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Low productivity of Collection Centers
Low breeding efficienc
Overusing feeding
Lock of certain
Milk from knowledge ond
vorious source nsufficient equipment collected ond storage see
mixed in tanks facilities se ba
noppropriơ Failin
selection of spe controlling the
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Collection Poor time management Formers
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ce [ 7 giving the average results for the Unprofessionalism = testing = whole week e
nstobility during process
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purchase price
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during delivering testing results
Figure 5. Fishbone diagram of Vinamilk's bottleneck in supply chain (Own, 2022) The main bottleneck in the supply chain of Vinamilk is “Failure in controlling the quality of milk collected from local farming”. There are 4 major reasons leading to this bottleneck: Low productivity of collection centers, Low breeding efficiency, Poor management during delivery, Unclear quality testing results.
Low productivity of collection centers is resulted from Inadequate management skills and Insufficient storage facilities. For example, milk from various sources are collected and mixed in tanks during delivering to the collection centers.
Low breeding efficiency is caused by farmers’ overusing and collecting methods to increase the milk yield; Inappropriate selection of species; Lack of certain knowledge, equipment and investment.
Collection point far from the plant, Instability during transferring, poor time management, unprofessionalism and poor selection of transportation are the major causes leading to Poor management during delivery
Farmers can not follow and check the testing process, random samples collected giving the average results and testing milk quality affecting the price are the main reasons for
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Unclear quality testing result.
Solutions
Applying strict procurement procedure by:
(| Employing an independent quality control agency who will carry out regular checks at farms, collection centers and processing factories
O Analyze milk quality analysis 7 days/week to get average results instead of once/week as before
Li Dairy households are allowed to closely participate in the sample listing process before sending it to the factory
Li Farmers must follow the technical process of taking care of dairy cows to ensure quality according to the Company's standards
Before entering the factory, a quality inspection should be performed following by these steps:
LI Temperature control of raw milk before transporting to the factory by specialized
means
LO) Regularly and unexpectedly checking the specialized tank trucks Li Employees from the factory take samples and perform the quality check after the
arrival of raw milk
Other solutions:
Build a system of farms in the chain linked with 13 factories Actual survey, assessment of rearing conditions, barn hygiene, environment, full vaccination of livestock households
Upgrade and modernize milk collection stations complying with hygiene and food safety.
Annual training employees Focus more resources and capability to nurture the development of family-run cow farms.
Elaborate contract farming relations with smallholders so that it shows the credible signal of long-term commitment to the selling farmers.
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— Supporting system, transferring technical training and providing information to farmers.
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Conclusion
With widespread distribution, Vinamilk is still the most popular brand of fresh milk in Vietnam as of right now. Numerous high-quality dairy products have also been exported and marketed in other countries. One of the key variables that have substantial influence on Vinamilk's successes is Supply Chain. Vinamilk has several bottle-necks to deal with, mainly preserving the quality of milk gathering from local farmers therefore the most acceptable answer is to increase quality testing system, transmit technical training and offer information to farmers. By looking into and assessing Vinamilk's supply chain. We are educated about Vinamilk's supply chain management and the potential growth of other Vinamilk aspects that might aid the company in overcoming obstacles and thriving in the future.
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Reference Alan Hrrison and et. (2014), Logistics management and strategy competing through the supply chain (fifth edition), Pearson
ALS., 2021, 7ìm hiểu về chuỗi cung ứng của Vinamilk.. Retrieved December 10, 2022, from https://als.com. vn/tim-hieu-ve-chuoi-cung-ung-cua-vinamilk
Group 02-K22CLCG, Banking Academy ,2021, Environment Analysis of Vinamilk Jason F., 2022, Supply Chain Management (SCM): How It Works and Why It Is
Important. Retrieved December 10, 2022, from
https://www.investopedia.com/terms/s/scm.asp#:~:text=Ke
%20faster%20and%20more%20efficiently.
Logistics, E., 2022, Phan Tich Về Chuỗi Cung Ứng Cua Vinamilk Tai Viét Nam (MOI). Ego Express. Retrieved December 10, 2022, from https://egoexpress.vn/chuoi- cung-ung-cua-vinamilk/
Luc Thi Thu Huong, 2016, Vinamilk’s Supply Chain and the Small Farmers’
Involvement Quan The , 2020, Chudi Cung ving vinamilk va nhitng van dé xudt Hién Trong Chuối Cung Ung. Share and Discover Knowledge on SlideShare. Retrieved December 10, 2022, from https://www.slideshare.net/ThQun4/vinamilk-supply-chain
SGS-2.G13 ,2020, Vinamilk Marketing Analysis Vinamilk, 2019, Vinamilk Annual report 2021. Retrieved December 10, 2022, from https://www.vinamilk. com. vn/en/mobile/annual-reports/
Vinamilk, 2020, Vinamilk Annual report 2021. Retrieved December 10, 2022, from https://www.vinamilk.com.vn/en/mobile/annual-reports/
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Appendices
. What are the top 3 popular products of Vinamilk?
LI Top 3 popular product are Cheese, Condensed milk and Fresh milk.
. What are the strengths of Vinamilk?
LI Vinamilk's products are cheaper compared to similar dairy products of other dairy brands.
U1 Wide distribution system and diverse platforms . To attract more customers, what Vinamilk should do?
Li People nowadays have a tendency to lead healthier lives. They like to eat more vegetables and protect the environment. As a result, Vinamilk should focus on developing more plant-based products, trying to be environmentally friendly firm and expand the green farm system.
. Which structure of supply chain does Vinamilk apply?
Vinamilk has its own system, farms and it can runs on its own.
(i Vinamilk applies the vertical supply chain Vinamilk outsources the farms ( buying fresh milk from local farmers)
| Vinamilk applies the horizontal supply chain U1 Use vertical, horizontal and combined integration . Which business strategy does Vinamilk use?
Vinamilk uses the strategy “Add Value, Cost Leadership”. They add more value to the products but balance or the price reasonable at the same time.
Vinamilk continues to build a large and strong domestic distribution system, increase market share and maintain Vinamilk’s leading position in the market.
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Powerpoint