An action research on increasing contribution margin of Gold Beer product through enhancement of distribution system

• Main Author: Ednalino, Michael Andrew B.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5195
• Institution: De La Salle University

This action research paper aims to increase the contribution margin of gold beer product for Romblon province by reducing the variable cost through distribution system enhancement. This problem was the main contributor on why Southern Tagalog Region fails to achieve its financial target in the past years. Using Coghlan & Brannick (2014) action research approach, and in collaboration with the sales and logistics department of the region, an opportunity on enhancing the distribution system has been determined that led to the elimination of the double handling cost, reduction on freight and trucking cost, and shorten the travel time in sourcing the product. In the conduct of this project, the action research cycle was done twice. The first cycle was applied in enhancing the distribution system of Tablas dealer through sourcing the product directly from the brewery. And in the second cycle, the procedure was applied to Romblon and Sibuyan dealers operation and resulted to an enhanced ditribution system through sourcing the product to Tablas dealer. In mapping out the change intervention made on this research, Maslaric, Groznik, & Brnjacs Generic Six Step Approach on Distribution Channel Reengineering was used in establishing the current system for review and analyzing the potential distribution system. Data were gathered through the conduct of informal dialogues, group meeting, interviews and observations. In both interventions, contribution margin was improved from the lowest of 18% per unit to as high as 37%. This project also generated a total savings of P8,219,443.80 for the period of October 2015 to May 2016 for the company. Lastly, through the collaboration efforts made on this project, it thought me to be more reflective using the frameworks such as ORJI and ladder of inference. This process enables me to look at the whole picture and consider other inputs before deciding or taking actions.