Supply chain of

Vinamilk
 TEAM 3
Hoàng Trần Thanh Thảo Đáy Minh Sang

Nguyễn Thị Ánh Quỳnh Cao Nhật Mai Thư

Nguyễn Thị Minh Thư Nguyễn Thị Phương Thanh

Lê Mai Hữu Thắng Lâm Ngọc Anh Thư

THE CONCEPT OF
LOGISTICS
Logistic is a part of supply chain.
The process of planning.
Implementing.
Controlling the effective flow of
goods.
Services and information from the
point of origin to the point of final
consumption.
THE CONCEPT OF
SUPPLY CHAIN
Supply chain: including logistics
and other activities
People
Organizations and resources
involved in the production
Transportation
Delivery of products/services
from raw materials to final
customers.
OVERVIEW OF VINAMILK

VINAMILK’S SCOR MODEL

EVALUATION

VINAMILK’S SWOT ANALYSIS

OVERVIEW OF VINAMILK
OVERVIEW OF VINAMILK

1. Introduction of Vinamilk:

Vinamilk was established on August

20, 1976. The company was founded
based on the takeover of three dairy
factories left by the former regime.

Not only developing in the

domestic market, Vinamilk has also
expanded its brand to New Zealand
and over 20 other countries,
including the U.S.
 Overview of Vinamilk
2. Vinamilk's Product Range:
Fresh milk: ADM GOLD, Flex...
Yogurt: Probi, ProBeauty...
 Overview of Vinamilk
2. Vinamilk's Product Range: Weaning foods: Ridielac Gold, Optimum
Gold...
Powdered milk: Dielac, Alpha,
Optimum Gold, Grow Plus...
 Overview of Vinamilk
2. Vinamilk's Product Range:

Condensed milk: Ngôi sao Phương Nam,

Sữa Ông Thọ...
 Overview of Vinamilk
2. Vinamilk's Product Range:
Ice cream and cheese: Subo yogurt ice cream, Delight ice cream, Twin Cows...
 Overview of Vinamilk
2. Vinamilk's Product Range:

Soy milk and beverages: Vfresh fruit juice, Icy bottled water, GoldSoy soy milk...
 Overview of Vinamilk
3. Quality Certifications:
Vinamilk’s
SCOR model
 LANNING
P PROCESS
 Transportation Management
Vinamilk optimizes its transportation network by combining various modes of
transportation to reduce costs and ensure timely delivery.
 Inventory Management
Vinamilk applies flexible inventory and raw material management policies to meet
market demand in a timely and efficient manner.
 Warehouse and Packaging Management
Vinamilk's modern warehouse system and advanced packaging technologies help
effectively manage goods and preserve product quality.
 Customer Service
Vinamilk has built a team of professional, dedicated, and experienced customer service
personnel who are ready to support customers 24/7 through various channels such as phone,
email, and social media.
 Supply Chain Management & Procurement
1. Forecasting Demand
Vinamilk's supply chain management team carefully analyzes market demand
and forecasts consumption trends to determine the optimal inventory levels of
raw materials and finished products.
 Supply Chain Management & Procurement
2. Supplier Selection
Vinamilk selects reliable and responsible suppliers who can provide high-quality
raw materials at competitive prices and meet strict environmental and social
standards.
 Supply Chain Management & Procurement
3. Procurement and Logistics
This team organizes all transportation, receiving, and warehousing activities to
ensure a seamless flow of raw materials from suppliers to Vinamilk's production
facilities.
 INAM IL
V SOURCEK’S
1. INPUT INGREDIENTS
1.
2. RAW MILK PRODUCTION
Dairy cattle husbandry
Milking and milk maintenance
 2. RAW MILK PRODUCTION
Small dairy herd have:
+ Low outputs per animal and produce inconsistent quality milk.
+ Increased production cost.
+ Animal diseases.
+ The lack of grass in Vietnam.

Still, dairy production in Vietnam has grown significantly over the last years. This growth has been
the result of increased milk demand and government’s policies to promote efforts to develop the
domestic dairy industry.
 3. PROCESSING
After Vinamilk collects raw milk from dairy farms and buys
powdered milk from foreign partners (Fonterra, Hoogwegt…), then
processes and packages for the various final products.
PRODUCTION
PROCESS
 Vinamilk owns a system of modern milk factories from
North to South, especially 2 super factories producing
liquid milk and milk powder in Binh Duong. In addition,
Vinamilk invests in 3 factories in the US, Cambodia, and
New Zealand.
 2 Stages

1. FROM FARM
TO FACTORY
2. PRODUCT
PROCESSING
PROCESS
 FROM FARM
TO FACTORY

Milking process :
A self-contained automatic
milking system ensures
hygiene and avoids bacterial
contamination.
 FROM FARM
TO FACTORY

Fresh milk will be transported

to the nearest factory via
a cold tank truck at
a temperature of 4-6oC.
 FROM FARM
TO FACTORY

At the place of receiving milk:

It passes through an automatic
milk filtration system and
refrigeration system to be
ready for the next production
process
 THE PLACE TO RECEIVE FRESH MILK
PRODUCT
PROCESSING
PROCESS

STEP 1
The milk will be passed through the pipes
into the tank and checked for quality.
 COLD TANKS 150M3/TANK
PRODUCT
PROCESSING
PROCESS

STEP 2
Fresh milk will be put into the cold tank
system (150 m3/tank).
 BACTERIAL SEPARATION CENTRIFUGE
PRODUCT
PROCESSING
PROCESS

STEP 3
Fresh milk will undergo processing stages: centrifugal
separation, assimilation, pasteurization, cooling down to 4oC,
and ready for UHT sterilization processing.
PRODUCT UHT STERILIZATION SYSTEM

PROCESSING
PROCESS

STEP 4
UHT sterilization: The advanced sterilization system heats
milk to 140oC, then the milk is quickly cooled down to
25oC.
 FILLING MACHINE SYSTEM
PRODUCT
PROCESSING
PROCESS

STEP 5
Next, milk filling will have 4 steps: packaging sterilization,
filling machine sterilization, filling, and mending (mouth and
straw).
 AUTOMATIC LGV ROBOT
PRODUCT
PROCESSING
PROCESS

STEP 6
The autonomous LGV robots will transfer finished pallets
to the smart warehouse area and distribute products to
markets.
Delivery
Delivery
process
process
01.
Direct methods
Indirect distribution
Negotiation and agreement

02.

03.
Payment
Transportation according to the logistics process
1. Direct method:
It is a method of distributing goods directly from producers to consumers without
intermediaries.

VINAMILK'S HEAD OFFICE IN HO CHI MINH CITY

1. Direct method:

ADVANTAGE DISADVANTAGE
Large capital investment and
High proactivity. large human resources.
Strict supervision inspection. Depends on the capacity of the
sales force.
·No profit sharing.
Dispersed resources.
Timely response to customers.
Increased risk.
Companies can implement direct delivery in the following ways:
An organizational system that provides products or services from
manufacturers to consumers. Through intermediaries such as
retailers, distributors, or agents.
There are 3 levels of indirect distribution channels
Level 1: Manufacturer - Retailer - Customer
Level 2: Manufacturer - Wholesaler - Retailer - Customer
Level 3: Manufacturer - Agent - Wholesaler - Seller

ADVANTAGE DISADVANTAGE
Increase laughter performance. Reduced control.
Increase brand awareness. Reduced Profits.
Increase customer satisfaction. Increase risks.
Closer access to the market. High competition rate.
The company will have to negotiate in a reasonable and
pleasant way to satisfy customers and still ensure the
company's profits.
 VINAMILK'S WAREHOUSE
MANAGEMENT
Vinamilk's inventory management
has two procedures: importing
materials, moving materials
internally, and exporting finished
goods.

Vinamilk's warehouse management activities

1. Types of inventory arrangements
2. Vinamilk's model of applying inventory management

Economic Order Quantity Model - EOQ (Image: Vinamilk)

3. Warehouse management from Vinamilk's distributors and agents.

ERP system – Vinamilk

 YMME
ENNTT
PPAAY Y
ELLI
IVVE
E RRY
DDE
 1.

For the direct form, the buyer will receive the form that is available
with the product.
For the online application form, the Company will create an
application via an electronic form.
Next, they will coordinate the goods according to the logistics process.
They will also be responsible for the acceptance, handover and
payment in accordance with the terms agreed in the contract.
 RETURNS PROCESS
4. Conditions for Vinamilk Stores to
1. Target customers
receive returned products from customers

2. Products not covered by the Return

5. Time for exchange and Return - Refund
Policy

3. Products covered by the return

6. Other arising cases
policy
1. Target customers
All Customers who use services and purchase products at the nationwide VNM Store
system.

2. Products not covered by the Return Policy

Yogurt of all kinds
Drinking yogurt with live yeast (probi)
Pasteurized fresh milk
Cheese
Cream

3. Products covered by the return policy

All products (excluding products not covered by

the Return Policy)
4. Conditions for Vinamilk Stores to receive returned products

No signs of being used.

Intact, not dented, no signs of punctures, the packaging
is intact.
The product's expiration date must not have any marks
erased or overwritten.
For ready-to-drink powdered milk for children in
individual blocks and shrink wrap, the product shows no
signs of being affected or the scratch card is intact.
For products with screw caps, the screw cap must be
intact with no signs of ever being opened.
5. Time for exchange and Return - Refund
On the day of purchase (the date shown on the invoice) and within the Store's
operating hours.

6. Other arising cases

If you discover that the product has signs of poor quality, errors, or
omissions from the Vinamilk Store, you can bring the product directly to
the Vinamilk store.
Or contact Vinamilk Customer Care Center directly via Hotline 1900 636
979 (key 1) for support.
Logistics Operation &
Customer services
 Vinamilk
Brand Building Strategy Customer Care Through CSR Programs

Customer Care Programs Service Improvement and Development

05 11

Customer Communication Channels Use of Technology in CRM

ACTIVITIES
Vinamilk has built a strong, friendly, and trustworthy brand image in the
minds of consumers, especially in the food and beverage industry.
The company not only focuses on product quality but also emphasizes
building long-term relationships with customers.

Ensuring Product Quality.

Positioning the Brand as Friendly.
Effective Communication Campaigns.
Customer Programs

Loyalty Program.
Promotions and Discounts.
Customer Events.
Customer Communication Channels

Vinamilk has a rich system of communication channels to maintain and

develop relationships with its customers:

Through Social Media and Website.

Multi-channel Customer Service.
Building an Online Community.
CUSTOMER CARE THROUGH
CSR PROGRAMS
Educational Sponsorships Environmental Protection Community Support
 Service Improvement and
Development
Vinamilk continually improves and enhances customer service quality, from
upgrading production processes to improving the in-store experience and developing
home delivery services, especially in the era of e-commerce.

Home Delivery Services.

Product Innovation.
CRM Software.
Customer Data Analytics.
Mobile Applications.
 CONCLUSION
Each aspect of Vinamilk’s CRM strategy is tightly interconnected, from brand
building and customer care to technology use. This holistic approach not only
helps retain customers but also increases their satisfaction and loyalty,
providing Vinamilk with a strong competitive edge in the market.
S W O T
 SWOT Stands for

01 Strengths 03 Opportunities

02 Weaknesses 04 Threats
01 Strengths

Strong Brand

Vinamilk is the leading dairy brand in

Vietnam, with strong reputation and market
share.

Wide Distribution Network

Strong domestic and international

distribution systems.
 01 Strengths
Diverse Product Range

In addition to dairy products, Vinamilk offers a wide range of other

products such as processed foods and beverages.

Technology Investment
Vinamilk applies advanced technology in production and supply
chain management.
 02 Weaknesses

Dependence on Supply Chain

Domestic Market High Production
Costs Risks

The Vietnamese Maintaining Reliance on raw

market still product quality material sources,
accounts for the comes with high making the
majority of the costs, affecting company
company’s profit margins. vulnerable to
revenue. supply chain
disruptions.
 03 Opportunities

Growing Consumer Demand Growing Consumer Demand

Increasing demand for Opportunities to develop

dairy and nutritious food organic, sugar-free dairy
products. products.

Export Growth

Potential for expanding into international

markets, particularly in Southeast Asia and the
Middle East.
 04 Threats
Intense Competition

Strong competition from both local and international

brands such as TH True Milk and Kun Milk.

Raw Material Price Fluctuations

Production costs could rise due to fluctuations in

raw material prices.

Changing Consumer Preferences

A shift towards plant-based alternatives like plant milk

may pose challenges.
Thank
You