RMIT INTERNATIONAL UNIVERSITY VIETNAM

INTRO TO LOGISTICS & SUPPLY CHAIN MANAGEMENT

GROUP REPORT

The company:

Wipro Unza Consumer Care

 Table of Contents
EXECUTIVE SUMMARY

A - INTRODUCTION

B - SUPPLY CHAIN ASPECTS IDENTIFICATION

1. Supply chain network and flows
Product flow
Information flow
Financial flow
2. Major logistic activities
a. Demand Forecasting
b. Warehousing
c. Transportation
d. Material Handling
e. Customer Service

C - DISCUSSION
1.Discussion A
a.The core competence of the supply chain
b.Push-Pull system
c. Relationship between buyer and supplier
d.The effects of technological changes/disruptions
2.Discussion B
a.Lack of security/safety
b. Promoting sustainability and water-contaminated knowledge across the supply chain
in Vietnam

D - CONCLUSION

E - SUMMARY OF TEAMWORK

G - REFERENCES

H - APPENDICES

EXECUTIVE SUMMARY

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WIPRO UNZA Group manufactures and markets leading brands across 50 countries with a range of
24 brands in South East Asia, Greater China, and beyond. Since 1996, Wipro has operated in Vietnam
and is the third non-paper personal care business on the market-based in Ha Noi, Binh Duong, and
HCM City. Operating in Vietnam, manufacturers have provided various types of personal care items,
including soaps, toiletries, baby care goods, health products, electrical wire, domestic and commercial
lighting, and modular office furniture; with a view to improving the lifestyle of consumers (WIPRO
UNZA Vietnam 2020).
This report focuses on the Wipro Unza supply chain in Vietnam and seeks to understand both the
structure and function of Vietnam, to examine factors that affect internal and external factors and to
define challenges plaguing the Wipro Unza Vietnam supply chain, and to make recommendations on
the basis of those findings.
Wipro Unza Supply Chain consists of a supply chain channel map with a range of elements (demand
forecasting, warehouse, transport, material handling, and customer services) comprising cash flows,
details, and products & services. Therefore, this map will provide an in-depth analysis, evaluation
method by comprehensive analysis of demand forecasting, warehousing, commodity development,
and transportation.
Wipro Unza Vietnam also obtains many advantages and disadvantages in the supply chain process,
corresponding to other manufacturing in Vietnam. From the point of view of advantages, this is a
reality that Wipro Unza has its firm core competence which comes from both internal and external
sides, concentrating in particular on the interrelationship with others in order to achieve the greatest
beneficial impact. In addition, the push-pull method is often implemented in their supply chain
network to meet sustainable demands, decrease carrying costs, and increase consumer expectations.
Moreover, establishing a strong and long-term relationship between the suppliers of the company and
the purchasers is crucial to improve Wipro's efficiency in every aspect and increase customer
satisfaction. Applying many technology devices including 3D printing, Al to fulfill the performance
of the company.
On the other hand, Wipro Unza supply chain in Vietnam has to deal with various challenges related to
security/ safety and promoting the sustainability of the company. Since, when working, there will be a
scenario in which employees who do not secure themselves will cause serious problems. And for
sustainability, water pollution has a tremendous effect on the Vietnam ecosystem and also on the
water supply of the company. In addition, some of the related recommendations are examined and
suggested to help Wipro Unza Vietnam increase company efficiency, hence Wipro requires security
training for workers to ensure everyone's safety and to protect Vietnam’s long - term sustainability in
the current situation.

A - INTRODUCTION:

Because of the higher living standards and increasing gradually in income, Vietnamese
citizens tend to be conscious of using beauty and personal care products deemed healthier
and safer. This indicates that Vietnam is one of the most potential markets for Wipro Unza to
develop their reputation. Moreover, due to the globally large-scale distribution system, Wipro
Unza has been named amongst the most fast-growing FMCG companies in ASEAN and has
operated in Vietnam since 1996 with the higher year-on-year growth and well-known brands
such as Enchanteur and Romano. In terms of company market share in Vietnam, Wipro
Unza has ranked at the top 2 and accounted for 11.0% (Figure 2) in the bath and shower
category (Passport 2019) and provides more than 8,500 jobs both directly and indirectly.

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Mostly Wipro Unza’s products are manufactured by it at their own factory which is located in
the ‘Vietnam Singapore Industrial Park’ (VSIP) (Wipro Unza n.d.)

Enchanteur is one of the identified focus brands of Wipro Unza and among the leading
brands in the personal care market category in Vietnam with accounting for 6.9% in the
brand market share (Passport 2019). Its feature is to bring special experiences to young and
modern women thanks to “elegant floral fragrance”. Wipro Unza has extended the product
line of Enchanteur including shower gel, hair care, deodorant, hand & body lotion, perfume,
perfumed soap, and talcum, and differentiated by many types of products for adequate the
demand of Vietnamese women (Wipro Unza n.d.).

This business report is concentrated on demonstrating the performance of logistics and

supply chain management of both Wipro Unza and the Enchanteur brand. Due to a massive
industry with a great volume of product flows and less complicated manufacturing, the
supply chains of the FMCG industry are regarded as a benchmark framework for other
industries by creating innovative ideas (Bala & Kumar 2011). Its reason will be investigating
the potential impact of logistics sectors intensively in terms of Wipro Unza Vietnam. In
addition, as ‘a long-term vision for a sustainable and competitive business in Asia’ (Wipro
Unza n.d.), the purpose of this report is to comprehensively analyze and evaluate the
execution and significant logistics activities of Wipro Unza which has been implemented to
foster its vision. Likewise, the unwanted challenges and risks that the firm is coping with
within the current context, will be figured out in this paper. Ultimately, facing crises from
whatever source is not only a challenge Wipro Unza, all organizations also prepare to
urgently handle (Olsho & Wu 2010), hence, the conceivable recommendations will be
inspected to perceive and identify its facing context of the company to efficiently operate all
logistics activities.

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B - SUPPLY CHAIN ASPECTS IDENTIFICATION:

1. Supply chain network & flows:

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Product flow: For the product flow of Enchanteur, Wipro Unza increased the trust in local
suppliers that they are provided lots of raw materials such as fresh flowers, packaging,
bottles, and chemical substances. The following step is to carry on these materials to the
processing and manufacturing company of Wipro Unza in Binh Duong and the finished
products are produced there. After that, those products are transported to three regional
warehouses (North, Central, and South areas) for stocking, and wholesalers will distribute
final products from these warehouses. Moreover, there are retail stores, shopping malls,
supermarkets (BigC, Lotte Mart, Emart,...), E-commerce (Shopee, Lazada,...) can deal and
supply Enchanteur’s products from the wholesalers and then it will be delivered to the end
customers. Otherwise, the movement of product-flow can return from the end-customer or
the above-mentioned retailers to the Binh Duong firm for recycling empty bottles and
expired/defective products, it is called reverse logistics which is its capabilities including in
the internal and external connection of information flow in the supply chain, and these
capabilities are related to the accuracy and availability of information that helps the firm is
able to superior manage its reverse logistics and saving cost through it (Jacks, Powers &
Skinner 2010). Likewise, in practice, reverse logistics can mitigate risks when customers
purchase a product and concurrently create better customer value (Russo & Cardinali
2011).
Information flow: To ensure information among these parties are always accurate, timely,
and visible, Wipro Unza concentrates on a flowing movement of information as the finding of
Rashed, Azeem & Hanlim (2010) showed that knowledge sharing and the close relationship

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between supplier and buyer has relied on the precondition of information sharing, which is
an important aspect to boost the supplier’s performance on operating. Specifically, Wipro
Unza will set up and research data from the market, then they simply manage and design
this information through electronic data interchange (EDI) that can help the firm to
permanently observe the market trends. Consequently, an optimal method based on
customers’ responses to the company can have an accurate plan for storage and future
sales. Likewise, Wipro Unza also attaches special importance to ongoing communication of
information between these parties, such as from suppliers to the manufacturers or from
regional warehouses to wholesalers and retailers, even customers. As researched by
Kocoglu (et al. 2011), the outcome of sharing information between logistics parties is
considered as increasing the coordinated ability of physical movements, reducing the
bullwhip effect, and speeding up the flow of material and order cycle times. Due to the
benefits of information sharing, Wipro Unza can take advantage of linking the good
relationship and increasing the trustworthiness with local suppliers and even their potential
customers
Financial flow: This flow demonstrates the daily transactions of Wipro Unza company which
is the inflow and outflow of cash. Wipro Unza utilizes the method of credit payments
including account receivable (AR) and payable respectively (AP). Specifically, AR can be
understood as the firm will collect all receivables which are invoiced by credit payments of
customers and AP is the outstanding receivable of the invoice from suppliers and other
tangible payments for inventory (Popa 2013). Moreover, the payment schedule is vital for
Wipro Unza to control credit payments comprehensively and it can help the company against
unpredictable errors. And the company also needs additional financial arrangements for
further financial activities like currency exchange and obligations in terms of values of AR
and AP in the supply chain.

2. Major logistics activities:

a. Demand Forecasting:
Forecasting is a statistical task of predicting the upcoming demand as accurately as possible
and supporting an organization in informing decisions about timetabling of the production,
transportation, and personnel which are based on historical data and knowledge (Hyndman
& Athanasopoulos 2018). In logistics, demand forecasting is an essential activity in logistics
and supply chain because it is the outcome of predictive analysis to forecast what demand
will be at a defined point in the future (Leapro n.d.). Additionally, it is critical for each
manager in inventory management, price optimization, and making marketing decisions (Liu,
Ming & Huang 2020). Firstly, the managerial responsibilities are to integrate with business
intelligence. Setting up the statistical forecast is responsible the most for the demand
forecast, the managers should set its statistics at the multiple levels of aggregation such as
reevaluating historical sale trends data and seeking demand drives to determine the right
forecasting technique. The next managerial responsibility is to utilize the demand forecasting
software which is widely used in most organizations because the features not only help
companies to reduce significantly both production and labor costs but also helps them in
creating optimal purchase orders, increasing fill-rate, analyzing overstock, and speeding up
replenishment. Furthermore, there are two outstanding values from its managerial
responsibilities, the first is the human prediction strategy in forecasting demand, it is
especially relevant in the context of high volatility products due to special events such as
promotion (Sanders and Ritzman 1992), next is optimizing inventory levels more effectively,
it is significant to boost inventory labor turnover and to reduce capital expenditures, the
following value is to give a valuable overview into upcoming profitability. For the KPIs,
forecasting accuracy (FCA) is a metric that spreads during the “multi-faceted” functions of an

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organization and both the top line sales revenue and bottom-line profit margin will be
ultimately impacted by this metric. Thus, Wipro Unza is suggested to indicate this metric
preventing over and under forecasting problems which lead to unwanted effects on the top
line in sales revenue and erode the profit margin (Singh 2013).

b. Warehouse:
According to Richards (2018), a warehouse is defined as a temporary place to store huge
quantities of goods and as a buffer in supply chains. Equally important, it can be said that
warehousing which is a strategic role of supply chain management is obligated for most
businesses. Moreover, the warehouse creates time utility for raw materials, industrial goods,
and also the manufactured goods. To meet customers' demand for a lower price, both
productivity and cost improvement are examined.

The main of Wipro Unza’s concern is environment protection. They use sensor light for all
areas, which means it is auto-off when not perceiving any staff around. They also use solar
energy in daylight. For saving water, they built the private water supply system to take
almost all the advantages of rain-water. This activity helps to mitigate the exploitation of
groundwater to operate the warehouse. Moreover, they are also using Flexi Narrow Aisle as
a prominent feature for their warehouse. This technology allows the pallets to install flexibly
and trucks to move easily.

There are two managerial responsibilities for an efficient warehouse. One is training,
supervising, and evaluation of staff which is a key factor for a perfect warehouse flow.
Moreover, excellent staff can help smooth work which leads to fewer accidents. In detail, the
warehouse covers a whole range of activities which means those who are working in this
environment have to put up with the high hazard and risks from their position. According to
Verge Safety Barriers (2018), forklifts as an example of heavy equipment are a common
reason for injuries and even deaths in the warehouse. Furthermore, the staff can be hit or
run over or can fall from higher pallets while working. All this occurs mostly due to poor
training. Overall, the staff will be safer when they know exactly what they are doing, also
they know how to handle the situation if something goes wrong. Not only these values but
also the company image will improve and can be boosted with customers, and other
investors. Another is ensuring the warehouse meets the quantity objective, and targets (for
instance, on-time shipments, and quality). First, enhancing customer satisfaction with the
quality policy. Second, all products are needed to be under control by checking each product
line. By that, the quality control, including out-off-date, and out-of-stock will be assisted
carefully before delivery. Third, on-time delivery helps to collaborate with the customers
better. It also ensures the loyalty of customers for the company.

Based on Kusrini, Novendri, and Helia (2018), the warehouse’s Key Performance Indicator
(KPI) is importantly required to improve the performance of the logistics systems. Most
important KPIs in each warehouse’s activity help to improve warehouse performance. There
are several internal KPIs such as inventory accuracy and rate of return. KPIs can be
improved by checking the database regularly and identifying causes for return – damage,
wrong items, and late delivery. Overall, these measures can help the manager to address
the issues.

c. Transportation:
Transportation is basically either moving supplies to the manufacturer or moving finished
products to consumers. As a key feature in the logistics and supply chain (Pham 2019),
there are many problems that transportation managers have to face. Late delivery, storage
space requirement, and relevant costs are some of the issues that may occur when

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organizations execute inapplicable transportation tactics (Zhang & Yu 2020). This means the
importance of transportation management is undeniable in today's industry.
As a company providing consumer care products, Wipro Unza chooses trucks to move their
goods in order to profitably the shipment costs together with achieving customer satisfaction.
Besides, its activities consistently engage in other stages of the logistics process. Without a
well-operated transport structure, the business is not able to obtain its benefits to the entire
operation.
The first responsibility is planning and managing employees' work to guarantee their
performance in a manner consistent with the company’s requirements. Wipro Unza directors
have to dispatch, routing, and tracking vehicles along with recording every shipment details
on the computer system. Moreover, they have to run staff training sessions on subjects such
as hazardous material handling, employee orientation, repairs, and maintenance of
equipment. Clients and shipper’s complaints are also needed to be handled in the most
effective way to consolidate the relationship between the organization and customers
(Career Planner n.d.). In order to commit to a productive shipping procedure, Wipro Unza
has strictly followed the above tasks to meet the best outcomes in planning and operating
the transportation system. Secondly, Wipro Unza responsibility is conforming with
administrative procedures, safety rules, and Government regulations. The managers provide
a safe work environment for workers and collect their opinions monthly to upgrade workplace
quality. Besides, transportation accidents are going to be investigated to improve safety
policy simultaneously with offering insurance for employees. By carrying out both of the
responsibilities, Wipro Unza has always benefited from reduced delivery costs, lessen fuel
consumption, and a drop in the possibility of accidents.
In terms of transportation KPIs, sustainability indicators should be invested more to be
capable of representing the economic and environmental aspects. Indicators must be
reasonable and measurable to embrace both external and internal factors in businesses
(Naganathan & Chong 2017). Therefore, Wipro Unza must establish their KPIs to the
transportation system to develop the sustainability level. The detail and appropriate KPIs will
support employees a lot in accomplishing objectives and help the company to advance the
transportation sector.

d. Material handling:
With a long line of logistics and production, every corporation needs to figure out the image
of the material and how to handle it. As we can see the revenue of Wipro Unza is 613,401
Million Rupee (Wipro Unza n.d.) annually, they have to really think about the cost, price of
the supplier material and production cost. Usually, the cost of a product will be 30% of the
revenue, for this case, it includes ingredients and packaging cost.
As a material manager, they need to negotiate with the suppliers to get the best price that
maximizes their profit. Also recording procurement activity, quantity, and vendors is required.
Like where did the materials come from, how many of them, and where they should go to.
Looking for the usage of money and budget is crucial because we do not want to owe the
supplier which can lead to bad credit.

Some customers will view price is more important than speed but others will rate the quality
is more considerable (Bhat 2018). We can see that adding value to customers through
material management is huge, by just reducing the cost of production or just a fast delivery
can make a huge difference. In the same book, value is also an equation of performance
divide by cost (Bhat 2018). As a material manager, they need to consider whether speed,
cost or quality will best for different types of customers. By just budgeting the material cost,

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it's already helping the company in determining the cost correctly and putting the best price
for each product.

The main purpose of the materials management operation is to measure the quality,
quantity, and cost with minimal cost and lowest work. Managing material needs to be in
multiple apartments such as Inventory, Receiving, and Quality Control (OpsDog n.d.).
Without noticing that forecasting is important, when do they need the next order and where
to deliver it with the least amount of stock in the warehouse without running out of stock.

e. Customer Service
Customer services have come into the awareness of manufacturers to meet the growing
individualized and customized consumer demand to sustain the core competitiveness of
businesses (Cao, Jiang & Wang 2015). The Customer Satisfaction Score (CSAT) is the most
common KPI for measuring client satisfaction. With this, you explicitly ask your customers to
rate their satisfaction with your company, product, or service (PR Newswire 2010). For Wipro
Unza, customers come first and the company is dedicated to understanding the customer
and creating products to meet the needs of consumers. Wipro provides customers with the
largest and most advanced R&D halal skin care facility in the world.‘Halal ingredients are
found not only in the food and beverage market but also in other segments, such as
cosmetics and personal care, industrial chemicals, and pharmaceuticals, in finished goods’
(Zurinna 2012). With all the extensive consumer and scientific research on climate
conditions in our country, these products are well suited for Asian skins. With the setup of
the Wipro Skin Research and Innovation Centre, Wipro will develop cost-effective,
innovative, and exciting products that are of good quality in terms of efficacy and stability
(Wipro Unza n.d.). Non-animal testing is carried out throughout the research activity as it is
based on the testing of reconstituted human skin for the design of the best formula (Wipro
Unza Research & Development n.d.). It has shown that Wipro Unza brings the best
ingredients and products for consumers. Besides, Wipro Consumer Care & Lighting Group
strives to create a clean environment in all of its products, activities, and services. They
ensure that 100% of the company plastic packaging is designed to be fully reusable,
recyclable, or compostable (Wipro Consumer Care & Lighting n.d.). There is one main
factory located in Binh Duong, two offices in HCM City and Hanoi in Vietnam (Wipro Unza
n.d.).

C - DISCUSSION:
1. Discussion A

a. Core competence of the supply chain:

As reported by Derwik & Hellstrom (2017), competence is a key factor in businesses to

accomplish superior performance and competitiveness and leads to improvements in both
operationally and financially in supply chain management. The data from the Wipro Unza
website has proved that they are following the Wipro spirit which is an essential value of the
organization including three main elements that aspire to victory, subtle manner, and always
straightforward. They recruit more than 4000 employees with 18 different nationalities owing
to the common vision to become one of the top home appliance manufacturing and
marketing companies in Asia. Megatrends like globalization and industry 4.0 have a
significant effect on logistics management and lead to further developments in other areas of
logistics (Kotzab et al. 2018). Wipro Unza always catches up to the latest trends to decide
the suitable strategies for its logistics and supply chain process. Furthermore, four objectives
that the company has imparted from the spirit are wholehearted to the customer, respect
every individual, global and responsible behavior, and veracity in any activity. These targets

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represent what Wipro Unza is continuously doing toward consumers through their research,
development, enterprise, distribution, and marketing since the first day. All of these values
have specific effects on the logistics supply chain management of the company as Wipro
Unza implements its spirit to single employees in every sector of the supply chain.

b. Push-pull system:

While a push supply chain based on forecasts of products to manufacture and to be stocked
as finished goods, a pull supply chain depends on the actual customer orders to produce
(Fowler, Kim & Shunk 2019). Each of the systems has its own advantages and
disadvantages. However, mostly, applying only one of them cannot demonstrate the best
productivity in businesses. Due to this reason, a hybrid strategy called “push-pull supply
chain” has emerged as a new supply chain model. The manufacturers stock their finished
goods at the inventory to wait for buyer’s orders or deliver to retails stores which are called
the push-pull boundary waiting for customers to “pull” it off the shelves (Food n.d.).
The information gathered from Wipro Unza website can be seen that they are utilizing push-
pull strategies in their supply chain network. In terms of the push approach, the organization
stated that by the rigorously testing process combined with detailed survey documents from
the FMCG market, they have successfully launched a lot of new products to meet the
increasing of consumers' expectations. In addition, the company also carries out many
animated marketing activities especially on television and other promotions for buyers which
is a pull tactic (Wipro Unza n.d.). Based on the above data, it is evident that Wipro Unza
employs the hybrid system in order to achieve the best outcomes.
On the other hand, this paradigm partly has some pros and cons when executing in the
supply chain. Talking about its advantages, by combining two types of controls, benefits from
both styles are maximum implemented. To be more specific, a hybrid push-pull strategy
provides long-term planning and avoids out-of-stock. Moreover, businesses can enhance
their customer service and have a cut down in carrying costs and inventory levels (iWMS
2018). Nevertheless, this system is devoid of risk. If the processing and transportation time
is delayed form the push-pull boundary, unstable order fulfillment may occur which results in
customer satisfaction. Consumers will not hesitate to find an alternative who can better meet
their needs if immeasurable negative impacts affect the credibility of the organization (Kim et
al. 2012).
Despite there are difficulties in applying the hybrid control, Wipro Unza always does their
best in response to the client’s demand. By having a specialized management team for each
region and strategic market, the organization develops a sustainable strategy for the supply
chain to occupy the potential market in Asia. For example, they operate an appropriate plan
using the push-pull method for their goods in order to make sure it flows smoothly from the
forecasting section to the moment it reaches the customer's hand at the end of the supply
chain. With every single product, the company’s goal is to constantly release outstanding
products along with advancing the brand name.

c. Relationship between buyer and supplier:

In business, relationships are the key to success. As a businessman, you need a

relationship between you, the supplier, and your customers, the buyer. Relationships may
contain multiple characteristics like trust, communication, interpersonal relationship, and
power-dependence (Hsiao, Sharon & Sharon n.d).
In Figure 1, we can observe that suppliers and buyers can communicate through
multiple channels such as face-to-face, which creates lots of trust to customers, telephone or
mailing, written communication, and information sharing (Cannon & Homburg 2018). Not
only communication channels, but suppliers also create offers for buyers like delivery to
where best suits the buyer and supplier, and the flexibility in time. For instance, when a
customer (could be a retailer or mass product buyer) want to buy a huge amount of items
from Wipro Unza like thousand or even million bottles of Enchanteur shower gel, they can

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figure out the price that supplier can discount for them, where to warehousing (they even
could store the product for a customer until they need it), and when to deliver. Those things
will be communicated through ways to mail, talk, or even call when Covid-19 is a huge
problem for face-to-face communication. When dealing with business, other issues like
personalization could cause problems. For instance, conducting business with Guardian,
clients could ask for the code or even their name on the bottle to advertise for them for better
handling and storing.

d. The effects of technological changes/ disruptions:

In some recent years, technology has hit us really hard, not only the Western countries but
also Vietnam, a developing country. The increase in usage in technology is there for a
reason. In order to have a faster and more accurate human need a hand of technology to
help them.

According to Sasson in “The 3D printing order: variability, supercenters, and supply chain
reconfigurations”, 3D printing can help the supply chain by using raw materials to print out
products rather than traditional manufacturing. Not only that, but this 3D printing can also
help companies to print out packages that can be recycled. For this technology, Wipro Unza
really needs to apply this to their factory. One of the ways that this cutting edge technology
can be used is by printing the bottle or packaging of an Enchanteur bottle. Enchanteur is
currently using unrecyclable plastic for their bottle, they may be able to change the material
to paper or hard recyclable plastic.

Talking about 3D printing but not AI (Artificial Intelligence) is a huge missout. Now everything
from industry to personal life, home utilize AI, let’s talk AI. E-commerce has risen strongly
through the years but now it is even stronger when Covid-19 hits us when people can not get
out of their comfort zone, house, to buy what they need or want. Daugherty (2018) criticized
that now the time has come when AI needs to be used in manufacturing to increase the
industrial value chain and help humans to relieve their workload. Not only replacing the work
of humans, that job can also be done just by machine, but AI can learn rapidly and find the
fastest, most convenient, and lowest consuming as possible. Wei Yan (2019) singled out the
risk of AI in his report through multiple books by other authors. The author has pointed out
that AI is having a hard time and a long time to learn how to manipulate the times of
container trucks and the number of volumes. In the case of Wipro Unza, the company
certainly needs to apply AI in their chain or even develop their E-commerce situation.
Collecting data will be much faster and easier for them, and even know when to be the best
time of distributing the product out into the market.

2. Discussion B:

These days, logistics - supply chain plays an important role in Vietnam. According to the
Vietnam Logistics Business Association (VLBA), the percentage of the logistics industry is
20 to 25 of GDP. However, there are grave problems that arise for the warehouse. As a
result, it affects the successful supply chain management. To be more exact, there are two
problems below as well as suggesting efficient recommendations that Wipro Unza can tackle
these problems.

a. Lack of security/safety:
● Analyze issue:
The risk that can impact business performance is a lack of security/safety. A tidy warehouse
does not mean a secure warehouse. There are always suddenly situations. Because of the
busy warehouse operations, the security is overlooked. The remarkable point is, if there are
no accidents, the staff will always be subjective. This is a serious, common, and often

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regrettable mistake in protecting themselves in warehousing. To be furthermore this point, it
leads to an accident; even worse, it can result in lethal consequences.

● Impact on Wipro Unza supply chain:

Warehouse security issues come from both internal and external reasons. Warehouse
managers should secure products from theft and damage by fire and water. Not only
products but also staff. Based on Murphey 2019, it is reported that warehouse fire occurs
due to arson, electricity and lighting, heating equipment, combustible materials, and smoking
equipment. Hence, poor warehouse security can lead to capital loss and lower staff morale.
As reported by (Vietnam Net 2018) that two foreign-invested warehouses are destroyed by
huge fires. There are no reports of casualties but the damage to property is extensive.
Moreover, the lack of security cameras, inventory systems, alarms, or others that help to
protect can cost the warehouse million dollars. From the data of CargoNet 2016, it is
recorded that in the United States, businesses have lost $114 million worth of their products.
Also, the lack of security - meaning small fire can be devastating. It could lead to a lack of
stock which decreases brand loyalty and customers' satisfaction. As a consequence of the
complexity of warehouse fire, the environment can be extremely affected in air, water, and
soil around the areas. For example, according to VNExpress (2019), the Rang Dong light
bulb warehouse fire has released 15.2 – 27.2 kilograms of mercury, The Vietnam
Environment Administration confirmed. As a result, the company image will decrease.

● Recommendation:
Overall, the warehouse is a dangerous working environment. Moreover, this is a grave issue
example that may affect the supply chain. Managing these issues is important to become a
reputable company. Wipro Unza must be aware and change if there is something wrong with
the process. To prevent it, the staff must participate in safety training, or courses, not just
during onboarding. Moreover, the building must be prepared with modern fire-resisting
materials. Lewis (2017) says that a competent electrician under national standards should
design, install, and test electrical installations. Inspections must be carried out regularly to
ensure the safety of equipment which are used all the time. For hazardous zone, designated
labels need to be clearly instructed. Furthermore, the staff should be trained to get used to
reporting the accidents and current situations, analyzing the issues, and mitigate them. It not
only helps to save the cost but also possibly save staff from serious and regrettable injury.

b. Promoting sustainability and water-contaminated knowledge across the supply

chain in Vietnam.
● Analyze Issue
Sustainability described as a term encompasses several aspects: climate change,
development, the environment, ethics, and society. ‘It is a way to grow and adapt to the
challenges raised by the current economic and social status quo’ (Robinson 2012). For
Wipro Unza, it is widely accepted that sustainability will increasingly become a crucial
strategic consideration for the consumer goods industry. The issue of water pollution has
evolved over the years, caused by industrialization and urbanization processes
(Environmental Sustainability Wipro Unza 2020). The water pollution issue affects not only
people's health and lives directly, but also offspring and offspring. Wastewater from factories
and urban areas highly pollutes the water supply. The legal system of water management
has been gradually improved over the years, but many aspects have not yet fulfilled the
requirements of fact (Trung Nghia 2020). Moreover, although the concept of sustainability
has become more definite, there are still many drawbacks to its practical implementation in
Vietnam. In addition, systematic sustainability techniques such as the dispute with profit
development or the inadequacy of process change are also unfamiliar (Tan Hoi 2020).
According to Wipro Unza's Sustainability Report (2019), the company faces a multitude of
challenges and opportunities associated with water contamination in the development

13
process. In Vietnam, 39% of the population lacks access to clean water due to the lack of
physical and financial infrastructure. Water sources, especially in urban and industrial areas,
are contaminated in some areas (Water in Crisis Spotlight Vietnam 2020).
● Impact

Risks affect increased energy and other resource costs such as water supply; increased
insurance costs due to extreme and adverse climatic events; and potential future litigation,
claims, and legal action (Environmental Sustainability Wipro Unza 2019). The contaminated
wastewater has many potential hazards that not only alter people's quality of life but also
contribute to the damage of habitats of many species worldwide. According to statistics, up
to 9,000 people die each year from water contamination and find 100,000 cases of cancer
per year, mostly due to the use of contaminated water (Tan Hoi 2020).
● Recommendation
Facing, therefore, the challenges of addressing the production of sustainability in the
business process. Wipro Unza has developed a range of methods for saving clean water
and reducing contamination by rainwater harvesting; using recycled water for toilets and
landscaping; and efficient cleaning and sanitation processes. Besides that, Wipro Unza may
also create water-saving rules to increase the consciousness of sustainability during the
production process for all. And the policy and regulatory system for environmental protection
are still inadequate, and therefore organizations can pressure the government to regulate
policies so that companies or people can handle their water waste actions (Wipro Unza n.d.).
More than that, embracing communication and propaganda to the public about the
environmental effects of water pollution will have a detrimental effect on a person’s health
that plays a very important part (Tan Hoi 2020).

D - CONCLUSION:

In conclusion, all perspectives of the logistics and supply chain of Wipro Unza have been
examined thoroughly with many elements such as core competence, push-pull system, a
relationship of supplier and buyer, and current technological changes.

First of all, in terms of the supply chain process, the product, information, and financial flows
of Enchanteur brand have been demonstrated clearly by the diagram of the supply chain
network and specific explanations. Those three activities have a tight relationship supporting
each other and its interaction act as an essential aspect to integrate into the flow of the
whole supply chain to generate smoother and stronger. In addition, there are five main
parties of logistics such as demand forecasting, warehousing, transportation, material
handling and customer service which have been explained in detail with definitions,
managerial responsibilities, value, and KPIs.

Secondly, the possible strengths of Wipro Unza have been discussed carefully. To be more
precise, Wipro Unza’s core competence is adequately strong to take advantage of better
performance and competitiveness, with the guarantee of product and service quality, the
close connection between distributors and retailers. Moreover, utilizing a combined strategy
of push-pull systems support a firm in satisfying customers’ demand, especially in the
changeable context of Vietnam. Along with that, the communication from suppliers to buyers
helps Wipro Unza in creating trustworthiness and keeping long-distance relationships among
these activities. Finally, it is important to apply advanced technology into supply chains such
as 3D printing and Artificial Intelligence (AI) which drive the supply chain more accurately
and faster.

Apart from its strengths, there are some challenges and barriers that Wipro Unza is coping
with though Wipro Unza has positioned itself at the top 3 in the fast-growing consumer care
industry. Lack of security and promoting a sustainable supply chain are regarded as one of
the most potential contemporary issues of Wipro Unza. Additionally, each problem does not

14
have the same impact on the Wipro Unza supply chain networks; specifically in the
productivity of manufacturing products and operation of the whole supply chain. Hence, in
the term of mitigating these potential issues, Wipro Unza has been suggested to utilize
strategic plans and suitable actions for further maintenance.

In the perspective of logistics students, this paper will have some uncertainties and
shortcomings when classifying the findings that must be considerable and more detailed.
Likewise, in the discussion part, the long-term recommendations should be some more
particular thinkings to support Wipro Unza in responding to the demand of boosting the
productivity of an organization. Nevertheless, it will show an overall view of both pros and
cons aspects of Wipro Unza operations from those limitations. And also, when reflecting it on
our in-class lectures, logistics students can generally observe and think of a comparison
between the tangible situation and what we have learned. Ultimately, not only in the logistics
of the FMCG industry but also in the logistics of the whole industries are facing with
inadequacies and shortcomings that every organization should concentrate on turning the
enhancement into the best practice of efficiency and improving in the weakness of the
business.

E - SUMMARY OF TEAMWORK:

15
Team member’s What was your The approximate Team member’s
name commitment to the group actual level of signature
project
contribution
Ly Anh Thu My contribution to this 28%
report is (A) Introduction,
(1B) design supply chain
network & flows and
explain more detailed
information in three main
flows, (2B.a) Demand
Forecasting activity, (D)
Conclusion. And also I
am in charge of
formatting the cover
page, sorting alphabet
for references

Quach Vo Minh My part includes 18%

Tram transportation activity,
discussion A (question
1+2), and my own
sources’ references.

Tai Huynh Tran I am in charge of 18,5%

Thuy Material handling,
discussion A (Question 3
+ 4), table of content
part, and my part
reference.

Huynh Gia Linh My contribution to this 17%

project is including
identifying one of five (5)
supply chain
aspects/processes
(warehouse) with two (2)
managerial
responsibilities.
Moreover, in discussion
B, I am in charge of
elaborating on one (1)
problem which is a lack
of security/safety.

16
Nguyen Thi My contribution to this 18,5%
Diem Trinh report includes an
Executive summary, one
of the five supply chain
processes which is
customer service (5) and
the last is reference for
the paper.

17
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G - APPENDICES:

Figure 1:

(Cannon, J, Homburg, C 2018)

Figure 2:

23
Company shares of Bath and Shower category in Vietnam market share in 2019
Source: Euromonitor International 2019

24