adding more information about mattel in the vietnam market that you know aboutstores manufacturing plants such as billionmax applications technical technology and financial flows in mattel logistics in vietnam

Adding more information about Mattel in the Vietnam market that you know — about stores, manufacturing plants such as BillionMax, applications, technical technology, and financial flows

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Table of Contents Summary: 4 Content of main article: 5

1 Adding more information about Mattel in the Vietnam market that you know — about stores, manufacturing plants such as BillionMax, applications, technical technology, and financial flows in Mattel Log1stIes In Vieffiaim c2 211111111111 11110110111 01111 001 1H He 5 2 Describing shipping methods of Mattel’s goods from the US to Vietnam and from Vietnam to the US Among the modes of transportation, which mode does the group consider the most optimal? Why? What features of Mattel’s goods and materials need to be considered during

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3 What IT system allows Mattel to boost omni-channel sales as well as optimize purchasing with electronic orders? How can Mattel’s information not be leaked? How can the company classify sales according to each target group? Is there any information management method that Mattel can apply Íor securlty DUTDOS€S? án th H HH1 11111 0111 Hy 13 4 Can Mattel predict user needs before production? If they can, how does Mattel collect information about eonsumer consumption 1n the market (Vietnam and Global)? 18 5 What are the collaborative advantages between the US and Vietnam in import and export 08/0519) 0 001 cải 000/8A 20

References: 22

Plagiarism test result: 24

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activities (operations, investment, etc.)

To speed up customs clearance and shorten cycle times, Mattel frequently collaborates with third-party logistics providers (3PL), such as international express services like EMS/DHL/USP They are able to do this by utilizing cutting-edge technology, such RFID tagging, which allows for quick shipping data processing that 1s more accurate and effective in real-time As there is no direct land link between the two nations, Mattel's best geographical alternatives for moving goods from the US to Vietnam and vice versa are via air and water But it also drives up the cost of air freight Therefore, ocean freight is the best transportation method for a global corporation like Mattel

Company process management, or ERP, helps Mattel run its business and automate a number of back-office procedures including technology, services, and human resources Production planning, manufacturing, development, marketing, and sales are just a few of the parts of a

business that ERP software unites into one database Mattel has two types of ERP systems to

select from: cloud ERP systems and embedded ERP systems Toy demand has reached a record high over the past year as parents who are confined to their homes hunt for methods to keep their children entertained indoors during the pandemic Because of this, toy producers can raise prices to cover rising costs without being concerned about negative public reaction

Content of main article: 1 Adding more information about Mattel in the Vietnam market that you know — about

stores, manufacturing plants such as BillionMax, applications, technical technology, and financial flows in Mattel Logistics in Vietnam

Mattel has a logistical operation in Viet Nam to successfully market the company's toy items

Mattel's production plant in Vietnam is called as BillionMax, and it is located in the Saigon - Chan May industrial zone as well as the non-tariff zone in the Chan May - Lang Co economic

zone in Thua Thien Hue province Mattel Inc has spent 15 million USD (equal to 348 billion

Vietnam dong) in the BillionMax Vietnam Export Processing Factory project (specializing in manufacturing plastic toys and products for babies) The BillionMax Company formally

launched on June 5, 2019

With its location in the East-West economic corridor axis, an upgraded and expanded technical infrastructure, and transport systems, particularly at the seaport, BillionMax's Chan May location is ideal because Mattel's logistic system is more dependent on nearshoring and contracting ocean freight capacity All of these factors make it easier for the company to distribute its products Additionally, one of Mattel's greatest supply chain advantages is its workforce, which has more than 3000 employees and is well-versed in the BillionMax manufacturing plan This enables the company to maintain a consistent flow of products from manufacturing facilities to retailer stores

to toy boxes across the nation

Despite having a production facility there, Mattel does not have a physical location in Vietnam Where Mattel does not have a physical presence, its products are sold via agents and distributors Customers in Vietnam may buy Mattel items by going to these shops, the company’s own website, and online retailers including Shopee, Lazada, and Tiki A large variety of items are available using any of these processes, including classic toys like Barbie dolls, Hot Wheels cars,

Thomas and Friends, and other toys However, e-commerce is increasingly widely utilized since it enables customers to make quick

purchases from the comfort of their homes and wait for the item to be delivered directly to their

front door Additionally, the user-friendly internet layout makes it easy for users to choose their

preferred toy, and the online store offers a wide range of services including customer support and a return policy In addition, Mattel has produced a large number of candidates for its popular line of toys, which includes items like Barbie's Fashion Closet and Jurassic World These programs are widely accessible, highly user-friendly, and have attractive setups Nevertheless, the apps only support English, which might be challenging for certain Vietnamese users

The business that produces Hot Wheels toys and Babie dolls also tests toys and other items for

kids using cutting-edge technology Both mechanical and chemical testing are the two main types of testing these toys must pass Mechanical testing for certain items includes bite, torque, impact, and tension tests In contrast, they employed X-ray fluorescence spectrometry and element screening analysis (Pb, Cd, Cr, and Hg) for the chemical analysis To ensure that the items are all authorized and secure enough for kids to play with, these approved tests have acquired ISO (International Organization for Standardization), SOR (Toys Regulation - Canada Standard), EN (European Standard), and other international security certifications

BillionMax is always looking into and improving its quality control, safety, and accident prevention procedures Products are always being tested throughout the development and manufacturing processes

The BillionMax company's financial flows are split into three separate areas, each of which pertains to a certain aspect of its business operations (operations, investing, and financing)

[ Operation Cash Flows: Operating cash flows, that include sales revenue and cost of goods sold expenditures as well as other operating costs like overhead and payroll, are produced by a company’s usual activities The BillionMax firm shipped 173 toys worth a combined 3000 tons to America between 2019 and 2020 The operating results of the firm are shown below:

Expense Year 2019 - 2020

2019 2020 Turnover 9.091.000.000 153.467.000.000 16,88

Cost 2.760.000.000 110.241.000.000 40,94 Profit 6.331.000.000 43.226.000.000 6,83

Unit: Vietnam dong Table 1: Business performance of BillionMax Vietnam Export Processing Co Ltd in the period

of 2019 — 2020 (Source: BillionMax Vietnam Export Processing Co Ltd) Business outcomes for BillionMax have been exceptional for a young business The business just

recently began running the first base; therefore, revenue was little over 9 billion VN dong in 2019 By 2020, when the firm expanded and launched two additional facilities, revenue had

quickly risen to Vietnam over 153 billion VND Revenue climbed by 16.8% in 2020 over 2019 Between 2019 and 2020, the business status of the corporation progressively improved in numerous ways The business should put additional rules and procedures in place to encourage export business operations if it wants to keep up its growing momentum

O Cash Flow from Investing: The cash flow from the sale and acquisition of long-term investments like real estate, machinery, and equipment is tracked in this area This category includes acquisitions of property, buildings, furnishings, and vehicles Billion's range is always growing BillionMax Vietnam Export Processing Co Ltd has continually made investments in the company's infrastructure and labor management, as well as increased the number and caliber of its workforce

The business has added two more locations as of 2020, greatly expanding the number of employees The firm extended its manufacturing facilities, as shown in the chart above, which resulted in a considerable cost rise in 2020 compared to 2019 (the cost level in 2020 increased by 40,4% compared to 2019) More equipment and supplies had to be imported as a result The number of pieces of equipment needed to achieve the factory's worker productivity has greatly grown since the business completed facility No 3 in 2021 However, this is a necessary expense because the corporation needs momentum to increase its manufacturing size

oO Cash Flow fi The finance activity is concerned with how a company obtains funds and distributes it to investors via capital markets From a starting investment capital of 15 million USD, the BillionMax company attracted secondary investors to rent factories, lease land, and sign factory and land lease contracts with a total registered capital of 48 million USD and 63 billion VND, particularly between 2019 and 2021 This was accomplished through dividends, the repurchase

of common stock, and proceeds from the issuance of debt This amply illustrates the company's bright future and incites investors to provide the business with more funding

2 Describing shipping methods of Mattel’s goods from the US to Vietnam and from

Vietnam to the US Among the modes of transportation, which mode does the group

consider the most optimal? Why? What features of Mattel’s goods and materials need to be

considered during storage?

a) The shipping methods of Mattel’s goods from the US to Vietnam and from Vietnam to the US

To speed up customs clearance and shorten cycle times, Mattel frequently collaborates with third-party logistics providers (3PL), such as international express services like EMS/DHL/USP They accomplish this by utilizing cutting-edge technologies like RFID tags for quick shipping data processing that is more accurate and effective in real-time Geographically speaking, ocean freight and air freight are Mattel's best alternatives for shipping goods from the US to Vietnam

and vice versa because there is no direct land link between Vietnam and the US

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Figure 1: Mattel’s Extended Supply Chain

1 Ocean freight: Mattel is not completely immune to upheaval, and the business expects the continued plastic crisis and rising demand for maritime freight to have a big financial impact About 15% to 20% of the company's cost base in the third quarter of 2021 was made up of plastic and maritime freight, according to COO Richard Dickson

According to many logistics companies and transport agents, ocean freight rates between Vietnam and the US and Europe will be between 60 and 100 million VND per container in 2022 (down by one-third from 2021), as a result of ocean freight rates "cooling down," the difficulty of booking ships, the scarcity of empty containers, and the reduction in port congestion from 2020 to 2021

Chi sé gid cudc van tai container (World Container Index) Gia thué container theo c@ tau (USD/ngay)

8000 110,000

90,000 6000

70,000 4000 50,000 2000 30,000

Figure 2 Depending on whether Mattel chooses to ship to the East or West coast of the US, and whether shipping to ports on the west coast like Long Beach or Los Angeles is quicker than shipping to ports on the east coast like Philadelphia, Savannah, or Houston, ocean shipping from Vietnam can take anywhere between 20 and 45 days On the other hand, depending on the port in the North, Central, or South of Vietnam, ocean transportation from the US to Vietnam might take

anywhere between 30 and 57 days

10

The length of ocean transportation may also be influenced by Mattel's decision to ship FCL or LCL LCL shipments must be coupled with shipments from other shippers, necessitating additional stages in the process at both the origin port and destination port where the items need to be loaded and unloaded As a result, LCL shipments are frequently slower than FCL shipments

1 Aur freight: Depending on the sort of material they are transporting and the number of seats available, the cost of international air freight can range from $2.50 to $5.00 per kilogram However, due to major interruptions in maritime freight and rising consumer demand, prices have drastically risen since February 2020

The shipping period may be brief or lengthy, depending on the order, the nature of the items, and local conditions Depending on whether Mattel decides to ship to the East or West coast of the US, such as in Los Angeles or Houston, air shipping from Vietnam can take anywhere between 3 and 8 days In comparison, air freight from the US to Vietnam can arrive in 3 to 10 days, either quickly or slowly depending on the airport's location in the country's North, Central, or South Whenever it comes to air shipping, Mattel employs 3PLs like EMS, DHL, and USP, which allows for quick delivery of any items and cuts down the overall shipping time to one to two

days However, it also results in increased air freight costs b) Among the modes of transportation, which method do you think as the most optimal

one? Why?

Airplanes can travel hundreds of kilometers per hour in a straight line, which drastically reduces transfer times and speeds up arrival times Less items will be altered or lost in transit as a result Another benefit of air freight is that it can virtually always take off and land at any time, unlike ocean freight, which is significantly more impacted by weather Meanwhile, inclement weather

can cause maritime freight to be delayed for days or even weeks The major drawback of air

freight, however, is that due of its speedy pace, charges may pile up quickly if you need to

transfer a lot of items

11

There are other weight and size limitations on what may be delivered by air as well If the business wants to project an image of being one that practices both economic and environmental responsibility and wants to export goods worldwide, it will need to take into account the significant carbon footprint of air freight

Environmental concerns will have a growing influence on business, and even smaller companies are already thinking about how they can help create a more sustainable future The primary drawbacks of ocean freight are that it takes longer for products to reach their destination, customs delays, and port holdups can add to the wait time It can also raise the risk of items becoming lost in route For time-sensitive items, it is not appropriate

Regardless of the limitations listed above, they can benefit from its inexpensive price Transporting huge amounts of commodities makes more sense when done by boat since it is significantly less expensive than shipping by flight Additionally, dimension and weight limits do not apply to ocean transportation As a result, they may send bulkier and heavier things without worrying about incurring additional costs

Ocean freight therefore represents the best transportation option for a global corporation like

Mattel c) How does Mattel manage the warehousing system and inventory?

1 Mattel manages the warehousing system: With the launch of a brand-new, specifically designed logistics distribution facility in Truganina, Victoria, in 2019, DHL Supply Chain deepens and maintains its long-standing cooperation with Mattel The 25,690 square meter warehouse, which includes increased dock space for entering goods and loading room for departing vehicles, will boost efficiency in Mattel's supply chain by consolidating activities from two current locations in Melbourne (Australia) To maintain environmental friendliness, the building also has a solar panel system and LED lighting The facility will offer a service to repack the items and show them in the store The center integrates the functions of receiving products from Mattel's factories, storing, selecting, packaging, and delivering to clients

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Mattel signed a contract and later established a long-term partnership with the supply chain company Geodis to manage its logistics and distribution operations in Southern Europe a 42,000 square meter storage facility in the Distriport area of France When scaling warehouses and resources, Mattel takes into account the seasonal peaks inherent to its industry To handle seasonal variations, the area also provides a container storage facility By the end of 2013, the

distribution facility will have an overall footprint of 60,000 square meters An additional 1,500

square meters will be reserved for high-value services by incorporating state-of-the-art technologies into the new distribution facility, such as speech recognition and radio frequency

In order to operate, manage, and staff its distribution center, Mattel has a long-standing

partnership with Ryder As such, Mattel is able to benefit from Ryder's finest services and knowledge for the comprehensive administration of facilities like distribution centers on the East coast In order to better and more quickly serve retail partners and consumers, Ryder has adopted an end-to-end strategy by integrating warehousing, distribution, and shipping capabilities into one integrated system

1 Mattel manages the inventory” Utilizing its spread assets, Mattel has effectively applied inventory management methods to maintain a high degree of product availability They continue to employ cutting-edge technology, including EDI and RFID, to efficiently communicate with the biggest clients in order to lead the conventional toy business and improve the supply chain This suggests that in terms of inventory

turnover and return on equity, Mattel is the market leader

Mattel has struck a compromise between the requirement for a flexible supply chain and its capacity to obtain toys from Asia's low-cost labor markets Despite employing POS data, the cycle time between an order and delivery might be rather long because of the distance between the producer and the consumer and the lengthy shipment period (up to three weeks) To reduce

inventory and obsolescence costs and maintain inventory efficiency, they employ distribution

facilities in 32 countries and integrate shipments with POS, which helps to prevent out-of-stock

situations