The stock shortage of finished goods at warehouse a case of pasteur street craft beer and restaurant co , ltd

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Pham Hong Phuong THE STOCK SHORTAGE OF FINISHED GOODS AT WAREHOUSE: A CASE OF PASTEUR STREET CRAFT BEER AND RESTAURANT CO., LTD MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Pham Hong Phuong THE STOCK SHORTAGE OF FINISHED GOODS AT WAREHOUSE: A CASE OF PASTEUR STREET CRAFT BEER AND RESTAURANT CO., LTD ID: 22180025 MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: NGUYEN PHONG NGUYEN Ho Chi Minh City – Year 2020 CONTENTS EXECUTIVE SUMMARY Acknowledgments List of tables List of figures INTRODUCTION 1.1 Overview of the craft beer industry 1.2 Company introduction SYMPTOM 10 2.1 Sale volume does not achieve planned sale volume 12 2.2 An increasing of the number of customers stop buying Pasteur Street beer 13 2.3 An increasing number of customer complaint 15 2.4 Stock shortage 16 PROBLEM ANALYSIS 18 3.1 The initial cause-effect map 18 3.1.1 Customers stop buying Pasteur Street beer 18 3.1.2 Feedback from customers about the quality 19 3.1.3 Stock shortage 24 3.2 Updated cause-effect map 28 3.2.1 Inefficient marketing activities 28 3.2.2 Ineffective sale activities 29 3.3 Problem validation 32 PROBLEM JUSTIFICATION 33 4.1 Problem definition 33 4.2 Problem existence 35 4.3 Problem importance 37 CAUSE VALIDATION 39 5.1 Potential causes 39 5.1.1 Lack of information sharing 42 5.1.2 Shortage of materials 44 5.1.3 Inaccurate sale forecasting 47 5.2 Cause validation 49 ALTERNATIVE SOLUTIONS 50 6.1 Alternative solution 1: Applying Sale & Operation Planning 51 6.2 Alternative solution 2: Applying Enterprise Resources Planning 52 6.3 Solution justification 54 CHANGE PLAN DESIGN 55 7.1 Objectives 55 7.2 Targeted Outcome 56 7.3 Action plan implementation 56 CONCLUSION 57 SUPPORT INFORMATION 58 9.1 Methodology 58 9.2 Interview guide 58 9.3 Transcript 60 9.4 Organization of Pasteur Street Brewing Company 72 EXECUTIVE SUMMARY Recently, the financial statement of Pasteur Street Craft Beer and Restaurant Co., Ltd has experienced a drop in revenue, in specific, the sale volume of the wholesale channel in Ho Chi Minh does not achieve planned sale volume To discover the problem that Pasteur Street Craft Beer and Restaurant Co., Ltd is facing, meeting with the CEO of the company, interview relevant persons such as Sales Director, Marketing Executive, Distribution Manager, and Production Manager, as well as pertinent data of 2019, was collected Through interview relevant persons, analyzing data from the company, and use related theory, the main problem was identified as the stock shortage Finished goods are not available at Ho Chi Minh warehouse to deliver to customers that lead to a decrease in sales revenue of the sale department Toward the main problem of out of stock, three potential causes had been found out are the lack of information sharing, the shortage of material, and the inaccurate forecasting After analysis, the main cause that chosen to solve is the lack of information sharing This study will propose solutions to solve the problem in order to help the company improve business performance Acknowledgments I would like to send my appreciation to my advisors Dr Nguyen Phong Nguyen, who encourage, instruct, and support me to accomplish this master thesis project It has been a pleasure working with you on this project I would like to send my appreciation to other teachers during my journey in ISB I got a lot of education and experience in the past two years That is meaningful education and experience, and I can apply this knowledge in my work to improve my performance as well as develop my career roadmap in the future Also, I would like to thank my friends and family for greatly supporting me while I was working on my studies List of tables Table 1: List of product sale in Ho Chi Minh City wholesale channel in 2019 Table Actual sale volume in 2018 of the wholesale channels in Ho Chi Minh area Table Sale volume of the wholesale channel in Ho Chi Minh City in 2019 Table Number of customers stop buying Pasteur Street beer in Ho Chi Minh Table List of customers who stop buying Pasteur Street beer Table List of products which receive customer complaints Table Stock shortage of Pasteur Street beer in 2019 in Ho Chi Minh City Table Cost for hiring Planning Manager and Planning Executive Table 10 Cost for investing ERP software Table 11 Action plan List of figures Figure 1: Number of customer stop buying Pasteur Street beer per month Figure 2: Number of customer complaints about Pasteur Street beer per month Figure Initial cause-effect map Figure Cause and effect map Figure Level of production planning at Pasteur Street Brewing Figure Fishbone diagram of the main problem in PSB Figure Final cause and effect map (Author synthesis) INTRODUCTION 1.1 Overview of the craft beer industry Since the 1970s, craft beer companies first appeared on the US market, and since then, the number of craft beer companies has increased rapidly in the long-term beer markets such as the US and Europe Successful craft beer in the world market can be attributed to the following reasons One is that consumer tastes are increasingly seeking diversity and originality in flavor, something that mass-produced beer products not have Besides, craft beer companies are more flexible in terms of changes in consumers' tastes and preferences due to their small-scale production lines On the other hand, the market of large breweries and craft breweries is not completely duplicated, since craft beer companies offer a wide range of products at different prices However, in recent years, large breweries have begun to penetrate the craft beer market by acquiring small breweries themselves or creating their craft beer line Besides that, small craft beer companies also can grow thanks to the trend of changing consumer tastes Thus, craft beer becomes a competitive market In Viet Nam, craft beer has only developed in the past few years Currently, there are 30 big craft beer brands in Viet Nam, in which Hear of Darkness, East-West, Platinum, Biacraft, Pasteur Street, Te Te, Fuzzy Logic, Seven Bright, etc However, many craft beers start joining the craft beer market because of the benefit of this market, and it is not difficult to joint this market Thus, the craft beer market in Viet Nam become more competitive, and customers have multiple choice that is also a pressure for a craft beer company in Viet Nam Moreover, craft beer company is facing with the limited policy from government such as the National Assembly passed a landmark bill on preventing harmful effects of alcohol, which includes blanket ban on driving after drinking for all types of vehicles and decree No 100/2019/ND-CP dated 30th, December, 2019 that impact significantly to business operation of the companies which sell alcohol drink In the fact that number of consumer is decline when the decree No 100/2019/ND-CP is implemented 1.2 Company introduction Pasteur Street Craft Beer and Restaurant Co., Ltd (PSB) is a private beer manufacturing company based in the Viet Nam, supplying craft beer to an outlet such as luxury hotel, restaurant, and their restaurant called Taproom The company's mission is to produce highquality craft beer by combining the best Vietnamese ingredients with professional American craft brewing know-how The company employees nearly 150 people across a production site and Taprooms PSB was established in 2015 and grow faster in 2018-2019, and this rapid growth that shown some gaps or trouble of the company during its operation In the fact that in 2019 sale volume does not achieve the target of sale, even company set a target of sale based on historical data and business planning that is the reason why we need to find out problem and cause of this symptom to suggest a set of solution to solve this problem to gain PSBC's Vision: To become a craft beer company leading in Vietnam market PSBC’s Vission To become craft beer company leading in Viet Nam market PSBC’s Mission - To produce high quality craft beer by combining the best Vietnamese ingredients with professional American craft brewing know-how PSBC’s Core value • Authentic • Quality Real American craft beer made to world Expatriate, best in class brewmasters sit on our board class standards and run our brewing operations to ensure our production meets the highest standards • Innovative Create beer, test boundaries, and excite beer • Local Keeping us true to our origin, we use Vietnamese drinkers with new ideas to ensure we remain sourced ingredients including jasmine, lemongrass, leaders in South East Asian craft brewing cocoa and passionfruit to add intrigue to our core range of beers SYMPTOM By interviewing with the CEO of PSB through intake meetings, he proposes that the current symptom of PSB is that the actual sales performance of wholesale channels in the Ho Chi Minh City area is lower than the sales target in 2019 Over the past five years, we have successfully carried out our mission of bringing out the best of Vietnamese ingredients for awesome craft beers to make Vietnamese drinkers understand this lovely fresh quality and appreciate the joy of craft beer However, in 2019 sales volume in the Ho Chi Minh area in the wholesale channel does not achieve the target as we planned, and we still receive negative feedback from our customers about our product We need to review each aspect that influences our low sales: Sale operation, Marketing activity, Quality of product, and Production operation to find out the most effective solutions Firstly, we understand the product and distribution channels of PSB In PSB, it has nine core beers, such as Jasmine IPA, Passion Fruit Wheat Ale, Saigon Saison, Viet Wiet, Irish Stout, Pasteur Street Pale Ale, Dragon Fruit Gose, Double IPA, Cyclo Stout, and three seasonal beers will be alternative Almost Pasteur Street beers are packed in the kegs 20 liters, and some Pasteur Street beers are packed by can or bottle to diversify and create convenience for customers and consumers In the domestic market, Pasteur Street beers were distributed by two channels that are Taproom of PSB and wholesale Wholesale include Ha Noi, Ninh Binh, Sapa, Hue, Hoi An, Da Nang, Ho Chi Minh, Nha Trang, Phan Thiet, Phu Quoc In which the sale volume of Ho Chi Minh City area contributes 50% in total nationwide sale volume of wholesale channels and sale volume of Ho Chi Minh city in wholesale channel contribute 30% in total nationwide sale volume of both wholesale and Taproom channels Thus, the sale volume of wholesale in Ho Chi Minh city does not achieve sale targets that impact to sale volume of the company and impact to sale revenue as well as the profitability of the company Therefore, the improvement of the sale volume of the wholesale channel in the Ho Chi Minh City area has a significant advantage In addition, understanding the problem, the root cause of the wholesale channel in the Ho Chi Minh City area, we can apply for other areas, such as Ha Noi, Hoi An-Da Nang, as a reference We collect the list of products that were sold in the Ho Chi Minh City area by the wholesale channel, as the table below 10 Phuong: In your opinion, what is the main problem that leads to the issue of PSB? Mr Alex: Based on my point of view, the stock shortage is the main problem that lead to the drop in sales revenue of the wholesale channel in the Ho Chi Minh Minh area Phuong: In your opinion, what are the possible causes that lead to the stock shortage? Mr Alex: I think that there are some potential causes that lead to the stock shortage, such as inaccurate forecasting, lack of material, and lack of information sharing The sales department will make a sales forecast for twelve weeks and confirm the sales plan for four weeks in order to the production department to make an effective production plan Sometimes, we not receive material from suppliers on time and empty keg did not return to the brewery right time Phuong: What is the main cause of your company problem? Mr Alex: I think that the lack of information sharing between functional departments My company does not have a good collaboration between production, sale, and distribution department, we need to regular S&OP meetings between the production, sale, and distribution department to align the production planning to avoid the stock out I want to improve communications, i.e., more specific in what is needed (Sale) and more specific in what can be made available (Distribution, Production) Phuong: What is the best solution for your company: Mr Alex: With the revenue of 50 billion VND in 2018, I can spend around one billion VND for this investment to hire Planning Manager and Planning Executive to run the Sale and Operation Planning Phuong: Thank you, Mr Alex, for your information 62 Time for interviewing 10 AM – 19 Jan 2020 Duration: 20 minutes Location: PSB office, Binh Thanh District, Ho Chi Minh City Interviewee: Mr Mischa Smith - Title: Sale Director of Pasteur Street Craft Beer and Restaurant Co., Ltd - Age: 38 years old - Working experience: Over five years in craft beer Phuong: Good morning Mr Mischa First of all, I would like to say thank you for spending time on an appointment with me this morning I am here to discuss with you to have knowledge about your company and the problems that your company is facing The information in the discussion is only used only for my thesis, and it will not be public to any third party Therefore, please feel free to share with me information about your company Mr.Mischa: Certainly, you can ask me about what you concern Phuong: Can you share with me the general performance of your department's impact on sale results? Mr Mischa: In 2019 some months we achieve sale volume as the target; however, some outlets they stop buying our product, some outlet does not make sale volume as commitment When the sale team develops a new outlet and inform to admin team after that technician team will set up a machine for outlet and delivery team will deliver the beer when outlet order beer via admin team If the outlet stops buying our beer technician will come this outlet to evict machine, the delivery team will come to evict beer if have and sales team needs to develop another outlet to ensure a number of outlet and sale volume as well It takes time and loses sales revenue when the outlet stops buying Pasteur Street beer Moreover, some outlets feedback that they not receive any support activity from selling Pasteur Street beer at their outlet that leads to the speed of sale plodding Besides that, some outlet indicates that the company does not have an attractive discount program Furthermore, some outlet they stop buying Pasteur Street beer because they want to develop their own brand that means they want to sign the contract with Pasteur Street to produce the product with their own brands, such as BiaCraft or Pizza 4P Some outlets stopped buying our beers that impact to the sale planning, and we must find a new customer to cover the sales target To reduce the number of 63 customers stop buying sale team need to develop a potential outlet before sign the contract, the company will provide discount regularly and promotion program to encourage outlets as well as a marketing activity to improve sale volume and keep the loyalty of a customer Phuong: What is the potential problem that leads to the issue that was identified? Mr Mischa: We not have much support activity in the marketing department in 2019 In 2019 we had only a promotion program that is Jasmine IPA month in June, and this month, we sell much beer Moreover, we received feedback or customer complaint from the outlet when they have an issue with our product In 2019 we expanded our product category by developing packing such as bottle and can We launch some new products as JIPA in a bottle, Pasteur Street Pale Ale in a bottle, Dragon Fruit Gose in can, God Water in can However, the performance of these new products is not as good as we expected to support sale team improve sale volume Furthermore, we decided to close some outlets because the performance of these outlets does not achieve our expectations We did not analyze carefully before developing outlets Finally, giving a little budget for promotion or discount for customers, we only support POSM for the customers such as glasses, logo, lighting This promotion is not attractive Phuong: What is the main problem that leads to the issue of PSB? Mr Mischa: I think that the stock shortage is the main problem lead to the drop in sell revenue Sometimes we are out of stock to deliver to our outlet that impacts the sale planning, and we can lose a customer because we commit to provide within one hour from the customer order as the delivery policy Phuong: What are the possible causes of the problem? Mr Mischa: I think that inaccurate sales forecast At the current, we prepare the demand plan at the beginning of the year based on historical data of the previous year and business plan of next year; then, we update the demand plan quarterly With the current system, we only track the sale volume when the outlets order our beers We have not checked when our beer sells to the end-consumers That is the reason why the demand is variant and lead to the sale forecast is inaccurate Moreover, sometimes we not receive the stock level from the production department, and we some promotion activities after that we are out of stock Furthermore, promotion activity impacts the stock shortage Sometime, to hit our volume target for the month, we must the promotion activity For example, Alex - CEO has 64 authorized me to offer a discount to all our clients on our IPA (kegs, cans, and bottles) that should see many orders coming in on July 31st However, I send late notice to the production department Phuong: What is the main cause of the problem? Mr Mischa: I think that the lack of information sharing is the main cause of the problem Sometimes, we updated demand lately when we have a new order or promotion because I think that stock of work in progress in a brewery that is enough for sale plan Sometimes, we not receive information from the production department about work in progress at the brewery for some SKUs, so we decide to a promotion or an event to use those SKUs After that, we are out of stock those SKUs because we not have stock at the brewery right after If we receive information from production sooner, we not use those SKUs for promotion or event, and we can avoid a stock shortage Phuong: From your point of view, what is the best solution for the problem that PSB is facing with I think that it is a good tool for the company to improve information sharing and the collaboration between the Sales Department, the Distribution Department, and the Production Department 65 Time for interviewing PM – 26 Jan 2020 Duration: 10 minutes Location: Hang Xanh warehouse office, Binh Thanh District, Ho Chi Minh City Interviewee: Mr Duc - Title: Marketing Executive of Pasteur Street Craft Beer and Restaurant Co., Ltd - Age: 32 years olds - Working experience: Over three years in craft beer Phuong: Can you share with me the general performance of your department's impact on sale results? Mr Duc: We not have a successful marketing plan to build a brand of Pasteur Street beer PSB attends some events with the same craft beer company We have simple Public Relationship activity; in 2019, we have only one activity that is ‘Turtle lake clean up’ on 28 November Phuong: What are the potential problems that lead to the issue that was identified? In 2019, we stopped marketing even “meet the brewer” every month because Master Brewer stops working for PSB from March that impacts the marketing activity Meet brewer that event conducts every month at our Taproom to introduce to consumers how to brew the beers This event is exciting and attracts many people In 2019 we had many new products However, we not have a breakthrough product in this year We attend some international craft beer competition and get a gold prize and sliver prize, but that are current products 66 Time for interviewing 11 AM – 26 Jan 2020 Duration: 20 minutes Location: Hang Xanh warehouse office, Binh Thanh District, Ho Chi Minh City Interviewee: Ms Bich - Title: Distribution Manager of Pasteur Street Craft Beer and Restaurant Co., Ltd - Age: 35 years old - Working experience: Over five years in craft beer Phuong: Can you share with me the general performance of your department's impact on sale results? Ms Bich: Sometimes, we not have the updated demand for each area lead to we transfer with the wrong plan to Ha Noi and Hoi An after that; we are out of stock in the Ho Chi Minh City area Phuong: What are the potential problems that lead to the issue that was identified? Ms Bich: Phuong: What is the main problem that leads to the issue of PSB? Ms Bich: Based on my point of view, the stock shortage leads to the drop of sale revenue in the wholesale channel of Ho Chi Minh area because we not have the finished goods to deliver to the customers when they make an order Phuong: What is the possible cause of the problem Ms Bich: The forecast is not correct lead to out of stock For example, the sale is better than we think as we see that we still have 14 cases on Friday, so we think that on Monday, we will inform Brewery for filling bottles However, it is finished on Monday We will get experience for both demand plan as well as stock preparing over the weekend Besides that, as the current procedure, we only take the empty kegs from the outlets when they order the new beers, and we transfer the new kegs for them Phuong: What is the main cause of the problem? Ms Bich: Sometimes, we not receive a demand plan for each area that impacts to transfer plan and leads to a stock shortage of the Ho Chi Minh area As I have been confirmed by 67 Chuong – warehouse keeper that he only received 24 kegs of Jasmine IPA instead of 33 kegs as plan It might cause low stock for Ho Chi Minh warehouse as I plan for every single keg because we lack kegs for now Moreover, I can not correct the transfer's quantity for other locations as I already sent it to transporter before your kegs arrived Can I get the information from Brewery sooner in the future that I can correct my transfer for other areas? Phuong: From your point of view, what is the best solution for the problem that PSB is facing with Ms Bich: I am happy if the company applies a new tool that is necessary for our work Moreover, the Sale and Operation Planning will help us to work closely and reduce miss information 68 Time for interviewing PM – 26 Jan 2020 Duration: 30 minutes Location: Brewery office, Hoc Mon District, Ho Chi Minh City Interviewee: Mr Hong - Title: Production Manager of Pasteur Street Craft Beer and Restaurant Co., Ltd - Age: 35 years old - Working experience: Over years in production management Phuong: Can you share with me the general performance of your department's impact on sale results? Mr Hong: In 2019, there were many mistakes or breakdowns in production I think that impacts the sale operation Firstly, the keg washer machine broke on 17/05/2019, and the next malt was milled too fine compare to standard because of the wrong set up of two rollers mills on 18/06/2019 The temperature of Bright Beer Tank is higher than standard because the sensor is default 23/06/2019, or the operator forgets to add an ingredient in the boiling step 14/07/2019 Beer in Fermented Vessel is warm up to 10 oC on 21/07/2019 or Brewing PC broken on 13/08/2019, and finally, the boiler was broken on 21/09/2019 Phuong: What is the potential problem that leads to the issue that was identified? Mr Hong: I think there are two potential problems that lead to the drop in sales revenue, such as the quality of the product and availability of the product Phuong: Why you think the quality of the product are potential problems and how to fix this problem? Mr Hong: I think that the quality of product impact on the consumer With a specific issue which we receive from customers, the production department does traceability and uses five whys tools as well as 5Ms (Machine, Method, Manpower, Measurement, Material) to analyze and find the root cause of the issue to solve the problem For example, to solve the problem of Jasmine IPA and God Water, the Production Manager suggests that changing the recipe and add one step that filters the beer before staging in the production procedure The consequence we not have any customer complaints about God Water from November and customer complaints about Jasmine IPA reduces significantly from December 69 Moreover, we establish the checklist of each step to ensure that operators complete their tasks without the mistake and check the machine frequently as well as prepare the spare parts to fix machines immediately to avoid discontinuing production Furthermore, we establish the checklist of each step to ensure that operators complete their tasks without the mistake and check the machine frequently as well as prepare the spare parts to fix machines immediately to avoid discontinuing production Phuong: What is the main problem that leads to the issue of PSB? Mr Hong: I think that the main problem that leads to the drop in sales revenue is the stock shortage For example, we out of stock in the brewery to pack because of the breakdown of production As planned, DIPA will be ready on 09/07/2019) However, we have an issue with glycol for this tank consequence temperature of this tank did not go down as a plan that means DIPA will not be ready on 09/07/2019 Phuong: What are the possible causes of the problem Mr Hong: I think that the inaccurate sales forecast, the shortage of material, and the lack of information sharing Phuong: Why you think poor sales forecast is the possible cause? Mr Hong: I think that the sale forecasting is not correct that leads to production planning and the stock shortage as well If we update the demand plan quarterly, that impacts the production plan, and sometimes the production plan does not close with the demand plan, and we have a stock shortage of finished goods Moreover, the sale demand is variable We must change the production schedule to fulfill the sale demand, which means we must use some materials higher than material plan at peak time, lead to a material shortage because the suppliers import the materials to stock for us with limited stock Furthermore, we run the promotion activity and the sale team push many finished goods as well as lead to the stock shortage afterward because we only make the production plan to ensure that the stock cover is more than two times I tried to build stock for all the beers However, Pasteur Street Pale Ale sells better than demand In fact, the sale demand is 19 kegs per week, and the actual sale is 22 kegs per week and 30 kegs per week for two weeks continually It causes a stock shortage of Pasteur Street Pale Ale 70 Phuong: Why you think the lack of material is the possible cause? Mr Hong: Sometimes, we not have the raw material on time to brew the beer, and we must change the production plan to wait for the material from the supplier For example, we had problems with the material Based on the Purchase Order 1051, we ordered 2kg of New England yeast and 75 kg of Flaked wheat However, we just received 0.5 kg of yeast The rest have not come yet Mr Toan – Purchasing Manager said Flaked wheat is out of stock from supplier now (22/01/19) Moreover, we receive information from the supplier that they lack Carafa special at least two weeks to deliver to our Brewery (28/02/2019) Furthermore, empty keg returns from the market that is not enough for the packing plan to kick out tank for the new batch that impacts the production plan and leads to out of stock of some SKUs For example, we have only slim kegs of Irish sout and slim kegs of Viet Wit in Ho Chi Minh warehouse to deliver to customers while we have 1575 lit for Viet Wit and 2140 lit of Irish sout that are ready to pack, but we not have any empty kegs to pack these beers to build stock We cannot pack or meet any kind of schedule without kegs We have requested earlier keg deliveries so that we are able to clean and package on the same day Phuong: What is the main cause of the problem? Mr Hong: I think that the lack of information sharing is the main problem The Sales department has not updated the sale demand for some SKUs that impact to the production plan to build inventory Sometimes, the production department sent the work in progress lately, or I did not inform some risks that may lead to a stock shortage in advance because I thought that the sale speed is normal and the stock at the warehouse is enough until the new batch is ready to restock However, the sales department has another plan, a promotion activity, or an abnormal sale speed lead to a stock shortage Every week the production department will update the stock level of all SKUs and inform the risks may lead to a stock shortage This information will be shared with the Sales department and Distribution department so the Sales department and the Distribution department will arrange their work accordingly to avoid a stock shortage Phuong: Do you have any suggestion to solve the main cause Mr Hong: I think that we should apply Sale and Operation Planning or Enterprise Resources Planning 71 Phuong: From your point of view, what is the best solution for the problem that PSB is facing with Mr Hong: Based on my point of view, I think that we should apply the Sale and Operation Planning With this tool, we can work closely with the Sales Department, the Distribution Department, to collect the data of sale and the delivery plan so we can make a production plan efficiently and more accurately 9.4 Organization of Pasteur Street Brewing Company CEO Alex Violette Assistant to CEO Operation Logistic Finance Comercial Taproom Marketing Production Manager Pham Gia Hong Distribution Manager Nguyen Ngoc Bich CFO Tran Viet Thang Sale Director Mischa Taproom Director Anniek Marketing Manager (Vacant) Production Supervisor Operator Logistic staff Warehouse staff Chief accountant Operation Manager Sale Manager Taproom Manager Marketing Executive Key Account Manager 72 REFERENCES (1) Konieczna, I Factors affecting sale revenues – a comparison of dairy cooperatives from ŚWIĘTOKRZYSKIE and MAŁOPOLSKIE province 2018 (2) Abel, D A., Bressan, A., & Sakellarios, N Exploring innovation perceptions and practices among micro and small craft breweries International Journal of Wine Business Research 2017 (3) Doyle P and Stern P Marketing management and strategy Prentice-Hall 2006 (4) Kotler P Principles of marketing European Edition: Prentice-Hall 2014 (5) Rozhkov, K L., & Natalya Il’inichna Skriabina Places, users, and place uses: A theoretical approach to place market analysis Journal of Place Management and Development 2015 (6) Aastrup, J & Kotzab, H., ‘Analysing out-of-stock in independent grocery stores: An empirical study’, International Journal of Retail & Distribution Management 2009 (7) Gruen TW, Corsten DS A comprehensive guide to retail out-of-stock reduction in the fast-moving consumer goods industry Grocery Manufacturers of America, Washington, DC 2007 (8) Grubor, A., Milicevic, N., & Djokic, N The impact of store satisfaction on consumer responses in out-of-stock situations Revista Brasileira De Gestão De Negócios 2017 (9) Avlijas, G., Simicevic, A., Avlijas, R et al Measuring the impact of stock-keeping unit attributes on retail stock-out performance Oper Manag Res 2015 (10) Van Woensel, T., Van Donselaar, K., Broekmeulen, R & Fransoo, J ‘Consumer responses to shelf out-of-stocks of perishable products’, International Journal of Physical Distribution & Logistics Management 2007 (11) Corsten D, Gruen T Desperately seeking shelf availability: an examination of the extent, the causes, and the efforts to address retail out-of-stocks Int J Retail Distrib Manag 2003 (12) Breugelmans, E., Campo, K., & Gijsbrechts, E Opportunities for active stock-out management in online stores: The impact of the stock-out policy on online stock-out reactions Journal of Retailing 2006 (13) Sloot, L., Verhoef, P & Franses, P The impact of brand and category characteristics on consumer stock-out reactions 2002 73 (14) Campo, K., Gijsbrechts E., & Nisol P Dynamics in Consumer Response to Product Unavailability: Do Stock-out Reactions Signal Response to Permanent Assortment Reductions? Journal of Business Research, forthcoming 2002 (15) Emmelhainz, M., Stock, J., & Emmelhainz, M Consumer responses to retail stockouts, Journal of Retailing 1991 (16) Colacchio F, Tikhonova O, Kisis J Consumer response to out-of-stock: decision-making process and influencing factors InECR Europe Berlin Conference 2003 (17) Fitzsimons, Gavan J Consumer Response to Stockouts Journal of Consumer Research 2000 (18) Pizzi, Gabriele and Daniele Scarpi When Out-of-stock Products DO Backfire: Managing Disclosure Time and Justification Wording, Journal of Retailing 2013 (19) Gruen, T., Corsten, D., & Bharadwaj, S Retail out-of-stocks a worldwide examination of extent, causes and consumer responses Washington: Grocery Manufacturers of America, The Food Marketing Institute and CIES 2002 (20) Roland Berger Strategy Consultants ECR: Optimal shelf availability increasing shopper satisfaction at the moment of truth Munich: Author 2003 (21) Berger R Full-shelf satisfaction: Reducing out-of-stocks in the grocery channel Grocery Manufacturers of America (GMA), Washington, DC 2002 (22) Govind, A., Luke, R & Pisa, N Investigating stock-outs in Johannesburg’s warehouse retail liquor sector Journal of Transport and Supply Chain Management 2017; 11(0), a303 (23) Levy, M and Grewal, D Supply chain management in networked economy Journal of Retailing 2000 Vol 76 No 4, pp 415-29 (24) Joachim C.F Ehrenthal, & Stölzle, W An examination of the causes for retail stockouts International Journal of Physical Distribution & Logistics Management (2013); 43(1), 54-69 (25) Ettouzani, Y., Yates, N., & Mena, C Examining retail on shelf availability: Promotional impact and a call for research International Journal of Physical Distribution & Logistics Management 2012; 42(3), 213-243 (26) Lee, H L., & Whang, S Information sharing in a supply chain International Journal of Manufacturing Technology and Management 2000 1(1), 79-93 (27) Singh, J The importance of information flow within the supply chain Logistics Information Management 1996; 9(4), 28-30 74 (28) Gaur, V., Giloni, A., Seshadri, S Information Sharing in a Supply Chain under ARMA Demand Management Science 2005; Vol 51, No 6, pp 961-969 (29) Vasconcellos, L H R., Sampaio, M The Stockouts Study: An Examination of the Extent and the Causes in the Sao Paulo Supermarket Sector // Brazilian Administration Review, Curitiba 2009; Vol 6, No 3, Art 6, pp 263-279 (30) Jeffery, M.M., Butler, R.J & Malone, L.C., , ‘Determining a cost-effective customer service level’ Supply Chain Management: An International Journal 2008; 13(3), 225–232 (31) Gilbert, D Retail Marketing Management, 2nd ed., Pearson Education, Harlow 2003; pp 186-7 (32) Mattsson, S.) Inventory control in environments with seasonal demand Operations Management Research 2010; 3(3-4), 138 145 (33) Taylor, D H., & Fearne, A Towards a framework for improvement in the management of demand in agri-food supply chains Supply Chain Management 2006; 11(5), 379-384 (34) Michael Hugos Essentials of Supply Chain Management 3rd Edition 2011 (35) Thome´, A.M.T., Scavarda, L.F., Fernandez, N.S and Scavarda, A.J Sales and operations planning and the firm performance International Journal of Productivity and Performance Management 2012b; Vol 61 No 4, pp 359-381 (36) Kumar, G., Banerjee, R N., Meena, P L., & Ganguly, K Collaborative culture and relationship strength roles in collaborative relationships: A supply chain perspective The Journal of Business & Industrial Marketing 2016; 31(5), 587-599 (37) Swaim, J A., Maloni, M., Bower, P., & Mello, J Antecedents to effective sales and operations planning Industrial Management & Data Systems 2016; 116(6), 1279-1294 (38) Kristensen, J., & Jonsson, P Context-based sales and operations planning (S&OP) research International Journal of Physical Distribution & Logistics Management 2018; 48(1), 19-46 (39) Oliva, R and Watson, N Cross-functional alignment in supply chain planning: a case study of sales and operations planning Journal of Operations Management 2011; Vol 29 No 5, pp 434-448 (40) Wagner, S.M., Ullrich, K.K and Transchel, S The game plan for aligning the organization Business Horizons 2014; Vol 57 No 2, pp 189-201 (41) Bower, P How the S&OP process creates value in the supply chain The Journal of Business Forecasting 2006; Vol 25 No 2, pp 20-32 75 (42) Muzumdar, M and Fontanella, J The secrets to S&OP success Supply Chain Management Review 2006; Vol 10 No 3, pp 34-41 (43) Scalle, C X., and Cotteleer, M J., Enterprise Resources Planning (ERP), Harvard Business School Publishing, Boston MA, 1999 (44) Davenport, T H., Mission Critical: Realizing the promise of Enterprise System, Harvard Business School Press, Boston MA, 2000 (45) Patil, S Y., & Belal, S M Role of enterprise resources planning implementation in small and medium- sized enterprises National Journal of System and Information Technology 2012; 5(1), 79-88 (46) Ng Kit Chong, The Design of Enterprise Information System using Hierarchical Design Pyramid and Web- based Object-Oriented Model, Hong Kong Polytechnic University Doctoral Dissertation 2002, pp 5-15 (47) Ljutic, B., Marjanovic, P., & Djordjevic, Z ENTERPRISE RESOURCE PLANNING IN SMALL AND MEDIUM-SIZED ENTERPRISES IN SERBIA Aktual'Ni Problemy Ekonomiky: Actual Problems in Economics 2014; (162), 403-409 (48) Aremu A.Y., Shahzad A Enterprise Resource Planning (ERP) Intention to Use for Decision Making Purpose in Higher Education Institutions in Nigeria International Journal of Management and Social Sciences Research (IJMSSR) 2015 (49) Adejare, Y A., Shahzad, A., & Hassan, S Determinants of enterprise resource planning adoption on organizations? performance among medium enterprises LogForum 2018; 14(2) (50) Kovács, G., & Avornicului, M Implementing enterprise resource planning, the case of small and medium-sized enterprises in romania Kưzgazdász Fórum 2010; 13(97), 7788 (51) Godsell, J., Birtwistle, A and van Hoek, R Building the supply chain to enable business alignment: lessons from British American Tobacco (BAT) Supply Chain Management: An International Journal 2010 Vol.15 No 1, pp 10-15 (52) Grimson, J.A and Pyke, D.F Sales and operations planning: an exploratory study and framework The International Journal of Logistics Management 2007 Vol 18 No 3, pp 322-346 (53) Hulthén, H., Näslund, D., & Norrman, A Framework for measuring performance of the sales and operations planning process International Journal of Physical Distribution & Logistics Management 2016 46(9), 809-835 76 ... of the causes that leads to the stock shortage2 9 From the above articles, we find that the shortage of material, including raw material and packaging material what may lead to the stockout of the. .. sale department analysis the historical data, the trend of sale to reduce the variation in demand Hence, two potential causes that eliminated are the shortage of material and inaccurate forecasting... CEO about potential causes that impact the stock shortage, such as the lack of information sharing, the shortage of material, and the inaccurate forecasting He identified that there were two aspects