Topic Building Solutions To Improve Supply Chain Management Activities Wooden Products At Duc Thanh Wood (Gdt).Pdf

FPT UNIVERSITY- CAMPUS CAN THO GROUP ASSIGNMENT [SCM201] TOPIC: BUILDING SOLUTIONS TO IMPROVE SUPPLY CHAIN MANAGEMENT ACTIVITIES WOODEN PRODUCTS AT DUC THANH WOOD GDT Group 1: Name

FPT UNIVERSITY- CAMPUS CAN THO



GROUP ASSIGNMENT [SCM201]

TOPIC: BUILDING SOLUTIONS TO IMPROVE SUPPLY CHAIN MANAGEMENT ACTIVITIES WOODEN PRODUCTS AT DUC THANH WOOD (GDT)

Group 1:

Name of group member Contribu

tion (%)

1 Nguyễn Trong Khang 100%

2 Nguyễn Anh Thư 100%

3 Nguyễn Thị Tiểu Yến 100%

4 Nguyễn Thị Mỹ Ngân 100%

5 Nguyễn Minh Nhật 100%

6 Dương Quốc Em 100%

Cần Thơ, 10/2023

TABLE OF CONTENTS

I Introduction: 2

1 Urgency of the topic: 2

2 Object and scope of research: 3

3 Contribution of the research topic: 3

II Theoretical basis of supply chain and supply chain management: 3

1 Overview of the supply chain: 3

2 Supply chain management concepts and supply chain management activities: .3

3 Supply chain management trends 4

4 Characteristics of supply chain management in Vietnam 4

III Research methodology and design 4

1 Research process 4

2 Time and location of the research 5

IV Supply chain and supply chain management applied in the company: 5 1 Company introduction: 5

a Overview of Duc Thanh Wood Processing Joint Stock Company (GDT) 5

b Products: 6

c Distribution system 6

2 Current status of supply chain management at Duc Thanh Wood Company:.7 a Issues related to input suppliers and the company's input supply chain management 7

b Warehouse management in the company's supply chain management 9

c Manage transportation and distribution of goods to consumers in the company's supply chain management 10

d Sales management activities in the company's supply chain management 11

e Apply information technology in the company's supply chain management 12 3 General assessment of supply chain management activities at the company 13 a Advantages: 13

b Disadvantages: 14

V Proposals and recommendations: 16

1 Here are some comments on the product development prospects of Duc Thanh Wood Company in Vietnam in the context of international integration until 2023: 16

2 Propose solutions to improve the company's supply chain operations 21

VI Conclusions and recommendations: 25

1 Conclusions: 25

2 Recommendations: 26

3 Lessons Learned: 27

I Introduction:

1 Urgency of the topic:

Supply chain management is not only a requirement but also an important key

to flexibility in the face of market fluctuations, especially for Duc Thanh Wood It not only affects production but also affects the reputation of the business Applying this topic helps optimize internal processes, improve competitiveness and respond flexibly to market changes

Supply chain management is not only the key to ensuring supply and minimizing risks but also determines the success of Duc Thanh Wood Sustainability, both in terms of environmental and social responsibility, while meeting growing customer needs, is both a challenge and an opportunity.Research on supply chain management opens up opportunities to optimize processes, reduce waste and increase responsiveness, which is the key for Duc Thanh Wood to improve business efficiency and maintain competitive advantage Flexibility and the ability to react quickly to market fluctuations are important and this theme focuses on developing solutions that help businesses quickly adapt to change

2 Object and scope of research:

Within the scope of the project, the main subject is Duc Thanh Wood Company, including the factory system, raw material management, employees and related partners The study will focus on important aspects such as raw material sourcing, supplier management, environmental impact and communityrelations

3 Contribution of the research topic:

The topic can greatly contribute to the understanding of how Duc Thanh Wood Company implements strategies for environmental protection, supply management and building sustainable relationships Additionally, it can also suggest specific suggestions to improve the company's current processes and strategies

II Theoretical basis of supply chain and supply chain management:

1 Overview of the supply chain:

A supply chain is a continuous series of steps and activities that includes the process of supplying raw materials from suppliers to manufacturing, then through the distribution stage and ending at the consumer In the supply chain, important elements include sourcing, manufacturing, product distribution, and inventory management.

2 Supply chain management concepts and supply chain management activities:

The concept of supply chain management (SCM) is the process of optimizing activities in the supply chain, to create value and ensure a balance between costand quality Supply chain management activities include planning,

implementing, controlling, and maintaining continuous dialogue between supply chain partners

3 Supply chain management trends

Current supply chain management trends include information technology integration, using information systems to monitor and manage the entire supplychain Additionally, there is a trend toward increased environmental and social management in supply chain processes, as well as integrating flexibility to quickly respond to market fluctuations

4 Characteristics of supply chain management in Vietnam

Supply chain management in Vietnam reflects diversity across many industries,creating a unique business environment with many challenges and

opportunities Diverse supply sources and partners mean a complex

management model, requiring business flexibility and creativity The first major challenge is infrastructure, especially transportation and logistics systems, which require continuous investment to optimize responsiveness and reduce costs The trend of digital transformation is both a risk and an opportunity, with many businesses using technology to optimize processes and improve management capacity Digital transformation also opens up new opportunities with flexible business models and exceptional customer

experiences Vietnam, with its diverse and challenging supply chain

management characteristics, is also a potential location for innovation and development in this field

In general, Vietnam, with its diverse and challenging supply chain managementcharacteristics, is also a location with great potential for innovation and development in the field of supply chain management

III Research methodology and design

1 Research process

In this section, we will present the research process we use to build a solution

to improve supply chain management for the business/company we are interested in

Identify the problem: First of all, we identified the specific problem in supply chain management that the business is facing We carried out a detailed review to identify areas for improvement

Collect information: We collected information about the business, market, industry and factors related to supply chain management

Data Analysis: We analyzed the collected data to better understand the currentsituation and identify specific problems

Solution design: After identifying the problem, we designed potential solutions to improve supply chain management Includes tools, processes and strategies

2 Time and location of the research

Our research took place during a specific time period and at a specific location The research period started from September to October and lasted about 2 months The research was conducted at FPT University, along with regular surveys and information exchanges with stakeholders

We have chosen this time and place to ensure that we have the opportunity to access the necessary data and information, as well as carry out tests and experiments effectively The research process has been designed so that it is compatible with the business's work schedule and operating procedures

IV Supply chain and supply chain management applied in the company:

GDT's main raw materials from the first day of establishment until now are alltypes of wood, absolutely no use of natural forest wood, making a practical contribution to environmental protection

Up to now, Duc Thanh is proud to be a business with more than 30 years of experience in the field of wood processing, products that meet all strict qualitystandards of all the most stringent countries in the world

b Products:

The company has 3 main product groups with 3 different brands such as:

- Duc Thanh Wood brand:

Duc Thanh Wood brand is the leading brand of kitchen utensils and householdappliances in Vietnam with many diverse products in designs and types to help decorate the living space more vividly Made from trees grown to protect the environment, Duc Thanh's wooden products are present in 63 provinces and cities in Vietnam and exported to more than 50 countries around the world

- Winwintoys brand:

Not only meeting children's play needs, Winwintoys is also a highly educational wooden toy With Winwintoys toys, children will practice patience, the ability to conquer challenges, develop their brain as well as motor skills Learning, playing and learning is why Winwintoys wooden toysare still popular considered "The source of nutrition for wisdom"

Winwintoys toys are not only highly aesthetic but also safe for children thanks

to quality materials All products meet safety certifications according to European standards (CE), American and Vietnamese standards (CR), exported

to many countries around the world

- Chopchop brand:

The Chopchop brand pays special attention to high-quality cutting board products made from wood to protect the environment and consumers' health Furthermore, each Chopchop cutting board product carries a profound meaning

c Distribution system

- For the domestic market, the Company has built a distribution system and introduced its products nationwide In the city For the international market, the Company chooses distribution channels which are supermarket systems, through brokers and foreign importers Most of the Company's product supplycontracts signed with customers are due to long-term traditional partnerships,

so they are relatively stable Besides, finding partners and distributing products through trade fairs in the household wood industry has also been a very good distribution channel for the Company in recent years In the near future, to meet the market's needs, the Company may decide to appoint distributors for its products abroad

- For the domestic market, the Company has built a distribution system that is also a very good distribution channel for the Company in recent years In the near future, to meet market needs, the Company may operate only 109 companies and 88 toy stores; In Da Nang city and surrounding areas, there are

18 partners; in Hanoi and surrounding areas are 56 partners In addition, in Vung Tau, Binh Duong, Soc Trang, etc., there are stores selling Phuong's products and introducing their products nationwide In Ho Chi Minh City and surrounding areas, the company has established partnerships with 109 companies and 88 toy stores in Da Nang City and surrounding areas with 18 partners; in Hanoi and surrounding areas are 56 partners In addition, in Vung Tau, Binh Duong, Soc Trang, etc., there are stores selling Phuong's products and introducing their products nationwide

2 Current status of supply chain management at Duc Thanh Wood Company:

Currently, managing the input supply chain for Duc Thanh wood companies is

a complex and dynamic process, often facing many challenges These challenges are not only important for supply chain efficiency, but also have important implications for a company's sustainability, legitimacy, and overall reputation

a Issues related to input suppliers and the company's input supply chain management

* Supply interruption due to not using natural wood

Timber companies play an important role in meeting global demand for products made from wood However, in recent years, there has been growing concern about the use of natural wood due to environmental and sustainabilityissues This concern has led some wood companies to look for alternatives, such as engineered wood and recycled materials While this shift is consistent with sustainable practices, it poses challenges related to input suppliers and supply chain management

* Switch to Alternative Materials

Wood is a traditional material and is widely used in the construction, furnitureand paper industries However, growing awareness of deforestation, habitat destruction and climate change has forced companies to reconsider their use

of natural wood This has led to a shift towards alternative materials such as engineered wood, recycled wood and composite products, which are considered more environmentally friendly The shift to these alternatives is primarily driven by concerns about cost efficiency, sustainability,

technological advancements, and diversification of the supplier's product portfolio

* Quality and Performance Standards:

Engineered wood and other alternative materials must meet certain quality andperformance standards to ensure they can effectively replace natural wood Companies need to work closely with suppliers to establish and maintain these

standards, ensuring that raw materials used meet industry requirements and consumer expectations.

* Supply Chain Disruption and Transition Challenges:

Switching from traditional wood to alternative materials can cause disruptions

in the supply chain New suppliers may have different processing times, production capacities, and shipping requirements, causing delays in production and delivery Lumber companies need to carefully manage this process to minimize disruption and maintain customer satisfaction

The shift from natural wood to alternative materials brings many challenges insourcing and supply chain management However, this is a necessary step to bring stability in the wood industry By providing supply diversification, establishing quality standards, managing supply chain disruptions, investing inresearch and development, understanding market requirements and consumer quantification, supporting regulations and collaborating with partners, timber companies can succeed in achieving solid goals and advice towards a more sustainable future

b Warehouse management in the company's supply chain management

Warehouse management is an important component of supply chain management at Duc Thanh Wood Company because it directly affects the efficiency, cost effectiveness and overall performance of the supply chain The wood industry today is very diverse and includes many different activities, from exploitation and processing to distribution and retail Wood products come in many different shapes, sizes and qualities, so accurate tracking and grading is essential Inaccurate inventory levels can lead to overstocking or out-of-stock situations, leading to increased shipping costs or lost sales opportunities

Seasonal fluctuations: The wood industry often experiences seasonal fluctuations in demand due to construction cycles and weather-dependent factors Managing warehouse space and labor resources to accommodate thesefluctuations is a significant challenge During peak seasons, companies may

face capacity constraints, while during off-peak times, maintaining a lean workforce becomes important to avoid unnecessary costs and Wood can be susceptible to damage from environmental factors such as moisture and pests, and maintaining quality standards during storage is challenging.

In summary, warehouse management poses a number of common challenges for timber companies within the broader supply chain management context These challenges include inventory management, seasonal fluctuations, quality control, space utilization, transportation and logistics, environmental regulations, technology integration, labor shortages and supply chain visibility To solve these problems, Duc Thaanh wood companies need to apply effective measures and policies while complying with regulatory and environmental standards

c Manage transportation and distribution of goods to consumers

in the company's supply chain management

Efficient transportation management and distribution are key components of the company's supply chain These aspects not only impact operational efficiency but also customer satisfaction and environmental sustainability

* Logistics and shipping costs:

Transportation costs account for a significant portion of the total operating costs of timber companies These costs are affected by a variety of factors including fuel prices, maintenance, labor and regulatory compliance One of the company's main challenges is controlling logistics and transportation costs The timber industry often involves transporting heavy and often bulky materials and products Fluctuating fuel prices, changing freight rates and the need for specialized transportation contribute to increased costs Companies must continuously look for cost-effective shipping solutions without compromising quality and speed of delivery

* Regulatory compliance and cross-border logistics:

Operating within the regulatory framework, especially in cross-border transport, is a significant challenge for the company Navigating different international laws, tariffs and customs regulations while ensuring the smooth

transportation of wood products across different regions requires in-depth knowledge and meticulous planning Any non-compliance may result in delays and financial penalties

In short, the company is facing multifaceted challenges in transportation management and distribution Solving these problems requires a strategic approach, combining innovative technologies, sustainable operations and customer centricity Overcoming these challenges is critical to maintaining a competitive advantage, ensuring customer satisfaction and contributing to building a more sustainable and efficient wood industry

d Sales management activities in the company's supply chain management

Sales management in the wood industry involves complex processes that impact inventory management and sales channel efficiency Inventory management ensures the proper handling and distribution of wood products, while sales channel management monitors the multiple routes by which these products reach customers

* Inventory management:

- Risk of excessive and obsolete inventory:

Lumber companies often offer many different types of products, each with different demand patterns Managing inventory effectively for different products becomes difficult One of the significant challenges our company is facing is managing aging inventory Wood products can become obsolete or lose market value if not sold promptly To address this challenge, the company is regularly reviewing its inventory, identifying slow-moving or outdated items, and implementing strategies such as discounts, promotions or targeted marketing campaigns target to consume these products

- Inventory holding costs:

Carrying inventory comes with associated costs, including storage, insurance, and depreciation These costs can have a significant impact on a company's bottom line Implementing lean inventory management practices such as just-in-time (JIT) manufacturing and efficient warehousing solutions can help

reduce inventory costs JIT can streamline manufacturing operations and minimize the need to hold large inventories.

In summary, effective inventory management in the wood industry is a multifaceted challenge, requiring strategic planning, use of advanced technology and a deep understanding of market dynamics Addressing these challenges with creative solutions and adopting effective inventory

management practices can help organizations streamline operations, improve customer satisfaction, and enhance their capabilities competition in the supply chain of the wood industry

e Apply information technology in the company's supply chain management

Applying information technology in supply chain management plays an extremely important role and positively contributes to the performance, efficiency and competitiveness of Duc Thanh Wood Company in this industry With a modern technology line, GDT Company is ready to meet large orders, requiring high technology, urgent delivery time Attached to thecompany is a team of skilled, knowledgeable, and knowledgeable employees Many years of experience in the wood processing industry To have safe products that suit consumer tastes, GDT has maintained a quality managementsystem according to ISO 9001 standards

Currently, the company is applying Information Technology in the supply chain of the wood company, the overall management system (ERP - Enterprise Resource Planning) is one of the most important applications ERP integrates and manages all business processes, from raw material

management, production, warehouse management, to sales and financial management This enhances the ability to organize and optimize all parts of the supply chain To solve this problem, companies often need to invest in data integration solutions and middleware that can bridge the gap between different systems and enable real-time data sharing

Supplier relationships are important in the wood industry and effective collaboration is essential to maintain a steady supply of raw materials and

ensure product quality IT solutions such as supplier relationship management (SRM) software can facilitate communication and coordination However, establishing trust and effective communication channels between timber companies and their suppliers often requires time and effort.

In summary, Duc Thanh wood companies face some common challenges when applying information technology in their supply chain management These challenges include data integration, inventory management, demand forecasting, visibility, supplier collaboration, and cybersecurity Solving these problems requires a combination of technology investments, process improvements and collaboration with supply chain stakeholders

3 General assessment of supply chain management activities at the company

a Advantages:

In today's complex and dynamic business environment, effective supply chain management is critical for the success and sustainability of companies, especially in industries such as wood, where concerns sustainability, efficiency and customer satisfaction are paramount Duc Thanh Wood Company faces a number of significant challenges in its supply chain operations, but through proactive strategies and advanced technology integration, they are able to turn these challenges into advantages

One of the major challenges that Duc Thanh Wood Company faces is the transition from natural wood to alternative materials due to environmental concerns This requires diversifying the supply chain and working closely with alternative raw material suppliers That way, Duc Thanh Wood Companycan strengthen its sustainable development efforts, reduce its dependence on traditional wood sources, and meet the changing needs of consumers This diversification can also open up new markets and revenue streams

Warehouse management poses another set of challenges, particularly related

to seasonal fluctuations and environmental factors that affect wood quality However, by applying a modern warehouse management system and investing

in appropriate infrastructure and technology, Duc Thanh Wood Company can

optimize storage space and streamline operations during the high season peakand off-peak, while ensuring the quality of wood products This ultimately leads to improved cost efficiency, customer satisfaction and reputation.Addressing transportation and distribution challenges is critical to ensuring timely and cost-effective deliveries By investing in logistics optimization andleveraging data analytics to predict demand patterns, Duc Thanh Wood Company can strategically plan transportation, minimize costs, and maintain continuity Customer satisfaction through timely delivery Furthermore, compliance with international regulations is essential for cross-border logistics

to run smoothly, and effective compliance with these regulations can give a company a competitive edge in the market global school

Sales management challenges such as inventory management and seasonal demand fluctuations can be turned into advantages through the application of information technology Implementing sophisticated inventory management systems and leveraging data analytics to forecast demand trends can optimize inventory levels, minimize carrying costs, and take advantage of high demand levels seasonal This ensures Duc Thanh Wood Company can effectively meet market demand and increase profits

Finally, the integration of information technology in the supply chain brings great potential to Duc Thanh Wood Company By leveraging modern technologies such as enterprise resource planning (ERP) systems and SupplierRelationship Management (SRM) software, companies can share real-time, streamlined data streamline operations and strengthen cooperation with suppliers This leads to better decision making, increased operational efficiency and stronger relationships with stakeholders

In summary, Duc Thanh Wood Company faces many different challenges in its supply chain operations, but with a strategic approach and effective integration of advanced technologies, these challenges can be transformed into a competitive advantage Diversifying the supply chain, optimizing warehouse and transportation management, leveraging information

technology and prioritizing sustainability are important strategies that can help