FAWGroupMarketingINTERVIEWDATE:5May2025INTERVIEWERNAME:PaulGao,SherryDing,JulianMa,AnneWang,JaneXuIntervieweeNameMr.DongHaiyangCompanyandAddressFAWTelephone/Fax0-13904327903GeneralCommentsATKearney’sfirstinterimdrawsanoverallpictureofFAWTrading,butitonlyrecordsourgeneralsymptoms,wewishyoucouldsetupthepriorityoftheproblemsanddetailcriteriaofeachsalessectionKeyIssuesMr.Donglistedhis6suggestionstowardsFAWTradingCompany’sfurtherdevelopment1.ImprovetheinformationsystemFAWTradingCompany’sinformationsystemlessdevelopedthanwhatitreallyneeds–Infoflowisstoppedrandomlyduetothefragmentedtransferchannelandisdelayedbecauseoftheunclearjobdescription,whichhadseverelyinfluencedtheoverallsalesefficiencyandeffectiveness.InformationsystemimprovementisagoodstartingpointforA.T.Kearney’snextstepbecauseof:InformationsystemimprovementcouldchangesalesbehaviorfromthebasicaspectsandtheachievementiseasilytobetestedFAWInformationDepartmentisnewlyestablishedsoitdoesnothasastrongresistancetowardchange.ItcouldbebetterforA.T.Kearneytostartworkinasectionwhererelationshipisrelativelyeasytodealwith2.Wholesupplychainoperationshouldbebasedonaccurateorder/marketforecastFAWishardtoadoptthe“Producttomarket”systembecauseof(1)Inaccurateorderinformationandmarketforecast:Thereisnopunishmentfortemporaryorderchangeandinaccurateorder,thehighestrecordfororderchangetillsofaris13timespermonth(2)GroupPlanningandFinanceDepartment’spowerindecidingthemonthlyproductionplanistoostrongNote:Currentshort-termproductionplanoperationprocessFAWTradingmakesaroughproductionplanaccordingtothemonthlyorder/MarketforecastGroupPlanning&FinanceDepartmentdecidestheproductionplananddeliverstoProductionDepartmentFAW’slong-termproductionplanshouldadheretothewellanalyzedend-user/marketinformation.Mr.Dongroughlydescribehisplanas:SuggestedProcess(1)Dealersdelivertheorder/marketforecasttoRegionalSalesCompany(2)RegionalSalesRepOfficepresentsthesummarizedmarketforecasttoFAWTradingCompany(3)FAWTradingCompanymakesaseriesofplansanddeliverstherelatedtaskstoRegionalRepOffice:A12months’forecastA6months’tentativeforecastA3months’firmforecastA1months’planbasedonorderAweeklyminorproductionadjustmentaccordingtostatusquo(4)FAWTradingCompanysetsupaformalinternalsalescontractwithdealers.Thecontractshouldlistalltheregulationssothedealerswillbepunishedincasetheycouldn’tfulfilltheirinitialordersMonthlyOrderMarketForecastFAWTradingGroupPlanning&FinanceDepartmentProductionDepartmentFAWTradingCompanyRegionalSalesRepOfficeFAW(Group)DealersProductionDepartment(1)(2)(3)(4)(5)(6)(5)FAWTradingCompanydeliverstheproductionplantoFAW(Group)forbudgetapproval(6)FAWGroupsendstheproductionplantoProductionDepartment3.Warehousing&LogisticsManagementFAWneedstoestablishatruckdeliverysysteminordertocontrolthesequenceandquantityoftrucksinamorescientificandaccuratemanner.E.g.,adealerwithhugeA/CtoFAWwillnotbeallowedtoladeanytruckforthesystemwillautomaticallylockhisdeliverypermission.FAW’scurrentinventorymanagementisirrational.Responsetoseasonalorlocalmarketchangeisslowandinflexible,whichcausedbiginventorylosstoFAW.Mr.DongthinksFAWshouldadopt“OperationSceince”incalculatingtheinventoryatFAWChangchun,FAWRegionalRepOfficeandlocaldealers’side.4.RegionalManagementCurrentregionalsales/servicenetworkneedstobere-designedaccordingtothelocalpopulationdensity,economicstatus,serviceradiation,etc.Ifpossible,FAWcouldequipitsRegionalsalesofficewithmorecentralizedlocalsalesrights,e.g.marketing,serviceetc.5.DealershipIs“3in1”exclusivedealershipfitforChina’sMediumandHeavy-Dutytrucknow?Istruck’sService&Componentbusinessthatprofitable?CouldFAWprovidethetruckleasing/oldtruckbusinessinthenearfuture?…Fullyleveragethebusinesspolicytocontrolthedealerse.g.VWGermanymakedifferentbusinesspolicytowardsdifferentsizedealers:Profitoflargescaledealers=Commission+BonusProfitofsmallscaledealers=Commissiononly6.CIbuildingCurrentFAWimageisnotwelldesigned.FAWsalesmenvisitclientswithplasticbagsanddirty,non-standarddesignednamecards.AccordingtoMr.Dong’sexperience,leadingautoOEMsallhavewellmanagedCI,fromstaffdressingtoofficedesign.