MYE 2017

Nguyen Duc Trong Thai Ha Tuyet Ngan Tran Thi Ngoc Tuyen
Department: Finance Department: Sales Department: Marketing

Bui Thanh Tung Ha Kieu My Nguyen Thi Quynh Anh

Department: Sales Department: Supply Chain Department: R & D
IMPROVE THE EFFECTIVENESS OF SALES ROUTE
IN HO CHI MINH WITHIN 1 YEAR
 CONTENT

1 How sales route is planned currently & Good point

2 Areas for improvement in sales route planning

3 Recommendation for improvement

 CONTENT

1 How sales route is planned currently & Good point

2 Areas for improvement in sales route planning

3 Recommendation for improvement

HOW SALES ROUTE IS PLANNED CURRENTLY & GOOD POINT

What is an effective sales route?

Regular Feasible Effective

The effectiveness of sales route is reflected by 03 factors:

 Regular: Outlets in the route are visited regularly at the same time week-by-week
 Feasible: Feasible for salesman to visit and for distributors to make delivery
 Effective: Optimize cost & revenue
HOW SALES ROUTE IS PLANNED CURRENTLY & GOOD POINT

Currently sales route is planned:

 To include 01 main road along with other roads/lanes by its side
 To consist of 35 – 40 outlets
 Most of the outlets are planned to visit at F4 (4 times/month or once a week)
HOW SALES ROUTE IS PLANNED CURRENTLY & GOOD POINT

The good point of sales route planning at current is to ensure the road connection in a route, that
is:
 The roads in a route are well connected and not far from each other, the outlets in a route
are close and concentrated
 The sales routes of different dates are not overlapped
Example: 6 sales routes of 1 salesman in TP.HCM

Wednesday

Monday

Thursday
Tuesday

Saturday

Friday
HOW SALES ROUTE IS PLANNED CURRENTLY & GOOD POINT

Looking at 6 sales routes of another salesman, we can notice the road connection in a route is
still ensured.

Example: 6 sales routes of 1 salesman in TP.HCM

Saturday
Thursday

Wednesday
Friday

Tuesday
Monday
HOW SALES ROUTE IS PLANNED CURRENTLY & GOOD POINT

BENEFITS

Benefits for Distributor &

Benefits for Salesman Benefits for store owners
Masan

 Effective in outlet  Increase revenue  Build the trust of store

coverage  Reduce cost  increase owner

 Easier in sales forecast profit  Store owners can plan for

 Easier in supervising their purchase  active in

 Increase revenue
salesman their finance

 Show store owners

professional service
 CONTENT

1 How sales route is planned currently & Good point

2 Areas for improvement in sales route planning

3 Recommendation for improvement

 AREAS FOR IMPROVEMENT

1 Unreal outlets

2 Overlook the factors concerning workload

3 Plan to visit outlets mostly at F4

1. UNREAL OUTLET

Outlet has been closed Unreal outlet

• Reason: Outlet has been closed • Reason: Salesman create unreal

but not been updated in customer outlets to achieve the target of
list number of outlet per route

Unreal outlets/
Salesman Category %
Total No. of outlets

A Food & Powder 73/475 15%

B Meat 19/208 9%

C Beer & Bev 8/197 4%

Total 101/880 11%

2. OVERLOOK THE FACTORS CONCERNING WORKLOAD

THE FACTORS IMPACTING

WORKLOAD OF SALESMAN Store Type Display Program
(Wholesale/Retail)

Currently planning the number of outlet per route is not taking 02 factors into consideration:
 Store Type (Wholesale/Retail)
 Whether outlet registers display program of Masan

As the time spent at wholesaler/retailer or outlet registering/not registering display program is

different, salesman cannot serve all 35 – 40 outlets effectively within 5 hours in the field
2. OVERLOOK THE FACTORS CONCERNING WORKLOAD

An example in reality:
Based on 1 sales route in HCM including:

Total outlets: 224 Wholesalers: 9 Retailers: 184 Unreal outlets: 31

 MYE (as a salesman) needs 5.75 hour/day to considerately serve all outlets (introduce SKU, display
products)

 Salesman only needs 4.91 hours/day, nearly the same as the required working time in field of 5 hours.

*Working time in field: 5 hrs – from the time of visiting the first outlet to the time of visiting the last outlet,
excluding the break at noon

IDEAL (MYE works) ACTUAL (Salesman works) GAP

1 DAY Time for an Time for an Time for a Time for an
Time for a route Time for a route
outlet outlet route outlet
(hour) (hour)
(minute) (minute) (hour) (minute)
Visiting time 2.7 5.01 2.7 4.5 0.0 0.5

Display Time 1.61 3.0 0.2 0.4 1.4 2.6

Moving Time 1.44 2.7 1.97 3.3 -0.5 -0.6

Total 5.75 10.7 4.91 8.2 0.8 2.5

2. OVERLOOK THE FACTORS CONCERNING WORKLOAD

To work in the field within 5 hours, salesman didn’t:

Visit 35 potential outlets in a week

 Lose 18% of coverage, equivalent to 6.6 mil.VND per week

Care about displaying products  ineffective display in store

3. PLAN TO VISIT OUTLETS MOSTLY AT F4

At current 97% of sales routes are planned by F4

Total No. of outlet

No. of outlets / day =
6 days

Monday Tuesday Wednesday Thursday Friday Saturday

35 -  40 35  – 40 35 -  40 35 -  40 35 –  40 35 -  40
3. PLAN TO VISIT OUTLETS MOSTLY AT F4

Planning sales route at current only considers No. of outlet/day but overlooks the factor
Workload of Salesman (as mentioned above), Outlet’s Frequency of Order & % Revenue
Contribution

Reason Consequence

Factors to consider Outlets ordering Outlet ordering >4

<4 times/month times/month
when planning sales route
Visit small Not visit big
outlet too much outlets enough

No. of Calls/ Frequency % Revenue Visit the routes 26% orders

from the routes of
route Of Order Contribution of other days
other days

Difficult for new salesman to know

which outlets should be visited more
or less than F4
 CONTENT

1 How sales route is planned currently & Good point

2 Areas for improvement in sales route planning

3 Recommendation for improvement

 SOLUTION BY PHASES

Decide suitable
Remove unreal Decide suitable No.
outlets frequency of visiting
of Outlet/route
outlets

Issue: Overlook the

Issue: Plan to visit outlets
Issue: Unreal outlets factors concerning
mostly at F4
workload of salesman
1. REMOVE UNREAL OUTLETS

IDEA OF SOLUTION

* In short run: Verify the reality of outlets by

Photographing overall Checking the selling history of

outlet outlet

* In long run: Restrict unreal outlets in customer list. Check the customer list every 6
months
1. REMOVE UNREAL OUTLETS

* Detailed Action Plan:

Expected
Detail PIC Time
Result
Meeting at
Explain to salesman (SM) about the benefits of removing unreal
Sup the start of
outlets
the day

Require SM to claim unreal outlets in their sales route SM 1 day

For the remaining outlet, take 2 photos:

- Pics 1: Overall photo of outlet with its address if possible SM 1 week
- Pics 2: Categories present in outlet Remove the
Short run existing
Scan the revenue of outlets in 2 months to know which outlets Sup 1 day unreal outlets
make revenue contribution and which one do not

Sales Sup (Sup) and SM align with each other to decide the outlets
Sup & SM 1 day
to enter in DMS for visiting

Sup go to the field to check the revised outlets. Each salesman is

Sup 2 months
accompanied by Sup within a week

RSM, Head
Consider the suitable No. of Outlet per route
of Sales
Restrict the
Sup aligns with SM about the definition of unreal outlets, potential
Long Run Sup unreal outlets
outlets
in the future
Check the existence of unreal outlet every 6 months Sup
1. REMOVE UNREAL OUTLETS

BENEFITS

For management

Precise evaluation Forecast and strategy

on market are more precise

For foundation

Salesman use their Improve customer service

time in field effectively  increased revenue
1. REMOVE UNREAL OUTLETS

Example in reality:

Not visit Visit gain

11 39 2 14.8
Unreal outlets Outlets Outlets of Thursday Mil.VND
2. DECIDE SUITABLE NO. OF OUTLET/ROUTE

IDEA OF SOLUTION

Adjust the number of outlets in a route by considering:

NO. OF WHOLESALER & RETAILER NO. OF STORES REGISTERING

Wholesaler Retailer DISPLAY PROGRAM
2. DECIDE SUITABLE NO. OF OUTLET/ROUTE

* Detailed Action Plan:

Detail PIC Time Expected Result

Count:
- Quantity & Visiting time of wholesalers/retailers
Step 1 - Quantity & Visiting time of outlets registering display SM 1 week
program

Sup revises the outlets in routes and aligns with SM

about which outlets to enter in DMS, the visiting
Step 2 Sup 1 week
frequency for each outlet decided by its revenue &
frequency of order

Check the revised routes and give SM field coaching -720 calls/ month / SM for single
(about Unreal outlets, Display in store, store type: team (Food, Café)
Step 3 Sup 2 months - 600 calls mixed team
wholesale/retail & visiting frequency). Each SM is
coached by Sup within one week - Revenue / SM

Step 4 Sup present to ASM, RSM after 2 months of route revision Sup

ASM, RSM review & decide the suitable no. of SM in each

Step 5 RSM 1 week
distributors

Head of
Step 6 Enter data into DSM after aligning with RSM
Sales
2. DECIDE SUITABLE NO. OF OUTLET/ROUTE

Example: Result after following the steps of action plan

* The facts only show the situation in the area where MYE worked and are based in 5 working hours in the
1. Visiting time
field
Average time/day
 
(min)
Wholesalers (9 outlets) 17.7’
Retailers (184 outlets) 4.3’ 5’ 3.1’ 2.7’
Average 5’

2. Displaying time
Average time/day 10.8 min/call
  (min)
Outlets with Displaying Program
7.7’ Given 5-hour
(22 outlets)
Outlets without Display Program working time in
2.4’
(171 outlets) field
Average  3.1’

3. Moving time
Average time/day 27-28 CALLS/DAY
 
(min)
Moving time (192 outlets) 2.7’
Average 2.7’
3. DECIDE SUITABLE FREQUENCY OF VISITING OUTLETS

IDEA OF SOLUTION

Step 1 Step 2

Decide visiting frequency by Re-arrange sales route by new

frequency of visit

No. of % Revenue
Order/month contribution

Consider these 2 factors as 2 filters to find out

suitable Frequency of Visit for each outlet
3. DECIDE SUITABLE FREQUENCY OF VISITING OUTLETS

* Detailed Action Plan:

Expected
Details PIC Time
results
Get data of Frequency of Order & Revenue of each store from
Step 1 Sup
DMS
How to decide Frequency of Visit appropriately:
Firstly, classify stores by number of order/month:
 Group 1: > 4 order/month
 Group 2: 2 – 4 order/month
 Group 3: < 2 order/month
 Calculate % revenue contribution of each group Suitable Frequency
Step 2 Secondly, arrange stores by revenue contribution of stores from Sup 2 weeks of Visit for each
the highest to the lowest: store
 The first stores making revenue contribution equal to Group
1 will be visited at F8
 Next stores making revenue contribution equal to Group 2
will be visited at F4
 The rest will be visited at F2
Sup aligns with Salesman about the frequency of visit for each Sup
Step 3
store & SM
Compare the new number of calls of each SM with target to Route is planned
Step 4 Sup 1 week
ensure each SM has enough calls as required suitably, stores are
well served and
Apply the results from Step 2 to rearrange the route in which: delivery by
Sales
Step 5 Route of Monday near to Route of Thursday, Tuesday near 1 week distributor is
Sup
Friday, Wednesday near Saturday effective
3. DECIDE SUITABLE FREQUENCY OF VISITING OUTLETS

Example of How to decide suitable Frequency of Visit for each store

Firstly, stores are divided into 3 groups by
Number of order/month:
 >4 orders, 2-4 orders, <2 orders.
 Calculate % contribution to total revenue
of each group.
Secondly, arrange stores by revenue contribution of
stores from the highest to the lowest :
 The first stores contributing making 30% revenue
contribution will be visited at F8
 The next stores making 30% revenue contribution
will be visited at F4
 Other stores will be visited at F2

Stored Order/month Group % Revenue Revenue Revenue

Store New F
(million VND) contribution
76 TDT 6
49/56 TDT 43.9
220/66 TH 5 >4 30%
………… G4 CHT 37.0 30% F8
Total number of store: 7 220/66 TH 35.7
33 CT 3 Total number of store: 3
49/24 PB 3 2-4 30% 76 TDT 24.1
………… 32/11/4 HVC 10.2 30% F4
Total number of store: 53
…………. ……..
32/11/4 HVC 1
Total number of store: 12
49/56/ TDT 1 33 CT 3.3
<2 40%
G4 CHT 1 49/24 PB 2.7 40% F2
………… ………… ……..
Total number of store: 164 Total number of store: 209
3. DECIDE SUITABLE FREQUENCY OF VISITING OUTLETS

Example of How to re-arrange sales route by new frequency of visit

Example of Monday route & Thursday route
 F4 outlets will be visited 1 time/week
 F8 outlets need to be visited 2 times/week, so on Monday, visiting F8 outlets of Monday & F8
outlets of Thursday  3 F8 outlets (Do the same on Thursday)
 F2 outlets only need to be visited 2 times/week so ½ number of F2 outlets on each route will be
visited in odd weeks (week 1, 3), ½ will be visited in even weeks.
Routes that should be close to each other: Monday – Thursday, Tuesday – Friday, Wednesday–
Saturday so that salesman can visit & distributor can deliver effectively.

No. of
Route outlet/ F8 F4 F2 Week 1 Week 2 Week 3 Week 4
Route

3 4 3 4 3 4 3 4
Monday 37 1 4 32        
16 16 16 16

3 1 3 1 3 1 3 1
Thursday 37 2 1 34        
17 17 17 17
3. DECIDE SUITABLE FREQUENCY OF VISITING OUTLETS

BENEFITS

Increase coverage & revenue by using time to visit new

outlets instead of visiting F2 outlets too often

Reduce orders from visiting route(s) belonging to other

days

New salesman can catch up with work→ No loss of

opportunity to get orders
 MYE 2017
THANK YOU FOR YOUR TIME