(Tiểu luận) topic risk management of product quality in thesupply chain of vinamilk

By understanding the needs of the market and implementingwell the risk management in product quality in combination with the use ofmodern production models, technology and the right busi

THUONGMAI UNIVERSITY Finance – Banking - Insurance

- 

-RISK MANAGEMENT

DISCUSSION

Topic: Risk management of product quality in the

supply chain of Vinamilk

Class: 23100BMGM0217E

Teacher: PhD Pham Trung Tien

1

Hanoi, 2022.

TABLE CONTENTS

1 CONTEXT ……….3

2 NAME/TYPE……….

3 REASON

4 CHANCE OF LOSS

5 SOLUTION

3

1 CONTEXT

1.1 Reasons for choosing the topic

Currently, Vietnam's dairy industry is making great strides to meet the increasing demands of the market In the context of economic integration, dairy brands face stiff competition between domestic and foreign Research contact: Vinamilk is a leading enterprise in the dairy industry

in Vietnam By understanding the needs of the market and implementing well the risk management in product quality in combination with the use of modern production models, technology and the right business strategy, Vinamilk bids shrimp large market share of the dairy market despite stiff competition with famous foreign brands such as: Abbott, Dutch Lady, Lothamilk,

Therefore, researching and proposing product quality risk management for Vinamilk will bring many meanings in terms of knowledge as well as economic value

1.2 Vinamilk company and Risk management of quality of Vinamilk

Vinamilk is the short name of Vietnam Dairy Products Joint Stock Company, established in 1976, with the business of manufacturing and trading milk and dairy products as well as equipment and machinery Vinamilk is the first representative of Vietnam to appear in the Top 200 Best Asian Enterprises in 2010 voted by Forbes Asia magazine Ranked in the top 5 largest private enterprises in Vietnam by Vietnam Report (VNR) In addition, Vinamilk is also ranked as one of the 10 most favorite brands by Vietnamese consumers by Nielsen Singapore Currently, Vinamilk is the leading enterprise of the dairy processing industry, accounting for 55% of the country's milk market share, of which 54 5% market share in liquid milk, 40.6% market share in powdered milk, 33.9% market share in drinking yogurt, 84.5% market share in edible yogurt and 79.7% market share in condensed milk nationwide In addition to strong domestic distribution with a network of more than 250,000 sales points covering 63 provinces and cities, Vinamilk products are also exported to 43 countries

around the world such as the US, France, Canada, Poland, Germany, Japan, and the United States Middle East, Southeast Asia After more than 40 years of launching to consumers, Vinamilk has now built 14 production factories, 2 logistics factories, 3 branch sales offices, a dairy factory in Cambodia (Angkormilk) and a representative office in Thailand

Technical equipment and materials with quality problems:

 The company always focuses on investing and renewing technological equipment at all stages: raw materials, processing, finished products, preservation and transportation

 The old and outdated equipment has been replaced by advanced and modern equipment such as LIHT milk production equipment, condensed milk, yogurt

 In the investment process, the company always aims for modernity, synchronization

 The company attaches great importance to technology transfer and considers it the secret of success

The company always ensures high quality products trusted by customers Topping the Topten Vietnamese high-quality goods for 9 consecutive years from 1997 to 2005 (Saigon Marketing Newspaper) Topten favorite Vietnamese goods (Dai Doan newspaper) Currently the company is applying the quality management system ISO 9001: 2000 and HACCP This ensures that the company always upholds the quality of management and process because a good process management system will produce high quality products, ready to satisfy all needs of customers in and around the world overseas and holds the leading position in the dairy processing industry in Vietnam

Human resources for quality management and assurance processes are responsible for quality management in the production process, including: quality management department at the company; quality control departments at factories, quality control departments are responsible for setting technical requirements of raw materials and finished products; announce the quality of products according to the law; manage and track

5

quality records; Advising management on strategic objectives and quality policy In short, this is the department that manages the quality function

at the corporate level

At the factory level, there are "KCS" departments that are responsible for checking the stages, input materials at each stage of the production process and the final product must be analyzed for criteria in accordance with the standard

Quality process: (1) the quality control department sets out the quality requirements; (2) The import-export department purchases goods according

to that request; (3) The imported materials must be inspected and certified

by the Food Safety and Hygiene Department; (4) KCS department at the factory checks the quality of all materials before putting them into production; (5) During the production process, each stage is strictly controlled, recorded and analyzed; (6) The final product must be thoroughly inspected before it is sent to the warehouse

Food safety and hygiene issues: Food safety and hygiene is one of the top quality policies that Vinamilk sets out in its operations All factories apply the HACCP system on food safety and hygiene Food hygiene and safety are strictly followed in all stages n: input, process, and output

 For raw materials: the company issues technical requirements which emphasize the requirements of food safety and hygiene During the production process, all processing parameters must meet the requirements such as hazard analysis of the HACCP system, critical control points are monitored and reported by warehouse operators

 For finished products: The KCS department at the factories will check each production shipment according to the prescribed procedures when the test results meet the processing requirements, the factory will conclude for shipment

2 NAME/TYPE

2.1 Input distribution of Vinamilk

The risks Vinamilk may encounter in the production process such as:

• Risk of substandard product

Discover more

from:

abcd08

Document continues below

quản trị rủi ro

Trường Đại học…

144 documents

Go to course

• Risks in the contract between the purchasing center and the farm.

• Improper storage •Mold, fire, flooding in the warehouse

• The procedure for testing milk samples is not in accordance with the specifications

• Non-closed, non-sterile, interrupted process

• Quantification is not correct with the formula

• Natural disasters

• Waste water treatment process is not in accordance with regulations

• Inconsistent packaging leads to torn, dented packaging

Vinamilk uses modern production and packaging technology at all factories, technologies imported from European countries such as Germany, Italy and Switzerland to apply to production lines Vinamilk is the only company in Vietnam that owns a system of machines using spray drying technology manufactured by Niro of Denmark, the world leader in industrial drying technology In addition, Vinamilk also uses international standard production lines provided by Tetra Pak to produce dairy products and other value-added products to help make the production process more efficient and create products good quality

At processing plants, cow's milk, after being milked, will flow directly into the cooling system quickly from 370C to 40C through Delaval's automatic milking line From here, this raw milk will be quickly transferred

to factory Applying standards in the process of handling raw milk such as cooling system, high temperature treatment system to help materials and products ensure hygiene, easy storage, create a longer shelf life (6 months) -one year)

All laboratories at Vinamilk's factories are ISO 17025 certified for chemistry and biology All factories operating in Vinamilk's production block have an environmental management system certified to ISO 14001:2004

2.2 Output distribution of Vinamilk

Possible risks:

• Ineffective marketing leads to inventory

• Demand is too great, not enough goods to sell to customers

ĐỀ CƯƠNG QTRR

quản trị rủi ro 100% (14)

27

BÀI THUYẾT Trình NHÓM 6 - KFC

quản trị rủi

ro 80% (10)

7

Slide-RISK-Management 1

quản trị rủi

ro 100% (1)

33

Chuyên đề thực tập Nguyễn Thị Thanh…

quản trị rủi

ro 100% (1)

46

quản trị rủi ro của SAbeco trước nghị…

quản trị rủi

ro 100% (1)

14

Chuyen de BD HSG Vat ly THCS TT 2021…

quản trị rủi

ro 100% (1)

38

• Store management is not strict, the maintenance has problems

• Problems in the process of transporting goods to consumers

Transportation: Regulations on transporting milk are only allowed to load up to 8 boxes on top of each other, but many small Vinamilk milk distribution agents load up to 15 boxes, then the loading and unloading damage the packaging, affecting the quality product quantity On the other hand, Vinamilk only transports products to general agents by specialized vehicles with refrigeration systems to ensure the required temperature, while the distribution to stores is mainly by motorbikes or cars without refrigeration systems Therefore, the quality assurance is still limited Storage: Vinamilk's products are available everywhere, in rural areas of the provinces and most are sold in grocery stores For some fresh milk products that must be stored according to the regulations of Vinamilk's cold products, they must be preserved at a temperature below 6 degrees Celsius for 45 days, and at 15 degrees Celsius, only 20 days, at normal temperature

If it takes 2 or 3 days for the milk to sour, the fact that stores do not have air conditioning or refrigeration equipment are very limited in preserving products that require cold storage

3 REASON OF THE QUALITY’S RISK

3.1 Peril

Causes of quality risks can come from:

 Production stages such as production materials do not meet the standard quality, are not stored properly,

 Staging of packaging such as unsatisfactory product packaging, open or torn

 The stage of preservation and storage such as the storage temperature is not guaranteed

 The distribution stage such as the container is wet with water or distorted during transportation

But no matter where the cause comes from, it also has serious consequences, leading to production line delays and damaged and unsatisfactory manufactured goods to consumers

3.2 Hazard

8

The danger of quality risk mainly comes from problems in the planning of storage and management of distributors

Inventory levels affect the quality of goods in stock If the preservation of goods is well stocked, the quality of goods is also guaranteed If the preservation is not good, the quality of goods will be reduced, causing the consumption activities to be reduced, the inventory level will increase Employee quality is also a factor affecting the increase or decrease of change in risk If employees are well-trained, have enough knowledge and skills in dealing with unexpected situations such as weather (rain, storm, flood, etc., affecting the transportation and preservation of goods) (especially for small dealers in rural areas, where equipment is limited), the likelihood of the occurrence of risks will be significantly reduced

The level of inventory of goods affecting goods is also guaranteed If the preservation is not good, the quality of goods will decrease, causing the consumption activities to be reduced, the inventory level will increase

4 CHANCE OF LOSS

4.1 Severity

The seriousness of the risk on product quality of Vinamilk is quite serious,

it directly and indirectly affects the business for the following reasons:

- It affects the company's revenue:

When the amount of damaged goods is large, the company will suffer loss, damage and have to throw away the unsatisfactory goods and have to spend the cost of producing new products to make up for the goods defective Therefore, for defective products that customers complain about, Vinamilk has to spend a lot of money to check and evaluate that shipment to find the error and then find solutions such as:

 Compensation costs: the number of defective products when complained by customers, Vinamilk must compensate to help reduce the loss of reputation If a customer uses a product that affects their health, Vinamilk must be responsible for the cost of the drug

 Expenses for exchange: If the goods are returned, Vinamilk must exchange them for a new product, causing loss of revenue and selling expenses

- Effects on the production line: quality risks disrupt the company's product lines and supply chains For example, a container that gets wet and dented) will cause serious consequences and losses (unusable packaging, resulting in production line disruption) Therefore, the enterprise must rebuild the production plan of the missing goods to compensate for the quantity of damaged goods In addition, goods that do not meet quality standards will cause a shortage of product output; causing the time to be extended, the time

to complete the orders is overdue, the market supply is reduced, thereby disrupting the company's original production plan

Reputation: Vinamilk is a big enterprise,

Vinamilk is a big and long-standing brand, not only developing in the domestic market, Vinamilk also expanding its brand in foreign countries, so

if the number of goods that do not meet the standards is large, it will affect the reputation of the company , this affects sales Besides, the quality of Vinamilk's products has problems, if the strict process is not guaranteed, it will also affect the brand

In addition, products that do not meet standards and are not timely to detect and remove, when they reach customers, will cause quite serious consequences, making them unhappy and thereby losing trust, making them unsatisfied, reduce the prestige and trust of customers, which also causes a lot of inventory

: For the above reasons, it is found that the degree of impact of the risk is very high and high severity

4.2 Stakeholders

Shareholder - Meet and consult

face-to-face

- Collect shareholders'

- Ensure safe investment, sustainable profit

10