Chapter 663 Lingnan Hall Internal Vulnerabilities



Director Qin saw that Lin Sanqi seemed to be lost in thought, so he continued to advise:

"I agree with Section Chief Song's opinion. The most important thing is that you must be strong yourself. You must do business with integrity and never let anyone catch you in any trouble. If you are strong yourself, others will not be able to do anything to you.

Of course you will say that big capital will deal with you on trumped-up charges, and it will be useless even if you are innocent. People with connections have plenty of ways to fabricate charges and leave you speechless.

This possibility does exist, such as the XX milk that Section Chief Song just mentioned, but do you really understand the factors behind the XX milk incident?

The downfall of his company was caused by many factors, the first of which was that Boss Li himself was not strong enough and the company had serious management problems, which gave him the opportunity to be caught.

For example, Boss Li was too eager for quick success and manipulated capital, which led to extremely unhealthy financial conditions for the company. However, he accidentally revealed his wealth and exposed his weaknesses to his enemies.

In addition, the problem of collusion between people inside and outside their company is also very serious, and insiders are handing knives to the enemy.

Speaking of which, I've also observed that your Lingnan Hall's sales model has significant loopholes. You should be mindful of this. If you're not careful, it could easily lead to someone finding fault with you, leaving you with no way to defend yourself.

Lin Sanqi was shocked and said, "Ah, what did you say? Director Qin, don't scare me."

What do entrepreneurs fear most? Of course, it's the insider.

Lin Sanqi's mind instantly flashed through the names of Lingnan Hall executives.

Lin Tianhua is my cousin and has the support of the clan. Plus, he earns hundreds of millions every year, so he shouldn't be treated unfairly, right?

That was Yin Lianyi? She was his future wife, the appointed boss lady, holding great power, but they had been childhood sweethearts, so there was no reason for her to betray him.

Who else? Huang Yushu? Meng Peng? Zhu Xinyue? Yao Zhuohan? Cousins?

Seeing Lin Sanqi's expression suddenly change, Director Qin smiled and reminded:

"Mr. Lin, it's not like you imagine that there are betrayals among the senior executives of your company. Your company has a simple personnel structure, and almost all the senior executives are from your Lin family. This alliance should be solid.

The problem I'm worried about is your sales team. Your Chinese herbal medicine sales company specializes in selling wild ginseng and cordyceps. It is said that business is booming and you don't have to worry about sales at all.

But have you ever considered that a single ginseng root or a pound of cordyceps can easily fetch tens or even millions of yuan? Money can be tempting. And I've observed your operational system, and perhaps you think your shipping is very strict?"

Lin Sanqi blinked and thought, yes, it is quite strict.

Lingnan Hall’s sales model is team-based, with a team consisting of 10 people, which means mutual supervision.

The sales staff receive ginseng orders and after receiving the full payment (Lingnan Hall adopts a payment-first-then-delivery model), they report to the warehouse for shipment. The current supervisor of Lingnan Hall's medicinal material warehouse is Lin Sanqi's biological mother, Wang Wenjuan.

That is, the amount of money Lingnan Tang ships is determined by the amount of money received.

Every day, staff from the Finance Department would check the accounts and report to Yin Lianyi and Lin Tianhua. The two of them would also supervise each other.

Lin Sanqi couldn't think of any link in the process that might cause problems.

As for whether his sales team took kickbacks during the procurement process, he didn't really care. After all, his ginseng was priced, and he received the same amount as he sold.

If salespeople can get kickbacks, that’s their ability.

Director Qin reminded at this time:

"There was a problem in one of the links. Who will be given the ginseng that has been shipped out of the warehouse?"

"Of course, our salesperson will personally deliver the goods to the customer. We will never use anyone else or a courier in between. Even if the customer is in another province or country, we will deliver the goods ourselves. We are absolutely responsible to the end."

“What if the wild ginseng the customer gets is fake?”

"How could it be fake? We all personally..."

"Hiss..." Lin Sanqi reacted:

"Director Qin is saying that the sales staff switched the ginseng themselves? They replaced real wild ginseng with fake ginseng and sent it to the customers?"

Section Chief Song slammed the table and said, "Yes, yes, this is indeed a big loophole."

Director Qin also smiled and continued:

“The reason why your Lingnan Hall’s ginseng is so famous is because it is the only one of its kind in China. Everyone in the industry knows that it is genuine wild ginseng from Changbai Mountain, and it is exactly the age you say it is.

This is the business reputation of your Lingnan Hall, the basis for the trust of wealthy people across the country and even the world, and the main reason for your prosperous business. You have done a great job in this regard.

But money can be very tempting. I heard that your 50-year-old wild ginseng has already sold for 2 million, and the price of 100-year-old wild ginseng has reached over 5 million, right?"

Lin Sanqi nodded. "Yes, things are valuable because they are rare. And to make our customers feel that our products are worthwhile, we plan to raise prices every year."

"Okay then, let's say Mr. Qian from the capital orders three ginseng roots from you, worth tens of millions, and you ask the salesperson to deliver them personally. Aren't you afraid the salesperson will run away with the ginseng?

It would be fine if he ran away, but I’m afraid he would mistake the fake for the real thing, which would be a real problem.

Those wealthy people who get ginseng will definitely have it authenticated. If it's found to be fake, the reputation you've worked so hard to build up at Lingnan Hall will be destroyed, and it will be difficult to restore it."

Lin Sanqi took another breath and thought about it carefully. It was really like that.

Don’t talk about how loyal the sales team is. Didn’t Mao Jinzhe, the sales champion in the first year, betray them?

Moreover, today's counterfeiting technology has reached the pinnacle. Fake ginseng can be made to look exactly like real ginseng, even the whiskers are the same.

It's useless to take a photo when the ginseng is shipped out. When the salesperson is caught, he will cry out for injustice because he will say that this was the ginseng he got when he shipped out.

How do you prove that he didn't get this ginseng? Everything requires evidence.

The circle of wealthy people is actually very small. Once a wealthy person gets his hands on fake ginseng, once the news gets out, Lingnan Hall’s reputation will be ruined.

It will also drag down other branches, such as Lingnantang Chinese Medicine Clinic, which is now the first choice of Chinese medicine for the wealthy. This is because the doctors at Lingnantang are all experts and the medicinal materials are absolutely genuine.

If these two cash cows fail, how can I enjoy the "traffic monetization" brought by time travel?

Thinking of this, Lin Sanqi humbly asked for advice:

"Director Qin, if you hadn't told me, I wouldn't have discovered this fatal loophole. Just for your reminder, you can take as much Moutai as you want from my wine cellar today.

Also, how should I patch this vulnerability? How can I prevent insider attacks?

Director Qin: "Actually, this is an easy problem to solve. Just have the buyer come and pick up the ginseng in person. And don't be afraid to spend money. Before each piece of ginseng leaves the warehouse, have the notary office staff notarize it and issue a certificate.

I remember that the notarization fee for certifying an economic contract is 600 yuan for a contract value of more than 1 million yuan but less than 2 million yuan; 1,000 yuan for a contract value of more than 2 million yuan but less than 3 million yuan;

For amounts between 3 million yuan and 4 million yuan, the fee is 2,000 yuan; for amounts above 4 million yuan, the fee is 3,000 yuan.

This amount of money is a drop in the bucket compared to the price of the ginseng you sell, but it can save you from all legal disputes after the sale, because you also have to be on guard against the other party who comes to take the ginseng, and whether they will switch it in the middle.

Furthermore, every ginseng root is notarized, which is beneficial to the business reputation of Lingnan Hall and makes it look more prestigious. Those wealthy people will trust you more, so won't sales continue to rise?

Lin Sanqi slapped his thigh. "Ah, Director Qin, I really want to call you Teacher Qin. It makes me suddenly enlightened. I respect you."

After saying that, Lin Sanqi took a large cup, filled it with Maotai, drank it all in one gulp, and then the spicy taste went straight to his tongue.

Section Chief Song also slammed the table:

"Okay, Brother Lin, you're so generous. Haha, you southerners are so stingy when it comes to drinking. If you want to drink, just drink a big cup."

In a private environment, Lin Sanqi intended to make friends with these two powerful leaders.

The two leaders also have a good impression of Lin Sanqi, the God of Wealth, so the relationship value between the three parties has always been +1, +1, +1.

Most of the time, power and money are twin brothers.

Finally, a Mercedes-Benz commercial vehicle drove out of Lin Sanqi's underground garage, carrying Director Qin, a box of Lai Mao, and 100 kilograms of bulk Maotai.

But he still encountered a small obstacle with Section Chief Song.

"Brother Lin, I really treat you as a brother, so please don't tempt me anymore. I told you that it's okay to eat and drink a little, but you absolutely can't take anything.

So take this box of Lai Mao back. Even if you gave it to me, if I took it home and my father found out, he would whip me with his belt. It's our family tradition not to take a single needle or thread from the people." (End of this chapter)

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