value Engineering - V.E) These options will help provide customers with a more reasonable price quote while still meeting technical requirements As a result, the chances of winning the project will be higher
To achieve this, Hai Nam Company needs to conduct ongoing technical training for sales staff to continuously update their knowledge of technical advancements This way, sales staff will be better equipped to make informed decisions regarding V.E options The training costs will be covered by the company, and utilizing existing engineers as instructors will help save costs
Location Learning time each week Cost of paying lecturers
The company has to spend 57,600,000 VND on training costs each year, but the impact it brings is immense Each trained employee can win an additional 1-2 projects per year compared to before receiving training On average, each person was trained in the company can contribute profits of over 300 million VND compared to when they were not trained
Besides that, the company should encourage sales department employees to participate in workshops or meetings with suppliers like Schneider, Siemens, Distech Controls, to enhance their knowledge about the products and stay updated on the latest technological advancements
Encouraging employees to engage with industry leaders and stay informed about product innovations is indeed crucial for long-term growth and collaboration between the company and its staff.
Improve methods of exploiting customer information
A project involves various customer segments that need to be carefully nurtured contractors, and sub-contractors Depending on the project phase, resource allocation is essential to cater to specific customer groups, considering the company’s limited resources
One challenge our company faces is incomplete information exchange among customer segments within a project This leads to missing or inaccurate information Part of the issue may stem from the relationship between sales staff and customers, which might not be close enough for valuable information sharing Additionally, some customers may hesitate to share information due to a lack of personal benefit
The author proposes several methods to improve customer information extraction:
Effective communication: Communication plays a crucial role in creating a positive impression with customers While phone calls and text messages can provide preliminary project information, meeting face-to-face is essential Initially, casual coffee meetings allow for light conversation, and if the relationship deepens, socializing over drinks can follow Balancing friendly chats with information extraction is crucial—avoid bombarding customers with too many questions, as it can make them uncomfortable Targeting specific customer segments:
Bid to Nominate (Owners and Design Consultants): For projects in the estimation, planning, and drawing phases, building relationships with owners and design consultants is crucial Impress the owner by introducing company’s background and becoming top- of-mind for them Engage with design consultants, assist them in budgeting for the project, and ensure your company gets listed as a vendor Collaborate on technical requirements that Hai Nam’s products can fulfill, gaining a competitive edge
Bid to Bid (Contractor): During the bidding phase, sales staff must engage with all participating contractors Predict which contractor has a higher chance of winning the bid and focus efforts on nurturing that relationship Many salespeople fail by not accurately predicting the winning contractor, leading to inefficient relationship-building efforts It’s impossible to build close relationships with all contractors, so strategic targeting is essential
Bid to buy (supplier): Success or failure often hinges on relationships with main contractors during the purchasing phase Cultivate strong ties with contractors, and they may be willing to share competitors’ price quotes This critical information significantly increases the company’s chances of winning Precision in decision-making is crucial during this pivotal stage
Benefiting the customer: Offer reasonable discounts to influential individuals who impact bidding decisions or provide valuable information These individuals can continue supporting Hai Nam in future projects While some of these political aspects may be beyond individual salespeople’s control, consulting with company leadership to find the best way.
Solutions to reduce the time spent on pricing
At Hai Nam Company, the tender department plays an extremely important role in preparing quotations To optimize the quotation process for customers, the first step is to streamline the working process of the Tender department Here are some common issues in the Tender department along with proposed solutions:
Project Assignment: When receiving a project from the Sales department, the tender manager should assign a specific tender staff member to handle that project Any quotation requests related to that project should be handled by the assigned tender staff member (within a project, multiple quotations may need to be prepared for different contractors) By assigning a tender staff member from the beginning, they will have a better understanding of the project, eliminating the need to repeatedly review project documents This will significantly reduce the time required for quotation preparation, allowing Sales staff to receive more accurate quotations in a shorter time The completion time for tender quotations will be reduced by at least 1-2 days because the tender process will no longer require time to review documents or learn about project updates Companies can handle multiple tenders simultaneously without the need to hire additional staff for the tender department, especially during peak periods
Internal communication: Communication between the tender and sales departments via email is not yet fully optimized Each time a project is updated or consuming and not always efficient Instead, consider using instant messaging platforms such as Viber, Zalo, or Skype for internal communication This approach allows project- related information to be exchanged quickly without the need for lengthy email exchanges The same amount of information sent via email, which used to take 15 minutes to convey, can now be read in just 5 minutes through messaging.
Mitigating risks in payments during sales
As mentioned in the difficulties section, Hai Nam Company frequently faces cash flow issues To mitigate risks in payment and ensure timely customer payments, one solution is to enhance the efficiency of the business process To ensure that customers purchasing the company’s products, they need to place a certain amount of deposit after signing the contract so that the company has funds to purchase raw materials and customers will not cancel midway In addition, a project often lasts a long time, so it is advisable to divide the payment into multiple installments, paying as the project progresses For large projects, customers should be guaranteed by a reputable bank to avoid situations where customers do not have enough money to pay or go bankrupt For international transactions, using the irrevocable Letter of Credit (L/C) payment method is recommended to help the company confidently place orders with suppliers
Payment Deposit 2nd 3rd 4rd Total
Period 30 days 70 days 30 days 50 days 180 days
For the method of dividing payments into multiple installments as described above, the company would have enough capital to purchase raw materials for subsequent projects after just 100 days Consequently, the company would not face shortages of funds and would be capable of running multiple projects simultaneously
After more than 20 years of formation and development, Hai Nam Automation Technology JSC has achieved significant success and become a giant in the field of electrical panel cabinets and power automation solutions The company has established standardized working processes, efficient operations, and these accomplishments are the result of decades of effort However, in the real-world environment, several lingering issues persist, and no process is truly flawless After working at the company for six months, I have gained valuable experiences and insights into the practical work environment I’ve identified areas for improvement in the company’s sales process Through research, I propose solutions that could benefit the business in the future Evaluating the sales process at Hai Nam, I emphasize the need for further attention, especially given the current context where competitors are catching up with or even surpassing Hai Nam in certain aspects Sales play a crucial role in every business, determining its survival in the market I hope my research will be helpful to the company, and I sincerely thank Hai Nam for providing me with the opportunity to test my skills within the organization The experiences gained during my time at the company will be valuable assets for my future endeavors I also extend my gratitude to the University of Technology and Education, particularly Professor Nguyen Kim Hanh, who accompanied me throughout the completion of this graduation thesis
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