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30 CHAPTER 3 COMPANY PROFILE OF PT. TIRTA INVESTAMA 3.1 Company Profile 3.1.1 History PT. Golden Mississippi was established on February 23, 1973 by Tirto Utomo. The establishment of the company had pioneered the existence of bottled mineral water industry in Indonesia. Moreover, on August 1973, the company developed its first factory that located in Bekasi, West Java. One year later, the company started to sell its first product named AQUA ® which was packed in glass bottle of 950 ml. However, the company experienced difficulty to sell its product since at that time, many people still did not familiar with the drinking water product which is packed in the glass bottle. Nevertheless, in 1981 the company launched two new AQUA ® products that were packed in plastic bottles of 625 ml and 1,500 ml. The concept of new products succeeded to attract the customers since the prices were affordable and it was packed in convenient packages that are easy to be carried. Moreover, after performed thorough study and observations, at the end of 1981, the company decided to change the water source from a branch of underground water deep under the soil to the mountain spring water. The mountain spring had always been preserved in order to assure the high quality of water.

CHAPTER 3 Company Profile of PT. Tirta Investamathesis.binus.ac.id/doc/Bab3/Bab 3_09-44.pdf · 30 CHAPTER 3 COMPANY PROFILE OF PT. TIRTA INVESTAMA 3.1 Company Profile 3.1.1 History

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CHAPTER 3

COMPANY PROFILE OF PT. TIRTA INVESTAMA

3.1 Company Profile

3.1.1 History

PT. Golden Mississippi was established on February 23, 1973 by Tirto Utomo.

The establishment of the company had pioneered the existence of bottled mineral

water industry in Indonesia. Moreover, on August 1973, the company developed

its first factory that located in Bekasi, West Java. One year later, the company

started to sell its first product named AQUA® which was packed in glass bottle

of 950 ml. However, the company experienced difficulty to sell its product since

at that time, many people still did not familiar with the drinking water product

which is packed in the glass bottle.

Nevertheless, in 1981 the company launched two new AQUA® products that

were packed in plastic bottles of 625 ml and 1,500 ml. The concept of new

products succeeded to attract the customers since the prices were affordable and

it was packed in convenient packages that are easy to be carried.

Moreover, after performed thorough study and observations, at the end of 1981,

the company decided to change the water source from a branch of underground

water deep under the soil to the mountain spring water. The mountain spring had

always been preserved in order to assure the high quality of water.

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31

On March 1, 1990, the company changed its name from PT. Golden Mississippi

to PT. AQUA Golden Mississippi and it decided to go public and listed in the

Jakarta Stock Exchange. Moreover, on June 16, 1994, PT. Tirta Investama is

established as the holding company of AQUA Group which is located in Jl Pulo

Lentut No. 3 Pulo Gadung Industry Area, East Jakarta 13920, Indonesia.

In addition, since this year, PT. AQUA Golden Mississippi who acted as the

producer of AQUA® products was no longer sells the products directly to the

customers, but they sell the products to the sales and distribution branches

established by PT. Tirta Investama. At the present day, there are 18 depots that

operate in several areas in Indonesia. Those depots are:

1. Danone AQUA Depot in Medan;

2. Danone AQUA Depot in Lampung;

3. Danone AQUA Depot in Kembangan;

4. Danone AQUA Depot in Tangerang;

5. Danone AQUA Depot in Meruya;

6. Danone AQUA Depot in Ciputat;

7. Danone AQUA Depot in Pulo Kambing, East Jakarta;

8. Danone AQUA Depot in Pulo Lentut, East Jakarta;

9. Danone AQUA Depot in Rawa Domba, Jakarta;

10. Danone AQUA Depot in Cibinong;

11. Danone AQUA Depot in Karawang;

12. Danone AQUA Depot in Bandung;

13. Danone AQUA Depot in Solo;

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14. Danone AQUA Depot in Jogja;

15. Danone AQUA Depot in Ungaran, Semarang;

16. Danone AQUA Depot in Nusa Dua, Bali;

17. Danone AQUA Depot in Denpasar, Bali;

18. Danone AQUA Depot in Manado.

Moreover, the author obtained the permission from PT. Tirta Investama to

perform research in Pulo Kambing depot which is located in Jl. Pulo Kambing

No.3, Pulo Gadung Industry Area, East Jakarta 13920, Indonesia. This depot is

led by the Head of Depot who monitor the business operations performed by the

staffs. Moreover, this depot buy the AQUA® products from PT. AQUA Golden

Mississippi and then sold it either to the wholesaler, retailer or to the House

Office Distribution (HOD) customers.

In addition, in year 1994 and 1995, two AQUA factories in Bekasi and Bogor

obtain ISO 9002 from PSB (Productivity Standards Boards), Singapore. Hence,

AQUA became the first bottled water product that obtain ISO 9002 Certification.

Nowadays, all AQUA factories had obtained ISO 9002 Certification.

Furthermore, on September 4, 1998, the Danone Group whom represented by its

investment company, Feddian Pte. Ltd decided to acquire 40% shares of PT.

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Tirta Investama as the holding company of AQUA Group. In addition, there was

also another investor who acquired 11% shares of PT. Tirta Investama.

Therefore, Tirto Utomo’s family still owned 49% shares of the company.

3.1.2 Vision and Mission

Every company has vision which reflects the objectives that will be reached by

performing some missions. The visions of Danone AQUA Group are:

1. Provide the products that have high quality and contain balance nutrition for

the society

→ Due to poor economic condition, many people in the society have less

concern toward their healthiness and the needs of nutrition. In response to

that condition, the company produces the high quality drinking water

products that contain some nutrition and vitamins which are needed by

human body. The products are sold in affordable prices; hence all people

from every level in society can consume the products.

2. Become the dynamic company that has ethical values, open to any ideas or

suggestions from the employees and give the opportunities for its employees

to develop their skill and knowledge.

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→ In response to the globalization era, the company is required to be the

dynamic company that has ethical values. Moreover, the company also

adopted some ethical values from Danone Group such as the humanism,

openness, proximity and enthusiasm.

In addition, the company also opens to any ideas or suggestions from the

employees which can increase the company’s performances. For instance,

the company implements good reward system to motivate the employees.

Besides, the company also provides the opportunities for its employees to

develop their skill and knowledge by attending the training or seminar.

3. Become the center of reference for the preservation of water source,

environment and community development.

→ As the company which utilize the natural resources to produce the

drinking water products, Danone AQUA Group has responsibility to

preserve the water source as the main raw material, environment and

community development.

Moreover, the missions of Danone AQUA Group that should be performed in

order to reach their vision are:

1. Brand: Strengthen the brand image by increasing the products quality.

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2. Product: Keep performing Research and Development Activities to develop

more innovative products.

3. Production: Increase the capacity of the AQUA factories to fulfill the demand

4. Marketing: Develop proper pricing strategy which is suitable with the market

condition.

5. Distribution: Expand the distribution areas of all AQUA products.

Achievements of AQUA Products

The sales areas of AQUA® products were not only limited in domestic market,

but also including the international market. For instance, the AQUA® products

were sold in Singapore, Malaysia, Brunei Darussalam and Taiwan. Moreover, in

period 1985-1989, AQUA® products achieved the “AQUA AWARD” from

International Bottled Water Association (IBWA) sequentially for advertisement,

marketing and public relations categories in selling the products abroad.

In addition, the company won the “Asia Star Award 1986” for the innovative

findings of ceramic dispenser which had unique design that were adopted from

the concept of “Kendi” (the traditional water jug). Furthermore, in 1991, the

company achieved “Management Award 1991” for the general management

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category. This award was given in the program “World Executive’s Digest”

presented by Asian Institute of Management and Japan Airlines.

Furthermore, five AQUA factories that are located in Bekasi, Bogor, Sukabumi,

Pandaan and Subang had obtained the certificate for Good Manufacturing

Practices (GMP) from NSF USA (National Sanitation Foundation), an

independent body of IBWA (International Bottled Water Association). This

certificate indicated that at least 90% of the company’s standard operating

procedures fulfill the GMP standards set by the FDA (Food and Drugs

Administration), United States.

Besides, the AQUA factories in Bogor and Sukabumi had succeeded to obtain

the award for Excellence in Manufacturing from IBWA (International Bottled

Water Association) since their standards operating procedures had fulfilled 97%

and 98% of the standards set by IBWA respectively.

In 1994, PT. AQUA Golden Mississippi, Tbk became the first bottled drinking

spring water company that obtained ISO 9001:1994 Certification from PSB

(Productivity and Standard Board), Singapore. This certificate was achieved by

the AQUA factories in Bekasi, Citeureup and Mekarsari. Then, some other

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factories that are located in Pandaan, Mambal, Subang and Berastagi had also

achieved the ISO 9001:1994 Certification.

Every year, PT. AQUA Golden Mississippi kept tried to improve the business

performances by maintaining proper standards operating procedures in

production process to ensure the quality of bottled water products. Furthermore,

when there was a new version of ISO 9001:2000 Certification, PT. AQUA

Golden Mississippi, Tbk applied to obtain it. In the new version, the main topic

was focused in the process approach.

However, this new version of ISO Certification has slight difference with the

previous version ISO 9001:1994. According to previous version, the company

was required to create the procedures record documentations for every section

that related with the quality management. On the other hand, the new version

only required the company to create some record procedures for documentations

purposes related with the quality management.

Furthermore, on January 16, 2002, the PSB (Productivity Standards Board),

Singapore assigned the auditor to perform the audit in the AQUA factory,

Bekasi. The audit process is mainly concerned to the production procedures

started from the processing of water as the raw material until the finishing

process when the bottled drinking waters were packed.

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In addition, the audit activity was also conducted in AQUA factory located in

Mekarsari and Pulo Gadung Industry Areas on January 17, 2002 and January 18,

2002 respectively. After performing the audit, the auditor stated the findings that

PT. AQUA Golden Mississippi, Tbk had implemented the continual

improvement program to achieve the quality target. For instance, the company

had succeeded to reduce the number of defect products rejected and the number

of complaint. Finally, on January 28, 2002, PT. AQUA Golden Mississippi, Tbk.

obtained the ISO 9001:2000 Certification from PSB (Productivity and Standard

Board), Singapore.

3.2 Business Activity of PT. Tirta Investama

3.2.1 Business Activity of PT. Tirta Investama

The business activity of PT. Tirta Investama is selling and distributing the

AQUA® products bought from PT. AQUA Golden Mississippi as the

manufacturer either to HOD (House Office Distribution) customers or to retail

customers. In addition, the company might also sell the products to their sales

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and distributions branches. Besides, the company also provides rental services

for water heater and cooler dispenser to the customers.

The AQUA® products that are produced by PT. AQUA Golden Mississsippi

consist of:

AQUA® packed in plastic cup of 240 ml;

AQUA® packed in plastic bottle of 330 ml;

AQUA® packed in plastic bottle of 600 ml;

AQUA® packed in plastic bottle of 1500 ml;

AQUA®packed in gallon (19 liters);

Mizone® packed in bottle.

Moreover, the company might sold the products either in cash or credit term,

then at the end of each month, the sales invoices will be delivered to the

customers to collect the payment. In addition, the company might also act as the

Depot Collector to represent other Depot when the sales invoices are paid by the

customers whom located in the area which is different with the customer who

orders the AQUA products. However, other Depot might also act as the Depot

Controller to represent PT. Tirta Investama in collecting the receivable.

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For example, XYZ Bank has many branches spread in different location in

Jakarta. Therefore, the AQUA® products will be delivered to every branches of

XYZ Bank by the sales and distribution branches that are located near them.

However, for the headquarter office, the products will be delivered by the PT.

Tirta Investama. Therefore, since the headquarter of XYZ bank is the party who

will pay the bill, then the invoices from the sales and distribution branches will

be submitted to PT. Tirta Investama to be collected from the XYZ Headquarter

office.

Furthermore, at the end of each month, all sales and distribution branches that

operated under PT. Tirta Investama should provide monthly report of sales to

the accounting division of PT. Tirta Investama. Moreover, these monthly sales

report will be used to create consolidated financial statements.

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3.3 Business Activity and Organizational Structure of Pulo Kambing Depot

3.3.1 Business Activity of Pulo Kambing Depot (Sales and Distributor Branch of

PT. Tirta Investama)

Depots are established as the sales and distribution branch of PT. Tirta

Investama which functions is to represent the company to sell the AQUA®

products in several areas of Indonesia. Therefore, the product can also be

consumed by all people either who live in the city or sub urban.

The business activity of Pulo Kambing Depot (Sales and Distributor Branch of

PT. Tirta Investama) is to sell the bottled drinking water AQUA products which

is produced by PT. AQUA Golden Mississippi either to wholesalers, retailers or

HOD (House Office Distribution) directly. Besides, Pulo Kambing Depot also

provides rental services of dispenser to the customers.

Moreover, the AQUA products that are sold to the customers consist of:

AQUA packed in plastic cup of 240 ml;

AQUA packed in plastic bottle of 330 ml;

AQUA packed in plastic bottle of 600 ml;

AQUA packed in plastic bottle of 1500 ml;

AQUA packed in gallon (19 liters);

Mizone packed in bottle.

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Furthermore, Pulo Kambing Depot might also act as the Depot Collector that

represents other Depot to collect the receivable when the sales invoices are paid

by the customers whom located in the area which is different with the customer

who orders the AQUA products. Besides, other Depot under PT. Tirta

Investama might act as the Depot Collector to represent Pulo Kambing Depot.

In addition, at the end of each month, Pulo Kambing Depot should send the

monthly sales report to the accounting division in PT. Tirta Investama.

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3.3.2 Organization Structure of Pulo Kambing Depot (Sales and Distributor Branch of PT. Tirta Investama)

Figure 3.1 Organization Structure of Pulo Kambing Depot (Sales and Distribution Branch of PT. Tirta Investama)

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3.3 Policy and Procedures

3.4.1 Policy of Sales Cycle

Every company has different policies regarding their business operation. For

instance, PT. Tirta Investama also creates some policies regarding the sales cycle

that consists of:

1. The new customers who want to apply the credit sales should fill and sign the

Proof of Order, the written customer’s purchase order which is also used as

the trade contract of AQUA products between PT. Tirta Investama as the

seller and the party who signed the contract as the buyer.

2. PT. Tirta Investama also provide the rental service for the dispenser devices

to the customer. However, the customer who wants to rent the water heater

and cooler dispenser should sign the rent contract that identify the quantity,

serial number and monthly rental fee. In addition, there is a requirement that

the customer should pay the guarantee fee of Rp. 300,000,- for each

dispenser rented. The purpose of this requirement is to reduce the risk of loss

when the customer does not return the dispenser at the end of the contract.

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3.4.2 Policy of Collection Cycle

The company had created some policies related with the collection cycle that are:

1. The parties, who had signed the Proof of Order form as the customer of PT.

Tirta Investama, should fulfill their obligation to pay the amount of bills

stated in sales invoices based on the payment term that had been agreed.

2. The payment could be done either through the direct transfer of money to the

bank account of PT. Tirta Investama or through the collector who is assigned

to collect the payment from the customer.

3. If there is any customer who cannot fulfill his or her obligation to pay the

amount of sales payable stated in invoices, then the company will give

chance to the customer to pay the debt sequentially until it can be settled.

4. However, if the customer cannot settle the payment of debt, the AQUA®

products or the water heater and cooler dispenser that had been delivered to

the customers will be taken back by the collector of PT. Tirta Investama.

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3.4.3 Procedures of Sales Cycle

There are several procedures of sales cycle that should be performed by the staffs

in PT. Tirta Investama including the staffs in Pulo Kambing Depot. For the cash

sales and credit sales, the receiving and processing procedures of customer

orders are same. However, the procedures of delivery and payment processing

from the customers for the cash sales are different from the credit sales as

explained in the following procedures:

1. Receive the Customer Order

The customer orders might come either from new customers or from the

existing customers. The procedures for each source of orders will be

described as follow:

a. Order from New Customers

The order from new customers might be derived from:

i. Sales representative staffs

The sales representative staffs have duties to find the new customers

by visiting and offering AQUA products including the dispenser to

the potential buyers such as the stores, the offices, the schools or

houses who want to be the regular customers and order the products

regularly.

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After the sales representative find the new customer who want to

order AQUA products regularly, he should inquiry the customer to

provide information about the name, address, and telephone number

of the party who will receive the goods ordered and the party who

will pay the bills. Besides, the customer should also determine the

term of payment and the quantity of AQUA products that should be

delivered regularly by the company.

Once the customer agrees about the terms and agreement in the

contract, he or she should sign it. Then, it will be given to Master

Data staffs to be entered into the computer system and the

information regarding the order will be given to the sales and

distribution staffs.

ii. Order through phone

The new customers, who want to be the regular customers, might

place the orders through the telephone to sales and distribution

branches of AQUA products. This order will be proceed by the

Customer Relation Staffs who will record the name, address and

quantity ordered by the customers in the Customer Relation

Information form (Customer’s order form).

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Then, the Customer Relation Staff will give the form to the sales

person who will perform direct survey to the customer’s place and

discuss about the term and agreement of credit sales. After the

customer agreed with the term and agreement, the sales person will

inquire the customer to fill the Proof of Order form by providing

information about the name, address and phone number of the party

who will receive the products and the party who will pay the bills.

Then, the customer should sign the form as the confirmation that he

or she had provide true and reliable information as required in the

Proof of Order. Next, the form will be given to Master Data staffs

who will input the information into the computer database system for

the records. Moreover, the sales person will inform the Head of Depot

Operational Division about the new customer. Furthermore, the Head

of Depot Operational Division will create the schedule for products

delivery.

iii. Customer’s direct order to Sales and Distribution branch of PT.

Tirta Investama

The customer who want to be the regular customer might come

directly to the sales and distribution branch of PT. Tirta Investama,

then their orders will recorded and they are required to fill the

complete information in the Proof of Order form, which is also used

as the trade contract between the customers and the company.

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After the customer sign the contract, it will be given to the Master

Data staffs who will enter the data into the computer system, whereas

the information of quantity ordered will be given to the sales and

distribution staff.

b. Order from Existing Customers

The order might also be derived from the existing customer who places

the order through telephone and it will be handled by the Customer

Relation Staff. For this type of order, the customer is required to

mention his or her identification number that will be used to generate

complete information about the customer’s identity that has been

recorded previously. After that, the staff will input the type and

quantity of AQUA products which are ordered to the computer system.

Then, the customer’s information and the amount of goods ordered

will be printed in the Information Customer Relation form, which will

be given to Sales and Distribution staffs to be proceed immediately.

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2. Customer Order Processing

After received the Proof of Order from sales representative, the Master data

staffs will input the customers’ data including the name, address, telephone

number of the party who will receive the order and the party who will pay the

bills, the regular delivery schedule and the quantity of products ordered into

the computer system. Then, the Proof of Order will be given to the Head of

Depot Operational who will create the delivery route and routine.

3. Delivery of the Product

Every day, the delivery schedule of AQUA® products are printed and

distributed to the drivers. Moreover, the drivers should ask the picking slip

(Proof of Products sent out from the warehouse) from the Outbound Division

which indicates the type and quantity of products that will be picked up from

the warehouse. Then, the warehouse staff will should calculate the number of

products taken by the drivers and sign the picking list as the verification of

calculation.

After that, the warehouse staff should ask the Warehouse Supervisor to re-

calculate the products taken and sign the picking list. Furthermore, at the exit

gate, the securities staff should examine and re-calculate the number of

products contained in the vehicle to ensure that it is matched with the

information stated in picking list. Then, the security should also sign the

picking list as the proof of verification.

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However, the procedures of products delivery for the cash sales and credit

sales are different. The differences are:

1. Cash Sales

For cash sales transactions, after the driver delivers the products to

customer’s place, he will write the quantity of products delivered and the

total amount that should be paid by the customer in the Delivery Order

form. Then, the customer should pay the amount stated and sign the

Delivery Order form. The original Delivery Order form will be given to

the customer, whereas the deliver will take the copy of the form.

2. Credit Sales

For the credit sales, after the products have been delivered to the

customers, the drivers will write the quantity of products delivered to

customer in Delivery Order form and ask the customers to sign it. Then,

the customers will receive the copy of Delivery Order, while the original

ones will be taken by the drivers as the proof to collect the payment on

the due date. Furthermore, the drivers will submit the original Delivery

form to the staffs in Outbound Division.

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After the driver had finished the delivery task to deliver the AQUA® products

to the customers, he will return to the Depot and replenish the products for

the next delivery process. Before entered the Depot, the Security staff and the

checker will calculate the quantity of products bring by the driver in the car,

including the empty bottles, the wet cleaner tissue of AQUA® products, the

defect products returned by the customers or the product that had not been

sold to the customers. Then, they will write the information obtained in the

Field Inspection form and sign it.

In addition, the drivers should also sign this form as the verification that the

information stated is correct. Furthermore, this form will be given together

with the Delivery Order form to the outbound staff who will input the data.

Next, the outbound staff will create the Proof of Receiving Goods form that

should be signed by the drivers, the outbound staff and the warehouse staff

who will receive the products returned by the drivers.

The products that are returned to the warehouse might include the empty

gallons, the wet tissue for AQUA packed in gallon, or the products that had

not been sold to the customer. However, for the defect AQUA products, the

drivers will give it to the Customer Relation Staffs who will returned it to the

AQUA factory.

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4. Billing to the Customers

At the end of each day, the outbound staff will print the register of delivery

order forms submitted by the drivers. Furthermore, the Delivery Order forms

and the list will be submitted to Invoice Division. Then, the Invoice staff will

examine whether the data written in Delivery Order is the same as the data

listed in the Delivery Order Register.

Moreover, at the end of each month, the invoices for every customers will be

printed and the original copy of Delivery Order will be attached to the related

invoices as the proof that the products has been delivered. In addition, the

Invoice Register will also be printed to ensure that all invoices have been

printed. Then, the invoice staffs will put the combination stamp of company’s

stamp with the signature of the Head of Depot. Furthermore, the invoices will

be given to Collector Administration Division, who will assign the collectors

to collect the receivables from customers.

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3.4.4 Procedures of Collection Cycle

The procedures of collection cycle consist of several processes that are:

1. Accept the Cash Receipts

After receive the invoices and the attachment of original Delivery Order from

Invoice Division, the Collector Administration Division who will distribute it

to the collectors based on the routine schedule that has been created. Then,

the collector will come to the customer’s place and collect the payment.

Moreover, after the collectors get the payment from the customers, they will

ask the customer to sign the Result of Cash Collection form and submit the

money to the cashier at the end of the day. Then, the cashier will give the

Proof of Receiving Money to the collector.

2. Depositing the Cash Receipts

At the end of day, the cashier will check the total amount of money collected

with the Result of Collection form. After both total amounts are equal, they

will deposit the money. Furthermore, after all receivables for that month had

been collected, the cashier will deposit all money and create the payment

voucher to the cashier in headquarter office of PT. Tirta Investama.

3. Recording the cash receipts transaction

The company has implemented the accounting software for processing the

sales and collection transaction. Therefore, after the staff input the data of

cash receipts, the software could use those data to settle the journal of

accounts receivables with the amount of cash received from the customers.

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3.4.5 Procedure of Sales Returns

The procedure of sales returns consist of several processes that are:

1. When the customers receive defect AQUA® products from the depot of PT.

Tirta Investama delivered by the driver, they can complaint and return the

defect product directly. Then, the driver will replace it with the new product

and bring the defect ones to the depot.

2. However, if the driver does not have the replacement product at that time, he

will deliver it to the related customer altogether with the products ordered on

the next delivery schedule.

3. In the depot, the defect product from customer will be given to the customer

Relation staff, who will create written report regarding the defect product in

the Customer Information form which is can also be used as the Customer

Complaint form.

4. After that, the Customer Relation staff will send the product to be analyzed in

AQUA laboratory located in the factory. The purpose of the analysis of

defect product is to check whether the defect caused by the failure in

production process from factory or caused by the customer who mistreat the

product.

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For instance, the customer sends the complaint that the AQUA water contain

unpleasant odor. Then, the laboratory staff will examine whether the odor

was caused by the failure in production process or caused by the customer

who place the AQUA product near the source of unpleasant odor.

After performing analysis toward the defect product, the laboratory staff

creates the report that informs the cause of the problem. This report consists

of two copies which are given to the related depot and the customer who

report the problem. However, even though the defect caused by customer’s

failure, the company will replace the product with the new ones, as a part of

services provide to the customers.