1. Introduction.

(chào hỏi, xưng hô, giới thiệu). To be more reliable according to our data, it is important
to inform to all of you that we collected the data from the production complex at 420
Nơ Trang Long, Bình Thạnh district. All our data is strong enough to express and explain
the logistics and supply chain system of Vissan only in HCM City.
VISSAN Joint Stock Company is one of leading business corporations in Vietnam.VISSAN
proudly becomes one of the top nationally recognized food manufacturers in
processing, and trading of fresh meat, processed foods, related – meat products. And
they currently own more than 60% pork market in HCM City. To see why they can do
that and whether there are some weaknesses in their system, pls pay attention on our
presentation
Supplier => Factory
At first the Factory will give out the demand for the supplier in order to come up with
the negotiation (Chỉ vào flow of Negotiate) for fresh meat and pigs. Vissan’s supplier is
mainly traders coming from many provinces like Bình Dương, Long An, Bình Thuận. Pig
trader stations which are the place where they gather pigs from the peasant then
provide their customer the sources of either living pigs or fresh pork. Furthermore, to
deal with the lack of pork from the internal supplier, Vissan often uses the pork supplier
from Australia as an alternative solution for that problem.
Vissan will give the supplier many information and qualification (chỉ vào flow of
information) in order to ensure the quality of their meat and after that is their products.
Some qualification can be known since we collected the data from the Production
Department is:
+ Based on the standards provided by VietGAP
+ Based on the standards provided by VietGAP
+ Must have documents related to the products (pigs) and food registration of the
company.
+ No contaminated diseases, infection.
+ No leftover antibiotics.
+ No growth hormones used.
And a lot more.
After receiving full information of Vissan, the supplier will give confirmation back to
Vissan and then delivery the orders for Vissan. And Vissan then checks the order the last
time before importing the orders to the factory. Vissan daily imported quantity of pork
either living pigs or fresh meat is about 900-1100 pigs/day and in the high demand
month such as Tet month this number can be added with the additional amount up to
70%-100% in the days near to the Tet festival.
Pork after being imported will be carefully taken after for later production. Freshmeat
will go straight to the production line a part and the others are put in the cold storage
for storing for later uses.

Supplier => Factory

Let’s come to the factory section
The factory equipped fully with Germany’s high technology which is the production
department plays an essential role in the supply chain of Vissan due to their power of
production up to 30 tons/hour equivalent to 360 pigs/hour, approximately 750
tons/day because the prodution system works 24/24. For the HCMC market with the
demand for pork approximately 600-700 tons/day, it can clearly be seen that Vissan
affords the HCMC’s demand very well
In the high demand months such as Tet, knowing that the prodution rate of the system
is not enough, Vissan uses the strategy of purchasing fresh meat then store it for
distribution and later uses
Factory => Warehouse
The warehouse of any business has always been one of the most important part. Vissan
is not excluded from that claim.
Especially, Vissan uses the EOQ inventory management model for their storage
system.
Vissan internal storage system is divided into 3 types: Dry Storage, Cold storage, Cattle
Cage.
 Dry
The Dry Storage system is the chain of small warehouses is scattered around the
complex with the size usually falls into 250m2 and 450m2
Dry Storage is mainly used for the purpose of storing ingredients, spice, material for
production,….The quantity structure of the dry storage is 70% is the uses of storing
ingredients and spices, 20% for production materials and machine components, 10%
for other uses.
The total capacity of the internal dry storage in the Nơ Trang Long complex is 1400 tons
of product.
 Cold
The Cold Storage system is the chain of small warehouses is scattered around the
complex with the size usually falls into 450m2 and 600m2
Cold Storage is mainly used for the purpose preserve the fresh meat such as pork, beef,
chicken and the processed product…The quantity structure of the cold storage is: 70-
80% is the uses of storing fresh meat, 15% for processed and 5% for other uses.
The total capacity of the internal Cold Storage in the Nơ Trang Long complex is 2000
tons of product. Furthermore, the freezing system has the power of freezing 100 tons
of normal-temperature product per day
 Cattle Cage
VISSAN’s cattle cage is used for the main purpose of storing imported cattle such as pig,
cow, … waiting for being processed.
The cattle cage has the total capacity of storing 10000 pigs and nearly 4000 cows
Outsourcing for storage is a usual solution for a tremendously better service level and
distribution despite of the higher cost than self-owned storage.
Vissan usually co-operate with the Saigon Aquatic Products Trading Corp (APT) and the
Satra Corp for outsource storage for the purpose of higher service level and the purpose
of purchasing more fresh meat for the high demand month for better distributing to
retailer, supermarket,customer,… and later production
Warehouse => Distribution
Distribution is just like the storage also an important part of any business.
The distribution channel of Vissan depends on what types of products are there.
Because we only considering fresh meat which is frozen food and processed products.
So that we will focus on two of them.
 General trade: This is the traditional distribution channel that exists since the
company was established, mostly provide the product to the markets and long-term
partners. It consumes 50% of the total products

_ Modern trade: Since 2000, the company reorganized the distribution channel
system through supermarkets, convenience stores and establish the chains of the
showroom.

_ Export: The product exported mainly processed food and it takes 10% of total
products. Exporting frozen foods, traditional foodstuffs processed from meat and
vegetables into the market of North America, Korea, Taiwan, Singapore, and more

Vissan channel of distribution includes 72 showrooms, 21 supermarkets brands, many

convenience store, more than 600 sales points directed from Markets for the main fresh
meat consumption, 600 retailers, …

● Distribution of Vissan will never go well without the transportation contains 34

heavy trucks (capacity: 7.15 tons/truck), 31 light trucks (capacity: 1.65 tons/truck) , 7
Three-wheeled truck (capacity: 0.5 tons/truck)

Weakness

Supplier

 Suppliers are far away from the prodution complex. Quality checking protocol is
mainly based on personal checking, poor technology for checking. Consequently,
quality checking is not ensured 100%
 Internal source of meat is not enough for producing in somecase which causes the
case that Vissan must import more expensive meat from Australia
Factory

 Factory’s hazardous waste treatment system is very poor and bad leads some
environmental and food hygiene problems. Vissan used to get into some legal case
due to environmental pollution
Warehouse

 The storage system has these following problems:

- Distinction in types of products in a single warehouse is not too much
leads to some complexity in management
 - Due to low technology, facilities, and old management methods, Vissan
has to deal with an unoptimized storage system
- The capacity of the cold and dry storage is not appropriate with the
production system having such a very high power.
Distribution

- Export channel occupies for a very low proportion on the total structure
- Still cannot reach to the high customer segment due to lack of necessary
quality