MỘT số GIẢI PHÁP NÂNG CAO kết QUẢ HOẠT ĐỘNG CHUỖI CUNG ỨNG tại CÔNG TY bột mỳ VINAFOOD e

Thesis SOLUTIONS TO IMPROVE THE PERFOMANCE OF SUPPLY CHAIN IN VINAFOOD FLOUR COMPANY MỘT SỐ GIẢI PHÁP NÂNG CAO KẾT QUẢ HOẠT ĐỘNG CHUỖI CUNG ỨNG TẠI CÔNG TY BỘT MỲ VINAFOOD1 TABLES OF CONTENT LIST OF ACRONYMS SCM: Supply Chain Management TĐH: Max TTH: Min LIST OF TABLES Figure Table Diagram INTRODUCTION Necessity of research In the context of globalization of business today, businesses compete with each other via products and services Market is rapidly and constantly changing, which requires companies to improve themselves and to work together Supply Chain Management (SCM) is a relatively new term in Vietnam The supply chain is the connection between suppliers, manufacturers, distributors, retailers and consumers Good governance is supply chain contribute to improve competitiveness and increase business efficiency for its business units as well as in the supply chain Vinafood1 Flour Company is an enterprise specializing in producing and processing wheat for sale to Vietnam market Company buys wheat from foreign exporters of production and processing into flour to sell to the market Operations of the supply chain of manufacturing enterprises in general and wheat Flour Company in particular Vinafood1 are diversity and differences To contribute to the improvement the business performance of our company, I chose the topic “ Solutions to improve the performance of supply chain in Vinafood1 flour company" as the subject of dissertation research The research topics focuse answering the following questions: - Theoretical basis of supply chain and key indicators to measure supply chain efficiency? - Situation of supply chain of the Vinafood1 flour company? - Solutions to improve supply chain performance 2.Targets - Systematize theories on supply chain - Point out basic indicators to measure supply chain performance - Measure, analyze and assess supply chain activity - Propose solutions to improve supply chain performance 3.Object and scope - Object Supply chain and supply chain management activities at Vinafood1 Flour - Scope of research + About Content: supply chain is analyzed from insiders, then expanded to the purchase function and distribution of products The thesis focuses on the evaluation of supply chain operations at the company Vinafood1 flour in the following areas: cost, quality, delivery, operational capacity + About Space: Thesis focuses on supply chain performance of Vinafood1Flour + About time: Thesis focuses on realities of value chain analysis and measure a number of indicators which based on the data collected during the period betwen 2010 and 2013 Method research Method: quantitative analysis, statistics, comparison Data collection: Using secondary data from published materials, internal documents of Vinafood1flour, magazines, internet Analysis method: analysis and comparison Dominant method is measurement, statistical methods and description associated with the analysis, synthesis, comparison to clarify and specify the content of the research Structure of thesis Chapter 1: Theoretical basis of supply chain Chapter 2: Situation of supply chain of Vinafood1 Chapter 3: Solutions to improve the performance of supply chain in Vinafood1 Flour company CHAPTER I: THEORETICAL BASIS OF SUPPLY CHAIN MANAGEMENT History and development of supply chain 1.1 SCM is established from inside economy In the early and mid-twentieth century, especially after World War II increased physical demand, the company focused on production with little attention to the design and development new products That time, the business is dependent on internal resources or in other words the market right now is the seller Technology problems and share expertise through collaboration between buyers and sellers is a rare term By 1960-1970s decade of the twentieth century, companies around the world after a sufficient time has grown exclusively positive and they apply the technology of mass production to cut costs and continuously improving production However, they are less focused on building good relationships with suppliers and customers, less concerned with the improvement of production processes, improve product quality It is this makes the market fall into excess supply Recognizing the importance of this problem, manufacturers have continuously applying modern scientific achievement, build good relationships with partners, sustainable, better inventory control as well as warehousing costs Looking for ways to sell more products and attract more customers And the period of the marketing and sales officially started 1980s is considered to be pivotal period of the supply chain The term supply chain was first widely applied in many newspapers and magazines, namely 1982 During this period, competition in the global market is becoming increasingly intense pressure on manufacturers , forcing them to cut costs, continuously improve product quality and increase the level of customer service The company manufacturers use production techniques in time ( JIT ), total quality management ( TQM ), to improve quality, improve production efficiency and shorten delivery time goods In this period the business was aware of a clearer relationship strategy, sustainable cooperation between the three parties: suppliers - buyers - customers From 1990 onwards, the competitive environment has become more intense, with the increase in logistics costs and inventory trends as well as globalization has challenged economy, the economy had not continuously improve quality, production efficiency, customer service, design and constantly diversifying products To solve this problem, firms must take into account cost structures, response time, customer requirements and the ability to react to the fluctuations of the market On the other hand, companies also realize that if they commit to purchase from the best suppliers for your business, then they will in turn benefit from increased sales through improved quality, distribution and product design as well as cut costs through more interested in the process Thereby the relationship between suppliers and buyers has proved successful in the economic " cooperation, development, mutual benefit " Before this situation, supply chain management (SCM) was born And to this, each link of the chain to function well and smoothly together if not will affect the quality of goods and services that end supply chain for customers 1.2 SCM is developed from selling and buying process In first year of the railway industry in period of 1850-1900, construction projects of large railway systems requires close collaboration between supply of materials and production plans Purchasing concept is formed afterwards A major contribution of this period is the initial recognition of the purchasing process and its benefits to business operations By the first half of the 21st century, this is the stage of forming basic concepts of purchasing During World War 2, some commodities become scarce Thus, purchasing raw materials become a extremely important After World War 2, from 1947 to the mid-1960s, the economy is quite gloomy In this period, raw materials are no longer in shortage so the role of purchasing is not significant any more From the mid '1960s to the late '1970s, concept of materials management began to develop US aggressive war in Vietnam and the oil crisis in the early '1970s forced the company face issues related to sanctions and fuel shortage Price increased rapidly and the purchase phases depend on market prices At this stage, concept of partnership between buyers and sellers is not formed Period to the late '70s to 1999, the development of information technology makes globalization trend going incredibly strong Businesses compete with each other, multinational companies, cross country appears increasingly, the life cycle of products is increasingly shortened It is in these conditions, the introduction and development of SCM help managers deal with the pressure of rising costs and competitiveness in the market This phase is called the era of globalization period Entering the XXI century so far, the importance of suppliers are increasingly valued The relationship between enterprises and suppliers to become partners of each other The producers also seek to help providers more professional development, participation in the development process of the product supplier The selection of suppliers based on the package cost, on the basis of long-term relationships, share the information with other data to create new value in the supply chain This is the period where the purchase, production activities, logictics, human resources management, financial accounting, the marketing and information systems are consolidated and have close links with each other in the system 1.3 SCM is developed from logictics Logistics is a series of services such as doing paperwork, organizing transport, packaging, labeling, warehousing, providing goods to different addresses Originally, logictics is used as a technical concept in the military and is understood as supporting activities By the end of the 21 st century, logictics is recognized as a key business function to bring success for both companies in the field of manufacturing and services ESCAP supposes that logictics is developed via stages:  Stage 1: Distribution This stage focues on outputs: • Transportation • Distribution • Preserving goods • Managing warehouses • Labels, packages  Stage 2: logictic system This stage consists of transportation supply and good distribution In other words, this stage combines both inputs and outputs of products  Stage 3: SCM According to ESCAP, this concept is strategically meaningful In this stage, logistic system develops to SCM, focusing on relations with suppliers, producers, distributors, customers and included entities such as trasportations, warehouse… In recent years, the concept of supply chain consists of many factors interested by organizations, such as the link between the manufacturer and the retailer, the supplier of raw materials It allows enterprises to predict market demand The result of this combination is low inventory levels, product cycles are shortened, thereby costs are reduced even more SCM appears and proves its importance in the development of business in particular and the whole economy in general 10 CHAPTER III: SOLUTIONS FOR IMPROVING THE PERFORMANCE OF SUPPLY CHAIN AT VINAFOOD FLOUR COMPANY Víetnam flour market situation 1.1 Demand and supply of flour market The first flour manufacturing factory in Vietnam was established in the later of 1975 At this time, there is only flour manufacturing factory which is located in Binh Dong Province with the capacity of 600 tons per day At the same time, the majority of flour supply is imported from other countries to meet the flour demand in Vietnam which is quickly increasing At the beginning of 2000, the government decided to invest in new flour factories in Cai Lan and Da Nang as well as provided all the provinces within Vietnam with investment licence in flour industry For that, there are a series of flour factories are licenced to operate in Vietnam In a short period, there are about 30 flour factories are built which are mainly located in Ho Chi Minh City, Binh Duong, Da Nang, Nghe An, Ha Noi, Hai Phong According to the evaluation of United State Flour Associate, the flour market in Vietnam is developing very quickly In 2010, the flour market witnessed the disnormal growth in the imported amount, about 2.1 million tons Also, in accordance with the statistic of General Department of Customs , the total amount of imported flour in Vietnam in 2012 is 1.8million tons and kept unchanged over the years About 10,000 tons of high quality flour which can not be produced in Vietnam is from Japan (2000 tons) The products made from flour include: pasta, couscous and instant noodle The increasing average income of household accompanied with higher living stands lead to the higher demand in instant and nutrious food, especially grilled food Vietnamese has less free time than they did before and tend to purchase more grilled food because of time saving and convenience Supermarkets and bakery provide every kinds of bread and many modern café also sell cake or homemade cake to consumerswhich are considered to be one of the main distributors of flour 68 Among the products made from flour, instant noodle is consumed most in Vietnam due to the increasing urbanization as well as the changes in consumption habit This habit affected by Western culture as well as the higher income and partly helps to reinforce the flour consumption in Vietnam There is no official number of flour consuming per capita in Vietnam However, according to Commercial Resources, the best method to estimating the consumption is based on the real amount of flour produced annually from all the factories in Vietnam In 2012, the total amount of flour produced is 1.2 million and tend to increase after the years Hence, the demand for products made from flour is potentially high and becomes an opportunities for flour company in general and Vinafood in specific 1.2 Factors affecting the flour supply Supply of flour are total amount of available flour or the amount of the flour which are sold on the market in a specific period, this supply is affected by many fators: - Scale and number of flour manufacturing companies - Manufacturing technology: affecting the flour supply in terms of aspects ( quality, quantity and supply cycle) The moderner manufacturing technology is, the better quality and higher efficiency and shorter supply cylcle are - Material input: Vietnam has to import 100% flour from foreign countries and totally depent on the situation of those countries, including: price of material, transportation cost, political situation which sometime positively or negatively affect flour quality and quantity 1.3 Factores affecting the flour supply Flour market is defined to be a kind of industrial product market The demand strongly affects the supply, so the flour market is inelastic The supply changes when the 69 demand for the food like instant noodle, bread and cake changes The factors affecting the demand for flour are: - Government law and policies: there are policies of government to protect and encourage the demand for some kinds of consumer goods such as: rice, instant noodle which helps to increase the flourdemand - The high season of demand for flour is in special occations or Tet Holiday - Better standard of living results in higher demand for food - The process of industrialization and modernization plays a part in changing the people’s working and lifestyle For that, their routine somehow are also altered The requirement in kinds of food which are easy to cook, suitable price and nutrious is more favorable Orientaion, opportunities, challenges of Vinafood Flour Mill Company 2.1.Development orientation of Vinafood Flour Mill Company to the year 2018 With the aim to develop a company become bigger and stronger competitor in flour market in terms of scale and expertise Vinafood has proposed some plans and strategies in up coming period as below: Better expanding and exploiting the demand on the market Striving to increase the number of products sold annually by more than10% to the year 2018, with - 140.000 tons of flour sold and operate 02 factories a highest efficiency Increasing the diversification as well as frequently improving the product quality with the aim to meet the demand of flour market Moreover, the company also plans to - broadcast its brandname “ Vinafood Flour” largely all over the market Striving to gain a revenue of more than VND 1,500 billion to the year 2018 in which VND 1,000 billion is from product sale and a more than VND 20 billion is the profit - obtained Step by step increasing the technical skills and knowledge of employees for their better performance in working and producing 70 2.2 Opportunities and challenges of Vinafood1Flour Mill Company It can be seen from evaluation in Vietnam, the potential of demand for flour is very high Nowadays, the demand for flour in overall market is ranged from 1,4 to 1,5 mill tons per year in which it is about 900 thousands of ton per years come from demand in Southern Provinces and 600 thousands of ton per year come from Northern Provinces The reason for this growing demand is due to the recently increasing population and some effects of the economic factors If it takes the flour supply into the consideration, it has about 20 flour manufacturing factories in Southern Vietnam (from Danang) provided the market with million tons of flour per year and 05 ones in Northern Vietnam (from Hue) provided the market with 600 thousands of tons per year The competition of flour market in Vietnam mainly occurred within area It means that the flour factories in Southern will compete mainly with the ones in Southern in Vietnam and it is the same for the ones in Northern in Vietnam The combination of these market are factories located in provinces in Middle of Vietnam The reasons explained for this are: Firstly, the transportation costs from North to South is very high and vice versa - Secondly, flour are stored in a very short period For that, the factories located outside an area could not compete with the ones within that area When all the above things are said and done, it can be seen that the competion amongs factories in Southern Vietnam is much higher than the competion in Nothern Vietnam In the same place, there are many opportunities as well as challenges of Vinafood to operate in flour industry which will be mentioned in the following parts 2.2.1 Development opportunities of Vinafood Flour Mill Company - Stable bussiness environment, increasing demand and abundant material supply for manufacturing - Strong financial background gained from many years working on this market and receive a great support from The Vietnam Northern Food Coperation (VINAFOOD) - Be established and developed at the same time of flour manufacturing industry is on the development, so the company posseses a great number of experienced employees in this kind of industry - Having relationship with some anchor tenants in the flour market 71 2.2.2 Risks and challenges for Vinafood1 Floor mill Company - The increasing scale of competitors’ companies, especially joint ventures and foreign investment companies - The entrance to the market of the new competitors due to the potential market demand - Vinafood1 Floor mill Company is state enterprise, so it is difficult to change the cognition as well as operating mechanism to adapt to the constant changes of the market What mentioned above are the development opportunities, challenges and risks in both short and long term of Vinafood1 Solutions to improve the performance of Vinafood1’s supply chain Through analyzing, measuring some criteria and assessing the state of supply chain management of Vinafood1, its limitations have been realized To gain the development goal, the company needs a new model of organizational structure along with the operating management, especially the management of supply chain From this fact, I would like to offer some basic solutions to enhance the outcomes of Vinafood1’s supply chain as follows 3.1 Overall solutions 3.1.1 Reforming the operating system The state of supply chain management shows that the reformation of operating system of the company is the most basic solution which relates to all the others Currently, the company is still operating with the old structure in the absence of important departments such as marketing, research & development and supply chain management With the current organizational structure and human resources, we can change the operating model that is in line with the current business situation in the efficient way in terms of supply chain management This model is as follows: 72 Board of Directors Administrative Department Financial Accounting Research and Development SCM Charge Marketing and Sales Hung Quang Factory Purchasing and Suppliers Management Order Management and Performance BaoPhuoc Factory Production Quality Assurance Figure 10: The proposed company’s organizational structure With this model, the company has the important departments such as Research and Development, Marketing and especially SCM Moreover, we can arrange the human resources reasonably as follows + One director is in charge of SCM + Sales Department staff is separated into different departments, that is, Research and Development, Marketing and Order management and performance + Diplomatic Department is transformed into Purchasing and Suppliers Management + Technology Department Management 73 is transformed into Production The departments operate and link together under the direction of SCM With this separation, the departments will be intensive and not overlap with each other; especially Marketing Department can take part in supply chain more deeply by supporting the sales of suppliers Research and Development Department, which will be the first stage of supply chain, will specialize in market research and product development This department will integrate the information from the market and the units involved in the supply chain, i.e customers, suppliers and marketing information from Marketing Department in order to make appropriate and more practical plan The reformation from the old model to the new indicates that: - The organization does not change much but the arrangement, splitting or merge of the internal departments so that they can operate towards the direction and coherence of the internal company operations - About the operating process, the new model is more specialized than the old one and there is an intensive management of supply chain - For the human resources, we need two more staff for the head position of Research and Development and the Order Management and Performance Department This issue can be performed normally The changes of Vianfood1’s organization structure belong to internal organization, so it not bound by any governing body as well as its rules and regulations On the other hand, the cost of the reformation is not much, lying in the decision of the company institution With the proposed model and its effective analysis, the governing body, i.e Vietnam Northern Food Corporation will support and approve In today’s business context with the goal of the company and the current company scale, the new model is expected to be reasonable up to 2018 3.1.2 Enhance the managerial ability To operate the supply chain effectively, it is necessary for the members of the chain to have proper awareness of the management of the chain in general and managing it in the internal organization within the involved members From the 74 status of the supply chain management of Vinafood1 Flour mill Company, it can be seen that the managers have not realized the benefits of supply chain management Therefore, along with the reformation of the operation structure, the company needs to take attention to enhancement the management capacity of managers, departments and all the internal units of the company in the comprehensive and intensive way to operate the company’s activities in the harmonious way in the overall operation of the chain The specific solutions to this issue are as follows - Organizing training for the managers, departments and units of the company about the supply chain management; when the proposal is approved in the first six months, 100% of the management positions, the head and deputy of the departments in two factories must be trained about the management skills of the supply chain - Arranging the human resources working in each department in line with the qualifications of each individual and constructing the remuneration (salary and bonus) for each staff reasonably - Increasing recruitment the highly qualified staff in key positions, specifically, recruiting or training 2-3 supply chain management specialists; Firing the incompetent staff in the important positions - Monthly, quarterly and annual assessing the whole operation to find out the weaknesses of the department to fix - The company plans for the training costs every year is about 0.03% of sales 3.1.3 Investing in technology information and applying it to the supply chain management Today, the technology information plays important part in enterprise management and operating the production activities Applying the technology information to supply chain management makes the company communicate with the partners and the customers more effectively, enhance the relationship with the partners and adapt quickly with the fast changes of the market Investing in 75 technology information appropriately will strengthen the partnership to manage quality, time and product and service value well It will also bring the effectiveness to the unit involved in the supply chain In fact, the technology of Vinafood1 Flour mill Company still has limitations The initial investment in financial and accounting management of the company Website is weak In order to manage the overall activities and the supply chain well, managers need to take consideration of investing in internal management network, database for the supplier, production and customer management and investing in software managing the supply chain effectively to help the company manage the supply, demand and consolidate logistics, inputs, output and service quality Therefore, the managers have chances to prove their remarkable ability in identifying, predicting and preparing for the possible risks related to the supply chain 3.2 Some specific solutions to enhance the supply chain quality 3.2.1 Solutions to the quality As mentioning above, the quality of the chain depends on the quality of inputs, the quality of goods sold and service in order to provide the customers the best product with the best price From the fact of the supply chain of Vinafood1, quality indicators i.e Delivery efficiency of vendors and delivery efficiency of the company to customers, goods returned reflect actual situation of seeking & evaluation of suppliers and shows that the quality control of the company has not received enough consideration Arising from these problems it is important to have synchronization solutions to enhance the chain in general and the product quality as follows Enhancing the market research by purchasing the information of prestigious research institutions in agriculture and wheat in the world; Finding two or three more partners, that is, the suppliers of wheat in order to have more choices and benefit from the competition in the input price; Every quarter, the purchasing 76 department has to integrate the information of other departments to assess and report to SCM about the suppliers about ‘Input price and quality and delivery time’ Finding more three transportation enterprises to enhance the transportation with the competitive quality and price; Logistic department summaries the assessment and reports to SCM about the transportation service supplier about ‘Service style, delivery time, safety and hygiene’ Recruiting more qualified staff for the Quality Assurance Department; In the present, in the Quality Assurance Departments of two factories, there are seven quality inspectors: four in BaoPhuoc factory and in Hung Quang factory, head for both factories The quality inspection with huge quantity has to perform regularly with the inspectors working in shift There should be enough staff working so that each staff works one shift/line to inspect output as well as input quality more effectively and carefully Training Marketing team and taking care of customers to capture the information about the demand of customers, the questions about the product quality and delivery service to inform the involved departments to fix the problems Annually, the company plans the training cost of 0.02% of sales 3.2.2 Solutions to enhance the operating ability Enhancing the operating ability of the enterprise requires the participation of the management of departments and their coordination with the whole activities following the company target Setting plans, purchasing inputs, producing and selling products have to be performed flexibly and effectively From the fact of Vinafood1, in order to enhance the operating ability, along with the above factors, there should be specific solutions Enhancing the market research to increase to product quantity; The number of outputs is the key to all activities in the chain It leverages the whole system such as purchasing inputs, production… Increasing outputs means increasing the capacity of machines, increasing the turnover of inventories To make it possible, Marketing Department has to evaluate the various kinds of customers to serve 77 Furthermore, they should care about how to promote sales from the warehouses of suppliers, manufactures in chain to the last customers From the actual situation at Vinafood1 Flour company, it can be seen that sales and goods distribution are weak in all aspects, from planning to sales push The company does not focus on approaching customers, which leads to decline in sales number In order to solve above-mentioned problems, I would propose specific solution is arranging sales staff into each area to manage more specifically the information extraction and market expansion Now, there are 12 staff join directly in sales in Hanoi We rearrange as follows + Assigning one staff manage the sales of industrial plants + For the sales of suppliers, we arrange that each sales staff is the representative of some distributors Specifically, there are five representatives in Hanoi and surrounding areas, two in HaiPhong, Hai Duong, QuangNinh and two in Nam Dinh, Thai Binh and NinhBinh From ThanhHoa to Hue, we arrange representatives With this arrangement, the representatives will focus on researching the market as well as promoting sales from distributors to customers better This solution can be implemented immediately since this solution does not depend on external factors, instead it just involves internal factors at Vinafood1 Flour company From the current situation of sales process, it is seen that credit sales is being taken place, in which the company gives customer 40 – 60 days credit In order to increase capital efficiency, the company needs to adjusting the sales method to the distributors, especially payment method to avoid constituting the customers’ capital related to payment delay that makes the use of capital ineffectively 3.2.3 Solutions to decreasing costs 78 From the fact of operation and measuring some criteria about costs of Vinafood1 Flour Company in table 18, we can see that there should be solutions to cut down the costs It can be observed that the company’s inventory level in 2010, 2011 2012 is 1500 tons to 2000 tons higher than the standard inventory level, especially 7000 tons highers during the first months of 2013 It shows weakness in inventory management Therefore, to tackle this problem, procurement departments needs to calculate more accurately, managers need to collect information from various sources i.e internal sources, suppliers source and market sources To managing the inventories well, calculating the materials of inventories at safe level, the inventory turnover rate should be at 11-11.5/year Managing the inventories well will reduce some costs such as interest expenses, cost of inventory shrinkage - From the state of the company and through data collected as shown in Table 18 We can see that The cost of enterprise management accounts of high proportion The company has not set the norms for some costs like cost of serving customers, costs of stationery… To reduce the costs, the company should set the regulations to limit it … Besides, the company needs to determine standard cost as well as take tight control of costs such as transportation cost, sales cost and labour cost Reforming the purchasing and selling product activity; Now, the company is paying mainly by the letter of credit (L/C at sign) It means that the company has to pay when the producers provide sufficient document This makes the company pay prior to the arrival of products one or two months While sales typically allow 30-45 days deferred payment, the customers usually delay 40-60 days This makes the business cycle longer and the cost increase Therefore, the managers have to find out the reputable partners that are able to buy the products with delayed payment and shorten the payment period of customers to 30-40 days, so that the company could use the capital more effectively because of reducing the cost of interest and increasing the capital turnover 79 The solutions above are to enhance the operation outcomes of supply chain of Vinafood1 Flour mill Company Conclusion of Chapter In this chapter, we overview the Flour Market of Vietnam, show the company’s opportunities, challenges and risks We also propose some solutions to enhance the operation outcomes of supply chain of Vianfood1 Flour Mill Company 80 CONCLUSION Our country’s economy is integrating more deeply in the world economy, which creates more opportunities as well as challenges to enterprises in general and production enterprises in specific For the flour production companies, the awareness of opportunities and threats with the constant changes of the world economic is crucial to the survival and development of the company With the current context of the competitive market, in order to survive and develop stably, putting the application of technology into practice is indispensable which requires the leaders, managers and staff of the company associated with the common interest of the company, the partners and the customers The fact shows that Vinafood1 though has a lot of experience but still has many limitations which need to be taken into considerations, especially the management of supply chain When entering the market, along with focusing on business activities, all the enterprises have to take care of the business of their providers and customers like service quality of the providers, the preservation of products and the expectations of customers For Vinafood1, opportunities for development are huge, but the challenges in short term as well as long term is not small They always expand the scales to create the competitive advantages and the application of new modern technology to dominate the market gradually In Vinafood1, the application of technology into modern management science and the enterprise management has many limitations From the fact of Vinafood1 Flour mill Company, the thesis proposes some solutions to enhance and renovate the outcomes of operation of the supply chain as mentioned in solutions content The changes need to perform soon in order to promote the effectiveness of available resources which could bring the better and more stable business outcomes 81 REFERENCES I Vietnamese Department of Agriculture (2013), http://www.agroviet.gov.vn National Agro-Forestry-Fisheries Quality Asurance Department (2013), http://www.nafiqad.gov.vn Vinafood1 Flour mill Company (2013), http://www.vnf1flour.com.vn Assoc Prof., Dr Pham Thi Gai (2004), Business Activities Analysis textbook, Statical Publishing House, Hanoi Assoc Pro.,Dr Nguyen Thi Hong Van (2002), Supply Chain Management, Statical Publishing House, Hanoi Assoc Prof., Dr Nguyen Thi Hong Van (2006), Logictics Management, Statical Publishing House, Hanoi Ph.D Tran Chi Thanh (1995), International Trade in Market Mechanism, Statical Publishing House, Hanoi General Department of Vietnam Customs (2013), http://www.customs.gov.vn II English Lean Six Sigma form Supply Chain Managemant( 1987) – James W Martin 10 Manufacturing Handbook of Best Practices ( 2002)– Jack B ReVelle 82 ... order rate (%) Delivery Adapta Agility Cost capacity bility TĐH TĐH v v TĐH - pruduct’s flexibility Completion time Cost ($) Pro pert y v - production’s flexibility (day) v TTH v TĐH v TTH v 6.2.1.2... measurement tools a Quality Measurement This indicator is assessed via trust in (Delivery reliability) (Flexibility)  Delivery reliability Used to assess completion ability there are basic indicators:... Capacity - Download: measuring capacity of the system used on the highest possible capacity The lower the index will be evaluated as poorly as not to take advantage of resources and waste Typically,