Avon Supply Chain Analysis

Topics: Supply chain management, Inventory, Supply chain management terms Pages: 9 (2679 words) Published: December 8, 2010
Vietnam Delight Catering (VDC) is one of the most succesful company in Vietnam catering industry. Since the very first step in 1995, VDC has a significant grow to expand the market in all three regions of Vietnam. The company is well known for providing food service for company events, business conferences, weddings and other special occasions. With twenty six industrial kitchens located across five big cities, VDC established itself as an national wide recognized catering company to supply the best of service and product for its business partners throughout Vietnam. This supply chain plan will present some potential logistic and supply chain issues that VDC could face in order to provide an effective service of supplying airline meals to Jetstar Pacific. Some respective strategies also are proposed to deal with the issues mention above.  

I.Channel map4
II.SWOT Analysis6
Threats 7
I.CPFR – Collaborative Planning, Forecasting and Replenishment 9 II.EDI – Electronic Data Interchange 10 III.VMI – Vendor Manage Inventory 11 IV.Quantitative evaluation of strategies12

1.Multi – criteria decision matrix12
2.Industry application14
3.Key Performance Indicators (KPIs)15

A.Research and analysis
1.Chanel map

* Key players
a) Inbound logistic
-Raw material supplier sources 1:
Metro Shopping Center. Eggs, cheese, fresh vegetables and other spicy that needed to make ham sandwiches will be supplied from Metro. The raw materials then are transported to VDC industry kitchen in Tan Binh district by truck provided by Metro’s service. -Raw material supplier sources 2:

Kinh Do bakery chain. Kinh Do will supply sandwich bread. Fresh sandwich bread will be delivered from Kinh Do closest bakery located on Tan Binh district by Kinh Do’s truck.
-Raw material supplier sources 3:
Saigon Paper Corporation. Food wrapping paper and tissues will be distributed by truck from the company’s manufacturer. The goods then will be stored at VDC storeroom.

-Raw material supplier sources 4:
Vissan Company. Fresh hams are purchased from Vissan Company. The raw materials will be delivered by truck from Vissan distributor center to VDC refrigerated storeroom. Manufacture:
-The components from the suppliers will be shipped to VDC industry kitchen in Tan Binh district – the same district with Tan San Nhat airport. All the process including cooking, decorating and packaging to the finished goods will be done here. b) Outbound logistic:

-After manufacturing, the finished products then will be delivered by VDC freezer truck to Tan San Nhat airport. -The products will be stored in a large refrigerated room. They are arranged by flight number. -The sandwich then will be taken into Jestar’s airplanes by a special truck. They are now ready to serve.   1. SWOT analysis:

2. Logistic and Supply chain issues:
- Long lead time: the complicated procurement and the unprofessional management of raw materials suppliers can increase the waiting time for the manufacturing process. Furthermore, the poor transportation system and inner-city truck ban law also add time to the flow of goods in supply chain. - Error in order fulfillment: without application of modern communication such as email or electronic program, partners in supply chain mostly use telephone or face to face communication to make order. This increases the risk of causing error because of human mistakes. The result will be wrong quantity of products or late delivering. - Risk of stock out: the demand of airline meal goes along with the demand of customers using aviation...
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