Group Assignment Report Group 5 Acecook Corporation.pdf

GROUP ASSIGNMENTREPORT GROUP 5: ACECOOK CORPORATION

GROUP MEMBERS1 Lê Thị Linh (Question 1+5)

Table of Contents

I Overview of Acecook Vietnam Joint Stock Company 6

A Background & development of the Acecook company 6

4.3 Core values “COOK HAPPINESS” 10

5 Acecook’s position in the market 11

II Analyze the supply chain of the company 11

A Analyze the supply chain of Acecook 11

1.3.1 Saigon Trading and Packaging Company Limited 14

1.3.2 Sunplast Plastic Packaging Company 14

1.4 The media 14

2 Manufactures 15

2.1 Factory 15

2.2 Spice package factory 15

2.3 Product research and development department 15

3 Distributor 16

4 Customers 17

B What is a supply chain map? 18

III Analyze potential risks of supply chain 18

A Analyze potential risks 18

1 Risks in raw material supply 18

2 Risks in transportation and distribution 19

3 Risks in warehouse management 20

4 Customer and market transformation risks 20

5 Risks of political and social changes 21

B Supply chain risk management 21

1 Risks in raw material supply 21

2 Risks in transportation and distribution 22

3 Risks in warehouse management 23

4 Customer and market transformation risks 23

5 Risks of political and social changes 24

IV Five products and services to purchase & Kraljic matrix 25

Kraljic matrix 25

V Choose one important item to source for your manufacturing company Evaluate and selectsupplier - quality management of supplier 26

A Steps and Criteria 26

B VINABOMI - Binh An Flour Joint Stock Company 27

C Tien Hung Joint Stock Company 29

1 Overview of Tien Hung Joint Stock Company 29

2 The production potential 30

2.1 The company size: 30

D Measuring the performance of the supplier 32

1 Binh An VINABOMI Flour 33

1.1 Prestige and reputation of the supplier 33

1.2 Quality of products/services provided 33

1.3 Delivery 34

1.4 Product/service prices and payment methods 34

1.5 Supplier customer service 34

2 Tien Hung Joint Stock Company 34

2.1 Prestige and reputation of the supplier 35

2.2 Quality of products/services provided 35

2.3 Delivery 35

2.4 Product/service prices and payment methods 36

2.5 Supplier customer service 36

3 Decide on supplier selection 36

VI.Manageanddeveloprelationshipswithsuppliers 37

A Acecook Corporate supplier management activities 37

B Acecook Corporate develops relationships with suppliers 38

VII Conclusion 39

“Instant noodles”, also known as instant ramen, is an instant cereal product packaged withsoup powder, seasoning packets, etc This is a product that brings high convenience to users.because it can be prepared quickly in a few simple steps They first appeared on the market inJapan in 1958 and quickly became popular The instant noodle market is a potential marketthat can bring high profits to businesses, especially in Vietnam at this time At that time,"instant noodles" was still a very new concept Seizing this opportunity, Acecook decided toestablish a joint venture company Vifon Acecook (December 15, 1993) to develop instantnoodle products under the Vina Acecook brand The company officially went into operationin 1995 And after many years of operation, Vina Acecook has become the leading brand inthe instant noodle industry with market coverage of up to 95%.

Acecook has currently become the most popular instant noodle brand in Vietnam, known asthe "King of instant noodles", a brand associated with the childhood of millions ofVietnamese people During 30 years of operation in Vietnam, Acecook with the brand nameVina Acecook has launched many quality products, in accordance with the spirit of "Japanesetechnology - Vietnamese flavor"

I Overview of Acecook Vietnam Joint Stock CompanyA Background & development of the Acecook company

Established on December 15, 1993 and officially put into operation in 1995, after many yearsof operation, Acecook Vietnam Joint Stock Company has continuously grown to become acomprehensive 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 thecapital contribution ratio of 60:40 between Japanese investor Acecook Co., Ltd andVietnamese partner, Vietnam Food Industry Company (Vifon) – 100% state-ownedenterprise, then directly under the Ministry of Industry (However, after nearly 10 years ofcooperation, Vifon divested capital, even though by this time the Hao Hao instant noodleproduct - the "legendary brand" of the Vietnamese instant noodle market, had been born for 2years).

1993: Acecook officially entered the Vietnamese market Established joint venture companyVifon 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 leapfor 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 TanBinh industrial park.

2005: Entering the instant rice market Building a factory in Vinh Long, launching theproduct Pho Xua & Present.

2008: Changed name to Acecook Vietnam Joint Stock Company (January 18, 2008) Officialmember 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 thehighest sales volume in Vietnam in 18 years (2000-2018).

2020: Acecook has 7 branches with more than 300 agents nationwide and exports to morethan 40 countries

B Scope of analysis

Current scale of the company: Acecook Vietnam Joint Stock Company is one of the largestenterprises in the instant noodle industry in Vietnam In the domestic market, the companyhas a scale of 11 manufacturing factories from North to South, 6000 employees with morethan 700 distribution agents, accounting for 51.5% of the domestic market share For exportmarkets, 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 yearsof development, Acecook Vietnam company has grown strongly in the fields of foodprocessing, 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.

Acecook Vietnam Company has specific products, their main products:

● Instant noodles: Hao Hao,Bac Trung Nam, Sao Sang, Hao 100, Hoanh thanh, DeNhat,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● Porridge: Huong Ngoc, Ohayo● Cup noodles: Modern, Handy● Soup: Nhat Vi, Kanli, Hao Hao salt● Cooking oil: De Nhat

● Fish sauce: De Nhat

Acecook targets the popular market segment Especially "Hao Hao noodle products" Up tonow, Vina Acecook's Hao Hao is still considered the "king of instant noodles" in themid-range segment, a position that many other noodle businesses always covet Hao Haotargets consumers who are students, consumers with average income by pricing products thatare suitable for all consumers Therefore, Hao Hao noodles are popular and widely used inboth rural and urban areas Hao Hao noodles products attract consumers not only because ofthe affordable price but also the quality and variety of product flavors Each flavor of HaoHao noodles comes with its own eye-catching packaging, creating a feeling of excitement andnewness for consumers consumption.

* In this report, group 5 will analyze the supply chain of instant noodle products ofAcecookVietnamcompany.

"Providing high quality products/services that bring HEALTH - SAFETY - PEACE OF

MIND to customers".

● Acecook Vietnam always puts product quality as top priority

● Support the communication of accurate and scientific information about instantnoodle products to create safety and peace of mind for customers.

● In recent years, Acecook Vietnam has focused on health products, not only meetingnew consumer needs but also increasing the value of instant noodle products.4.2.Vision

"Becoming a leading food manufacturing enterprise in Vietnam with sufficient managementcapacity to adapt to the globalization process."

4.3.Corevalues “COOK HAPPINESS”

● Happy Customers: Acecook Vietnam will always strive to make customers who useAcecook products feel happy.

● Happy Employees: Acecook Vietnam always strives to make Acecook employees andtheir families feel happy.

● Happy Society: Acecook Vietnam always strives to make the whole society feelhappy

Currently, more than 50 businesses are producing instant noodles in Vietnam 70% marketshare belongs to Acecook Vietnam, Masan, and Asia Food Among them, Acecook Vietnamalways 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 brandalone holds the top position, contributing 60% of Acecook's sales each year, and isrecognized by 100% of Vietnamese consumers Besides, Acecook's products are alsoexported to more than 40 markets around the world, including many demanding markets suchas the US, Canada, UK, France, Germany, Netherlands, Switzerland, Sweden, and Norway ,Russia, Australia, Korea, Hong Kong,…

II Analyze the supply chain of the companyA Analyze the supply chain of Acecook

Acecook's supply chain is an overall optimization management solution in coordinatingfinished products, semi-finished products, and raw materials through the process of sharinginformation on ordering, inventory, sales, and logistics between companies and customers.

Acecook cooperates with many partners providing Logistics services to build a managementsystem for warehouses, orders, distributors, and personnel Creating a continuous and closedsupply 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 toproduce high-tech instant noodles in Vietnam since 1994 Next, in terms of quality, Acecook'steam's technical transfer to control and manage quality is always at a stable level The third isto be trained on how to control quality from input to output products in a dynamic manneraccording to standards Besides, when there is a new technology in Japan, Acecook Vietnamcan 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 Logisticsystem, applying the SCM software package (L-Series) of NTT Data Company, a systemintegration company from Japan , titled "Business Support System", including warehousemanagement system, order management, and sales support system for distributors and salesstaff in 2014 and aims to reform and improve the system goods coordination system inVietnam, the company built a logistics information system on goods circulation andwarehousing in 2016.

Spice pack ingredients:

- Kim Ngan Vietnam Limited Liability Company- Established in 2015, operating in the fields of:- Commercial supply of agricultural products- Distributing food and spices

- Processing and producing spices from agricultural products.- Other services

Tien Hung was established under Business Registration Certificate No 21.02.000213 issuedby 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 flourproduction in Tien Son Industrial Park has affirmed its reputation and brand with many

resources in the field of food biochemistry The primary goal of the testing department is toensure product safety and consumer health Acecook Vietnam's product research anddevelopment team always updates the latest knowledge about technology, deeply researchingdomestic and foreign markets to look for opportunities and ideas for product development.3.Distributor

Acecook's distribution system is diverse across the country Among them, there are 7business branches, and 700 level 1 agents distributed throughout all parts of the country Thenetworks 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

- Central branch: Da Nang

- 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 improvingcargo coordination activities In addition, understanding work progress as well asmaking effective vehicle dispatch plans will help improve the efficiency of loadinggoods and reduce idling time, thereby reducing Logistics costs

- At its official distributor locations, Acecook has built effective brand recognitionsystems and staff knowledgeable about the products In addition, distributors willenjoy discounts when distributing products, receive 9 sales bonuses and beresponsible for facilities, personnel or warehouses From there, build a strong andsustainable distribution network.

- Distributors will be responsible for transporting goods in boxes and trucks to retailcounters at stores nationwide These retailers play an important role in bringingproducts closer to consumers And with a retail system spanning from supermarkets inbig cities to small grocery stores in rural areas, Acecook can reach a diverse range oftarget customers.

- And to achieve those successes, retailers also receive their own policies whenimporting products, with hierarchy from the distributor For example: enjoy

preferential prices when selling a lot of products, free shipping to retailers and manyother preferential policies

- Because the general consumption trend of Vietnamese people today is to get closerand closer to modern distribution channels such as supermarkets and buffet stores.Therefore, Hao Hao has implemented a strategy to distribute its products throughthese retail channels Products are brought to consumers through only one retailer.Specifically, Hao Hao is sold at retail supermarkets such as Big C, Do Martsupermarket chain, Maximax system These supermarkets distribute directly.products reach the final consumer, by allowing consumers to choose their favorite andsuitable products and product lines.

- Besides understanding the favorite eating style of young people, Acecook - the fatherof Hao Hao noodles - has announced that it will open its first buffet instant noodlerestaurant in Vietnam in December 2020 “Acecook Cup Noodle Buffet” was firstopened at Lot T171, 1st floor of Aeon Hai Phong At Acecook Cup Noodle Buffetrestaurant, diners will be free to prepare their cups of instant noodles with 8 soupflavors and 11 types of toppings produced in Vietnam and imported from Japan Withthe slogan "Cup noodle buffet, satisfying experience", the restaurant will be a place tobring exciting new experiences to customers about using instant noodles; You canfreely choose and mix noodle cups according to your taste and enjoy the joy of thefinished cups you create Besides, customers will also know more about AcecookVietnam's current instant cup products through a dedicated platform to displayproducts in the restaurant.

Acecook always leads the market share with 50% in urban areas and 43% nationwide Therecognition level of Acecook products often ranges up to 80% Among them, the Hao Haobrand has nearly 100% market coverage In addition, Acecook also offers developmentstrategies 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 budsof this age group This.

- Age from 26 - 30: The age segment is mostly office workers and married people whowill 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 onlineshopping platforms such as Tiki, Lazada, Sendo…

B What is a supply chain map?

III Analyze potential risks of supply chain

ACECOOK is one of the leading corporations in the field of food and cooking oil productionin Vietnam and many other countries around the world With an extensive distributionnetwork, ACECOOK relies on a complex procurement supply chain to ensure continuity inproduction and product supply to the market However, ACECOOK's purchasing activitiescannot avoid potential risks Below are some of the risks that ACECOOK needs to payattention to:

A Analyze potential risks

1 Risksinrawmaterialsupply

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

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 mustcalculate the risks in advance and have appropriate handling methods to minimize the risks asmuch as possible.

Risks in raw material supply may include:

● Increaseinrawmaterialprices:Fluctuations in world prices can significantly impactACECOOK's profits.

● Material shortage: Weather problems, natural disasters or terrorism can causematerial shortages and affect production.

Prices on the market are almost already listed If during production, the price of raw materialsincreases, profits will certainly be greatly reduced Moreover, the quantity of goods sold isvery large, profits can be reduced by tens of billions.

2 Risksintransportationanddistribution

ACECOOK must ensure products are transported and distributed on schedule and to the rightdestination All orders have a fixed delivery time In case this order needs to be delivered tocustomer number 1, customer number 1 is delivered to customer number 2, customer number2 is delivered to customer number 3, then the delayed delivery will have a huge impactsame negative.

The following are some specific cases:

● Loss during transportation and distribution: Loss of goods duringtransportation and distribution can occur due to many reasons, including errorsin packaging, careless handling of goods, or mixed goods This could lead to alarge loss in ACECOOK's profits.

● Transportation costs: Fluctuations in fuel oil prices and transportation costscan affect the total cost of the supply chain.

● On-time delivery: The risk of not delivering on time can lead to customerdissatisfaction and loss due to not being able to use the product within thedesired time.

3 Risksinwarehousemanagement

Risk in warehouse management is an important aspect of ACECOOK's procurement supplychain This business needs to ensure effective warehouse management to minimize loss andexpired goods Inventory loss and expired goods can lead to property damage and losses dueto 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 duringstorage Factors such as sloppy warehouse management, errors in inspection andpackaging procedures, or even unauthorized entry into the warehouse can lead toinventory loss This loss not only results in property damage, but also affects theability to serve customers and increases costs due to having to replace lostinventory.

● Expired goods: An ineffective warehouse management can also lead to expiredgoods 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 threatenconsumer safety and health.

● Ineffectivestoragecosts:When not managing warehouses effectively, ACECOOKmay have to pay higher storage costs, including warehouse rental costs, warehousetransportation costs, and storage costs This can increase overall costs and affectprofits.

4 Customerandmarkettransformationrisks

Customer and market transformation risks can become one of the important issues inACECOOK's supply chain The food market is a diverse and competitive sector, andcustomer preferences and market conditions can change rapidly.

Here are the important aspects of this risk:

● Changing consumer trends: Customers change their preferences and preferdifferent products over time ACECOOK must monitor new consumer trends,such as healthy cuisine, quick menus, or organic food consumption, to adjusttheir products and marketing strategies.

● Fierce competition: The food and cooking oil market is often verycompetitive, with many businesses participating This can lead to downwardpressure on prices and increased product quality The risk lies in not being able