OPERATION AND

MANAGEMENT
Presented by Group 5 - Class K60BFA
Ngọc Minh

SUPPLY CHAIN
MANAGEMENT
Ngọc Minh

DEFINITION
“Supply chain management is the handling of
the entire production flow of a good or service”
Ngọc Minh

GOAL
Drive the
business
forward
Excellent
experience for
customers

Smooth,
efficient flow
of goods
Ngọc Minh
=> SCM lowers costs and increases profits, thus creating
a competitive advantage while maximizing customer
value.

Ngọc Minh
 Minh Hieu

LOGISTIC

Materials and information

flowing down internally
through a distribution
channel, from the retail store
or consumers
 Minh Hieu

NOTICE “There is only one organization involved in the

process”
 Minh Hieu

An outside organization provides logistics services to

companies that need inventory management and
distribution

— THIRD PARTY LOGISTIC

 Minh Hieu

VIETTEL POST

Offer a wide range of

domestic and
international services,
including express
delivery, economic
delivery, cash on delivery
 Gia Vy

Supply Chain

DIFFERENCE
Management
Handles activities
between separate
departments,
supporting all activities.

Logistics
Covers only the flow of
products during production
and finished products,
focusing on the internal
movement of goods.
 Gia Vy

INVOLVED
MEANING OBJECTIVE EVOLUTION
ORGANIZATION

DIFFERENCE
Manage
Supply Chain Competitive Modern
the Multiple
Management Advantages concept
activities

Has been
Process Customer
Logistics Single involved
movement Satisfaction
earlier
 Gia Vy

Supply Chain

EXAMPLEs
Management
By minimizing the number of
links in its supply chain and
purchasing generic goods
directly from manufacturers.

Logistics
By leveraging data, intelligent
software, and automation,
Walmart aims to fulfill customer
needs through a more connected
and intelligent network.
 Bá Đạt

FUTURE TRENDS
OF SUPPLY CHAIN
MANAGEMENT
1. AI and automation
Bá Đạt

01

Fu
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AI adoption in
e

ing
Sp

or
SCM
03 02

Intelligent sourcing, inventory

management, and logistical
routes
 Bá Đạt

Siemens offers a range of predictive

maintenance solutions.

-> Predictive Maintenance is important to

supply chain as it enables real-time asset
intelligence across plants worldwide, helping
preempt and prevent production problem
 Bá Đạt
Threats to Vietnamese companies

Many businesses in
Vietnam have been
applying AI technology:
Vinfast, Cốc Cốc AI
Chat,...
2. Digitization Bá Đạt

Improve Reduce supply Improve

productivity and chain inventory
efficiency disruptions management

Identify delays in Recreate a supply

production chain and its
processes in
entirety
 Example: Walmart
Bá Đạt

● Walmart’s recent digital transformation has provided customers with

more accurate information about when their orders will arrive at their
doorsteps .
● By integrating digital technologies into the supply chain, customers will
be more engaged in the journey.
 Bá Đạt
Financial problem Competition
Enterprises providing logistics
services are small-scale - Weak financial potential
- Outdated technology
enterprises with weak financial Threats to
resources - Lack of high-quality human
=> Cost information technology
Vietnamese resources
human resources and take a lot companies => Vietnamese businesses are
of time
facing challenges and fierce
competition from the market

Technology
The level of application of science and technology in
Vietnam is not high, not synchronous
 Diễm Quỳnh

CLOUD BASED SOLUTION

Cybersecurity
Hackers can infiltrate supply chains to
damage or steal from businesses. In fact,
Vietnamese private companies and
government agencies have been targeted in
complex supply chain attacks in the past.
3. INTERNET of THINGS (IoT) -
Vendor Lock-in
Once a company has adopted a cloud-based
supply chain management solution, it can be
difficult and costly to switch to a different
provider. This is because the company's data
and processes will be integrated with the cloud
provider's platform.

Compliance Rapid Changes

changes in Retail and
Vietnamese companies need to make sure that
their cloud-based supply chain management Distribution
solutions comply with all applicable laws and
regulations.
This can be complex, especially for companies
that operate in multiple countries.
4. Customization: Đức Huy
4. Customization: Đức Huy
4. Customization: Đức Huy

The logistics system must be flexible and fast because of the unpredictable nature
of supply and demand that comes with customizable products. It can be called
“made-to-order" or “build to order" logistics.
 4. Customization: Đức Huy

Since customization slows the time between a customer ordering a product, and the
product reaching them, a fast turnaround rate can separate some manufacturers from
their competitors. Without it, the ability to customize alone will not retain a customer
base and buyers will seek out a company that can deliver quickly.
Threats to Vietnamese companies Đức Huy

● Supplies needed for production

vary in demand.
● Adaptability & Flexibility of the
proper distribution
● Lack of Logistics strategies &
resources
● Lack of Industry knowledge &
Supply Chain Technology

=> Customization demands speed,

flexibility and strict management
5. Circular Supply Chain Đức Huy
5. Circular Supply Chain
Đức Huy

Definitions: A circular supply

chain is where used products or

their parts are returned or

processed so they can be

repaired, resold, refurbished, or

recycled – which reduces waste

from the supply chain and is more

sustainable.
5. Circular Supply Chain
Đức Huy

Recycling products & process

5. Circular Supply Chain Đức Huy

The circular supply chain focuses on

optimising the lifecycle of a product:

instead of materials ending up in

landfill, they are returned to begin a

new journey in the supply chain.

Where this is not possible, other

changes can be made to the product

or process to reduce waste and the

carbon footprint.
The impact of Circular Supply Chain Đức Huy

● Maximizes manufacturing investment

● Lower cost production from circular
supply means greater profit
● Appeal to environmentally-conscious
consumers
● Certifications and standard of
sustainability: SDGs (Sustainable
Development Goals) of United Nations,
specifically SDG 7,8,11,13.
 Đức Huy
Brands that pioneering in Circular model
Threats to Vietnamese Companies Đức Huy

● Some Vietnamese enterprises are

experiencing rapid expansion; with the
process of increasing manufacturing
and corporate size can raise circular
supply, supplier, and other concerns.
● Poorly management of circular SC
establishment
● Lack an adequate risk management
mechanism or are unaware of the
circular economy significance.
● Lack of experience and resources to
obtain new technologies.

=> Risks: Supply shortages, broke “5R"

methods, weather-related accidents, policy
changes, and even economic crises.
 Thanh Đức
6. Increased visibility
Supply chain visibility (SCV) is the
ability to track individual components,
sub-assemblies and final products as
they travel from supplier to
manufacturer to consumer.

■ Not only internal business

operations, but those of external
partners.
■ Rely on diverse supplier networks
all over the world.
 Thanh Đức
6. Increased visibility
Improving supply chain visibility has
been the top business priority for
leaders. More visibility can help you:

● Prevent minor issues: order errors,

delivery delays…
● Respond to problems more quickly.
● Boost the efficiency, reliability, and
resiliency of the supply chain

Larger companies focus on improving

supply chain visibility.
 Thanh Đức
6. Increased visibility
POSSIBLE THREATS
● Advanced tech required: IoT, 5G, AI, machine learning, robotics, and
Product Lifecycle Management software…

→ Extensive requirements in terms of software and hardware integration.

Costly and time consuming for VN firms to adjust.

● Majority of Vietnamese firms are lagging behind due to lack of

experience and resources to obtain new technologies.

→ Difficult to have a unified network with suppliers or distributors having the

ability to use the same technology to track products.

● Risks of cyber attack to illegally obtain industrial information

 Thanh Đức
7. Strengthening relationships
Companies want partners that are committed to building long-term
relationships. Strong relationships increases collaboration and cooperation
at every stage of the supply chain.

Example:

● Buyers that work well with their suppliers are better placed to get their

compliance when it comes to new rules and regulations.

● Suppliers will be much more likely to grant buyers access to the

information they need to improve transparency

 Thanh Đức
7. Strengthening relationships
Most organizations consider their suppliers as being one of the most
important sources of innovation.

→ Strong relationship also facilitates innovation to achieve growth and

resilience

How to foster relationships?

● Look for mutually beneficial ways to support your and your partner’s
goals.
● Share information, proactively solve problems to avoid creating more
work, and address unexpected issues as soon as they arise.

→ Greater transparency and accountability

 Thanh Đức
7. Strengthening relationships
POSSIBLE THREATS
● For VN SMEs suppliers, it’s hard to connect with FDI firms due to lack of
competitive advantage in production costs compared to other foreign
suppliers.

Most VN suppliers supply separate parts instead of assembling them before

delivering (need more investment in technology) → more work for partners

● For VN firms in general, they must constantly chase after partner’s high
standards for transparency, quality and timeliness.

Shortage of funds for investment makes it difficult to scale up and achieve low
unit cost to compete and attract partners.
THANKS
Does anyone have
any questions?