topic building solutions to improve supply chain management activities fresh milk at th true milk

Group AssignmentTOPIC: BUILDING SOLUTIONS TO IMPROVE SUPPLY CHAIN MANAGEMENT ACTIVITIES FRESH MILK AT TH TRUE MILKCourse: SCM201TH MILK JOINT STOCK COMPANYAddress: Nghia Binh Village, Ng

Group Assignment

TOPIC: BUILDING SOLUTIONS TO IMPROVE SUPPLY CHAIN MANAGEMENT ACTIVITIES FRESH MILK AT TH TRUE MILK

Course: SCM201

TH MILK JOINT STOCK COMPANY

Address: Nghia Binh Village, Nghia

Dan District, Nghe An Province

Ngo Chi Thien CS170289 Tran Bao Tran CS161057 Tran Khanh Linh CS161033 Dinh Quang Quynh CS171263

Pham Thai Bao Trung CS150588

Cần Thơ, 03/11/2022

INTRODUCTION 4

I GENERAL IDEA 5

II RESEARCH METHODOLOGY 7

III TH’S SUPPLY CHAIN MANAGEMENT 8

IV PROPOSALS AND RECOMMENDATIONS 9

V CONCLUSIONS AND RECOMMENDATIONS 10

Supply chain management is a key factor that can determine one company’s productivity Therefore, if there is any problem occur to the supply chain, the whole production process will

be negatively affected This study analyzes TH Milk’s supply chain, find out whether problems occur and bring recommendations forward if appropriate To complete the target, we carried on

a survey at the local retail stores and compared the answers of the consumers Our research shows that some minor problems have happened to TH Milk’s supply chain We suggest that

TH Milk should adjust its marketing methods to reach highest productivity

The success of TH True Milk's supply chain is undeniable when it has a significant market share and competes directly with Vinamilk and Dutch Lady We can learn many lessons about how to run an efficient supply chain However, some limitations of each supply are inevitable, and so is TH true Milk, the marketing and market coverage are not as expected compared to direct competitors, sales channels Retailers are not very supportive of the product, leading to many disadvantages in gaining market share This could improve TH True Milk even better in the future, and this report also aims to help improve what TH True needs to focus on

A supply chain is the process through which a company manufactures a product using raw materials supplied by multiple businesses and then sells it to customers That supply chain can become complex or simple depending on the size of the company and the number of products it produces The links in the supply chain are diverse

Supply chain management combines the art and science of helping businesses find and produce the raw materials that go into their goods and services and deliver it to customers How the supply chain works

Customer: the customer is the first in the link, the customer will contact the sales department and will decide to buy the product

Planning: After receiving orders from customers, the planning department will make a production plan to produce according to customer needs

Procurement: At this stage, materials will be purchased to make products according to customer requirements

Production: After purchasing materials, it will go to the production stage, the finished product will be checked for quality

There are many trends in the supply chain:

- Advanced analytics and automation

- Supply chain talent

- Visibility

- The rise of e-commerce

- Supply chain resilience

- Supply chain agility

- Digital supply chains

- Cybersecurity

- Customer-centricity

- Artificial intelligence and machine learning

Those are the basic trends of the supply chain

Although it is still a relatively new field in Vietnam, businesses in Vietnam have been trying to adapt well to it The supply chain in Vietnam is still a controversial issue

development, besides the collection of transportation fees by Vietnam costs are still too high So our country needs to: Reduce transportation costs Professionalization of human resources, Synchronous traffic planning

Research process

The research process was carried out at retail stores such as WinMart, Circle K, and Sense City, We went directly to the stores and surveyed the wholesale situation of TH True Milk products In addition, we also asked customers who come to those retail stores to prioritize which dairy product brand to choose

Time and place of research

TH Milk was founded in 2010 and it is one of the three companies belonging to the TH Group TH Milk is known as a clean and fresh milk industry and it owns more than 30% of

the Vietnamese fresh milk market (DMSpro JSC, 2018)

With steady sources of supply and demand, TH Milk's supply chain model is the

“Continuous-Flow” model

In general, with such a close process, TH Milk supply chain can be considered relatively perfect By self-supplying and owns a distributing chain, the process begins from the farm and end when the customers enjoy TH’s products and it helps to optimize the supply chain’s effectiveness However, the close process also causes some minor troubles when not many retail stores introduce TH’s products except from its TH True Mart system According to our recent research, lots of people tend to go shopping at the retail stores, especially families with young children Not being introduced at local retail stores will miss

The Company's product development prospects in Vietnam in the context of international integration to 2021: As of June 2021, TH has more than 100 products

in nearly 20 segments of the dairy market Notably, from 2020 to 2021, although Covid-19 affects purchasing power, TH Milk is still warmly welcomed by customers In recent years, TH has actively innovated, developed, and diversified develop new milk and beverage product lines to meet the diverse needs of many consumer groups, from women to young users, the elderly, and the whole family, aiming to become a “nutritionist” in the industry Data as of December 2021 shows that TH true MILK is accounting for nearly 45% of the market share in the fresh milk segment in the urban Vietnamese market Although TH true milk has been very successful and branded very well, there are still some disadvantages in the supply chain such as the high cost to operate the dairy system To get the best dairy product sample, TH True Milk has spent a huge budget to apply advanced and advanced machinery and technology in dairy farms, purebred HF high-yielding dairy cows imported from abroad economic The estimated budget for TH True Milk's entertainment activities, production, farms, etc is up to thousands of billions

of dong per year So in my opinion TH can take advantage of dairy cows in Vietnam

to take care of and have a nutritious diet and also apply modern machines I think that can still get a good source of fresh milk By doing so, we can also address one

of the weaknesses which are uncompetitive prices that have not been able to reach the middle-income class when we reduce costs in the supply chain they can reduce

The success of TH True Milk's supply chain is undeniable when it has a significant market share and competes directly with Vinamilk and Dutch Lady We can learn many lessons about how to run an efficient supply chain However, some limitations of each supply are inevitable, and so is TH true Milk, the marketing and market coverage are not as expected compared to direct competitors, sales channels Retailers are not very supportive of the product, leading to many disadvantages in gaining market share This could improve TH True Milk even better in the future, and this report also aims to help improve what TH True needs to focus on The supply chain system of TH true Milk is now relatively complete But there are still some points that are still weak compared to direct competitors such as vinamilk, dutch lady Take Vinamilk as an example, the retail system is covered all over Vietnam, while the retail chains

of TH true have not been paid much attention by customers True milk's communication is still weak compared to its predecessors, and the high operating costs of the cattle-raising system lead to products with uncompetitive prices compared to the market From here, we can see many weaknesses of the TH true Milk system, some suggestions from the team to help the TH true system work more effectively, and enhance high-quality milk promotion activities on different platforms social networks for a long time so that people can better understand how

TH true Milk is different from other types of milk on the market Bringing a different brand

Supply Chain Management (SCM): How It Works and Why It Is Important (2022, July 7) Investopedia https://www.investopedia.com/terms/s/scm.asp

Monczka et al (2014) Purchasing and Supply Chain Management 6 Editionth

DMSpro JSC (2018, February 26)

TH TRUE MILK DMSpro Jsc | Sales and Distribution Management Solution

https://www.dmspro.vn/en/?customer=th-true-milk