Báo cáo nhóm chủ Đề analyzing and building the supply chain for swiftsip coffe

In conclusion, SWIFTSIP stands tall as a leading Vietnamese instant coffee player, chosen for supply chain analysis not only for its exceptional product quality and reliable partnerships

Sinh viên thực hiện: Nhóm 10

Tran Thi Thanh Trúc : 050609212299

Lê Tuần Kiệt : 050609211995

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1 OPENING

In the coffee industry, the supply chain plays a key role in ensuring quality products and meeting customer needs SWIFTSIP understands the importance of analyzing and building an effective supply chain This essay will focus on analyzing and building

SWIFTSIP's supply chain, from suppliers to production, distribution, retail, and final

customers Thorough analysis and building an optimal supply chain will help SWIFTSIP capture market opportunities, increase operational efficiency, and best meet customer needs From choosing a quality coffee supplier, an efficient and quality-assured instant coffee production process, to distributing products to retailers and creating a great customer experience Final Thanks to that, we will know the important factors in each stage of the supply chain

With the importance of the supply chain to the success of SWIFTSIP, this essay hopes

to provide an overview and specific suggestions for SWIFTSIP to self-evaluate and develop its position in the industry Vietnam's instant coffee industry and the international market

1.1 The reason why we choose SWIFTSIP

In the realm of instant coffee, analyzing SWIFTSIP's supply chain is an insightful choice Built upon a bedrock of industry experience and a stellar reputation, SWIFTSIP has honed a reliable and efficient system, earning its place as a prime example

The cornerstone of SWIFTSIP's success lies in its unwavering commitment to quality The company meticulously selects premium coffee beans from trusted sources, ensuring each cup brims with the rich aroma and authentic taste of freshly brewed coffee This carefulness extends beyond the initial beans, evident in their meticulous processing and dissolving techniques, meticulously preserving the coffee's essence within every granule

Furthermore, SWIFTSIP fosters strong partnerships with suppliers, building a robust network from raw materials to packaging and distribution This strategic alliance guarantees a stable flow of resources, keeping production running smoothly and minimizing disruptions

Adaptability and responsiveness are additional features in SWIFTSIP's cap By employing modern production lines and a rigorous quality management system, the company tackles large orders with agility, consistently delivering premium instant coffee without compromising flavor or aroma

In conclusion, SWIFTSIP stands tall as a leading Vietnamese instant coffee player, chosen for supply chain analysis not only for its exceptional product quality and reliable partnerships but also for its remarkable ability to meet customer needs with speed and finesse This company's dedication to excellence shines through every cup, making it a shining example within the industry

1.2 Introducing SWIFTSIP

SWIFTSIP is a leading instant coffee company in Vietnam, famous for its quality and variety of instant coffee products With the mission of bringing a great coffee experience to everyone, SWIFTSIP has continuously strived to create unique and exciting instant coffee products SWIFTSIP is proud of its high-quality instant coffee production process, from selecting fresh, quality ingredients to modern and advanced processing processes Our team of talented chefs at SWIFTSIP is always looking for unique flavors and delicate blends to create unique and interesting instant coffee products With a commitment to quality, SWIFTSIP ensures that each cup of their branded instant coffee meets customer expectations Not only meeting consumers' coffee needs, SWIFTSIP also aims to build a sustainable supply chain that respects the environment and community With continuous development, SWIFTSIP has become an instant coffee brand trusted and loved by consumers With the goal of bringing joy and satisfaction from every cup of coffee, SWIFTSIP constantly innovates and develops to become a leading instant coffee company not only in Vietnam but also in the international market

1.3 Design supply chain of SWIFTSIP

SWIFTSIP, a leading instant coffee company in Vietnam, has a tightly organized and efficient supply chain They follow the supply chain from supplier to consumer as follows:

Suppliers: SWIFTSIP selects high-quality coffee suppliers, ensuring fresh and sustainable raw materials SWIFTSIP establishes long-term partnerships with suppliers

to ensure consistency and quality of raw materials Therefore, SWIFTSIP chose Buon

Me Coffee - a company that supplies Arabica and Robusta coffee beans from famous coffee-growing regions Buon Ma Thuot, along with Quang Ngai Sugar Joint Stock Company for sugar and Vinpack Joint Stock Company for packaging Choosing high- quality suppliers is the most important factor in SWIFTSIP's supply chain This helps ensure SWIFTSIP has a high quality instant coffee to meet customer needs

Producer: SWIFTSIP owns a modern manufacturing factory and meets high-quality standards The production process is strictly controlled to ensure that instant coffee achieves great flavor and consistency SWIFTSIP applies modern technologies in instant coffee production, including

+ Continuous instant coffee production system, helping to ensure uniform quality

Retailers: SWIFTSIP partners with leading retailers to get their products into the hands

of consumers They ensure that their instant coffee is attractively displayed and advertised to attract customers SWIFTSIP selects reputable retailers with convenient locations to reach customers SWIFTSIP retailers are also trained on how to display and advertise products, to attract customers and boost sales

Consumers: SWIFTSIP creates high-quality instant coffee products that meet consumer needs and preferences They ensure that their products meet their standards

of taste, quality, and value SWIFTSIP regularly researches the market to understand

consumer needs and preferences The company also invests in research and product development, to create new products that meet consumer needs

2 SUPPLIER

2.1 SWIFTSIP’s suppliers

2.1.1 Raw material supplier Coffee beans: Buon Me Coffee

Buon Me Coffee is a famous Vietnamese coffee brand, founded in 2013 in Buôn Ma Thuột,

Dak Lak Province They are currently one of the leading coffee brands in Vietnam, with a market share throughout the country and exports to many international markets The company specializes in the production and distribution of coffee beans, instant coffee, filter coffee, etc Buon Me Coffee uses Arabica and Robusta coffee grown in the Central Highlands of Vietnam, where the climate and soil are suitable for coffee cultivation Buon Me Coffee's coffee is carefully selected and roasted using traditional methods, resulting in a rich, aromatic flavor Sugar: Quang Ngai Sugar Joint Stock Company

Quang Ngai Sugar Joint Stock Company is a leading sugar producer in Vietnam, boasting a rich history and a dedication to quality Established in 1976, they have grown to become a major player in the domestic sugar market They boast extensive sugarcane plantations, spanning over 33,000 hectares, primarily concentrated in Quang Ngai province

2.1.2 Material supplier Packaging: Vinpack Joint Stock Company

Vinpack Joint Stock Company (Vinpack) is a member of Vingroup Corporation, established in

2014 Vinpack specializes in the production of plastic packaging, paper packaging, metal packaging, etc for the food, beverage, pharmaceutical, etc industries

With the goal of becoming a leading packaging supplier in Vietnam and the region, Vinpack is always striving to improve product quality, and service, and meet the growing needs of

customers

2.2 Abilities of suppliers

Coffee beans: Buon Me Coffee

Buon Me Coffee ensures that the coffee beans are grown by farmers according to safety standards, without the use of chemicals in the cultivation process, with a clear origin, ensuring health from the cultivation stage Pure coffee beans contain the full amount of beneficial substances for health, create a sense of refreshment, water color is not dark black, water is not thick, natural coffee bitterness, attractive aroma of the coffee beans themselves They do not harvest both ripe and unripe coffee beans in general, Buon Me Coffee harvests ripe fruits separately, removes rotten and black fruits, to ensure the stability of roasted coffee beans quality Moreover, Buon Me Coffee uses advanced modern technologies, the production facility meets ISO 22000:2018 and Food Safety standards

Buon Me Coffee has an annual production of about 10,000 tons of coffee beans, they also have

a diverse coffee bean supply, including both Arabica and Robusta Therefore, Buon Me Coffee

is capable of providing coffee beans to SWIFTSIP in a stable manner and meeting the requirements of quality, quantity and price

Sugar: Quang Ngai Sugar Joint Stock Company

Quang Ngai Sugar Joint Stock Company takes control of its sweetness, managing 33,000 hectares of sugarcane plantations This vertical integration safeguards a consistent supply of raw materials, insulating them from external fluctuations With a daily milling capacity of 5,000 tons, QNS churns out 1.5 million tons of sugar annually, ensuring a steady flow of sweetness for SWIFTSIP and minimizing the risk of potential sugar shortages

Moreover, Quang Ngai Sugar Joint Stock Company adheres to stringent international quality standards throughout the entire process, from cultivation to processing This translates to high- quality sugar, pleasing SWIFTSIP’s quality needs

Packaging: Vinpack Joint Stock Company

Vinpack currently has two packaging production plants in Vietnam, one in Ho Chi Minh City and one in Long An province With a large production scale, Vinpack provides a variety of high-quality packaging products, meeting the needs of businesses from Vietnam and abroad Vinpack's packaging products are made from high-quality materials, ensuring the safety of consumers’ health The company also applies modern and advanced production technologies, helping to improve product quality and production capacity

Based on information published on Vinpack’s website, the finished product warehouse integrates modern systems with a capacity of up to 100 tons, meeting the needs of storing and preserving raw materials used for production in the best way Vinpack owns a state-of-the-art production process with a modern machinery system with more than 20 machines imported directly from Taiwan and China, meeting a production capacity of over 300 tons of packaging per month according to the needs of each customer With a dedicated and highly skilled team

in each technical step, Vinpack ensures to bring customers the best quality packaging samples

e There are many companies that can provide the same product that can be replaced The presence of many companies that can provide the same product that can be replaced gives SWIFTSIP many options and can easily switch to using products from other companies if either Buon Me Coffee, Vinpack, Quang Ngai Sugar Joint Stock Company does not meet their needs

e SWIFTSIP is large in scale and is an important customer for both companies

SWIFTSIP is a large customer of both Buon Me Coffee, Vinpack and Quang Ngai Sugar Joint Stock Company However, SWIFTSIP's large scale also gives them many options and can easily negotiate prices and contract terms with suppliers

Regarding Buon Me Coffee, they are a leading supplier of coffee beans to companies that produce coffee products However, Vietnam is one of the world's largest coffee producers, with many companies that supply high-quality coffee beans This is an advantage for SWIFTSIP as the company can easily find coffee bean suppliers that meet SWIFTSIP's requirements, such

as Simexco Daklak

For Vinpack, they are a large packaging company with a large production and distribution scale, meeting SWIFTSIP's large quantity demand Vinpack also has experience and reputation

in the market, ensuring high product quality However, Vinpack is not the only supplier that meets SWIFTSIP'’s needs There are still many other packaging companies in the market, such

as Vinapackink, Hung Phat plastic packaging, etc., that can provide high-quality products at competitive prices

About Quang Ngai Sugar Joint Stock Company, they are a large sugar supplier that ensures a stable supply and competitive prices The company also has experience and reputation in the sugar industry However, Quang Ngai Sugar Joint Stock Company is also not the only supplier that meets SWIFTSIP's needs There are still many other sugar companies in the market, such

as Thành Thành Công Biên Hoa Joint Stock Company, Son La Sugar Joint Stock Company, etc., that can provide high-quality products at competitive prices

Therefore, the bargaining power of Buon Me Coffee, Vinpack and Quang Ngai Sugar Joint Stock Company with SWIFTSIP is not large SWIFTSIP has many options and can easily switch to using products from other companies if either Buon Me Coffee, Vinpack and Quang Ngai Sugar Joint Stock Company do not meet their needs

2.4 Supplier role in SWIFTSIP's supply chain

In SWIFTSIP's supply chain, suppliers play an important role and greatly influence the company's business operations Supplier is the source of raw materials, products and services for SWIFTSIP to produce and sell instant coffee Key supplier roles include:

- Quality of raw materials:

+ The supplier ensures fresh, high-quality coffee that meets SWIFTSIP's strict standards This directly affects the taste and quality of the final instant coffee product

+ SWIFTSIP often cooperates with reputable suppliers who have farms that cultivate using sustainable, environmentally friendly methods

+ Strict quality control right from the beginning of harvesting, selecting coffee beans to preserving and transporting

- Supply stability:

+ The supplier ensures a stable coffee supply, meeting SWIFTSIP's continuous production needs Avoid production interruptions due to lack of raw materials

+ Build long-term partnerships with reputable suppliers, ensuring sustainable supply over time + Forecast coffee demand, have a backup plan in case of crop failure or market fluctuations

- Sustainable supply chain:

+ Suppliers apply sustainable farming methods, minimizing environmental impact

+ Participate in community development programs, improving the lives of coffee growers + Transparency in raw material origin, and compliance with labor and international trade regulations

Vietnam is one of the world's largest coffee-producing countries, with green coffee output reaching about 2.5 million tons per year This gives SWIFTSIP many options for coffee supply However, to compete in the increasingly competitive instant coffee market, SWIFTSIP needs

to ensure a stable, sustainable, and high-quality coffee supply SWIFTSIP is able to achieve this by building long-term partnerships with reputable suppliers These suppliers must meet SWIFTSIP's strict quality standards and be able to provide a stable supply of coffee to meet SWIFTSIP's production needs In addition, SWIFTSIP also needs to work closely with suppliers to improve coffee farming, harvesting, and preservation processes This will help improve coffee quality, reduce losses, and minimize environmental impact Finally, SWIFTSIP needs to commit to building a sustainable supply chain This includes adopting sustainable farming methods, participating in community development programs, and being transparent about the origin of ingredients

Overall, suppliers play an important role in SWIFTSIP's supply chain They ensure the supply of quality, reliable materials, and services and support SWIFTSIP in maintaining production operations

2.5 SWIFTSIP supplier selection criteria

Product quality:

e The company looks for suppliers who can provide beans that are consistently fresh, flavorful, and meet SWIFTSIP's strict quality standards

Price:

e Competitive pricing: SWIFTSIP is a large company, and it has the bargaining power

to negotiate competitive prices from its suppliers However, the company is also committed to fair trade practices and does not want to exploit its suppliers

e Transparency and stability: SWIFTSIP wants to work with suppliers who are transparent about their pricing and who can offer stable prices over time This helps the company to budget effectively and avoid unexpected cost increases

Reliability:

e On-time delivery: SWIFTSIP has a large network of cafes and retail stores, and it is essential that its suppliers can deliver coffee beans on time and in full The company wants to work with suppliers who have a proven track record of on-time delivery

e Financial stability: SWIFTSIP also wants to work with suppliers who are financially stable This helps to ensure that the company's supply chain is not disrupted by unexpected events, such as a supplier going bankrupt

Sustainability:

e Ethical sourcing: SWIFTSIP is committed to sourcing its coffee beans from ethical suppliers who do not engage in child labor or other harmful practices The company also wants to work with suppliers who are committed to environmental sustainability

e Social responsibility: SWIFTSIP also wants to work with suppliers who are good corporate citizens and who give back to the communities in which they operate

In addition to these factors, SWIFTSIP also considers the following when selecting suppliers:

e Location: SWIFTSIP prefers to work with suppliers who are located close to its roasting facilities This helps to reduce transportation costs and ensure that the coffee

beans are fresh

Innovation: SWIFTSIP is always looking for new and innovative ways to improve its products and processes The company wants to work with suppliers who are willing to share their knowledge and expertise and who are committed to developing new products and technologies

By carefully considering all of these factors, SWIFTSIP can select suppliers who will help the company achieve its goals of providing high-quality, affordable, and sustainable coffee to its

customers

2.6 Relationship between SWIFTSIP and suppliers

Although the bargaining power of suppliers with SWIFTSIP is not large, they are still capable

of meeting SWIFTSIP's needs Therefore, SWIFTSIP builds relationships with suppliers based

on cooperation and shared benefits SWIFTSIP needs to show trust and respect for them, and

be willing to cooperate to develop long-term relationships Here's how SWIFTSIP can delve deeper into building truly collaborative and value-driven partnerships:

Strategic Collaboration:

e Joint Innovation: Instead of just receiving products, SWIFTSIP can actively involve suppliers in product development This could involve shared R&D initiatives, pilot testing new materials or processes, or brainstorming sessions to address shared challenges

Knowledge Sharing: SWIFTSIP can establish knowledge-sharing platforms or workshops to exchange expertise in areas like sustainability practices, quality control techniques, or supply chain optimization This fosters mutual learning and continuous improvement

Data-Driven Insights: Sharing relevant data like sales forecasts, inventory levels, and consumer trends allows for collaborative planning and forecasting This fosters transparency and enables suppliers to anticipate and meet SWIFTSIP's needs proactively

Mutual Growth and Investment:

e Supplier Development Programs: SWIFTSIP can invest in supplier development programs, offering training, technical assistance, or financial support to improve their capabilities This not only strengthens their performance but also creates a more competent and reliable supply chain

e Early Payment Incentives: Offering early payment incentives for achieving specific quality or efficiency targets aligns their goals with SWIFTSIP's and incentivizes continuous improvement

e Co-marketing Initiatives: Partnering with suppliers on joint marketing campaigns can leverage each other's strengths and reach wider audiences This creates a collaborative effort towards shared success

Building Trust and Transparency:

e Open Communication Channels: Establishing regular communication channels beyond formal meetings, like dedicated communication platforms or hotlines, fosters open dialogue and rapid problem-solving

e Joint Goal Setting: Collaboratively setting specific and measurable goals, like sustainability targets, quality benchmarks, or cost reduction milestones, strengthens commitment and promotes joint accountability

e Transparency in Decision-Making: Keeping suppliers informed about decisions that impact them, even negative ones, demonstrates respect and builds trust in the long run Proactive Relationship Management:

e Supplier Relationship Managers: Assigning dedicated account managers to key suppliers fosters personalized communication, builds deep understanding of their needs and capabilities, and strengthens individual relationships

e Supplier Recognition Programs: Implementing programs to recognize and reward top-performing suppliers reinforces positive behavior, motivates continuous improvement, and builds loyalty

e Regular Relationship Reviews: Scheduling periodic reviews with suppliers to evaluate performance, address challenges, and jointly plan for the future ensures proactive relationship management and continuous improvement

These strategies go beyond transactional cooperation and create a foundation for long-term, mutually beneficial partnerships By actively collaborating, investing in supplier growth, fostering trust, and implementing proactive relationship management, SWIFTSIP can not only ensure a reliable supply of high-quality products but also build a network of strong supplier relationships that contribute to their overall success and competitive advantage.\

2.7 Insource of SWIFTSIP

Having the intention of growing SWIFTSIP into a global business that trades and exports goods related to coffee As a result, nearly every step of the coffee production process, including the processing of raw materials, the creation of instant coffee, and product packaging, is currently handled by SWIFTSIP's factories

2.8 Outsource of SWIFTSIP

SWIFTSIP also has to outsource a lot of other associated company operations, like product sales and distribution, marketing and communications, and customer after-sales services In particular, the two main outsourcing stages are purchasing raw materials and distributing products:

e Purchasing raw materials: Purchasing coffee ingredients is a very costly and complicated process Therefore, SWIFTSIP can concentrate on its primary business operations—production, marketing, and sales—by outsourcing the procurement of coffee components In addition to reducing expenses associated with locating possible suppliers In the meantime, Buon Me Coffee is a respectable business with a wealth of expertise in the coffee industry with a vast purchasing network that includes Vietnam's premium coffee-growing regions Buon Me Coffee is completely capable of offering premium coffee components that satisfy SWIFTSIP Vietnam's requirements

e Distributing products: Distributing products: Since SWIFTSIP is a fledgling business,

it will be challenging for it to reach all of its potential clients, at least early Meanwhile, developing and researching a different distribution system is quite costly and time- consuming Therefore, it makes perfect sense to assign this task to a third party In addition, Saigon Co.op, Blueway Logistic Joint Stock, and Ngoc Ha Trading and Service Joint Stock Company are respectable businesses with years of expertise in the

distribution industry, a broad distribution network that covers all of Vietnam, and the

capacity to efficiently distribute goods efficiently and satisfies SWIFTSIP Vietnam's criteria By selecting these distributors as its product distribution outsourcing partners, SWIFTSIP has been able to reduce expenses, increase operational effectiveness, and concentrate on its main business operations.on its main business operations

2.9 The External Application Vendor Selection Process of SWIFTSIP

The External application vendor selection process is always difficult and requires many different steps, as well as a certain rigor It is based on company needs as well as strict quality standards, competitive pricing, consistent reliability, commitment to sustainability, a spirit of innovation, strategic location, long-term cooperation potential, and a solid reputation in the industry

e Determine needs: Before beginning the supplier selection process, SWIFTSIP Vietnam will ascertain its needs for the application Functional, feature, performance, scalability, security, and financial requirements are among these needs

e Establish selection criteria: SWIFTSIP Vietnam will choose suppliers depending on the needs it has These standards could consist of:

+ + + + +

Supplier's experience and capacity Professional qualifications of the technical team Product and service quality

Price Time and responsiveness

e Supplier search and evaluation: SWIFTSIP Vietnam will look for and assess possible suppliers by specified selection standards In addition to participating in meetings and interviews, potential suppliers will be required to submit information about their goods and services

e Contract negotiation and signing: SWIFTSIP Vietnam will deal with a chosen group of suppliers to negotiate and sign contracts Specific terms and conditions about goods, services, costs, due dates, and each party's obligations will be included in the contract