Operational plan Va et Vient OPL team 7 Student no. Role Imar van Riet 425243 Project manager Wanghuan Yu (Colin) 422579 Logisitcs manager Shanshan Wang (Dominic) 422586 Human Resource & Quality manager Xinyi Yu (Ella) 422578 Finance manager Marianneke Romero van der Linden 426151 Marketing & Communication manager Monday 22 January 2007 Operational plan – Va et Vient Executive Summary Va et Vient provides an efficient and transparent transport process for companies who demand high standards for light weight parcels deliveries. Va et Vient focusses on small and middle sized companies who are selling via e-commerce. Providing a transparent transport process means that Va et Vient will take care of the storage, order picking and distribution of the customers products. Consumers pay a price between € 5.00 and € 10.00 depending on weight of the parcel. Customers of Va et Vient pay a price of € 2.50 per parcel for storage and order picking. The change of management and company structure is crucial in the success of the expansion of the company. Bringing in experience in the form of a new General Manager provides Va et Vient a basis for further expansion. The key to making profit is being efficient in warehousing, order picking and ditribution. The first year Va et Vient will operate in France’s main district Ile de France and the surrounding cities Rouen, Reims and Orleans. This area covers 20.5% of the total French population. The second year Va et Vient will expand to Rhτne Alpes and Provence Alpes Cτte d’Azur, and the coverage will increase up to 40% of the French population. Operational plan – Va et Vient Contents Executive Summary............................................................................................................ 1 Contents .............................................................................................................................. 2 Introduction........................................................................................................................ 4 Analysis and problem definition..................................................................................... 4 Approach............................................................................................................................ 6 Strategy ........................................................................................................................... 6 Management....................................................................................................................... 7 Mission........................................................................................................................... 7 Strategy ........................................................................................................................... 7 Company structure .......................................................................................................... 7 General Manager............................................................................................................. 7 Internal communication .................................................................................................. 8 Tasks and responsibilities ............................................................................................... 8 Logistics department........................................................................................................... 9 Mission........................................................................................................................... 9 Objectives ....................................................................................................................... 9 Services ........................................................................................................................... 9 Process from factory to consumer............................................................................... 9 Transport of goods from factory to warehouse......................................................... 10 Storage of goods in warehouse ................................................................................. 10 Order picking ............................................................................................................ 11 Distributions to consumers ....................................................................................... 11 Prices......................................................................................................................... 11 Covered areas............................................................................................................ 12 Marketing & Communication department ........................................................................ 14 Mission......................................................................................................................... 14 Strategy ......................................................................................................................... 14 Tasks and responsibilities ............................................................................................. 14 Marketing and Communication Plan ............................................................................ 14 Va et Vient’s Mission Statement .............................................................................. 14 Vision........................................................................................................................ 14 Ojectives ................................................................................................................... 14 Market Analysis ........................................................................................................ 15 Target group.............................................................................................................. 15 Geographic................................................................................................................ 15 Demographics ........................................................................................................... 15 Customer analysis ......................................................................................................... 16 SMEs in France......................................................................................................... 16 Competitive Analysis.................................................................................................... 17 Competitors............................................................................................................... 17 Positioning ................................................................................................................ 18 Opportunity analysis ................................................................................................. 19 Brand development strategy ..................................................................................... 19 Brand Positioning...................................................................................................... 20 Promotion and Budget .............................................................................................. 21 Operational plan – Va et Vient Sales department ............................................................................................................... 24 Mission......................................................................................................................... 24 Strategy ......................................................................................................................... 24 Structure....................................................................................................................... 24 Tasks and responsibilities ............................................................................................. 24 Human resource and quality management department..................................................... 25 Mission......................................................................................................................... 25 Strategy ......................................................................................................................... 25 Salary system ................................................................................................................ 25 Performance management............................................................................................. 25 Salary increase .............................................................................................................. 25 Internal environment..................................................................................................... 25 Structure....................................................................................................................... 26 Job descriptions............................................................................................................. 26 Manager responsibilities ............................................................................................... 29 Financial department......................................................................................................... 32 Balance sheet 01-01-2006......................................................................................... 32 Balance sheet 01-01-06 explanation ......................................................................... 33 Balance sheet 01-01-2007......................................................................................... 34 Balance sheet 01-01-2007 explanation ..................................................................... 35 Balance sheet 01-01-2008......................................................................................... 36 Balance sheet 01-01-2008 explanation ..................................................................... 37 Income statement 2006/2007/2008........................................................................... 38 Cash flow 2006/2007/2008....................................................................................... 39 Distribution revenue forecast 2006........................................................................... 40 Warehouse revenue forecast 2006 ............................................................................ 41 Prices forcast 2006.................................................................................................... 41 Distribution revenue forecast 2007........................................................................... 42 Warehouse revenue forecast 2007 ............................................................................ 43 Prices forcast 2007.................................................................................................... 43 Distribution revenue forecast 2008........................................................................... 44 Warehouse revenue forecast 2008 ............................................................................ 45 Prices forcast 2008.................................................................................................... 45 Additional cost budget .............................................................................................. 47 Labor cost budget 2006/2007/2008 .......................................................................... 50 Direct Mail budget 2006 ........................................................................................... 53 Appendix.......................................................................................................................... 54 Greiner’s Growth Phases .............................................................................................. 54 List of Sources .............................................................................................................. 55 Operational plan – Va et Vient Introduction Va et Vient is a logistics company which specializes in transporting letters, documents and parcels of less than 500 grams. They operate in Paris and some surrounding cities where they have depots. Va et Vient guarantees delivery on the same day before 18:00 hours. The transportation is mainly done by students who travel from and to Paris, but when there is not enough capacity depot holders take care of the distribution themselves. Within Paris one of the company owners distributes the packages himself by car and is supported by three cyclists who are hired for approximately four hours a day. Va et Vient generates just enough turnover to pay the owners a net monthly income of €2000 and make a modest profit. Analysis and problem definition Looking at the company structure it shows that it is flat and simple and has a small staff. There is little task specialization and a simple hierarchy. The 2 owners form the most important organizational unit who supervise the daily activities with direct supervision and a short and fast decision making process. They are responsible for most of the tasks like marketing, communication, finance, sales and human resource. Its management is task orientated and flexible without a clear strategy and minimal communication towards depot holders. According to Henry Mintzberg’s Organizational Configurations Framework this is called an entrepreneurial organization. This company is young and dependant on its owners for developing new services and acquiring new customers. In this phase it’s hardly a formal organization. Students who transport parcels from and to the customers are hired without a contract and the owners did not finish their education. According to Greiner’s Growth Phases this company is in Phase 1 (Growth by creativity, see Appendix, Greiner’s Growth Phases), which means growth is established because the owners are the initiators of most of the activities. If the company grows without restructuring the company and without delegating the work of the managers chances are that there will be a leadership crisis. Operational plan – Va et Vient This situation with this company structure created the following problems mainly because of a lack of strategy and structure, the lack of communicating this strategy towards the depot holders, and the lack of delegation of tasks towards the depot holders: -Unclear procedures for the distribution of parcels / unreliable workforce. When there are not enough students to pick up and deliver packages the depot holders are responsible for distributing the parcels and nobody is available at the depots itself. -Too many responsibilities for the 2 owners. The 2 owners are responsible for marketing/communication activities, company finance, planning of the Paris region, communicating its mission, vision and strategy towards the depot holders, customer care and overall performance of the company. -Little growth capacity. Because the 2 owners have too many tasks there is not enough time spend on finding new customers and developing new services. And with students to rely on the distribution of parcels, quality cannot be assured. -Undefined cash handling procedure. Because students carry cash money with each parcel delivery it can lead to loss of money caused by fraud or robberies. -Depot holders are not actively involved in improving quality, efficiency and new services. Operational plan – Va et Vient Approach Solving the problems mentioned in the chapter “Analysis and problem definition” require changes in the core of the business. Va et Vient needs to develop a clear mission, vision and strategy, create a company structure that supports company growth and clear communication, and expand the amount of customers and parcels to provide financial support for further developments and growth. Strategy Objectives for 2006 -Consolidate o Attract a person for the position of General Manager o Restructure the company for further development o Increase distribution efficiency in the Ile de France region, Rouen, Orleans and Reims by introducing a barcode-and route planning system -Expand the amount of customers for distribution in the Ile the France region -Prepare for expansion to the regions Rhτne Alpes and Provence Alpes Cτte d’Azur Objectives for 2007 -Expand to the regions Rhτne Alpes and Provence Alpes Cτte d’Azur -Increase efficiency of the distribution of parcels in the regions Objectives for 2008 -Expand the amount of customers in the regions Ile the France, Rhτne Alpes and Provence Alpes Cτte d’Azur -Prepare to expand to other reasons -Introduction of new services Operational plan – Va et Vient Management Mission To provide a pleasurable working environment concentrating on continues personal development of employees and increasing company growth. Strategy -Increasing parcel delivery efficiency -Development of employees -Expanding to new regions of France Company structure A new company structure must meet certain criteria in order to be successful. By dividing the company into departments and formalizing the tasks and responsibilities of these departments the company will have a basic form. This form will be based on the form shown below. With this basic form the company is ready to make further changes. Management will consist of a General Manager. Supporting staff is formed by the financial department, human resource & quality management department and the marketing & communication department. Technical staff will be formed by the logistics department and IT. The drivers will be the base part where the revenue is mainly generated. General Manager To make this company a success it needs structure and clear communication. It all starts with the highest level of management. The two owners Mr. Avoyelles and Ms. Laurent didn’t finish their education and have little experience in managing a company. Besides Operational plan – Va et Vient that, they have a relationship together which could be a potential risk in the future, in the form of a break up, in both relationship and company. Therefore we advise the company to attract a General Manager who has a minimum of 5 years management experience with a logistics background. This experienced manager is capable of giving the company the right structure and develops a long term mission, vision, strategy and objectives. He is able to communicate these to the department managers and serves as a role model for showing the right attitude. The General Manager could be rewarded with part of the share of the company when pre-set objectives are met within deadline. Mr. Avoyelles and Ms. Laurent can fulfill other positions within the company because of their added value to the company and should stay the owners of the majority of the company shares. Mr. Avoyelles will be responsible for the marketing & communication department, and Ms. Laurent will be responsible for the financial department. The General Manager, Mr. Avoyelles and Ms. Laurent will form a team to make strategic decisions. Internal communication For the company’s management, internal communication is very important. Clear communication ensures that the departments know what their responsibilities are speeds up work. Tasks and responsibilities The tasks and responsibilities of the General Manager are related to the company objectives. He/she is responsible for developing a vision and strategy for the future and his main task is communicating his vision and strategy to the department managers. This is very important for the development of the company and the department managers. The General Manager is also responsible to have close contact with any investors and major customers, this increases loyalty and enable the General Manager to get a feeling of how the market is developing and adjusting it vision and strategy to it. One other major responsibility of the General Manager is showing the right attitude and interest to its employees, without this he/she cannot expect employees to develop a positive relationship with the company and it develops loyalty, which reduces the out flow of employees. Operational plan – Va et Vient Logistics department Mission To offer competitive, efficient and fast logistic services to companies who sell high volume consumer goods. Objectives -Increase the usage of storage capacity -Increase flexibility towards customers and consumers -Increase distribution efficiency by introducing a barcode-and route planning system Services Va et Vient will offer several services which, when combined, will be a complete package for outsourcing the storage and distribution of the customer’s products. These services are: -Storage of goods in warehouse -Order picking -Distribution to consumers Process from factory to consumer Factory Va et Vient warehouse Consumer 2 4 Customer 1. The customer orders the 1 factory to produce the products and package them individually. 2. From the factory the products are transported to Va et Vient’s warehouses 3 and stored. 3. When products are ordered they are picked and made ready for distribution by car. 4. The product will be delivered at the consumer. Operational plan – Va et Vient Transport of goods from factory to warehouse Va et Vient will not transport the goods from factory to warehouse. This will be done by a partner company who is specialized in transporting larger collies. The costs for this service will be directly transferred to the customer. According to its mission Va et Vient wants to provide a fast and effcient logistic service therefore Va et Vient will not take care of the distribution of the products to the warehouse. Because communication will take longer and because of the extra work, the costs will increase. When a customer wants Va et Vient to arrange the transport than this will be done at cost price. Storage of goods in warehouse In the first year Va et Vient will have a warehouse just outside of Paris from which the complete region of Ile the France will be supplied including Rouen, Reims and Orleans. The warehouse will be located just south of the Charles de Gaulle Airport which has connections to major highways and gives easy access to Paris. This warehouse consists of a 300 sqm hall 8.5 meters high and an office space for 25 people. When Va et Vient is also active in Rhτne Alpes and Provence Alpes Cτte d’Azur warehouses will be located near Lyon and Marseille. These warehouses are used to store the customer’s inventory, order picking and preparation for distribution to the consumer. Efficient warehousing is made possible by the usage of a barcode/route planning system to store, order pick and distribute the products. Barcode / Route planning system The barcode system links the products with the place of that product in the warehouse. Every rack inside the warehouse is divided into smaller areas each having a barcode. A portable computer (PDA) with barcode reader can record changes in the location of the products in the warehouse by scanning the product and scanning the location in the warehouse. If a customer demands special needs like extra space for their product or products need to be placed in a special order, than this information will also be stored and made available by the barcode system. This increases both the usage of storage capacity and flexibility towards customers. The route planning system will calculate the most efficient route per car per day, based on the amount of parcels and distance between consumer, and when possible, traffic congestions during the day. Every car will be equipped with a PDA connected to the central warehouse and GPS. This means that every car is up to date at any time during the day. This system is mentioned in the financial report as barcode system. Improvements in the future will give Va et Vient the possibility to deliver parcels at a time specified by the consumer. This gives maximum flexibility for consumer while maintaining efficiency in the process. Operational plan – Va et Vient Order picking Va et Vient requires that the products are individually packaged and provided with a barcode. Warehouse management software is used to manage the inventory of each customer and help to connect the product to a customer when it is ordered. Distributions to consumers Distribution of products is done on a daily basis throughout the regions with cargo cars. Route planning will be done by computer with specialized software and connected to the barcode stystem. For the first year Va et Vient will lease 5 cargo cars to transport a max of 55 parcels per car per day throughout the area. Third party deliveries Va et Vient’s parcel deliveries are not constant per month, this means that with a constant amount of cars, one month Va et Vient will not have enough capacity to deliver all the parcels, the other month Va et Vient will have not enough parcels to maximize capacity. Small local courriers located in Paris, Rouen, Reims and Orleans are used to transport the parcels that are beyond Va et Vient’s capacity. Using smaller local courriers located in the cities ensures that Va et Vient will not work with major competitors. Smaller companies have more fluctuations in the amount of parcel deliveries and therefore create benefits for both parties. Mutually agreed is that the transportation is done at a fixed rate of € 8.00 per parcel. In this way Va et Vient is capable of satisfying all customers and maximizing capacity with little extra costs. When demand gets high enough, Va et Vient will lease extra cars to increase capacity. Prices The following prices will be used for the first three years. The first year it’s estimated that the total parcel delivery will be 86,006. That is based on an estimated amount of 4 customers. Weight Price Parcels per year >1000 € 10.00 86,006 750<1000 € 8.00 500<750 € 7.50 250<500 € 7.00 Price per third party delivery <250 € 5.00 € 8.00 Operational plan – Va et Vient Warehouse revenue Va et Vient stores the customer’s products and prepares them for transport (order picking). Customers will not pay rent for the space they use in Va et Vient’s warehouse, but only pay a fixed price per parcel, € 2.50. This compensates partly the costs related to operating the warehouse. Va et Vient cannot make this price per parcel too high because this is payed by the customers of Va et Vient and is increasing the sales price of that product. The price for delivering the parcel is payed by the consumer. Distribution revenues When consumers order a product at one of Va et Vients customers, then this order is tranfered to Va et Vient. Va et Vient will then deliver this product to the consumer. Va et Vient focusses on small and middle sized companies who are selling via e- commerce. When ordering through the internet the transport costs are paid during the order itself. Estimated is that 90% of the parcels are already paid. 10% will be paid at the delivery of the parcel, therefore cars does not require special requirements to handle this money. Covered areas The first year Va et Vient will operate in France’s main district Ile de France and the surrounding citis Rouen, Reims and Orleans. This area covers 20.5% of the total French population. Also most of Va et Vient’s current customers are in these cities. The second year Va et Vient will expand to Rhτne Alpes and Provence Alpes Cτte d’Azur, and the coverage will increase to 40% of the French population. These two regions are the second most populated areas of France and provide an opportunity for Va et Vient to serve more customers of La Parade. After the third year Va et Vient will research options for further expansion. On the next page there are 3 maps of the districts Va et Vient will operate in during the first three years. Operational plan – Va et Vient Operational plan – Va et Vient Marketing & Communication department Mission Create a reliable and efficient Marketing and Communication department which will take care of relationships with current customers turning this into long term relationships. Strategy • Define the mission and vision statement for the company • Define goals and communicate them to the whole departments. • Search of channels for reaching customers. Tasks and responsibilities The Marketing and Communication department is in charge of finding all the possible means for reaching customers and understand their needs in order to make improvements towards the services offered. Marketing and Communication Plan Va et Vient’s Mission Statement This mission gives the customer a small idea of the companies aim. Let them also know that the company works towards their needs and wants. Also gives security to current and potential employees of the reliability of the company. "Va et Vient provides an efficient and transparent transport process for companies who demand high standards for light weight parcels specially running on the e-commerce" Vision The vision gives a looking forward to a possible future for the company. "Become Market leader in the light-weight parcel couriers market aimed to small and medium business running on the e-commerce, inside France taking always care of our current customers and potential customers." Ojectives • Growth by 7% within the in the first year. • Enter the logistics market specialized on warehousing and shipping for Small and Medium Enterprises. • Improve Channels of distribution. • Increase scope of coverage in two more regions in the second year. • Create brand awareness and increase customers turning this into long term customers. Operational plan – Va et Vient Market Analysis Target group Small and medium sized enterprises (SME’s) on e-commerce within the Goods producing Industry. Va et Vient will offer a service especially to SME’s with the following characteristics -Stock made in series (over 100 items in a row) -Light weight parcels -Excluding food, animals, waste, chemical items and high valued stock. Geographic Metropolitan France • Capital: Paris • Official language: French • Area Metropolitan France: 551,695 km2 • Population: 61.0044.684 Demographics The highlight in red shows the sector of enterprises Va et Vient will be covering and the number of enterprises that are in this sector specified on the SMEs. At January 1, 2005 Employees x 1000 Activity sectors* 0 1-9 10-49 50-99 100-250+ Total of which: 249 SMEs Food industries 20,52 36,98 6,13 0,66 0,48 0,32 65,09 7,27 Goods-producing 82,77 65,62 26,79 3,97 2,75 1,71 183,60 33,50 industries (excluding food) Construction 178,71 149,46 23,46 1,40 0,64 0,26 353,93 25,50 Wholesale/retail trade 347,61 252,76 37,73 3,67 1,81 0,83 644,40 43,20 Transportation 52,74 24,92 8,98 1,20 0,73 0,37 88,94 10,91 Real-estate activities 58,26 22,50 2,31 0,09 0,04 0,02 83,22 2,44 Business services 295,25 121,97 23,37 2,43 1,39 1,04 445,44 27,18 Personal services 226,73 165,15 17,25 1,03 0,37 0,23 410,76 18,65 Education, health, social 267,52 68,81 5,01 0,62 0,39 0,14 342,50 6,02 work Total 1.530,11 908,18 151,01 15,05 8,60 4,91 2.617,87 174,67 *Source: Insee, Register of Enterprises and Local Units (Sirene) Operational plan – Va et Vient Customer analysis SMEs in France The most popular kind of SMEs in France are the (SARLs), limited responsibility companies which require at least two partners. There are two variants: • SARL pluripersonnelle (at least two associates) • EURL (single associate) They count about 900 000 SARL, today what corresponds to the two thirds of all business firms. The sum of the capital of the society is freely fixed by statutes (Article L223-2 of the commercial law). Most of the business creations are considered created by "innovators", young entrepreneurs. Va et Vient will be dealing with young entrepreneurs which fall into two groups: • Under-educated: are the youngest and have gone no further than the Brevet d.Ιtudes Professionnelles, a vocational high-school diploma. They create businesses in the area where they are proficient in a skill, typically in the crafts sector. • Highly educated: are generally aged 25-30 and have studied for three years after their”baccalaurιat”. They create in new industries requiring “brains” and in business services. Operational plan – Va et Vient Competitive Analysis Competitors • La Poste La Poste is a State-run company which delivers letters and parcels and offer financial services through its Banque Postale subsidiary. It serves 3,5 million clients per day at some 17,000 postal outlets and processes about 25 billion pieces of mail yearly. La Poste works together with Chronopost International for express letter and parcel delivery and TAT Express for express freight transport. “Player in the development of society” As stated in La Poste’s annual report for 2005, which tries to explain the important role that La Poste plays on the French lives. “Openness, accessibility, proximity and equity” are the values that the company tries to communicate to its customers and employees and penetrate this way the new modern society by giving a sense of care and wealth. The company created a Sustainable Development department which created a strategy to generate public awareness and coordinate all actions of its divisions. La Post tries to create awareness of sustainable development among all staff with a project named "Rιussir Ensemble"(Succeeding together) which aspirates to social modernization. La post also takes part on the environmental Campaign "Challenge for Planet Earth" launched in May 2005 by the Nicolas Hulton Foundation and the French Goverment's Enviromental and Energy Management Agency (ADEME). In June 2005 the company launched their magazine "Postιo Conso" which provides news on mediation and consolation within La Poste, as well as information on all Group projects of interest to consumers. La Post offer in its web site all information for customers and gives support also through its clients service www.laposte.fr Annual reports can be found in this site as well. The image build around the La Poste is more humanistic and with care for the new modern society. The size, visibility and proximity to the public, and the increase on competition on the market with the economic liberalization, have been a key factor to La Poste for creating communication strategies. Operational plan – Va et Vient • SNCF SNCF is a public railway company which operates in France. Their network consists of about 32,000 km of route and around 14,000 trains run daily. Its include operation of rail services for passengers and freight, and maintenance of rail infrastructure. SNCF create brand awareness by the creation of events inviting schools from the whole France to participate where staff from the group express their love for trains and some go behind the scenes to learn how does this group operate their trains and machines. These events created a boost in the railway's popularity among the French people. Also some staff groups visit some schools to give presentations explaining the physical dangers of the railway environment to primary school children. For SNCF "freight customers" a Customer Service Center has been created to handle their queries, plan the movement from end to end from their orders, and give a commitment to deliver within one hour of the promised time. SNCF offers to Passengers Prem's or Last minute fares, also the customer experienced more comfort by ticket sales via web, new information channels through SMS and in- station shopping. Important information is also given in the company's web site www.sncf.com where the customer can find information about the company and can also get in contact with service lines. Timetables for the railways passengers transport can also be found. • Mory Group Mory Group is a transport and logistics private company positioned on the Supply Chain market. It has 150 operations centers in France and also operates international. Mory is provided with 3000 vehicles connected to an internet web base to transmit the technical and social parameters, the states of the deliveries, the geographical situation and the electronic signature (legal since 2001). The cost of reception can be consulted by the clients in the Internet, in a quarter of an hour, thanks to portable terminals with reader of integrated bar code. Web page www.morygroup.com Positioning Va et Vient will position in the market as a warehousing and shipping company providing. • Transparent delivery • Efficiency applying high technology (bar code system) • Totally aimed to the SME’s in e-commerce Operational plan – Va et Vient Opportunity analysis Logistics market in France targets mainly the masses. In the freight industry, logistics companies mainly target big companies for the transport of stock mainly within the whole sale and retail trade, goods producing industry, and food industry. Within the Logistics industry, service for the supply chain for big enterprises has the most competition. La Post, used to be a monopoly in the logistics industry in France, but after the economic liberalization, competition started to rise giving opportunity to private enterprises to create market share. Va et Vient has specialized on a niche, that not all logistic companies have taken on consideration. Va et Vient goes for warehousing and shipping service for the light weighted parcels of SME’s (small and medium enterprises) running on the e-commerce. With a good communication plan together with a good human resource management, Va et Vient wants to create awareness on its potential customers and give new opportunity its new customers by better service. The company will advertise mainly through internet tools, being the main communication tool from our customers in their e-business. Brand development strategy Va et Vient translated to English means “go and comes” . Va et Vient delivered light weight parcels going and coming within Paris, Rouen, Blois and Reims through train using commuting students. Operational plan – Va et Vient So the go and come concept was suitable to the kind of service they where offering. Va et Vient now wants to grow and to become a more “professional” company with sense of reliability to its customers. Therefore this department will create a Brand positioning plan with the aim of creating a new image for Va et Vient. This will be more suitable to the new service that Va et Vient will offer and will give sense of reliability for the customer. In the old logo, the company with the colors Red white and blue, represented the French flag, but we found a mistake by the order of the colors. The right order of the colors of the French flag is blue white and red. These colors can identify Va et Vient and communicates the customer where the company comes from and where does it runs. Va et Vient will keep its name but will add some details that will help the customer to identify what the company does. Also the creation of a slogan will add and extra value and will connect the company to the customer. Brand Positioning Va et Vient is a logistics company which runs in France, so we kept the idea of the Brand identifying it’s self with the colors Blue, Red and White, the national French colors and the colors of the flag. This is the new VA ET VIENT Va et Vient wants communicate the customer in which market the company runs, there for Va et Vient will complement its name with the word “Logistics”. Operational plan – Va et Vient “You create dreams, We deliver them” Is the new slogan for the company. You create dreams: Is talking about the products that each of Va et Vient customers create being this dreams for their own customers. “We” meaning Va et Vient , will deliver those “dreams“ to the final consumer. The colors from blue and red have been changed to darker colors because we found that the previous bright colors representing a cheap budget company. We also add a special picture in the back. We modified the arrows from “Go and come” to a bird. Representing the same meaning but in a more friendly way. The letter @ on “Va” from Va et Vient, is a symbol to relate our position as providing service to e-commerce. Promotion and Budget Va et Vient used to advertise with leaflets that they delivered to people throughout the train station. A web page was made to give information to the customers about the service. The company needs to change its distribution channels for promotion to reach the new target group defined. Therefor different advertisement tools were taken on consideration and finally applied. Advertisement guidelines: Sizes Prices Half page ads are standard ads, Quarter page ads are used for reminders and small news. Top Quarter page ad € 700.00 banners are placed on websites Half page ad € 1,200.00 Top level banner ad € 1,100.00 2006 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Quarter page ad 0 0 0 0 0 0 0 0 0 0 0 0 Half page ad Top level banner Total -€-€-€-€-€-€-€-€-€-€-€-€ 1 1 1 1 0 0 0 1 1 1 1 1 Total 1,200 €1,200 €1,200 €1,200 €-€-€-€1,200 €1,200 €1,200 €1,200 €1,200 € 3 3 3 3 1 1 1 2 3 3 2 1 Total 3,300 €3,300 €3,300 €3,300 €1,100 €1,100 €1,100 €2,200 €3,300 €3,300 €2,200 €1,100 € Total per month 4,500 €4,500 €4,500 €4,500 €1,100 €1,100 €1,100 €3,400 €4,500 €4,500 €3,400 €2,300 € Total €39,400 Operational plan – Va et Vient 2007 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Quarter page ad 0 0 0 0 0 0 0 0 0 0 0 0 Total -€-€-€-€-€-€-€-€-€-€-€-€ Half page ad 2 2 2 1 0 0 0 2 2 2 1 1 Total 2,400 €2,400 €2,400 €1,200 €-€-€-€2,400 €2,400 €2,400 €1,200 €1,200 € Top level banner 4 4 4 3 1 1 1 3 4 4 2 1 Total 4,400 €4,400 €4,400 €3,300 €1,100 €1,100 €1,100 €3,300 €4,400 €4,400 €2,200 €1,100 € Total per month 6,800 €6,800 €6,800 €4,500 €1,100 €1,100 €1,100 €5,700 €6,800 €6,800 €3,400 €2,300 € Operational plan – Va et Vient Total 53,200 € 2008 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Quarter page ad 0 0 0 0 0 0 0 0 0 0 0 0 Total -€-€-€-€-€-€-€-€-€-€-€-€ Half page ad 2 2 2 1 0 0 0 2 2 2 1 1 Total 2,400 €2,400 €2,400 €1,200 €-€-€-€2,400 €2,400 €2,400 €1,200 €1,200 € Top level banner 4 4 4 3 1 1 1 3 4 4 2 1 Total 4,400 €4,400 €4,400 €3,300 €1,100 €1,100 €1,100 €3,300 €4,400 €4,400 €2,200 €1,100 € Total per month 6,800 €6,800 €6,800 €4,500 €1,100 €1,100 €1,100 €5,700 €6,800 €6,800 €3,400 €2,300 € Total €53,200 Operational plan – Va et Vient Sales department Mission Creating a long lasting profitable relationship with companies in need of logistics solutions as provided by the services of Va et Vient Strategy • Inform customers about Va et Vient’s services • Advise customers about the best solution • Selling Va et Vient’s services • Providing after sales service Structure The sales department will have one team member who has experience in selling services to companies. Tasks and responsibilities The complete sales team will be responsible for creating long term relationships with the customers of Va et Vient. Tasks include: • Answer questions of o Potential customers o Current customers o Customer complaints • Making contract with new customers • Advising/informing customers • Keeping track of monthly results • Attend tradeshows • Making company visits Operational plan – Va et Vient Human resource and quality management department Mission Creating a team-based organization by choosing and selecting high skilled, talented, educated employees, meanwhile, improving the internal environment. Strategy • creating a good work environment • introducing performance management • offer employee education • develop a reward system Salary system The objective of this system is to pay each position as fairly as possible in relation to comparable positions at other companies and within budgetary limitations; pay each team member fairly in relation to other team members in this company which require the similar knowledge, skills and responsibilities. Performance management A basic factor for improvement in performance management is communication in the whole company. Both individuals should clearly understand the duties of the position, and each team member should know the expectations from the management level. Responsibilities and expectations should be discussed when employment commences. Each year managers are asked to submit a performance report for each employee to the part time human resource team member. The report should reflect how well each team members from each department has fulfilled the job duties and responsibilities, with emphasis on future direction and activities. Salary increase Each position is evaluated and a job level and salary range is assigned. A range consists of a minimum and a maximum salary amount. Normally, a new team member will begin working near the minimum range, making progress in the range over time, as determined by the manager. For the employee, moving upwards to a higher range generally takes time . Each year, based on the relationship between surveys and job performance received, the ranges go higher to a specific percentage. Internal environment A good work environment is build towards a good management process and the respect of the hierarchic levels of the company. Delegation process is important for defining tasks and responsibilities that will be done by each department and the communication among these. Operational plan – Va et Vient “Respect and Harmony” are the values that Va et Vient wants to inspire to employees, letting them know that they are the main resource and the engine for making, the service this company provides, work successfully. Structure First year: GeneralManagerGeneralManagerGeneralManagerGeneralManagerMarketing& CommunicationFinanceLogisticSalesParttimeHRteammember1teammember2teammembers3teammembers&5drivers1teammember Because Va et Vient does not have so much employees, Va et Vient will hire a human resource team member for 2.5 days a week. When the company grows, a fulltime Human Resource department will be considered. Job descriptions Job title: Marketing Communication manager Department: Marketing & Communication department Job hours: FT 8:00AM-5:00PM (will have a lunch break time between 11:00AM2: 00PM) Job description: Responsible for developing the delivery service into a strong profit generating business. Guide and influence the co-workers as it relates to a particular service line. Translate new technologies or current trends into a unique service concept. Communicate with internal and external sources relevant to this service. Job requirements: • Bachelor’s degree in marketing or related field preferred. • 3+years job-related experience required. • Self-motivated . • Knowledge on Graphic design and media • Excellent computer skills and ability on design programs 26 Operational plan – Va et Vient • Ability to manage teams and direct reports. • Flexible and responsive. • Good problems-solving abilities. • Good written and oral communication abilities. • Masters degree preferred. Salary per moth: • 3200€ Job title: Finance Manager Department: Finance department Job hours: FT 8:00AM-5:00PM(will have a lunch break time between 11:00AM- 2:00PM) Job description: Responsible for checking the current financial situation and forecast the next few years’ budget plan, contributing a strategic planning and development for finance department, Other areas of potential responsibility: company insurance, contracts and agreements, legal areas and activities, major customer/partner relationships, regulatory bodies relationships and strategies, approvals and accreditations As reporting and accounting legal requirements including taxation, dividends, annual reports and accounts. bachelor’s degree in finance is the minimum academic. Job requirement: • Bachelor’s degree in finance, accounting, economics, or business administration preferred. • 3+years job-related experience required. • Excellent communication skills to explain complex financial data • Analytical skills for business • Creative thinkers and problem-solvers • Strong computer skills • Masters degree preferred. Salary per month: • 3200 € Job title: Sales Manager Department: Sales department Job hours: FT 8:00AM-5:00PM(will have a lunch break time between 11:00AM2: 00PM) Job description: Responsible for implementing sales and marketing communication activities leading to achieve company goals, growth and profitability. Handling all correspondence and organizing telephone contact between customers, maintaining customer records, keeping records of visits and sales, taking, progressing and monitoring orders, processing invoices Operational plan – Va et Vient and accounts, preparing estimates and quotations for customers, keeping records of sales targets and actual figures and compiling them into reports for management. Analyze sales statistics to determine sales potential and monitor customers’ preferences. Job requirements: • Bachelors degree in marketing sales or related filed preferred • 3+years job-related experience required • creative, highly motivated, resistant to stress, flexible, and decisive. • Communication skills, both orally and in writing • Ability to establish and maintain effective personal relationships with supervisory and professional staff members and client firms. • Computer skills to conduct advertising, marketing, promotions, public relations, and sales activities on the Internet. Salary per month: • 2000€ Job title: HR part-timer Department: HR department Job hours: FT 8:00AM-5:00PM(will have a lunch break time between 11:00AM2: 00PM) Some human resources assistants are involved in hiring. Screen job applicants to obtain information such as their education and work experience; administer aptitude, personality, and interest tests; explain the organization’s employment policies and refer qualified applicants to the employing official; and request references from present or past employers. Also, human resources assistants inform job applicants, by telephone or letter, of their acceptance for or denial of employment. Job requierement: • Bachelors degree in HR management or related filed preferred. • Good computer skills. • Communication skills, both orally and in writing • Ability to establish and maintain good relationships with individuals. Salary per month: • 1000€ Operational plan – Va et Vient Job title: Logistics manager Department: Logistics department Job hour: FT 8:00AM-5:00PM(will have a lunch break time between 11:00AM-2:00PM) Job description: Responsible for controlling and keeping improvements on the different services Va et Vient offers to its customers. Supervising process for storage of goods in warehouses, order picking and distribution to customers. Keep track of the flow of goods as the scope of coverage of the company for the deliver. Job requirements: Master Degree on Logistics or subject related. 3+years job-related experience enquired. • Communication skills, both orally and in writing • Ability to establish and maintain effective personal relationships • Organized and structured. • Ability to solve problems and work under pressure. • Flexible and good managerial skills. • High computer skills. Salary per month: • 3200€ Job title: Marketing assistant For all the departments Job hour: FT 8:00AM-5:00PM(will have a lunch break time between 11:00AM2: 00PM) Job description: Responsible for assisting marketing manager with the process for developing the delivery service. Supervising brand awareness and finding new channels for communicating with customers. Job requirements: • Bachellor degree on marketing communication, or field related • Good communication skills oral and writing • Creative. • Knowledge of design and media Salary per month: • 2000€ Manager responsibilities Managers are responsible to structure the organization of their department and assign specific job duties to each team member. Operational plan – Va et Vient Determine organizational structure of department and design individual positions to accomplish departmental mission. Furnish accurate job descriptions when requested, or when significant changes occur. Provide input regarding job level relationships of positions supervised. Communicate with each team member on a continuous basis regarding job assignments and expectations. Recognize good performance and assist all employees to become better performers. Labor Contracts: Contrats ΰ durιe indιterminιe, CDIs (Unlimited-term contracts) The company will manage 3 kinds in this field: • Contrat nouvelles embauches CNE (New employment contract)(one year contract) • Contrat initiative-emploie rιnovι CIE (Renewed employment contract) • Contrat de travail en temps partiel (Part-time contract) applies to all employees who work less then the minimum weekly requirement of 35 hours, calculated on a weekly, monthly or yearly basis. In other words, the annual total cannot exceed 1,607 hours. Company insurance: AON Insurance for Expatriates We provide information in English and quotes for all your personal insurance needs while in France: car, home, health ... and more! 45 rue Kleber Levallois Perret 92697 Tel: +33 (0)4 95 06 16 46 Fax: +33 (0) 1 58 75 80 67 Email: InsureXpat@aon.fr Web: AonInsureXpat.com When the employees in Va en Vient have a business trip in the aboard, the insurance will not be cover, HR manager need to check whether the country where the employee are working requires to have similar insurance or whether HR manager has arranged some other protection for the employee. The warehouse insurance The warehousing and distribution industry is often avoided by insurance companies because of the complexity of the various insurance policies necessary to properly insure the risk. Warehouses expose concentrated values of goods to fire, flood and other damage. Va en Vient will have two different types of warehouse insurance: warehouse legal liability policies and customers’ goods insurance. Legal liability policies cover legal liability. Thus, if a burglar beat alarm and stole a truckload of goods that would probably not be held liable. It would be quite different, however, if the alarm had not been activated, or if an employee started a fire, or Operational plan – Va et Vient if some computers were knocked around by careless handlers. Warehouseman’s Legal Liability is moderately priced and can cover almost all of your legal responsibilities. Still, it falls short of delivering true peace of mind. After all, how will customers react when they hear that, if nobody responsible for the fire or the theft or the landlord's leaking roof, we can't compensate at all for their lost or damaged property, so Customers goods policies need to be built. They preserve customers' goodwill by covering stored property for loss or damage regardless of your legal liability. Of course, couriers should expect to pay a higher price for this expanded protection. Operational plan – Va et Vient Financial department Balance sheet 01-01-2006 Assets Material fixed assets Warehouse equipment Forklift truck Equipment Furniture € € € € 50,000 8,000 18,530 4,260 € 80,790 Current assets Account receivable Cash Bank Prepaid rent € € € € - 5,000 30,210 9,000 € 44,210 Total assets € 125,000 Capital and Liabilities Capital Owner's equity Net profit Long-term liabilities Long-term loan Current liabilities Taxes payable Interest payable Accounts payable Redemption of loan € € € € € € € 25,000 - 100,000 - - - - € € € 25,000 100,000 - Total capital and liabilities € 125,000 Operational plan – Va et Vient Balance sheet 01-01-06 explanation Cash Va et Vient holds € 5,000 in cash. Prepaid rent In 2006, the rent of the first quarter has been paid on 1st, Jan.2006. The rent is € 3,000 per month . Calculation; € 3,000*3= € 9,000 Account receivible Va et Vient did not have any accounts receivable at this date. Fixed asset Fixed assets were bought at the beginning of the year and paid in advance. Long-term liabilities Va et Vient borrowed a € 100,000 long-term loan from the bank at the beginning of 2006 to pay for investments etc. In the balance sheet 01-01-07 is stated how much Va et Vient paid on interest over 2006. Owner’s equity The owner’s equity is made up by the sales of the car and other items in the inventory before the beginning of 2006. Operational plan – Va et Vient Balance sheet 01-01-2007 Assets Material fixed assets Warehouse equipment Forklift truck Equipment Furniture € € € € 42,000 6,833 12,444 3,408 € 64,685 Current assets Account receivable Cash Bank Prepaid rent € € € € 90,000 5,000 42,078 27,000 € 164,078 Total assets € 228,763 Capital and Liabilities Capital Owner's equity Net profit Long-term liabilities Long-term loan Current liabilities Taxes payable Interest payable Accounts payable Redemption of loan € € € € € € € 25,000 49,476 80,000 25,488 3,800 35,000 10,000 € € € 74,476 80,000 74,288 Total capital and liabilities € 228,763 Operational plan – Va et Vient Balance sheet 01-01-2007 explanation Account Receivable In december revenues of € 6,824 were already collected, € 90,000 will be received in January. Interest payable Interest is calculated as following: (( € 100,000 + € 90,000)/2) * 40% = € 3,800 Loan at the beginning of 2006 was 100,000 at 31-01-06 it was 90,000 added together and devided by two gives the average payment times 40% = 3800 for 2006. Prepaid rent In 2007 we will expand to two other regions, therefore prepaid rent has become € 27,000 for the first 3 months Operational plan – Va et Vient Balance sheet 01-01-2008 Assets Material fixed assets Warehouse equipment Forklift truck Equipment Furniture € € € € 34,000 19,333 13,415 4,024 € 70,773 Current assets Account receivable Cash Bank Prepaid rent € € € € 150,000 7,000 120,261 27,000 € 304,261 Total assets € 375,034 Capital and Liabilities Capital Owner's equity Net profit Long-term liabilities Long-term loan Current liabilities Taxes payable Interest payable Accounts payable Redemption of loan € € € € € € € 25,000 163,100 70,000 58,534 3,400 45,000 10,000 € € € 188,100 70,000 116,934 Total capital and liabilities € 375,034 Operational plan – Va et Vient Balance sheet 01-01-2008 explanation Interest payable Interest is calculated as following: (( € 90,000 + € 80,000)/2) * 40% = € 3,400 Loan at the beginning of 2007 was 90,000 at 31-01-07 it was 80,000 added together and devided by two gives the average payment times 40% = 3400 for 2008. Operational plan – Va et Vient Income statement 2006/2007/2008 Income statement 2006 2007 2008 Distribution turnover Direct costs distribution Warehouse turnover € - € € 597,688 233,086 215,015 € € 364,602 215,015 € - € € 1,166,972 468,612 419,543 € € 698,360 419,543 € - € € 1,223,145 520,672 439,148 € € 702,473 439,148 Gross margin € 579,617 € 1,117,903 € 1,141,621 Expenses Office and warehouse rent Salaries and social security contribution Advertisement & Direct mail Leased company cars Third party deliveries Miscellaneous expense Depreciation Total expense € € € € € € € 36,000 354,000 48,400 18,000 4,349 24,000 16,105 € 500,854 € € € € € € € 108,000 653,916 62,200 18,000 7,949 72,000 20,280 € 942,345 € € € € € € € 108,000 690,091 62,200 18,000 7,149 72,000 20,280 € 977,720 Operational income EBIT Interest costs € € 78,763 3,800 € € 175,558 3,400 € 163,901 3000 EBT Income taxes Net income 34% € € € 74,963 25,488 49,476 € € € 172,158 58,534 113,624 € € € 160,901 54,706 106,195 Operational plan – Va et Vient Cash flow 2006/2007/2008 Cash flow statement 2006 2007 2008 Net turnover distribution Net turnover warehouse Gross margin € € 364,602 215,015 € 579,617 € € 698,360 419,543 € 1,117,903 € € 702,473 439,148 € 1,141,621 Total expenses - € 496,505 - € 930,221 - € 966,396 Operational income € 83,112 € 187,682 € 175,225 Interest Taxes - € - € 3,800 25,874 - € 29,674 - € - € 3,400 62,656 - € 66,056 - € - € 3,000 58,557 - € 61,557 Net income € 53,439 € 121,626 € 113,669 Depreciation Redemption bank loan € - € 16,105 10,000 € 6,105 € - € 20,280 10,000 € 10,280 € - € 20,280 10,000 € 10,280 Cash flow € 59,543 € 131,906 € 123,949 Deliveries in parcels 2006 Number of customers 4 Working days 26 Percentage of covering France (Ile de France, Rouen, Reims and Orleans). 21% Increase of sales(customer's sales) this year 107% Weight Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec >1000 1,936 191 185 148 125 89 76 73 82 149 201 325 750<1000 1,290 383 370 297 252 179 153 147 165 341 482 650 500<750 968 3,823 3,725 2,993 2,563 1,941 1,529 1,570 2,309 3,330 4,016 3,899 250<500 645 1,911 2,264 1,960 1,821 1,194 918 1,256 1,814 2,646 3,213 5,199 <250 323 1,434 2,058 1,483 1,259 896 764 1,256 1,650 2,134 2,409 4,548 Parcels per month 5,161 7,741 8,601 6,881 6,020 4,299 3,440 4,300 6,021 8,600 10,321 14,621 Average parcels per day 198 298 331 265 232 165 132 165 232 331 397 562 Numberofcars 555555555555 Third party deliveries -77 23 56 -10 -43 -110 -143 -110 -43 56 122 287 Deliveries in euro's 2006 Weight Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec >1000 € 19,355 € 1,913 € 1,851 € 1,483 € 1,255 € 895 € 763 € 728 € 825 € 1,492 € 2,009 € 3,246 750<1000 € 10,318 € 3,060 € 2,962 € 2,372 € 2,015 € 1,432 € 1,221 € 1,172 € 1,320 € 2,730 € 3,854 € 5,201 500<750 € 7,258 € 28,671 € 27,934 € 22,446 € 19,222 € 14,556 € 11,470 € 11,773 € 17,320 € 24,973 € 30,119 € 29,244 250<500 € 4,514 € 13,377 € 15,846 € 13,721 € 12,744 € 8,359 € 6,424 € 8,789 € 12,701 € 18,524 € 22,491 € 36,390 <250 € 1,614 € 7,168 € 10,288 € 7,414 € 6,295 € 4,479 € 3,821 € 6,278 € 8,248 € 10,669 € 12,047 € 22,742 Third party deliveries € 612 € 83 € 348 € 877 € 1,141 € 877 € 347 Total revenue € 43,673 € 54,190 € 58,881 € 47,519 € 41,878 € 30,598 € 24,841 € 29,617 € 40,761 € 58,388 € 70,520 € 96,824 Direct variable costs € 20,591 € 19,090 € 18,590 € 19,591 € 20,091 € 21,092 € 21,591 € 21,091 € 20,091 € 18,590 € 17,590 € 15,089 Fixed costs € 19,725 € 19,725 € 19,725 € 19,725 € 19,725 € 19,725 € 19,725 € 19,725 € 19,725 € 19,725 € 19,725 € 19,725 Third party deliveries € 182 € 447 € 446 € 976 € 2,299 Total costs € 40,316 € 38,997 € 38,761 € 39,316 € 39,816 € 40,817 € 41,316 € 40,816 € 39,816 € 38,762 € 38,291 € 37,113 Profit € 3,357 € 15,193 € 20,120 € 8,204 € 2,062 € 10,218- € 16,475- € 11,200- € 945 € 19,626 € 32,229 € 59,711 Operational plan – Va et Vient Distribution revenue forecast 2006 Operational plan – Va et Vient Warehouse revenue forecast 2006 Warehousing forecast 2006 Price per parcel per order Order picking total (equals amount of parcels) € 82.50 6,006 Per month Per year Order picking revenues Total expenses Warehousing € 21,650 € € 215,015 259,800 Income/Loss € 44,785Prices forcast 2006 Weight >1000 750<1000 500<750 250<500 <250 Price € € € € € 10.00 8.00 7.50 7.00 5.00 Parcels per year 86,006 Price per third part8.00 € y delivery Deliveries in parcels 2007 Number of customers 4 Working days 26 Percentage of covering France (Ile de France, Rouen, Reims and Orleans). 40% Increase of sales(customer's sales) this year 107% Weight Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec >1000 3,777 373 361 289 245 175 149 142 161 291 392 633 750<1000 2,517 746 722 579 491 349 298 286 322 666 940 1,269 500<750 1,888 7,459 7,267 5,840 5,001 3,787 2,984 3,063 4,506 6,497 7,836 7,608 250<500 1,258 3,729 4,417 3,825 3,552 2,330 1,791 2,450 3,540 5,163 6,269 10,144 <250 630 2,797 4,015 2,893 2,457 1,748 1,491 2,450 3,219 4,164 4,701 8,875 Parcels per month 10,070 15,105 16,783 13,426 11,746 8,389 6,713 8,391 11,748 16,781 20,138 28,529 Average parcels per day 387 581 645 516 452 323 258 323 452 645 775 1097 Numberofcars 10 10 10 10 10 10 10 10 10 10 10 10 Third party deliveries -163 31 95 -34 -98 -227 -292 -227 -98 95 225 547 Deliveries in euro's 2007 Weight Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec >1000 € 37,767 € 3,732 € 3,612 € 2,893 € 2,448 € 1,746 € 1,489 € 1,421 € 1,609 € 2,910 € 3,920 € 6,334 750<1000 € 20,133 € 5,971 € 5,780 € 4,629 € 3,931 € 2,794 € 2,383 € 2,287 € 2,575 € 5,328 € 7,519 € 10,149 500<750 € 14,163 € 55,944 € 54,506 € 43,797 € 37,506 € 28,402 € 22,380 € 22,971 € 33,795 € 48,728 € 58,769 € 57,061 250<500 € 8,808 € 26,101 € 30,919 € 26,772 € 24,867 € 16,310 € 12,535 € 17,149 € 24,783 € 36,144 € 43,885 € 71,005 <250 € 3,150 € 13,987 € 20,073 € 14,466 € 12,284 € 8,740 € 7,456 € 12,249 € 16,093 € 20,818 € 23,506 € 44,375 Third party deliveries € 1,302 € 269 € 786 € 1,819 € 2,335 € 1,818 € 785 Total revenue € 85,322 € 105,736 € 114,890 € 92,827 € 81,821 € 59,811 € 48,578 € 57,896 € 79,640 € 113,928 € 137,599 € 188,924 Direct variable costs € 41,328 € 38,400 € 37,424 € 39,376 € 40,353 € 42,305 € 43,280 € 42,304 € 40,352 € 37,425 € 35,473 € 30,593 Fixed costs € 37,799 € 37,799 € 37,799 € 37,799 € 37,799 € 37,799 € 37,799 € 37,799 € 37,799 € 37,799 € 37,799 € 37,799 Third party deliveries € 248 € 764 € 763 € 1,796 € 4,378 Total costs € 79,127 € 76,447 € 75,987 € 77,176 € 78,152 € 80,105 € 81,079 € 80,104 € 78,151 € 75,988 € 75,068 € 72,771 Profit € 6,195 € 29,289 € 38,903 € 15,652 € 3,668 € 20,294- € 32,501- € 22,208- € 1,489 € 37,940 € 62,531 € 116,154 Operational plan – Va et Vient Distribution revenue forecast 2007 Operational plan – Va et Vient Warehouse revenue forecast 2007 Warehousing forecast 2007 Price per parcel per order Order picking total (equals amount of parcels) € 162.50 7,817 Per month Per year Order picking revenues Total expenses Warehousing € 40,095 € € 419,543 481,135 Income/Loss € 61,593Prices forcast 2007 Weight >1000 750<1000 500<750 250<500 <250 Price € € € € € 10.00 8.00 7.50 7.00 5.00 Parcels per year 167,817 Price per third part8.00 € y delivery Deliveries in parcels 2008 Number of customers 4 Working days 26 Percentage of covering France 40% Increase of sales(customer's sales) this year 112% Weight Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec >1000 3,953 391 378 303 256 183 156 149 168 305 410 663 750<1000 2,634 781 756 606 514 366 312 299 337 697 984 1,328 500<750 1,977 7,808 7,607 6,113 5,234 3,964 3,123 3,206 4,717 6,801 8,202 7,964 250<500 1,317 3,903 4,623 4,003 3,718 2,439 1,874 2,564 3,706 5,405 6,562 10,618 <250 659 2,928 4,202 3,028 2,572 1,830 1,561 2,564 3,369 4,358 4,921 9,290 Parcels per month 10,541 15,811 17,567 14,053 12,295 8,781 7,026 8,783 12,297 17,565 21,079 29,862 Average parcels per day 405 608 676 540 473 338 270 338 473 676 811 1149 Numberofcars 11 11 11 11 11 11 11 11 11 11 11 11 Third party deliveries -200 3 71 -65 -132 -267 -335 -267 -132 71 206 544 Deliveries in euro's 2008 Weight Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec >1000 € 39,532 € 3,907 € 3,781 € 3,028 € 2,563 € 1,828 € 1,559 € 1,487 € 1,684 € 3,046 € 4,104 € 6,630 750<1000 € 21,074 € 6,250 € 6,050 € 4,846 € 4,114 € 2,925 € 2,494 € 2,394 € 2,695 € 5,577 € 7,870 € 10,623 500<750 € 14,824 € 58,558 € 57,053 € 45,844 € 39,258 € 29,729 € 23,426 € 24,044 € 35,374 € 51,005 € 61,515 € 59,727 250<500 € 9,220 € 27,321 € 32,364 € 28,023 € 26,029 € 17,072 € 13,121 € 17,950 € 25,941 € 37,833 € 45,936 € 74,323 <250 € 3,297 € 14,641 € 21,011 € 15,142 € 12,858 € 9,148 € 7,804 € 12,822 € 16,845 € 21,791 € 24,604 € 46,449 Third party deliveries € 1,597 € 516 € 1,057 € 2,138 € 2,678 € 2,138 € 1,056 Total revenue € 89,544 € 110,677 € 120,258 € 97,400 € 85,879 € 62,840 € 51,083 € 60,836 € 83,596 € 119,251 € 144,029 € 197,753 Direct variable costs € 45,772 € 42,707 € 41,686 € 43,730 € 44,752 € 46,796 € 47,816 € 46,795 € 44,751 € 41,687 € 39,644 € 34,536 Fixed costs € 40,386 € 40,386 € 40,386 € 40,386 € 40,386 € 40,386 € 40,386 € 40,386 € 40,386 € 40,386 € 40,386 € 40,386 Third party deliveries € 25 € 565 € 565 € 1,646 € 4,348 Total costs € 86,159 € 83,119 € 82,638 € 84,116 € 85,138 € 87,182 € 88,202 € 87,181 € 85,137 € 82,638 € 81,676 € 79,271 Profit € 3,385 € 27,558 € 37,621 € 13,284 € 740 € 24,341- € 37,119- € 26,345- € 1,541- € 36,613 € 62,354 € 118,482 Operational plan – Va et Vient Distribution revenue forecast 2008 Operational plan – Va et Vient Warehouse revenue forecast 2008 Warehousing forecast 2008 Price per parcel per order Order picking total (equals amount of parcels) € 172.50 5,659 Per month Per year Order picking revenues Total expenses Warehousing € 40,522 € € 439,148 486,262 Income/Loss € 47,114Prices forcast 2008 Weight >1000 750<1000 500<750 250<500 <250 Price € € € € € 10.00 8.00 7.50 7.00 5.00 Parcels per year 175,659 Price per third part8.00 € y delivery Operational plan – Va et Vient Explanation of costs and revenues Direct variable costs The direct variable costs are a calculation of the following variables: -The amount of parcels to be delivered in a day -The amount of kilometers to drive -The amount to time stopping at a consumer - The costs of the car per day -The cost of fuel and the fuel usage -The average speed on a day Fixed costs: These costs have to be devided by the distribution service and the warehouse service. In the table below the percentage per service are devided. 2006 Per month Percentage Distribution Percentage Warehouse Total wages per month € 20,250.00 40% € 8,100 60% € 12,150 (exclusive drivers) Additional costs € 11,875.00 20% € 2,375 80% € 9,500 Wages drivers € 9,250.00 100% € 9,250 0% € 0 € 41,375 € 19,725 € 21,650 2007 Per month Percentage Distribution Percentage Warehouse Total wages per month € 35,623.00 40% € 14,249 60% € 21,374 (exclusive drivers) Additional costs € 23,401.00 20% € 4,680 80% € 18,721 Wages drivers € 18,870.00 100% € 18,870 0% € 0 € 77,894 € 37,799 € 40,095 2008 Per month Percentage Distribution Percentage Warehouse Total wages per month € 36,335.00 40% € 14,534 60% € 21,801 (exclusive drivers) Additional costs € 23,401.00 20% € 4,680 80% € 18,721 Wages drivers € 21,172.00 100% € 21,172 0% € 0 € 80,908 € 40,386 € 40,522 Operational plan – Va et Vient Additional cost budget In this statement the costs for the lease cars are included, but excluded in calculated the fixed costs because these costs are already in the direct variable costs. Additional cost budget 2006 Warehouse Fork lift truck Barcode system Office and warehouse rent Unit price 8,000 € 50,000 € 3,000 € Amount Type of cost 1 advance 1 advande 1 per month Total 8,000 € 50,000 € 3,000 € Years of depreciation 6 6 Residual value 1,000 € 2,000 € Depreciation per year 1,167 € 8,000 € Equipment Laptop Computer Printer Telephone € € € € 1,800 1,250 600 40 3 9 2 17 advance advance advance advance € € € € 5,400 11,250 1,200 680 3 3 3 5 € € € € - - - - € € € € 1,800 3,750 400 136 Furniture Table Chair Closet Office supplies € € € € 100 80 100 500 12 17 17 1 advance advance advance per month € € € € 1,200 1,360 1,700 500 5 5 5 € € € - - - € € € 240 272 340 Transportation Cargo car (Lease) Company car (lease) Miscellaneous expense Electricity, etc € € € 500 500 1,500 5 3 1 per month per month per month € € € 2,500 1,500 1,500 Promotional budget Advertisement Direct Mailing € € 39,400 9,000 1 1 per year per year € € 39,400 9,000 Monthly costs Yearly costs € € 14,375 172,505 Depreciation per year € 16,105 Operational plan – Va et Vient Additional cost budget 2007 Type of Years of Residual Depreciation Unit price Amount Total cost depreciation value per year Warehouse Fork lift truck Barcode system Office and warehouse rent € € € 8,000 50,000 3,000 3 1 3 advance advande per month € € € 24,000 50,000 9,000 6 6 € € 1,000 2,000 € € 3,833 8,000 Equipment Laptop Computer Printer Telephone € € € € 1,800 1,250 600 40 3 12 4 20 advance advance advance advance € € € € 5,400 15,000 2,400 800 3 3 3 5 € € € € - - - - € € € € 1,800 5,000 800 160 Furniture Table Chair Closet Office supplies € € € € 100 80 100 500 15 20 20 3 advance advance advance per month € € € € 1,500 1,600 2,000 1,500 5 5 5 € € € - - - € € € 300 320 400 Transportation Small van Company car Miscellaneous expense Electricity, etc € € € 500 500 1,500 10 3 3 per month per month per month € € € 5,000 1,500 4,500 Promotional budget Advertisement Direct Mailing € € 53,200 9,000 1 1 per year per year € € 53,200 9,000 Monthly costs Yearly costs € € 28,401 340,813 Depreciation per year € 20,613 Operational plan – Va et Vient Additional cost budget 2008 Type of Years of Residual Depreciation Unit price Amount Total cost depreciation value per year Warehouse Fork lift truck Barcode system Office and warehouse rent € € € 8,000 50,000 3,000 3 1 3 advance advande per month € € € 24,000 50,000 9,000 6 6 € € 1,000 2,000 € € 3,833 8,000 Equipment Laptop Computer Printer Telephone € € € € 1,800 1,250 600 40 3 12 4 20 advance advance advance advance € € € € 5,400 15,000 2,400 800 3 3 3 5 € € € € - - - - € € € € 1,800 5,000 800 160 Furniture Table Chair Closet Office supplies € € € € 100 80 100 500 15 20 20 3 advance advance advance per month € € € € 1,500 1,600 2,000 1,500 5 5 5 € € € - - - € € € 300 320 400 Transportation Small van Company car Miscellaneous expense Electricity, etc € € € 500 500 1,500 11 3 3 per month per month per month € € € 5,500 1,500 4,500 Promotional budget Advertisement Direct Mailing € € 53,200 9,000 1 1 per year per year € € 53,200 9,000 Monthly costs Yearly costs € € 28,901 346,813 Depreciation per year € 20,613 Operational plan – Va et Vient Labor cost budget 2006/2007/2008 Monthly labor costs 2006 Job function Annual increase Wages Amount Total General Manager 0% € 5,500 1 € 5,500 Marketing/Communication manager 0% € 3,200 0 € - Marketing/Communication assistant 0% € 2,000 1 € 2,000 Accounting manager 0% € 3,200 0 € - Accounter 0% € 2,000 1 € 2,000 Human Resources manager 0% € 2,000 1 € 1,000 Logistics manager 0% € 3,200 1 € 3,200 Driver 0% € 1,850 5 € 9,250 Warehouse operator 0% € 1,850 3 € 5,550 Sales manager 0% € 2,000 1 € 2,000 Sales assistant 0% € 2,000 0 € - Total 14 € 29,500 Total labor costs per year € 354,000 Monthly labor costs 2007 Job function Annual increase Wages Amount Total General Manager 2% € 5,610 1 € 5,610 Marketing/Communication manager 2% € 3,264 0 € - Marketing assistant 0% € 2,500 1 € 2,500 Accounting manager 0% € 2,500 1 € 2,500 Accounter 0% € 1,500 1 € 1,500 Human Resources manager 0% € 1,000 1 € 1,000 Logistics manager 2% € 3,264 1 € 3,264 Warehouse manager 0% € 2,000 2 € 4,000 Driver 2% € 1,887 10 € 18,870 Warehouse operator 2% € 1,887 7 € 13,209 Sales manager 2% € 2,040 1 € 2,040 Sales assistant 2% € 2,040 0 € - Total 26 € 54,493 Total labor costs per year € 653,916 Operational plan – Va et Vient Monthly labor costs 2008 Job function Annual increase Wages Amount Total General Manager 2% € 5,722 1 € 5,722 Marketing/Communication manager 2% € 3,329 0 € - Marketing assistant 2% € 2,550 1 € 2,550 Accounting manager 2% € 2,550 1 € 2,550 Accounter 2% € 1,530 1 € 1,530 Human Resources manager 2% € 1,020 1 € 1,020 Logistics manager 2% € 3,329 1 € 3,329 Warehouse manager 2% € 2,040 2 € 4,080 Driver 2% € 1,925 11 € 21,172 Warehouse operator 2% € 1,925 7 € 13,473 Sales manager 2% € 2,081 1 € 2,081 Sales assistant 2% € 2,081 0 € - Total 27 € 57,508 Total labor costs per year € 690,091 Advertisement Budget Offline/Online Advertisement guidelines: Sizes Prices Half page ads are standard ads, Quarter page ads are used for reminders and small news. Top Quarter page ad € 700.00 banners are placed on websites Half page ad € 1,200.00 Top level banner ad € 1,100.00 2006 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Quarter page ad 0 0 0 0 0 0 0 0 0 0 0 0 Half page ad Top level banner Total -€-€-€-€-€-€-€-€-€-€-€-€ 1 1 1 1 0 0 0 1 1 1 1 1 Total 1,200 €1,200 €1,200 €1,200 €-€-€-€1,200 €1,200 €1,200 €1,200 €1,200 € 3 3 3 3 1 1 1 2 3 3 2 1 Total 3,300 €3,300 €3,300 €3,300 €1,100 €1,100 €1,100 €2,200 €3,300 €3,300 €2,200 €1,100 € Total per month 4,500 €4,500 €4,500 €4,500 €1,100 €1,100 €1,100 €3,400 €4,500 €4,500 €3,400 €2,300 € Total €39,400 Operational plan – Va et Vient Advertisement budget 2006 The complete promotion budget is stated in the Promotion and budget chapter. Operational plan – Va et Vient Direct Mail budget 2006 Almost all of the aspects of Direct mail can be done within the company by the marketing/communication department. This results in a lower budget for the direct mail. Direct mail will be send 2 times a year to all customers and new addresses bought from direct mail company. These addresses are a selection of potential customers within our target group. Bought address are allowed to be used only once, these costs occur everytime Va et Vient sends a direct mail. We expect a response of one new customer for 300 addresses bought. The direct mail will be a 2 sided A4 folded to A5 with envelope and address sticker. Costs for designing are not included in this budget because this will be done within the company. Number of dm per year 2 Amount Cost Cost per leaflet Bought addresses 2,000 € 1,500 € 0.75 Printing of direct mail 3,000 € 1,500 € 0.50 Mailing costs 3,000 € 1,500 € 0.50 Return of bad addresses 5% € 75 € 0.50 Total cost per dm € 4,575 Total costs per year € 9,150 February September € 4,575 € 4,575 Operational plan – Va et Vient Appendix Greiner’s Growth Phases large small young mature Greiner's Growth Phases Phase four Phase five Phase six Phase one Phase two Phase three Leadership crisis Autonomy crisis Control crisis Red tape crisis Age of the organisation Growth through creativity Growth through direction Growth through delegation Growth through coordination Growth through collaboration Growth by extra organizational solutions Internal growth crisis Size of the organisation Operational plan – Va et Vient List of Sources Websites: -www.insee.fr (statistical data of France) -www.valuebasedmanagement.net (background on several management theories) Books: -Mintzberg over Management, de wereld van onze organisaties -Henry Mintzberg, ISBN 9025404952 -Logistiek, een bedrijfskundige benadering Marco Oteman, ISBN 906283396- 9 -Logistics, A practical Approach Reinder Pieters, ISBN 90-806392-7- 3 -Principles of Marketing Kotler, Wong, Saunders, Amrstrong, ISBN 0-273-68456- 6 -Introduction to Fainancial Accounting Horngren, Sundem, Elliott, Philbrick, ISBN 0-12-196875- 0 -Cost Accounting Horngren, Datar, Foster, ISBN 0-13-149538- 0 Other media: -ISBW cursus Middle Management ISBW opleidingen centrum