Inefficient sales plan at Amann VietNam Co., Ltd

Abstract

For manufacturing enterprise, sales plan is very important because it provides operation team with the demand forecast for production, HR department headcount budget, financial department cash flow, etc. The thesis indicates the central problem of Amann Vietnam based on analyzing income statement of financial report 2018 and collected data from interviews of all sales members and related departments. There are 3 relevant symptoms including increase in COGS, decrease in profit margin and negative profit. The central problem is inefficient sales plan that comes from two main causes including lack of market orientation and applying price centralized decision making structure. Two sets of solution are suggested in the thesis, they are: Narrow the gap between what top managers say and what they do, Propose price decentralized decision-making structure Total cost of solutions is estimated at USD16,500 which can brings benefits in terms of both qualitative and quantitative perspective as followings: Enhance communication among chief executives, junior managers and staff. Erase ambiguity of junior managers and other departments in business strategy of the organization. Adapt quickly to the changes at local market. Shorten price approval process to increase service level to customers. Increase work efficiency of sales people. Improve profit margin and profitability. Enhance the competitiveness in local market. Improve gross profit margin from 26% to 30% in 2020. Increase the number of customers from 150 to 200 in 2020 and to 300 in 2023. Achieve CAGR at 38.5% for the period of 2019 and 2024.