Background & development of the Acecook company
Established on December 15, 1993 and officially put into operation in 1995, after many years of operation, Acecook Vietnam Joint Stock Company has continuously grown to become a comprehensive food company leader in Vietnam with a solid position in the market, specializing in providing high quality and nutritious instant food products.
Formerly known as Vifon Acecook Joint Venture Company - the result of cooperation at the capital contribution ratio of 60:40 between Japanese investor Acecook Co., Ltd and Vietnamese partner, Vietnam Food Industry Company (Vifon) – 100% state-owned enterprise, then directly under the Ministry of Industry (However, after nearly 10 years of cooperation, Vifon divested capital, even though by this time the Hao Hao instant noodle product - the "legendary brand" of the Vietnamese instant noodle market, had been born for 2 years).
1993: Acecook officially entered the Vietnamese market Established joint venture company Vifon Acecook (December 15, 1993).
1995: Officially sold the first product High Class brand in Ho Chi Minh City (July 7, 1995). 1999: Won the title of High Quality Vietnamese Goods for the first time.
2000: Hao Hao Spicy and Sour Shrimp flavor was born A new breakthrough creates a leap for the company in the market.
2003: Complete the factory system from North to South.
2004: Officially changed its name to Acecook Vietnam Co., Ltd Relocate the factory to Tan Binh industrial park.
2005: Entering the instant rice market Building a factory in Vinh Long, launching the product Pho Xua & Present.
2008: Changed name to Acecook Vietnam Joint Stock Company (January 18, 2008) Official member of the World MAL Association.
2012: Inauguration of Ho Chi Minh factory 2 leading locations in Southeast Asia.
2015: Acecook Vietnam Joint Stock Company Change to a new brand identity.
2018: Hao Hao was confirmed by the Guinness Vietnam Record as the product with the highest sales volume in Vietnam in 18 years (2000-2018).
2020: Acecook has 7 branches with more than 300 agents nationwide and exports to more than 40 countries
Scope of analysis
Business scope
Current scale of the company: Acecook Vietnam Joint Stock Company is one of the largest enterprises in the instant noodle industry in Vietnam In the domestic market, the company has a scale of 11 manufacturing factories from North to South, 6000 employees with more than 700 distribution agents, accounting for 51.5% of the domestic market share For export markets, Acecook Vietnam products are present in over 40 countries around the world, including countries with strong export market shares such as the US, Germany, Russia, Australia, Singapore, Cambodia, Laos, Canada With outstanding development after 29 years of development, Acecook Vietnam company has grown strongly in the fields of food processing, specifically:
● Manufacture of pasta, noodles and similar products.
● Producing dishes, instant foods, and processed foods.
● Production and canning of animal and vegetable oils and fats.
● Processing and preserving fish sauce and oil.
Main products
Acecook Vietnam Company has specific products, their main products:
● Instant noodles: Hao Hao,Bac Trung Nam, Sao Sang, Hao 100, Hoanh thanh, De Nhat,So Do, Doreamon, Siukay, Lau Thai, Minova, Mikochi, Udon suki suki, Good,
● Burmese: Phu Huong, Tieng Vang
● Pho: Past and Present, De Nhat
● Vermicelli: Hang Nga, Diem Sang
● Soup: Nhat Vi, Kanli, Hao Hao salt
Market segment
Acecook targets the popular market segment Especially "Hao Hao noodle products" Up to now, Vina Acecook's Hao Hao is still considered the "king of instant noodles" in the mid-range segment, a position that many other noodle businesses always covet Hao Hao targets consumers who are students, consumers with average income by pricing products that are suitable for all consumers Therefore, Hao Hao noodles are popular and widely used in both rural and urban areas Hao Hao noodles products attract consumers not only because of the affordable price but also the quality and variety of product flavors Each flavor of Hao Hao noodles comes with its own eye-catching packaging, creating a feeling of excitement and newness for consumers consumption.
* In this report, group 5 will analyze the supply chain of instant noodle products ofAcecookVietnamcompany.
Mission, vision and core values
With the philosophy of contributing to society through a "real" path, since its establishment, Acecook has made two promises to Vietnam:
● Contribute to improving and developing Vietnam's food industry by producing and trading high quality instant foods.
● Actively export products that bring Vietnamese culture to the world During the 27 years since its establishment, Acecook Vietnam has made changes and transformed itself to reach out to the world to gain the position in the hearts of consumers today.
"Providing high quality products/services that bringHEALTH - SAFETY - PEACE OF MINDto customers".
● Acecook Vietnam always puts product quality as top priority
● Support the communication of accurate and scientific information about instant noodle products to create safety and peace of mind for customers.
● In recent years, Acecook Vietnam has focused on health products, not only meeting new consumer needs but also increasing the value of instant noodle products.
"Becoming a leading food manufacturing enterprise in Vietnam with sufficient management capacity to adapt to the globalization process."
● Happy Customers: Acecook Vietnam will always strive to make customers who use Acecook products feel happy.
● Happy Employees: Acecook Vietnam always strives to make Acecook employees and their families feel happy.
● Happy Society: Acecook Vietnam always strives to make the whole society feel happy
Acecook’s position in the market
Currently, more than 50 businesses are producing instant noodles in Vietnam 70% market share belongs to Acecook Vietnam, Masan, and Asia Food Among them, Acecook Vietnam always leads the market share, accounting for about 50% in urban areas and 43% nationwide. Acecook holds a 35.4% market share of Vietnam's instant noodle market The Hao Hao brand alone holds the top position, contributing 60% of Acecook's sales each year, and is recognized by 100% of Vietnamese consumers Besides, Acecook's products are also exported to more than 40 markets around the world, including many demanding markets such as the US, Canada, UK, France, Germany, Netherlands, Switzerland, Sweden, and Norway ,Russia, Australia, Korea, Hong Kong,…
Analyze the supply chain of Acecook
Supplier
Acecook's supply chain is an overall optimization management solution in coordinating finished products, semi-finished products, and raw materials through the process of sharing information on ordering, inventory, sales, and logistics between companies and customers.
Acecook cooperates with many partners providing Logistics services to build a management system for warehouses, orders, distributors, and personnel Creating a continuous and closed supply chain, with overall optimized management from Managing raw material import, production of finished products, and semi-finished products to distribution and retail.
First, Acecook Vietnam has been transferring modern Japanese equipment and technology to produce high-tech instant noodles in Vietnam since 1994 Next, in terms of quality, Acecook's team's technical transfer to control and manage quality is always at a stable level The third is to be trained on how to control quality from input to output products in a dynamic manner according to standards Besides, when there is a new technology in Japan, Acecook Vietnam can also access it and quickly apply it to its production activities.
More specifically, Acecook has in turn cooperated with Fujitsu Co., Ltd to build a Logistic system, applying the SCM software package (L-Series) of NTT Data Company, a system integration company from Japan , titled "Business Support System", including warehouse management system, order management, and sales support system for distributors and sales staff in 2014 and aims to reform and improve the system goods coordination system in Vietnam, the company built a logistics information system on goods circulation and warehousing in 2016.
- Kim Ngan Vietnam Limited Liability Company
- Established in 2015, operating in the fields of:
- Commercial supply of agricultural products
- Processing and producing spices from agricultural products.
Tien Hung was established under Business Registration Certificate No 21.02.000213 issued by the Department of Planning and Investment of Bac Ninh Province on February 28, 2002. After 10 years of development, Tien Hung Joint Stock Company specializing in wheat flour production in Tien Son Industrial Park has affirmed its reputation and brand with many
11 resources in the field of food biochemistry The primary goal of the testing department is to ensure product safety and consumer health Acecook Vietnam's product research and development team always updates the latest knowledge about technology, deeply researching domestic and foreign markets to look for opportunities and ideas for product development.
Acecook's distribution system is diverse across the country Among them, there are 7 business branches, and 700 level 1 agents distributed throughout all parts of the country The networks are centrally managed and divided according to operating areas:
- Company headquarters and main office in Tan Phu district, Ho Chi Minh
- Northern branches: Hanoi, Hung Yen, Bac Ninh
- Southern branches: Ho Chi Minh City, Binh Duong, Vinh Long
- Distributors will be responsible for transporting goods to retail counters nationwide. Acecook can reach a variety of target customers thanks to its extensive retail system.
- The cargo coordination information system will be put into use to collect information about means of transport and vehicle operation information as a basis for improving cargo coordination activities In addition, understanding work progress as well as making effective vehicle dispatch plans will help improve the efficiency of loading goods and reduce idling time, thereby reducing Logistics costs
- At its official distributor locations, Acecook has built effective brand recognition systems and staff knowledgeable about the products In addition, distributors will enjoy discounts when distributing products, receive 9 sales bonuses and be responsible for facilities, personnel or warehouses From there, build a strong and sustainable distribution network.
- Distributors will be responsible for transporting goods in boxes and trucks to retail counters at stores nationwide These retailers play an important role in bringing products closer to consumers And with a retail system spanning from supermarkets in big cities to small grocery stores in rural areas, Acecook can reach a diverse range of target customers.
- And to achieve those successes, retailers also receive their own policies when importing products, with hierarchy from the distributor For example: enjoy
15 preferential prices when selling a lot of products, free shipping to retailers and many other preferential policies
- Because the general consumption trend of Vietnamese people today is to get closer and closer to modern distribution channels such as supermarkets and buffet stores. Therefore, Hao Hao has implemented a strategy to distribute its products through these retail channels Products are brought to consumers through only one retailer. Specifically, Hao Hao is sold at retail supermarkets such as Big C, Do Mart supermarket chain, Maximax system These supermarkets distribute directly. products reach the final consumer, by allowing consumers to choose their favorite and suitable products and product lines.
- Besides understanding the favorite eating style of young people, Acecook - the father of Hao Hao noodles - has announced that it will open its first buffet instant noodle restaurant in Vietnam in December 2020 “Acecook Cup Noodle Buffet” was first opened at Lot T171, 1st floor of Aeon Hai Phong At Acecook Cup Noodle Buffet restaurant, diners will be free to prepare their cups of instant noodles with 8 soup flavors and 11 types of toppings produced in Vietnam and imported from Japan With the slogan "Cup noodle buffet, satisfying experience", the restaurant will be a place to bring exciting new experiences to customers about using instant noodles; You can freely choose and mix noodle cups according to your taste and enjoy the joy of the finished cups you create Besides, customers will also know more about Acecook Vietnam's current instant cup products through a dedicated platform to display products in the restaurant.
Acecook always leads the market share with 50% in urban areas and 43% nationwide The recognition level of Acecook products often ranges up to 80% Among them, the Hao Hao brand has nearly 100% market coverage In addition, Acecook also offers development strategies to bring its products to different target audiences:
- For ages 18-25: This age segment is students, so Acecook launched Hao Hao noodles, SiuKay, Thai shrimp hotpot with sweet and sour flavors, awakening the taste buds of this age group This.
Distributor
Acecook's distribution system is diverse across the country Among them, there are 7 business branches, and 700 level 1 agents distributed throughout all parts of the country The networks are centrally managed and divided according to operating areas:
- Company headquarters and main office in Tan Phu district, Ho Chi Minh
- Northern branches: Hanoi, Hung Yen, Bac Ninh
- Southern branches: Ho Chi Minh City, Binh Duong, Vinh Long
- Distributors will be responsible for transporting goods to retail counters nationwide. Acecook can reach a variety of target customers thanks to its extensive retail system.
- The cargo coordination information system will be put into use to collect information about means of transport and vehicle operation information as a basis for improving cargo coordination activities In addition, understanding work progress as well as making effective vehicle dispatch plans will help improve the efficiency of loading goods and reduce idling time, thereby reducing Logistics costs
- At its official distributor locations, Acecook has built effective brand recognition systems and staff knowledgeable about the products In addition, distributors will enjoy discounts when distributing products, receive 9 sales bonuses and be responsible for facilities, personnel or warehouses From there, build a strong and sustainable distribution network.
- Distributors will be responsible for transporting goods in boxes and trucks to retail counters at stores nationwide These retailers play an important role in bringing products closer to consumers And with a retail system spanning from supermarkets in big cities to small grocery stores in rural areas, Acecook can reach a diverse range of target customers.
- And to achieve those successes, retailers also receive their own policies when importing products, with hierarchy from the distributor For example: enjoy
15 preferential prices when selling a lot of products, free shipping to retailers and many other preferential policies
- Because the general consumption trend of Vietnamese people today is to get closer and closer to modern distribution channels such as supermarkets and buffet stores. Therefore, Hao Hao has implemented a strategy to distribute its products through these retail channels Products are brought to consumers through only one retailer. Specifically, Hao Hao is sold at retail supermarkets such as Big C, Do Mart supermarket chain, Maximax system These supermarkets distribute directly. products reach the final consumer, by allowing consumers to choose their favorite and suitable products and product lines.
- Besides understanding the favorite eating style of young people, Acecook - the father of Hao Hao noodles - has announced that it will open its first buffet instant noodle restaurant in Vietnam in December 2020 “Acecook Cup Noodle Buffet” was first opened at Lot T171, 1st floor of Aeon Hai Phong At Acecook Cup Noodle Buffet restaurant, diners will be free to prepare their cups of instant noodles with 8 soup flavors and 11 types of toppings produced in Vietnam and imported from Japan With the slogan "Cup noodle buffet, satisfying experience", the restaurant will be a place to bring exciting new experiences to customers about using instant noodles; You can freely choose and mix noodle cups according to your taste and enjoy the joy of the finished cups you create Besides, customers will also know more about AcecookVietnam's current instant cup products through a dedicated platform to display products in the restaurant.
Customers
Acecook always leads the market share with 50% in urban areas and 43% nationwide The recognition level of Acecook products often ranges up to 80% Among them, the Hao Hao brand has nearly 100% market coverage In addition, Acecook also offers development strategies to bring its products to different target audiences:
- For ages 18-25: This age segment is students, so Acecook launched Hao Hao noodles, SiuKay, Thai shrimp hotpot with sweet and sour flavors, awakening the taste buds of this age group This.
- Age from 26 - 30: The age segment is mostly office workers and married people who will pay attention to the nutrition of the product Acecook offers products such as: Udon noodles, Block non-fried noodles…
- To continue expanding Acecook's supply chain, the company associates with online shopping platforms such as Tiki, Lazada, Sendo…
What is a supply chain map?
Analyze potential risks of supply chain
ACECOOK is one of the leading corporations in the field of food and cooking oil production in Vietnam and many other countries around the world With an extensive distribution network, ACECOOK relies on a complex procurement supply chain to ensure continuity in production and product supply to the market However, ACECOOK's purchasing activities cannot avoid potential risks Below are some of the risks that ACECOOK needs to pay attention to:
Analyze potential risks
Risks in raw material supply
ACECOOK needs to ensure that the supply of key ingredients such as flour, cooking oil, spices, and seafood is always stable Sometimes unexpected things happen that cause the
17 price of raw materials to suddenly increase (diseases, resource purchases, delivery delays, ). This has a significant impact on the factory's production activities Therefore, we must calculate the risks in advance and have appropriate handling methods to minimize the risks as much as possible.
Risks in raw material supply may include:
● Increaseinrawmaterialprices:Fluctuations in world prices can significantly impact ACECOOK's profits.
● Material shortage:Weather problems, natural disasters or terrorism can cause material shortages and affect production.
Prices on the market are almost already listed If during production, the price of raw materials increases, profits will certainly be greatly reduced Moreover, the quantity of goods sold is very large, profits can be reduced by tens of billions.
Risks in transportation and distribution
ACECOOK must ensure products are transported and distributed on schedule and to the right destination All orders have a fixed delivery time In case this order needs to be delivered to customer number 1, customer number 1 is delivered to customer number 2, customer number
2 is delivered to customer number 3, then the delayed delivery will have a huge impact same negative.
The following are some specific cases:
● Loss during transportation and distribution: Loss of goods during transportation and distribution can occur due to many reasons, including errors in packaging, careless handling of goods, or mixed goods This could lead to a large loss in ACECOOK's profits.
● Transportation costs: Fluctuations in fuel oil prices and transportation costs can affect the total cost of the supply chain.
● On-time delivery: The risk of not delivering on time can lead to customer dissatisfaction and loss due to not being able to use the product within the desired time.
Risks in warehouse management
Risk in warehouse management is an important aspect of ACECOOK's procurement supply chain This business needs to ensure effective warehouse management to minimize loss and expired goods Inventory loss and expired goods can lead to property damage and losses due to the inability to use products at the right time.
Not managing your inventory effectively can cause many problems and potential risks, including:
● Inventory loss:Inventory loss occurs when goods are lost or damaged during storage Factors such as sloppy warehouse management, errors in inspection and packaging procedures, or even unauthorized entry into the warehouse can lead to inventory loss This loss not only results in property damage, but also affects the ability to serve customers and increases costs due to having to replace lost inventory.
● Expired goods:An ineffective warehouse management can also lead to expired goods This is not only a loss of assets, but also affects the company's reputation. Expired goods can not only cause customer dissatisfaction, but can also threaten consumer safety and health.
● Ineffectivestoragecosts:When not managing warehouses effectively, ACECOOK may have to pay higher storage costs, including warehouse rental costs, warehouse transportation costs, and storage costs This can increase overall costs and affect profits.
Customer and market transformation risks
Customer and market transformation risks can become one of the important issues in ACECOOK's supply chain The food market is a diverse and competitive sector, and customer preferences and market conditions can change rapidly.
Here are the important aspects of this risk:
● Changing consumer trends:Customers change their preferences and prefer different products over time ACECOOK must monitor new consumer trends, such as healthy cuisine, quick menus, or organic food consumption, to adjust their products and marketing strategies.
● Fierce competition:The food and cooking oil market is often very competitive, with many businesses participating This can lead to downward pressure on prices and increased product quality The risk lies in not being able
Supply chain risk management
Five products and services to purchase & Kraljic matrix
Website:http://www.vinabomi.com.vn
Binh An Flour Company has a compact organizational model, with reasonable division and suitable work for a workforce of 120 people.
- College and intermediate level: 10 people
Using production lines imported from Buhler of Switzerland, this is a synchronous, automatic production system, ensuring products meet required quality standards However, this is an old generation production line => Low flour recovery rate (75 - 80%)
The company's powder storage system ensures the needs of preservation and production of finished products
The company mainly imports wheat from Australia (About 75% of the company's raw materials), Russia, China, and Canada.
● The brand is highly appreciated in the market: Due to stable quality and ability to meet diverse requirements, it has been a partner of large companies with a market share of 7 - 10%.
● Have good relationships with large companies in Vietnam: Massan, Vifon, Gomex, Uni - President, These companies directly consume about 50% of Binh An's total flour output
● Distribution system and wide agent network: Binh An Company has a total of 34 large distribution agents nationwide
Product marketing and market expansion are not strong: With increasing competition in the domestic flour industry, Binh An has not yet paid attention to developing new markets.
Product price is relatively high: Due to having to import 70% of wheat for production → Storage costs, and raw material preservation costs increase => Prices are inflated
Risk of changing wheat prices on the international market: Due to heavy dependence on imported supply → Supply risk, unstable price
C Tien Hung Joint Stock Company
Tien Hung Joint Stock Company operates mainly in the field of flour production from imported wheat.
Business name: TIEN HUNG JOINT STOCK COMPANY
International name: Tien Hung Joint Stock Company
Head office: Tien Son Industrial Park, Hoan Son Commune, Tien Du District, Bac Ninh Province, Vietnam
Business line: Food - Wheat flour production
Legal representative: Nguyen Thi Xuan Diem
Email:info@tienhung.com.vn
Website:http://www.tienhung.com.vn
The company is headquartered in Tien Son Industrial Park, Bac Ninh Province, on 30,000 square meters The company also has a flour factory in Dinh Vu Economic Zone, Hai Phong, on 10,000 square meters.
The company has 4 modern automated flour production lines from Bühler - Switzerland with a total capacity of 500 tons of rice/day in Bac Ninh and 500 tons of rice/day in Hai Phong. The company also has a 35,000-ton rice silo system from Prado - Spain in Bac Ninh and Hai Phong.
The company creates stable jobs for nearly 300 workers, with an average salary of 7.5 million VND/person/month.
The company has a large and modern warehouse system, storing more than 10,000 tons of products The company has more than 100 trucks to transport products to agents and customers nationwide with modern flour transportation technology by tank trucks - the world's most advanced technology applied for the first time by Tien Hung first in Vietnam. The company has more than 300 level 1 agents and more than 10,000 sales points nationwide In addition, the company also exports products to countries such as Malaysia, Thailand, Korea,
- Commercial flour: common flour, premix
- Household flour: Narcissus, Crispy Fried Flour, Tapioca Flour, Fatty Flour, All-Purpose Flour, Bread Additives
The company applies modern production technology from Bühler - Switzerland and has a quality management system according to ISO 9001:2015, ISO 22000:2005, and HACCP standards The company also equips the QA (quality assurance) and R&D (Product Research and Development) departments with the most advanced European (EU) laboratory equipment and baking lab.
The company has many flour brands that have confirmed their quality and are widely used in the market, such as VN Bread Flour, Sao La, Hi-Pro, WBF, King Pie, 502 Flour, etc In addition, Tien Hung also provides support products for the bakery industry such as Gateaux ready-mixed flour, and Magest dry yeast
The company's products are chosen as the main raw materials by many large domestic and foreign enterprises, typically: ACECOOK Vietnam Joint Stock Company (Japan), ORION Vietnam Company (Korea), and MIWON Company (Korea) China), Nghia My Food Company (Taiwan), Bien Hoa Confectionery Company (BIBICA), Huu Nghi Premium Confectionery Company In addition, the company also has many individual customers who use its products the company's household flour and nutrition.
The company imports the main raw material, wheat, from countries such as the US, Canada, Australia, and Russia in large quantities and with guaranteed quality The company also imports other ingredients such as milk powder, egg powder, cocoa powder, and cheese
Scale: 1=poor;3=Average;5=Excellent TOTAL 4.25
1.1 Prestige and reputation of the supplier
The brand is highly appreciated in the market and has been a partner of large companies with a market share of 7 - 10% Having good relationships with large companies in Vietnam: Massan, Vifon, Gomex, Uni - President, These companies directly consume about 50% of Binh An's total flour output However, product marketing and market expansion are not strong → There is not really high coverage in the competitive market⇒3 / 5
1.2 Quality of products/services provided
Input:The quality of Binh An's flour products has been verified and meets quality standards, trusted and cooperated by many major partners.
Improvement: Investment in infrastructure and machinery has not been carried out, due to difficulties in borrowing capital → There are not enough conditions to improve
On time + quantity: Distribution system and wide agent network: Binh An Company has a total of 34 large distribution agents nationwide.⇒4 / 5
Binh An provides wheat flour products at relatively high prices, because it has to import 70% of wheat for production → Storage costs, raw material preservation costs increase → Prices are inflated → Not really a sustainable partner with Acecook's criteria of wanting to target the average product segment⇒3 / 5
- Binh An provides friendly customer service⇒ 4 / 5
- However, in terms of technical issues, Binh An does not have a good technical force to respond to all technical problems⇒ 3 / 5
Tien Hung has a long and prestigious history in the noodle industry, applying the most advanced modern production and transportation technologies Affirmed and trusted by many large and small brands, with continuous development Tien Hung has achieved several achievements: 2 consecutive years on the list of 500 fastest growing enterprises in Vietnam
"Award" Fast500 Award" and the title "Vietnam Golden Enterprise 2011" along with many other important awards.⇒4 / 5
Input quality:Raw materials imported from Australia, America, Canada, are carefully selected and quality guaranteed by Tien Hung With the top criteria being quality and food safety and hygiene, Tien Hung has applied a quality management system according to ISO 9001:2015, HACCP, and ISO 22000:2018 standards, and applied flour transportation technology with the world's most advanced technology first used in Vietnam and a team of highly knowledgeable staff Besides, Tien Hung also equips the QA (quality assurance) and R&D (Product Research and development) departments with the most advanced European (EU) laboratory equipment and baking lab.⇒5 / 5
Quality improvement:Quality improvement is a continuous process and never stops Tien Hung Joint Stock Company has continuously strived and developed over the years to create many quality products to bring all customers absolute satisfaction Tien Hung always wants to have more customers, more agents, and the trust of each person.⇒5 / 5
- The company imports the main raw material, wheat, from countries such as the US, Canada, Australia, Russia in large quantities and guaranteed quality → Depends on imports However, the company cooperates with reputable and long-standing partners in the field of importing food ingredients.
⇒The rate of importing raw materials from abroad has improved significantly.
- The company applies modern flour transportation technology by tanker truck - the world's most advanced technology, first applied by Tien Hung in Vietnam Tanks manufactured in Singapore are specifically made for transporting flour Made of stainless steel to ensure food hygiene and safety, with a capacity of about 25 tons of flour Using tank trucks has many outstanding advantages as follows:
+ Eliminates loss of sticky powder on packaging when used
+ Eliminate loading and unloading costs to shorten delivery time
+ The closed system ensures food hygiene and safety
+ More environmentally friendly (due to not using packaging)
⇒Can guarantee delivery time as well as product quality⇒4 / 5
VINABOMI - Binh An Flour Joint Stock Company
Labor situation
Binh An Flour Company has a compact organizational model, with reasonable division and suitable work for a workforce of 120 people.
- College and intermediate level: 10 people
Technology level
Using production lines imported from Buhler of Switzerland, this is a synchronous, automatic production system, ensuring products meet required quality standards However, this is an old generation production line => Low flour recovery rate (75 - 80%)
The company's powder storage system ensures the needs of preservation and production of finished products
Production materials
The company mainly imports wheat from Australia (About 75% of the company's raw materials), Russia, China, and Canada.
Strengths
● The brand is highly appreciated in the market: Due to stable quality and ability to meet diverse requirements, it has been a partner of large companies with a market share of 7 - 10%.
● Have good relationships with large companies in Vietnam: Massan, Vifon, Gomex, Uni - President, These companies directly consume about 50% of Binh An's total flour output
● Distribution system and wide agent network: Binh An Company has a total of 34 large distribution agents nationwide
Weaknesses
Product marketing and market expansion are not strong: With increasing competition in the domestic flour industry, Binh An has not yet paid attention to developing new markets.
Product price is relatively high: Due to having to import 70% of wheat for production → Storage costs, and raw material preservation costs increase => Prices are inflated
Risk of changing wheat prices on the international market: Due to heavy dependence on imported supply → Supply risk, unstable price
Tien Hung Joint Stock Company
Overview of Tien Hung Joint Stock Company
Tien Hung Joint Stock Company operates mainly in the field of flour production from imported wheat.
Business name: TIEN HUNG JOINT STOCK COMPANY
International name: Tien Hung Joint Stock Company
Head office: Tien Son Industrial Park, Hoan Son Commune, Tien Du District, Bac Ninh Province, Vietnam
Business line: Food - Wheat flour production
Legal representative: Nguyen Thi Xuan Diem
Email:info@tienhung.com.vn
Website:http://www.tienhung.com.vn
The production potential
The company is headquartered in Tien Son Industrial Park, Bac Ninh Province, on 30,000 square meters The company also has a flour factory in Dinh Vu Economic Zone, Hai Phong, on 10,000 square meters.
The company has 4 modern automated flour production lines from Bühler - Switzerland with a total capacity of 500 tons of rice/day in Bac Ninh and 500 tons of rice/day in Hai Phong. The company also has a 35,000-ton rice silo system from Prado - Spain in Bac Ninh and Hai Phong.
The company creates stable jobs for nearly 300 workers, with an average salary of 7.5 million VND/person/month.
The company has a large and modern warehouse system, storing more than 10,000 tons of products The company has more than 100 trucks to transport products to agents and customers nationwide with modern flour transportation technology by tank trucks - the world's most advanced technology applied for the first time by Tien Hung first in Vietnam. The company has more than 300 level 1 agents and more than 10,000 sales points nationwide In addition, the company also exports products to countries such as Malaysia, Thailand, Korea,
- Commercial flour: common flour, premix
- Household flour: Narcissus, Crispy Fried Flour, Tapioca Flour, Fatty Flour, All-Purpose Flour, Bread Additives
The company applies modern production technology from Bühler - Switzerland and has a quality management system according to ISO 9001:2015, ISO 22000:2005, and HACCP standards The company also equips the QA (quality assurance) and R&D (Product Research and Development) departments with the most advanced European (EU) laboratory equipment and baking lab.
The company has many flour brands that have confirmed their quality and are widely used in the market, such as VN Bread Flour, Sao La, Hi-Pro, WBF, King Pie, 502 Flour, etc In addition, Tien Hung also provides support products for the bakery industry such as Gateaux ready-mixed flour, and Magest dry yeast
The company's products are chosen as the main raw materials by many large domestic and foreign enterprises, typically: ACECOOK Vietnam Joint Stock Company (Japan), ORION Vietnam Company (Korea), and MIWON Company (Korea) China), Nghia My Food Company (Taiwan), Bien Hoa Confectionery Company (BIBICA), Huu Nghi Premium Confectionery Company In addition, the company also has many individual customers who use its products the company's household flour and nutrition.
The company imports the main raw material, wheat, from countries such as the US, Canada, Australia, and Russia in large quantities and with guaranteed quality The company also imports other ingredients such as milk powder, egg powder, cocoa powder, and cheese
Measuring the performance of the supplier
Binh An VINABOMI Flour
Scale: 1=poor;3=Average;5=Excellent TOTAL 4.25
1.1 Prestige and reputation of the supplier
The brand is highly appreciated in the market and has been a partner of large companies with a market share of 7 - 10% Having good relationships with large companies in Vietnam: Massan, Vifon, Gomex, Uni - President, These companies directly consume about 50% of Binh An's total flour output However, product marketing and market expansion are not strong → There is not really high coverage in the competitive market⇒3 / 5
1.2 Quality of products/services provided
Input:The quality of Binh An's flour products has been verified and meets quality standards, trusted and cooperated by many major partners.
Improvement: Investment in infrastructure and machinery has not been carried out, due to difficulties in borrowing capital → There are not enough conditions to improve
On time + quantity: Distribution system and wide agent network: Binh An Company has a total of 34 large distribution agents nationwide.⇒4 / 5
Binh An provides wheat flour products at relatively high prices, because it has to import 70% of wheat for production → Storage costs, raw material preservation costs increase → Prices are inflated → Not really a sustainable partner with Acecook's criteria of wanting to target the average product segment⇒3 / 5
- Binh An provides friendly customer service⇒ 4 / 5
- However, in terms of technical issues, Binh An does not have a good technical force to respond to all technical problems⇒ 3 / 5
Tien Hung Joint Stock Company
Tien Hung has a long and prestigious history in the noodle industry, applying the most advanced modern production and transportation technologies Affirmed and trusted by many large and small brands, with continuous development Tien Hung has achieved several achievements: 2 consecutive years on the list of 500 fastest growing enterprises in Vietnam
"Award" Fast500 Award" and the title "Vietnam Golden Enterprise 2011" along with many other important awards.⇒4 / 5
Input quality:Raw materials imported from Australia, America, Canada, are carefully selected and quality guaranteed by Tien Hung With the top criteria being quality and food safety and hygiene, Tien Hung has applied a quality management system according to ISO 9001:2015, HACCP, and ISO 22000:2018 standards, and applied flour transportation technology with the world's most advanced technology first used in Vietnam and a team of highly knowledgeable staff Besides, Tien Hung also equips the QA (quality assurance) and R&D (Product Research and development) departments with the most advanced European (EU) laboratory equipment and baking lab.⇒5 / 5
Quality improvement:Quality improvement is a continuous process and never stops Tien Hung Joint Stock Company has continuously strived and developed over the years to create many quality products to bring all customers absolute satisfaction Tien Hung always wants to have more customers, more agents, and the trust of each person.⇒5 / 5
- The company imports the main raw material, wheat, from countries such as the US, Canada, Australia, Russia in large quantities and guaranteed quality → Depends on imports However, the company cooperates with reputable and long-standing partners in the field of importing food ingredients.
⇒The rate of importing raw materials from abroad has improved significantly.
- The company applies modern flour transportation technology by tanker truck - the world's most advanced technology, first applied by Tien Hung in Vietnam Tanks manufactured in Singapore are specifically made for transporting flour Made of stainless steel to ensure food hygiene and safety, with a capacity of about 25 tons of flour Using tank trucks has many outstanding advantages as follows:
+ Eliminates loss of sticky powder on packaging when used
+ Eliminate loading and unloading costs to shorten delivery time
+ The closed system ensures food hygiene and safety
+ More environmentally friendly (due to not using packaging)
⇒Can guarantee delivery time as well as product quality⇒4 / 5
Quantity: With a large number of customers from agents, retail points to large businesses distributed nationwide, or exported to other countries around the world such as Malaysia, Thailand, and Korea Tien Hung's products are always trusted and used by domestic and foreign customers.⇒4 / 5
Tien Hung provides quality products with reasonable prices that satisfy Acecook's requirements, satisfying Acecook's orientation criteria of targeting the average segment.
Good problem-solving and customer service skills.
Technological skills are highly valued, due to the abundant human resources with university and postgraduate degrees⇒4 / 5
Decide on supplier selection
In fact, in a context where there are many instant noodle products on the market and consumers are increasingly wary of foods that do not ensure quality, investing in modern production technology and sourcing raw materials is necessary Safety and good quality are vital factors for noodle manufacturing businesses For Acecook, we always choose many suppliers to minimize risks and choose input materials at competitive prices to minimize costs but still maintain quality.
After creating the Scorecard, it shows that the score of Tien Hung flour company is higher and that is also the reason why Acecook chooses Tien Hung flour However, Acecook will still maintain its relationship with Binh An Powder to minimize supply risks
Manageanddeveloprelationshipswithsuppliers
Managing and developing relationships with suppliers is important Suppliers are the main factors that form the market, providing inputs so that the company's system can go into production These factors typically include: materials, equipment, machinery, finance, services, capital and employees.
Understanding the above importance, we propose a way to manage and develop the supplier selected Binh An Flour Company With Tien Hung Joint Stock Company
Acecook Corporate supplier management activities
Supplier management of Binh An Flour Company With acecook's Tien Hung Joint Stock Company includes the following activities:
Acecook can evaluate and select Binh An flour company with Tien Hung Joint Stock Company before signing a supply contract However, after signing the contract, acecook still needs suppliers to be evaluated before purchasing and annually, based on criteria for achieving domestic food hygiene and safety certification and basic criteria of international food and quality standards certification organizations such as BRC, IFS Food, HACCP and ISO 9001 Suppliers are required to commit to not using additives outside the list, not irradiated, NON GMO and environmentally friendly.
Negotiate contract terms to ensure that both Acecook and Binh An Flour Company and Tien Hung Joint Stock Company clearly understand and agree to the transaction conditions, including price, delivery time, and terms payment terms, and other terms related to the supply of raw materials.
Acecook needs to monitor and evaluate the performance of wheat flour to ensure that the supplier meets the quality requirements and standards agreed upon in the contract provide. Acecook can use supplier management software to monitor supplier performance.
If a problem occurs during wheat flour's supply process, Acecook should resolve these issues to ensure that supply-related risks such as supply disruptions, price fluctuations, and quality variations are assessed and managed effectively.
Acecook can look forward to building a long-term partnership withBinh An Flour Company and Tien Hung Joint Stock Company to ensure that the supplier's supply of goods and
36 services always meets the needs of customers, requirements of Acecook and ensure the quality of products and services.