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The stock shortage of finished goods at warehouse: a case of Pasteur Street Craft Beer and Restaurant Co., Ltd

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Download Master Thesis: The stock shortage of finished goods at warehouse: a case of Pasteur Street Craft Beer and Restaurant Co., Ltd

Mã: ThS08.153 Danh mục: , Nơi xuất bản: International School of Business (ISB), Trường Đại học Kinh Tế TpHCMChuyên Ngành: Quản trị kinh doanhLoại tài liệu: Luận văn thạc sĩNăm: 2020Ngôn ngữ: Tiếng AnhTên tác giả: Phan Hong Phuong
Số trang: 76

Download Master Thesis: The stock shortage of finished goods at warehouse: a case of Pasteur Street Craft Beer and Restaurant Co., Ltd

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.

Keywords: Business logistics

CONTENTS

EXECUTIVE SUMMARY ………………………………………………………………………………………..5

Acknowledgments ……………………………………………………………………………………………………..6

List of tables………………………………………………………………………………………………………………7

List of figures…………………………………………………………………………………………………………….7

1. INTRODUCTION ………………………………………………………………………………………………8

1.1 Overview of the craft beer industry. ……………………………………………………………….. 8

1.2 Company introduction …………………………………………………………………………………….. 9

2. 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

3 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

4 PROBLEM JUSTIFICATION ………………………………………………………………………….33

4.1 Problem definition …………………………………………………………………………………………..33

4.2 Problem existence ……………………………………………………………………………………………35

4.3 Problem importance……………………………………………………………………………………….. 37

5 CAUSE VALIDATION …………………………………………………………………………………….39

5.1 Potential causes ……………………………………………………………………………………………….39

5.1.1 Lack of information sharing ………………………………………………………………………..42

5.1.2 Shortage of materials ……………………………………………………………………………………44

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5.1.3 Inaccurate sale forecasting ………………………………………………………………………47

5.2 Cause validation………………………………………………………………………………………………49

6 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

7 CHANGE PLAN DESIGN ………………………………………………………………………………..55

7.1 Objectives ………………………………………………………………………………………………………..55

7.2 Targeted Outcome …………………………………………………………………………………………..56

7.3 Action plan implementation ……………………………………………………………………………56

8. CONCLUSION…………………………………………………………………………………………………57

9. 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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List of tables

Table 1: List of product sale in Ho Chi Minh City wholesale channel in 2019

Table 2. Actual sale volume in 2018 of the wholesale channels in Ho Chi Minh area

Table 3. Sale volume of the wholesale channel in Ho Chi Minh City in 2019

Table 4. Number of customers stop buying Pasteur Street beer in Ho Chi Minh

Table 6. List of customers who stop buying Pasteur Street beer

Table 7. List of products which receive customer complaints

Table 8. Stock shortage of Pasteur Street beer in 2019 in Ho Chi Minh City

Table 9. 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 3. Initial cause-effect map
Figure 4. Cause and effect map

Figure 5. Level of production planning at Pasteur Street Brewing
Figure 6. Fishbone diagram of the main problem in PSB Figure 7. Final cause and effect map (Author synthesis)

 

 

 

 

 

 

 

 

 

 

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1. 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 do 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.

 

 

 

 

 

 

 

 

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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 high- quality 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 5 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

Real American craft beer made to world class standards.

· Innovative

Create beer, test boundaries, and excite beer drinkers with new ideas to ensure we remain leaders in South East Asian craft brewing.

· Quality

Expatriate, best in class brewmasters sit on our board and run our brewing operations to ensure our production meets the highest standards
· Local

Keeping us true to our origin, we use Vietnamese sourced ingredients including jasmine, lemongrass, cocoa and passionfruit to add intrigue to our core
range of beers.

 

 

 

 

 

 

 

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2. 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.

 

 

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Table 1. List of product sale in Ho Chi Minh City wholesale channel in 2019

No Product Kind of packaging

Keg 20 liters Can 330 ml Bottle 330 ml

1 Jasmine IPA x x x

2 Passion Fruit Wheat Ale x x

3 Saigon Saison x

4 Irish Stout x

5 Viet Wit x x

6 Pasteur Street Pale Ale x x

7 Dragon Fruit Gose x x

8 Double IPA x

9 God Water x x

(Source: PSB company Sale department)

From the above table, we found that in wholesale in the Ho Chi Minh City area, sale team

sale eight core beers per nine core beers of company and one seasonal beer per three seasonal beers of company and total 16 SKUs (Stock Keeping Unit). In the wholesale channel in Ho Chi Minh City, Pasteur Street beer was distributed to outlets where customers buy and sell to consumers, such as hotels, beer clubs, bars, and restaurants. As information from the Sale department, the total outlet in Ho Chi Minh is about 150 outlets, and PSB does not have an authorized outlet. The number of outlets fluctuates by monthly basis because some outlets
stop buying Pasteur Street beer and some outlets were developed by sale team. Almost outlets are in central of the city where have many foreigners and tourists. At the outlets, PSB will supply machine to pour the beer from keg 20L to glasses and provide maintenance service for these machines, such as line cleaning of the device, fix issuer of the machine as well as PSB also provide CO2, glasses, some point of sale material for the outlet. In addition, the sales
team offers products in can or bottle for outlets to sell to consumers.

 

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In the next sessions, the author will collect secondary data such as sales quantity compare to the target of the sale, and associated symptoms like the number of customers stop buying products, feedback of customers about the quality of the product, and stock shortage.

2.1 Sale volume does not achieve planned sale volume

Firstly, we collect data of sale volume for the wholesale channel in Ho Chi Minh area in 2018 as the table below

Table 2. Actual sale volume in 2018 of the wholesale channels in Ho Chi Minh area

Month Actual sale volume 2018 (L) Number of outlets The ratio of sale (L)

January 9,785 116 85

February 7,757 116 67

March 9,950 118 85

April 9,098 116 78

May 8,761 115 76

June 7,782 115 68

July 9,833 115 86

August 9,685 115 84

September 8,933 111 80

October 9,973 116 86

November 10,651 121 88

December 9,820 120 82

Average 9,336 80

(Source: PSB company Sale department)

From the above table, we found that the wholesale channel in the Ho Chi Minh City area has about 120 outlets per month in 2018, and PSB does not have any authorized outlets in this area. Also, one outlet sold from 68 L per month to 88L per month and an average of 80L per month per outlet. Moreover, target sale volume in 2019 of the wholesale channels in the Ho Chi Minh City area was set up based on actual data of in 2018 and business plan in 2019 of PSB. Sale volume in 2019 for the wholesale channel in the Ho Chi Minh City area forecast to increase by about 10% to 20% compared to 2018. To achieve this objective, the sales
department will develop more outlets in Ho Chi Minh City, such as Circle-K, Aeon.

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However, the actual sale volume in 2019 of the wholesale channels in Ho Chi Minh area is lower than the target sale volume as the table below

Table 3. Sale volume of the wholesale channel in Ho Chi Minh City in 2019

Month
Target sale volume

in 2019 (L)
Actual sale volume

in 2019 (L)
Variance

(%)
Number of

outlets

ROS

January 10,872 10,278 -5.5% 128 80.30

February 8,618 8,090 -6.1% 116 69.74

March 11,055 9,577 -13.4% 139 68.90

April 10,109 9,701 -4.0% 133 72.94

May 9,734 9,820 0.9% 132 74.40

June 9,146 9,505 3.9% 127 74.85

July 11,816 11,762 -0.5% 141 83.42

August 11,619 11,729 1.0% 146 80.34

September 10,726 10,990 2.5% 153 71.83

October 11,970 11,289 -5.7% 154 73.31

November 12,793 12,243 -4.3% 166 73.76

December 11,813 12,061 2.1% 153 78.84 (Source: PSB company Sale department)
We see that actual sale volume is lower than the target volume as the above table even

through target sale volume in 2019 for the wholesale channel in Ho Chi Minh area was set up based on actual sale data in 2018 and an increase in sales volume for each area as well as expand business plan. Almost, actual sale volume does not achieve the planned sale volume and except in June sale volume higher than the target. Sale volume does not reach a target impact directly on the financial performance of the company and turnover of a salesperson as well as effects indirectly on production operation, and purchasing plan even expands business planning. Some factors might lead to sale does not achieve targets such as customer stop buying product, customer complaint, shortage of finished goods to deliver to customers. Moreover, we will understand these factors in the next sections.
2.2 An increasing of the number of customers stop buying Pasteur Street beer

We collected data from the Sale department for the wholesale channels in Ho Chi Minh area

 

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Table 4. Number of customers stop buying Pasteur Street beer in Ho Chi Minh

 

Month
Number of outlets stop

buying PS beer
Total of outlet in

2019
Ratio (%) Sale volume

(L)

January 2 128 2% 10,278.31

February 3 116 3% 8,090.14

March 3 139 2% 9,577.46

April 3 133 2% 9,701.41

May 3 132 3% 9,820.85

June 3 127 2% 9,505.35

July 6 141 5% 11,762.25

August 6 146 5% 11,729.58

September 7 153 5% 10,990.42

October 8 154 5% 11,289.01

November 8 166 5% 12,243.38

December 7 153 5% 12,061.97 (Source: PSB company Sale department)
The ratio of outlet stops buying Pasteur Street beer is increasing monthly from 2% in quarter one and quarter 2 to 5% to quarter 3 and quarter 4. We can see in more detail the trend in
figure 1.

9
8 8
8
7 7
7
6 6
6

5

4
3 3 3 3 3
3
2
2

1

0
Jan-2019 Feb-2019 Mar-2019 Apr-2019 May-2019 Jun-2019 Jul-2019 Aug-2019 Sep-2019 Oct-2020 Nov-2020 Dec-2020

Figure 1. Number of customers stop buying Pasteur Street beer per month

 

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2.3 An increasing number of customer complaint

We collected data on customer complaints from the market within one year from January

2019 to December 2019 in the wholesale channel in the Ho Chi Minh area. The observation indicated that the number of customer complaint increase by quarterly
Table 5. Number of customer complaint in 2019

Customer complaint Quantity Increase Sale volume (L) Increase

Quarter 1/ 2019 0 27,945

Quarter 2/2019 5 29,027 3.9%

Quarter 3/2019 6 20% 34,482 18.8%

Quarter 4/2019 11 80% 35,594 3.2%

Total 22

(Source: PSB company Sale department)

Even the sale volume is increased. However, the ratio of customer complaint increases significantly and figure 2 indicate that the trend of customer complaint is increasing

6

5
5

4

3 3 3
3

2 2 2
2

1 1
1

0 0 0
0
Jan-2019 Feb-2019 Mar-2019 Apr-2019 May-2019 Jun-2019 Jul-2019 Aug-2019 Sep-2019 Oct-2020 Nov-2020 Dec-2020

-1

(Source: PSB company Sale department)

Figure 2. Number of customers complaint about Pasteur Street beer per month

We will find out more detailed customer complaints in 2019 as below.

 

 

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Firstly, in the first quarter of 2019, we have no customer complaints. Secondly, in the second quarter of 2019, five customer complaints were recorded in the quality report. Next, in the third quarter of 2019, six customer complaints were filed in the quality report. Finally, in the fourth quarter of 2019, eleven customer complaints were recorded in the quality report.
Sale volume increases by monthly basis; however, customer complaint increases significantly compared to the speed of sale volume. In the next sessions, we will analyze more detail about the above customer complaint.
2.4 Stock shortage

Firstly, we understand the flow of goods in the Pasteur Street company. From the demand of customers and consumers the sale department will make the sale forcast for the yearly, quarterly and monthly after that the production departmen will make a production plan to fulfill the sale forecast. Moreover, the finished goods will be transferred from the Brewery to central warehouse in Ho Chi Minh City in order to transfer to all of braches such as Ha Noi, Hoi An, Phu Quoc. When the outlets make a purchase order sale admin team will inform to warehouse keeper and delivery team to delivery finished goods to the outlet. However, in
2019, sometimes, we did not have finished goods at Ho Chi Minh warehouse to deliver to customers for some SKUs that is the stock shortage.
Secondly, we find out that we are out of stock Irish Stout beer to deliver to customers in January for one week. Next, there is a lack of Dragon Fruit Gose beer to provide to the outlet in February for one week. Moreover, we are out of stock of Jasmine IPA in a bottle in March. In May, Pasteur Street Pale Ale is out of stock to deliver to customers. Besides that, in June, Viet Wit beer in a bottle is out of stock for one week. Furthermore, in July, we lack Double IPA beer to deliver to customers. In September, we are out of stock Jasmin IPA beer in a bottle. Finally, in October, we are out of stock for God Water beer.
In summary, we had eight times a stock shortage for the wholesale channels for the Ho Chi

Minh City area in 2019.

These above symptoms have a significant influence on the production and business plan of the company due to the following reasons.
Firstly, actual sale volume does not achieve a target impact on the financial performance of the company and the turnover of sale person in the sales department. Secondly, customers stop buying products of the company leads to losing customers or consumers. Outlet stops
buying PSB beer impact to revenue of the company because the sales team takes time to open a new outlet to cover sale volume and impact to cost of distribution and technical service to
evict the machine from outlet to warehouse. Next, customers’ complaints about the quality of

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product impact on the loyalty of customers or consumers. Finally, the stock shortage of finished goods to deliver to customers directly impacts the revenue of the sales department and the profit of the company.
To achieve the performance of the sales team, we must find the causes of these symptoms

and the root cause of these problems to solve this issue to develop the company sustainably.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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3 PROBLEM ANALYSIS

3.1 The initial cause-effect map

From these symptoms, as mentioned above, the author did an in-depth interview to understand what the potential causes of these symptoms are. The author conducted 5 group interviews with the CEO, Sales Director, Marketing Executive, Distribution Manager, and Production Manager.
3.1.1 Customers stop buying Pasteur Street beer

As mentioned, some customers stop buying Pasteur Street beer of wholesale channels in Ho

Chi Minh area in 2019, we discuss with Sale Director, and he said that

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.
We collect data of customers who ended buying PSB beer in 2019 as the below table.

Table 6. List of customers who stop buying Pasteur Street beer Month List of customers stop buying PSB beer January Equatorial D5, The Liquid House,
February Hippie Beer, Bia Cao Boi, The rabbit

March Spoon Bar, 21 lounge, Beer Graden D2

April Auparc Propaganda, Home Saigon Restaurant, Savoo

May Oysters Bar, Beer Craft D3, Citadel

June Chanh Bistro, Remi bar, The Rabbit,

July Game on, CirCO Coworking Space, SAGO BISTRO, BEER GARDEN, 21

LOUGE, Bia Cao Bồi,

August Lush Burger, Saigon Outcast, Italian BBQ 2, Primier, Next Bar, Lix Bar, Malan pub.
September Rogue, Tap D7(chiller), Icorda (Nitrotap), Kha Khu, LIX BAR, Marlan

Pub, Amazing Coffee.

October Relish d1, D-two sports Bar, Sky 9, Brewlilant, LAPIS CINE, LIFE HOTEL, PIZZA 4PS Xuan Thuy, PIZZA Hai Ba Trung,
November LEFE, Pizza Phan Ke Binh, Marlan Pub, The Hill Station River Cottage, Auback chillGrill,
December Saigon Le Van Sy, LIFE Hotell, BANANA MAMA, Level 1, Hyatt,

Santorino,

(Source: PSB company Sales department)

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Firstly, we understand the impact when customers stop buying Pasteur Street beer. The Sale

Director share that

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.
Then we discuss with Sale Director about the reason’s outlet stops buying Pasteur Street beer, he response that
Some outlet feedback that they do not receive any support activity from selling

Pasteur Street beer at their outlet that leads to the speed of sale plodding. Some outlet indicates that the company does not have an attractive discount program. And some outlet they stop buying Pasteur Street beer because they want to develop their brand that means they want to sign the contract with Pasteur Street to produce the product with their brands, such as BiaCraft or Pizza 4P.
Next, we interview the Sale director to understand sale status supporting activity for an outlet We do not have much support activity in the marketing department in 2019. In 2019 we had only a promotion program that is Jasmine IP month in June, and this month, we sell much beer. We need more same promotion programs to push sales revenue.
Finally, we discuss with Sale Director how to solve this problem, he concludes

To reduce the number of 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.

With this action plan from the sale team and supporting from Marketing team and company, it can reduce the number of customers stop buying Pasteur Street beer.

3.1.2 Feedback from customers about the quality

Quality of product plays an essential role during the supply chain from company to customer and consumer. When we ask the CEO about the role of quality of the product, and he said
that

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The quality of products plays the most important role in making customer satisfaction and bring success for the company. Additionally, if the quality of the product is stable, the sales team, marketing department, and outlet will be confident to introduce products for end-users. Besides that, durable quality products will bring satisfaction to
customers.

And Sale director amend about quality of product and customer complaint

However, we received feedback or customer complaint from the outlet when they have an issue with our product.
From the above information, we collected data on customer complaints from the market within one year from Jan 2019 to December 2019 in the wholesale channel in the Ho Chi Minh area.
In the first quarter of 2019, there is no complaint from the wholesale channel in Ho Chi Minh from January to March in 2019.

In the second quarter of 2019, five customer complaints were recorded in the quality report. Firstly, in April, there is only one customer complaint, an outlet in which they feedback that Passion Fruit Wheat Ale product has a weird sour tasted. The number of customer complaints increases in May with two customer complaints, that are Pullman in District 1 complaint that Passion fruit Wheat Ale product is too much foam, the taste is terrible, and another outlet response that Irish Stout product is too much foam.
Customer complaint in June focuses on Jasmine IPA. Firstly, BiaCraft D3, located in Tu Xuong street, the complaint that Jasmin IPA tastes are different, and the second customer complaint from Buddha-Bar also complaint Jasmine IPA tastes different, flat.
In the third quarter of 2019, six customer complaints were recorded in the quality report. In July, there is only one customer complaints and focus on Jasmine IPA product. They sent the feedback that Jasmine IPA beer has a strange color, too hazy, and the taste is very flat. In August, there are two customers complain that Jasmine IPA beer is hazy, the taste is flat, bad smell or strange color from Ut Ut Xuan Thuy, Bia Craft District 2. In Sep, there are three customer complaints. One complaint to Jasmine IPA beer is hazy than normal and another customer complaint about God Water beer that this beer is low carbonation and poor head retention as well as another outlet complaint that yeast particle inside Jasmine IPA can.
In the fourth quarter of 2019, eleven customer complaints were recorded in the quality report. In October, there are three customer complaints in which two complaints to Jasmine IPA can
like low fill volume of Jasmin IPA can, squishy can with Jasmine IPA can. Also, in October,

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ThS08.153_The stock shortage of finished goods at warehouse a case of Pasteur Street Craft Beer and Restaurant Co., Ltd

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ThS08.153_The stock shortage of finished goods at warehouse a case of Pasteur Street Craft Beer and Restaurant Co., Ltd
The stock shortage of finished goods at warehouse: a case of Pasteur Street Craft Beer and Restaurant Co., Ltd