Bibica Final Report Supply Chain Management

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Bibica-Final-Report - Supply Chain Management
Supply Chain Management (P2) (Trường Đại học Kinh tế Thành phố Hồ Chí Minh)
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UEH UNIVERSITY
COLLEGE OF BUSINESS
SCHOOL OF INTERNATIONAL BUSINESS & MARKETING
FINAL EXAM REPORT

SUBJECT:
OPERATION SUPPLY CHAIN MANAGEMENT
Lecturer: Master Tran Thi Anh Tam
Class Code: 22C1BUS50313501

lOMoARcPSD|12791888
UEH UNIVERSITY
COLLEGE OF BUSINESS
SCHOOL OF INTERNATIONAL BUSINESS & MARKETING
FINAL EXAM REPORT

SUBJECT:
OPERATION SUPPLY CHAIN MANAGEMENT
Lecturer: Master Tran Thi Anh Tam
Class Code: 22C1BUS50313501

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NAME OF MEMBER
Nguyễn Phước Lộc 31201025486 locnguyen.31202015486@st.ueh.edu.vn

Đinh Thụy Vân Anh 31201026016 anhdinh.31201026016@st.ueh.edu.vn
Lê Thị Quỳnh Hương 31201022791 huongle.31201022791@st.ueh.edu.vn
Trần Khả Nhi 31201021728 nhitran.31201021728@st.ueh.edu.vn

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TABLE OF CONTENT
SUMMARY ----------------------------------------------------------------------------------------------- 3
CONTENT ------------------------------------------------------------------------------------------------ 4
1. Introduce an enterprise and an overview of the industry context in which the firm is
engaged in. -------------------------------------------------------------------------------------------- 4
1.1 Introduction of the Bibica ---------------------------------------------------------------- 4
1.1.1 Bibica’s history and background ----------------------------------------------------------------- 4
1.1.3 Bibica’s competitors - Kinh Do + Hai Ha ------------------------------------------------------ 5
1.2. Overview of the confectionery industry context ------------------------------------- 5
2. Use chart flows and diagrams to illustrate the domestic supply chain of the firm (based
in Vietnam). Explain in detail three flows, namely material, information and finance of
the supply chain -------------------------------------------------------------------------------------- 7
2.1 Bibica’s domestic supply chain --------------------------------------------------------------------- 7
2.1.1. Suppliers: -------------------------------------------------------------------------------------- 7
2.1.2. Factory: ---------------------------------------------------------------------------------------- 8
2.1.3. Warehouse: ------------------------------------------------------------------------------------ 8
2.1.4. Distributors: ----------------------------------------------------------------------------------- 8
2.1.5. Customers: ------------------------------------------------------------------------------------ 9
2.2. Detail of 3 flows of Bibica’s supply chain ------------------------------------------------------- 9
3. Describe the enterprise's supply chain process of a product or service through the
stages of Plan (making plans), Source (supply of materials, goods), Make (production),
Delivery (delivery), Return (goods return). ----------------------------------------------------- 10
3.1. Plan: --------------------------------------------------------------------------------------------------- 10
3.2. Source ------------------------------------------------------------------------------------- 13
3.3. Product’s production process flow --------------------------------------------------------------- 16
3.4. Distribution channels of products ----------------------------------------------------- 21
3.5. Goods return processes ------------------------------------------------------------------ 24
4. Basing on the business and supply chain strategy:------------------------------------------ 25
4.1. Identify the most similar strategy of the company among the following: (1)
Lean supply chain, (2) Sustainable supply chain, or Agile supply chain. Use
empirical evidence of the business activities to support your opinion. ---------------- 25
4.2. Suggest two realistic solutions to improve the mentioned strategy. Solutions
should be linked to one of the processes in their SCOR model in Question 3.------- 26

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4.3. Solutions to complete the cost reduction plan: -------------------------------------- 28

5. Conclusion ---------------------------------------------------------------------------------------- 28
5.1. Remarks on the overall success of the operations and supply chain management
(OSCM) of the firm. -------------------------------------------------------------------------- 28
5.2. Summary (Relate the role of OSCM to the selected firm under many
uncertainties these days.) --------------------------------------------------------------------- 29
REFERENCE -----------------------------------------------------------Error! Bookmark not defined.
LIST OF FIGURES
Figure 1 . Bibica's domestic supply chain -------------------------------------------------------- 7
Figure 2 . Hura and Hura Deli Product Process ------------------------------------------------ 17
Figure 3 . Bibica’s distribution system ---------------------------------------------------------- 22
Figure 4 . Order processing------------------------------------------------------------------------ 23
LIST OF TABLES
Table 1 . Delivery ratio of suppliers ------------------------------------------------------------- 16
Table 2 . Factor of Finished Products ------------------------------------------------------------ 19
Table 3 . Microbiological criteria of Finished Products --------------------------------------- 20

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SUMMARY
Globalization and international trade are giving businesses challenges on control and
integration of goods, information and finance effectively. This means that any business is
building a quick, adaptable and creative supply chain that will help them easily overcome their
competitors in the competitive battle. Vietnam is a country with the speed of integration into
the world economy very quickly and strongly, and is now an indispensable ingredient in many
multinational product formulas.
The supply of raw materials and products plays a very important role in the process of fulfilling
the requirements and goals of the business, especially to ensure the balance of the production
and product consumption process. Supply chain management is one of the prerequisite
conditions for improving product quality, reducing inventory costs, saving materials, and
ensuring effective production activities. Product supply management enhances the initiative in
meeting customer requirements, minimizing management and storage costs, ensuring product
quality, minimizing inventory and loss. Good supply chain management will help businesses
in general and Bibica company in particular develop more in a fierce competitive environment,
increase profits and better serve consumers, which is the most important thing. of the business.
Therefore, the project "Analyzing the supply chain process of Hura products of Bibica
Company" has focused on studying the domestic supply chain process of the enterprise,
activities in Hura's domestic supply chain management under the SCOR model, and put some
targets to indicate the direction of the appropriate supply chain development. On that basis, a
number of solutions to enhance the current strategic effectiveness to pursue the direction of
supply chain development at Bibica Company.

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CONTENT
1. Introduce an enterprise and an overview of the industry context in which the firm is
engaged in.
1.1 Introduction of the Bibica
1.1.1 Bibica’s history and background
Bibica Corporation is one of the top
Bibica Corporation is one of the leading confectionery manufacturing and trading companies
in Vietnam and has many brands that are very familiar to Vietnamese consumers.
The history and development of Bibica:
- On January 16, 1999, Bien Hoa Confectionery Joint Stock Company was established with a
famous brand - Bibica. The company's headquarters is located in Bien Hoa 1 Industrial Park,
Dong Nai. The main products of the company are confectionery and sugar.
- In April 2002, Bien Hoa Confectionery II Factory was established in Sai Dong B Industrial
Park, Long Bien, Hanoi.
- Bien Hoa Confectionery Joint Stock Company officially changed its name to "Bibica
Corporation" on January 17, 2007.
- So far, Bibica Corporation has been voted by consumers as high quality Vietnamese goods
for 20 consecutive years.
1.1.2 Products of Bibica
Bibica Corporation focuses on Producing and trading sugar products, confectionery products,
syrup, nutritious powder, milk and dairy products. 3 main products line of Bibica are:
- Cake: Pie, sponge cake, cookies, cracker or mooncake.
- Candy: hard candy, soft candy or jelly
- Other: nutritious products such as cereal or powdered milk, chocolate, syrup.

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1.1.3 Bibica’s competitors - Kinh Do & Hai Ha
In the domestic confectionery market, Kinh Do Corporation may be the biggest competitor of
Bibica. Besides, HaiHa Confectionery Company is also a large confectionery supplier in the
Vietnamese market.
- Kinh Do (KDC), now, holds the first position in the market share of Vietnam confectionery
(about 30-35%). Kinh Do’s products are concentrated for the middle and high-end segment,
dominating the market share of the whole market, including moon cakes (76%), bread (64%),
AFC cake (56%) . Sweet biscuits just account for 30.4% of market share but bring the most
significant revenue (28%) of Kinh Do Group.
- Bibica’s Hura cake (in 2006), now accounting for 30% of the market of sponge cakes. Biscuits
& Cookies products of this company account for 20% of the dry cake market share. Bibica's
Choco-Pie and candy cakes are favored by many consumers. Bibica currently leads the market
share of candy.
- HaiHa Confectionery - Joint Stock Company’s main product is candy, which contributes
about 75% of the company's revenue. The other products are foam cake, biscuits, crackers and
moon cakes that contribute more than 20%. Hai Ha ranked second in the market share of candy
with 14% (after BBC) and occupied the leading position in the segment of Chew, Jelly and
foam candy products.
1.2. Overview of the confectionery industry context
1.2.1. General assessment of Vietnam's confectionery industry in 2020-2021
The confectionery industry is known as one of the industries with high and stable growth rate
in Vietnam. The role of the confectionery industry is increasingly confirmed when holding a
large proportion in the food industry (increasing from 20% to 40% in the past 10 years).

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Currently, Vietnam has more than 30 large-scale manufacturing enterprises, about 1,000 small
production facilities and a number of foreign confectionery importers, the concentration of the
market is quite low. Although the market is very large, the current leading company Kinhdo-
Mondelez only accounts for 20% of the market share, the next unit is Bibica, Huu Nghi with
about 14-15%; In other words, the total number of companies with brands in Vietnam only
accounts for 42%, the rest are foreign companies and other small importers and manufacturers.
According to preliminary statistics of the General Department of Customs, exports of

confectionery and cereal products in September 2020 decreased by 2.6% compared to August
2020 but increased by 1.4% compared to September. 2019, reaching 64.52 million USD. In the
first 9 months of 2020, the turnover reached US$534.44 million, up 2.9% over the same period
in 2019; In which, the export of confectionery and cereal products of FDI enterprises reached
US$ 141.57 million, accounting for 26.5% of the total export turnover of this group of goods
of the whole country, down 13.3% compared to that of the whole country. with the same period
last year.
1.2.2. Trends and development potential of the confectionery market
According to the General Director of Bibica, for confectionery businesses in general, the main
market is still located in rural areas (accounting for 70% of the market share), while urban areas
account for only 30%. Because, the population structure of Vietnam is still located in more
rural areas. “People in rural areas also have less choice in terms of confectionery products and
for them, the gift of confectionery at the end of the year is still very appropriate. For urban
people, there are many choices, so the choice of confectionery products will be less," said Mr.
Hoang.
Currently, confectionery businesses are still hoping for a sharp increase in consumption after
this year's Mid-Autumn Festival until the Lunar New Year 2023 when the Vietnamese
confectionery market still has a clear seasonality.
Although it is a potential market, according to market research units, the confectionery market
is becoming more and more competitive because recently the consumption behavior of
Vietnamese people has changed a lot. Specifically, after the strong impact of the Covid-19
pandemic, Vietnamese consumers tend to pay primary attention to essential food items, while
confectionery is secondary. Therefore, in consumer spending whether in rural or urban areas,
confectionery products are not included in the main consumption but completely depend on
income. Not to mention that the recently effective EU-Vietnam Free Trade Agreement
(EVFTA) is expected to create momentum for confectionery from Europe to flood into
Vietnam, directly competing with domestic goods.
Besides, with the development of technology, consumers are "empowering" themselves in

choosing products when most of them learn about products before shopping. It is the above
changes of the market that force the confectionery enterprises to have appropriate strategies
and steps to be able to stand firm in the home field.
1.2.3. Bibica's position in the market
Bibica currently accounts for about 8% of the confectionery industry market share, ranking
second, after the giant Mondelez, who owns the Kinh Do confectionery brand. But if only
domestic confectionery brands are counted, this company is the largest brand.

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"Along with about 30 industrial-scale enterprises, Bibica is contributing significantly to about

$660 million in confectionery exports, bringing in nearly 300 million trade surpluses in 2019.
This shows that Vietnamese businesses are also not in a passive position, in the face of
increasingly massive attacks by foreign rivals," said Bibica's representative.
2. Use chart flows and diagrams to illustrate the domestic supply chain of the firm (based
in Vietnam). Explain in detail three flows, namely material, information and finance of
the supply chain
2.1 Bibica’s domestic supply chain
The supply chain of Bibica includes 5 main factors: suppliers, manufacturers, warehouse,
distributors and consumers. The supply chain of this corporation is described by the picture
below.
Figure 1. Bibica's domestic supply chain
2.1.1. Suppliers:
* Raw Materials:
Most of the materials needed to manufacture Bibica’s confectionery are supplied by nationwide
corp. However, Bibica still imports some ingredients for high-end products like flour or from
other countries.
- Majority of main raw materials and also packaging are supplied by inland companies, most
of which are long-term partners and have clear contracts during the cooperation.
- Bibica also imported some other kinds of materials from foreign countries like Singapore or
France.

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* Equipment:
- For equipment that was needed for the manufacturing: Bibica used to rely on international
companies, which provided production lines for Bibica. After that, Bibica decided to find
inland suppliers for instant and low cost demand.
2.1.2. Factory:
Bibica has 3 main manufacturers located in Biên Hòa, Bình Dương, Hưng Yên, all of which
are well equipped with modern engines and product lines. Along with that are 10 confectionery
production lines with modern technology capable of providing up to 70 tons of confectionery
per day.
2.1.3. Warehouse:
Most of Bibica’s products are stored at the manufacturers in Binh Duong, Ha Noi and Bien
Hoa. Besides, the company also has intermediate storage warehouses. Because warehouse
storage activities in combination with forecasting activities are not really good, when there are
erratic fluctuations of market demand and peak stages inefficiently, there is still a temporary
shortage of goods in this period.
2.1.4. Distributors:
Bibica’s distributors include 3 main channels: general trade channel, modern trade channel,
special channel.
- General Trade channel: General Trade channel includes all of traditional distributors which
mainly distributes to groceries stores and small and medium retailers. It has 117 distributors
and over 14,000 agents, retail points covering the provinces and cities nationwide, this is the
channel with sales accounting for the highest proportion of the total sales of the national sales.
- Modern Trade channel: this is the channel that distributes to supermarket systems and
convenience stores. Products of Bibica now are sold at most of the biggest supermarket systems
in Vietnam like Big C, Co-op mart or Metro.
- Special channel: This distribution channel focuses on distributing Bibica’s products to school,
hospital, organizing and exporting to other countries. This channel also has the largest revenue
in holidays like Mid-Autumn Festival or Tet holidays.
Currently, Bibica is focusing on building relationships with distributors of the general trade
channel because this channel accounts for a high proportion of the company's revenue. In order
to manage and improve relationships with distributors, the company has given Sales staff
regularly supervising sales at distributors as well as supporting retail stores of distributors to
get more information about the consumption or feedback from customers as well as market
information. However, the company has not built a relationship with retailers. Instead, Bibica
assigned the task of controlling the retailer to the distributor but many distributors distributed
for many different manufacturers. Therefore, these distributors have not really put their power
to take care of the company's products to retailers and the final consumer.

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2.1.5. Customers:
Depending on the requirements of the customer, the volume of goods customers need to buy,
the delivery location, the company will decide the appropriate shipping form. To save costs,
the company tries to coordinate delivery according to the roadmap. Cashew department will
arrange different orders to reach optimal load, then proceed to delivery.
2.2. Detail of 3 flows of Bibica’s supply chain
2.2.1. Material Flow
Nhập nguyên liệu -> nhà máy tiến hành sản xuất sản phẩm -> Sản phẩm được lưu trữ tại nhà
máy/ kho trung gian trước khi được giao -> Giao hàng tới nhà phân phối theo 3 kênh -> Tùy
thuộc vào kênh phân phối, hàng hóa sẽ được chuyển đến các doanh nghiệp thích hợp -> Người
tiêu dùng
Material flow is unidirectional, which starts with raw materials and end with finished products
delivered to the customers. This flow of Bibica’s supply chain has 6 main stages:
- Stage 1: Importing materials from suppliers.
- Stage 2: After the materials are delivered to the manufactures, they will proceed with the
production.
- Stage 3: The finished products are stored at the manufacturer or delivered to the intermediate
storage warehouses.
- Stage 4: After that, for 3 kinds of contribution channels, the products are delivered to
respective distributors.
- Stage 5: From that, the products are distributed to different companies or retailers.
- Stage 6: And finally, customers can approach the products.
2.2.2. Information Flow
Information is bi-directional and includes 2 flows: information from suppliers to the customers
and information from customers back to the suppliers. Bibica usually sends information about
the quotations, user manual, product preservations, or delivery status to the customers. In
contrast, customers usually send information about product orders or complain to the
corporation.
In many cases, the distributors represent the customers to send the orders to Bibica and then
Bibica will send the orders to the manufacturers. In this flow which is from customer to the
manufacturers, the customers also send the complaints about the products or the delivery
service to the department of Bibica which is for handling customers’ complaints. However, this
department isn't paid much attention by Bibica. This company doesn’t have any standard
process for handling customers' complaints. When the goods delivered to the customers don’t
not meet the quality standards, the company will proceed to recover the goods to check and
return the product to customers in time if the error is determined from the company.

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On the contrary information flow, information or data about the amount of materials or storage
can help the company decide the product quantity more easily. Besides, in this direction, Bibica
also sends some information about the products like users manual, product preservations as
well as the quotations that the company wants to tell the customers.
2.2.3. Financial Flow
Financial flow is unidirectional movements of money from customers to the supplier. Once the
customers receive or purchase products and are satisfied with the quality, they will pay money
to the retailers. Then the retailers will send the money back to the distributors and after that,
this amount of money will be sent to Bibica. The company uses this amount of revenue to pay
for the raw materials and also the equipment.
3. Describe the enterprise's supply chain process of a product or service through the
stages of Plan (making plans), Source (supply of materials, goods), Make (production),
Delivery (delivery), Return (goods return).
3.1. Plan:
Currently, the company's planning department is in charge of the following activities:
Evaluate the Record and

Meet orders and
previous period Production criticize the
forecasts of the
and forecast planning monthly forecasts
Sales
demand of the business
Department
block
The company's forecast output was given by the Business Development Department based on
the following factors: Last month's consumption, information on the market demand next
month, information about the sales programs of the office. SBUS, feedback from the planning
department of the company's production capacity.When the monthly forecast output has been
completed, the planning department will take it as a basis for production planning, the plan to
import materials according to the capacity of the factory.
In the month, weekly, the Business Development Department can adjust the number of
forecasts depending on the actual situation of consumption and the planning department will
adjust the production plan, the plan to enter the material according to the new data Application.
Bibica company determined that having good products and the output is not good, that business
will not have good business results. Therefore, the distribution channel strategy is put on top
of the company goals.
The distribution channel development strategy of the Bibica Company is covered with the
market and is set in the following priority order:
- Maintain stabilizing sales market share of existing agents.
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- Establish more retail agents in high -income residential areas and low -income residential
areas specializing in selling cheaper cake products.
- Enhance the marketing information system to get the necessary information data for the
marketing strategy management process
For inputs, the company also sets out a plan to minimize the impact of the price of materials
before the inflation situation and ensure the amount of output quality, the company continues
to upgrade the cake capacity and plan for The factory in a more focused way."This is an
important foundation to help Bibica thrive in the future," Mr. Hoang said. According to the
Bibica representative, in terms of infrastructure, Bibica had enough capacity to increase
production 3-4 times higher than the present. And the current problem is product
development.
3.1.1. The most competitive factors in the OSCM strategy

a. Competitive advantage of distribution systems
Mr. Hoang - a representative from Bibica assessing the "expensive" point of Bibica, besides
the product structure evenly between candies, is the advantage of the distribution system with
more than 140,000 points of sale. The city has been built for more than 23 years.
The company has a distribution system covering the whole country with 140 distributors, more
than 130,000 retail points, 3,000 supermarkets and convenience stores. The company's
products have been exported to US markets, Taiwan, China, Cambodia and Malaysia. In the
confectionery market, Bibica ranked second with about 8% market share. Particularly in the
moon cake segment, Bibica accounts for 20% of the market share.
Bibica also focuses on enhancing production efficiency, controlling the cost of input raw. So
that the company have the advantage of information systems and executive management:
- Enterprise Resource Planning (ERP): Business resource management - a multi -module

application system (Multi Module software application) helps organizations and businesses
manage resources and operate operations.
+ On October 1, Bien Hoa Confectionery Company (Bibica) officially signed a contract to

upgrade the ERP Oracle E-Business Suite Business Administration System to the R12 version
with FPT IS ERP HCM.Bibica is one of one of The first customers deployed the ERP Oracle
system of Vietnam. Over a long time of effective use, Bibica has grown much stronger than
nearly 10 years ago.
+ According to the contract scope, in addition to upgrading financial accounting, purchasing,
sales and warehouses; This time, Bibica also deployed more production modules (OPM) and
supply chain planning (ASCP). The project will be implemented at the company office in Ho
Chi Minh City and 4 companies and factories in Dong Nai, Binh Duong, Hanoi and Hung Yen.
+ Business Administration solution ERP Oracle E-Business Suite fully meets the criteria for
selecting management software of Bibica such as: multi-level multi-level management
capability, fast deployment, ensuring all figures are angry. Time, the high level of integration
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between the different components of the ERP system, the friendly interface with the
Vietnamese language, responding to the Vietnamese accounting system (VAS) and the Tax
Newspaper (VAT) according to the standards The current state of the Vietnamese State,
meeting the management reports well for leaders, flexible and customizable systems suitable
to the fast and diverse business environment, overall solutions to meet A whole management
process from financial accounting, purchase, sales, warehouse management, and the ability to
meet the production process from simple form (Discrete manufacturing) to complicated
(processing), guarantee To closely link the data between rooms and boards and production.
Result: Since applying the Oracle system to all management processes, Bibica has saved time
and a lot of effort in management and financial statements. The parts are restructured in a
system with more systematic, sequence and closeness. The work is not duplicated, the
information imported into the system is fully utilized for the relevant departments. The
information shared instantly among departments or related people helps issues to be solved
faster. At the same time, the management is also softer thanks to the application of information
technology to the new management model..
- Applying distribution management system DMS:
DMS (Distribution Management System -) is a professional solution to help effectively manage

business through distributors, such as automation of sales processes, control of distribution
activities , maintain inventory at optimal level, save time and improve market speed, optimize
resources …
This software has helped Bibica upgrade the ability to manage the supply chain very well
thanks to many features: Crossing information when selling, warning inventory, debt and other
contact information to customers immediately on sales cards; Allow flexible lookup on all
subjects (customers, suppliers, goods, commodity groups, ...) according to all parameters; The
system of reports is diverse and accurate, can monitor the business situation at any time, helping
managers to observe the business situation according to many different parameters; Provide
detailed profit analysis reports on each item, commodity groups, areas, customers, ...;
Integrating management of store chain systems, allowing business management in many
locations, many branches are distributed in many different geographical areas ...
3.1.2. Comment on the OSCM strategic plan of Bibica
KINH DO HAI HA
- Hai Ha has a relatively large

- The distribution system of Kinh scale of distribution channel
Do is considered to be the most perfect system: The Northern branch has a
among confectionery companies in large network of distribution
Vietnam market. Kinh Do has a wide channels
distribution network throughout the - The largest distribution
country mainly through 3 main channels: channel system with 146 agents out
Highlights in distributors and agents, Bakery capital of a total of 217 agents in 32
systems (belonging to Kinh Do Saigon
the OSCM provinces and cities, spread in the
Joint Stock Company) and supermarkets
strategy northern provinces from Ha Tinh
and Supermarkets and Cong onwards to Northside.
- Kido strongly focuses on - The company's
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marketing activities infrastructure is still small, unable

- Kido has a strong brand and large to meet large-scale factories.
market share. - The company's machinery
- Modern facilities, machinery, and equipment is still lacking in
equipment and strong financial potential. synchronicity. Besides the
- The company has built a good relatively modern production
supply chain, facilitating the company to equipment, there are still outdated
develop stable and competitive prices. machines produced since the 1960s.
- Diverse products, quality, - Having large number of
international standards, hygiene and food agents, but the distribution is not
safety. really reasonable. Where there are
too many agents, it is quite sparse.
Dealers in the same market must
Conclusion: Compared to 2 competitors, although it is still behind Kido in terms of market

share, output and distribution channels, this is still the strength of the company and has plans
to enhance production efficiency and expand distribution in the future. hybrid.
In general, Bibica's OSCM plan is reasonable and effective, contributing to bringing the second
market share in the Vietnamese confectionery market. Kinh Do should continue to maintain
and expand the distribution system, in order to expand the domestic market share. On the other
hand, this strategy also enhances the advertising for the capital through signs at the stores.For
foreign distributors, Kinh Do needs to pay attention to branding abroad, improve product value,
enhance relationships, find new distributors ... to gradually increase the authority belief in the
international market
3.2. Source
By definition, “source” is the process of searching and purchasing input elements to produce.
It describes how to manage inventory, suppliers network, how to handle payments to the
supplier and the confirmation and transfer of products from the supplier. According to Lora
Arbuzova (2021), sourcing focuses on creating sources through which an organization can
obtain its supplies.
Suppliers are an important element of the supply chain of Bibica. Suppliers can confirm their
power by threatening to increase prices or reduce the quality of products and services provided.
The company built a long -term cooperation with suppliers, on the same benefit and developed
capacity. Bibica also requires suppliers to commit in writing the compliance with
environmental and social regulations through signing the contract appendix and accepting
periodic supervisors.
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Material Sourcing:
No. Materials Suppliers Country
1 Sugar Bien Hoa Sugar Joint Stock Company Vietnam
2 Flour Binh Dong Flour Company Vietnam
3 Flour Uni-President Vietnam Co., Ltd. Vietnam
4 Tapioca Vietnam Tapioca Co.Ltd. Vietnam
5 Powdered milk, A Quan Co.Ltd Vietnam

additives
6 Packaging Thanh Phu Company Vietnam
7 Packaging Liksin Corporation Vietnam
8 RE Sugar Olam International Ltd Singapore
9 Shortening BS 42; Speciality Ingredient Management Malaysia
10 Gelatin 150, 250 Speciality Ingredient Management France
11 Spice Robertet France
12 Chocolate Speciality Ingredient Management Singapore
13 Packaging, Carton Saigon Culture Printing Company, Liksin Vietnam

box Corporation
14 Capolex Far East Kontor Ltd Denmark
The above-mentioned suppliers are reputable manufacturers in the worldAnd Vietnam in the
field of raw materials and fragrance of confectionery industry, the purchase is approved by
signing each quarterly contract/year to get the stability of the material source, and the
company has the best purchase price.For suppliers, Bibica often consolidates long -term
cooperation with the majority of old suppliers due to reputation to meet the needs. In
addition to the familiar suppliers the company also actively researches and learns new
suppliers to choose a rich source of raw materials, competitive prices and quality to better
meet the needs of customers. However, there are some special items with only one standard
supplier, the company still has to sign a contract to ensure the traditional confectionery
flavor has been received by consumers throughout the country
3.2.1. Determine the needs and budget norms
First, in order to ensure the effectiveness of the purchasing, Bibica will consider the
consumption compared to the forecast, inventory of goods and inventory amount to
determine the list of goods to be purchased, the requirements of all kinds of goods.
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Chemistry, quantity of goods to be purchased, budget for purchasing, how much the price
of products is to suit the budget. An important step in the process of determining the demand
for purchases is that Bibica will evaluate it every 3-6 months to see which goods sell bad,
not interested by consumers to remove from the system and up. The plan to buy new goods
is suitable for consumer trends.
This is an important step in Bibica's purchasing process, determining the right quantity of
goods to buy can help businesses optimize costs, avoid excess inventory and suffer too much
cost storage of goods.
3.2.2. Sources Purchasing activities
The manufacturer is stable, reputable, ensuring the input quality, so To maintain a stable
production, Bibica often signs a year contract with partners. When choosing a supplier,
Bibica often compares the price of many suppliers to choose the most reasonable price to
buy materials, but still ensure high quality to be able to maintain the cost of raw materials at
the level reasonably stable.
Because they are large and long-term customers, Bibica has some incentives such as partners
who understand technical requirements, and business nature in each season, the period of
the year, so they have a reserve for Bibica when necessary. This is a very important factor
that Bibica has, Bibica ln is proactive in the source of materials to produce. Most suppliers
are located near the production facility, so they save shipping costs. However, due to the
annual price of raw materials increasing with inflation, the company must adjust the selling
price to ensure the profit in accordance with the plan.
Vietnam has a tropical climate, the supply of raw materials in the country is affected by crop
failure, drought and floods. Therefore, Bibica Company also regularly imports additional
raw materials from traditional suppliers from countries with developed agricultural
backgrounds such as the US, Australia, Thailand, China, to prevent and supplement when
the source Domestic ingredients. The annual average imported raw materials accounts for
about 15% - 20% of the total production materials of the company's confectionery products.
The price of imported raw materials is 10% higher than the domestic raw material price, but
in return, the quality is better. Store longer. Therefore, the demand for raw materials for
production is guaranteed continuously and the price of products is stable.
In general, the "supplier" factor has little adverse effects on the production and business
situation of Bibica, due to the abundance and initiative of raw materials in the market.
3.2.3. Supply operation from suppliers
The exchange and sale of goods with suppliers mainly through the signing of long -term
contracts to have price stability and raw materials. Because the cost of sugar and wheat flour
accounts for a large proportion of product costs, the fluctuations in the price of these
materials all affect the price.Usually after the company sends the order, the feedback from
the supplier is 1-3 days, the delivery progresses.
For Asian suppliers, 10 days for sea and 3 days for airways, for European and American
suppliers, 25 days for sea roads, 7 days by air. The delivery of the goods is only occurring
when the company needs urgent goods and small quantities because the cost of transporting
by air is usually very high.
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Table 1. Delivery ratio of suppliers
Type of goods provided On time Delivery rate Late delivery rate

(%) (%)
1 Processing materials 85% 15%
2 Tools, equipment or other 88% 12%

materials
Source: Summary from the purchase block
3.2.4. Payment policy for suppliers

Bibica company always pays suppliers in accordance with the agreement stated on the
contract. However, there are many cases of force majeure that is not timely paid to the
supplier, so sometimes the supplier refuses to deliver new orders, which makes it more or
less difficult for the production situation of the company.
3.2.5. Management of vehicles and equipment
Regarding vehicles, the company had previously established a separate fleet specializing in
transporting all materials, materials and finished products; At the same time, signing more
contracts with cars outside the room in case there are not enough vehicles in the peak seasons
such as Mid -Autumn Festival and New Year
However, from 2015 to the present, the company has assigned the trucks that have been
purchased for previous drivers, on the one hand, it gives workers more income, on the other
hand, the company does not have to pay for repair costs, and manage a fleet cost
3.3. Product’s production process flow
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Figure 2. Hura and Hura Deli Product Process
3.3.1. Receipt of production materials and supplies
Materials such as eggs, flour, cornstarch, shortening, salt, sugar, chocolate, packaging... will
be received and checked before being warehoused to receive quality materials, and supplies
and put into production and ensure the right type and quantity of production.
3.3.2. Prepare materials
Prepare egg solution and other ingredients for dough and cream mixing.
3.3.3. Quantitative
Weighing according to the correct recipe for each product to ensure the quality of the finished
cake
3.3.4. Mix the dough
The powder mixing process consists of 2 stages: dry powder mixing and wet powder mixing.
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Mixing dry powder helps to create a uniform mixture of different ingredients so that when
mixing wet powder, these ingredients are easier to disperse into the emulsion system more
evenly. Wet dough mixing helps Mix flour ingredients and emulsions to obtain a dough that is
flexible, loose, and spongy increases the puffiness of the cake after baking ensures the cake has
certain moisture and creates a satisfactory liquid powder solution.
3.3.5. Stability
To stabilize the dough structure formed, lowering the temperature of the dough.
3.3.6. Harmony
To create a porous, smooth texture for the dough
3.3.7. Pour the dough
To pour Cam 70V pough
3.3.8. Grilled
Changing the state of raw flour to cooked flour, killing microorganisms in the cake block,
changing the structure, and chemical composition, and improving product quality to match the
requirements of each type of product.
3.3.9. Cool down
To lower the cake temperature to ambient temperature, do not allow frost on the surface of the
cake after packaging. In addition, to stabilize the cake structure that has been formed, lower
the moisture in the cake.
3.3.10. Cut across
To shape the cake horizontally and cut off the edge of the cake because the edge is harder, the
color is darker than the other parts.
3.3.11. Mix cream
To create a homogeneous cream mixture, without phase separation.
3.3.12. Stabilize the cream
To create texture for ice cream
3.3.13. Air - condition
The cream is pumped to the torn head where aeration occurs cream, before that the cream
passes through the cream combs to keep the ingredients from clumping when whisking the
cream. The high-speed rotation of the blades inside the tearing head, which helps to break up
the ingredients making them softer, combined with the aeration process, makes the ice cream
more porous. Aeration is introduced into multiple positions of the torn head to ensure uniform
aeration.
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3.3.14. Spread cream
To spread the cream in layers on the cake in alternating layers
3.3.15. Cross cut
After the cake layers are formed, the conveyor belt moves to the horizontal cutting device, the
iron blade moves up and down thanks to the operating principle of the pump and the air release.
The blade rotates at great speed thanks to the drive of the wheel saw motor into small
rectangular blocks according to the required wheel size. The cakes are cut into pieces with a
cut length of 60 - 68mm for 15g, 74 - 75mm for 18g, and 54 - 56mm for a 28g cake.
3.3.16. Melt
To melt the chocolate block in preparation for the chocolate decoration process.
3.3.17. Refrigerate
The cake coming out of the chocolate cake decorating room is transferred to another conveyor
that moves the cold cellar. The temperature of the cold cellar is 10 OC, the cold cellar has 20
small rooms, and the rooms are equipped with UV lights to destroy microorganisms in the cake
to ensure the quality of the cake. With the Deli cake open, cold air flows in the room to cool
the chocolate patterns that have just been decorated on the cake.
3.3.18. Package
The level 1 package creates the smallest unit product, helping the product to avoid the external
effects of the environment and the quality of the product in the long-term storage. Level 2
package facilitates transportation, storages, and increases sensory value and attractiveness for
products.
3.3.19. Finished Products
Using the trailers to move the crates to the warehouse, before performing the production and
delivery checks with the finished product storekeeper.
Requirement:
No Criteria Requirement
1 Color The surface of the cake is bright yellow, in the middle there is
a thick layer of cream
2 Taste Signature of the product
3 Status Soft, spongy, melts easily, no raw or burnt cakes
4 Strange impurities None

Table 2. Factor of Finished Products
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No Criteria Unit Standard level
1 Coliforms VK/g 10
2 Clostridium perfringens VK/g 100
3 Staphyococcus aurus VK/g 10
4 Samonella VK/25g 0
Table 3. Microbiological criteria of Finished Products
This is MTS method product process. Bibica chose this method to allow customer orders to be
filled instantly from available stock. It also allows manufacturers to organize production in a
way that minimizes costly changes and other disruptions. High risk in placing finished goods
in inventory with no demand or orders from customers. These risks tend to limit the MTS
environment to simple, diversified, or low-commodity products for which demand can be
easily forecast.
There are many factors that affect product quality. Factors can be divided into two groups:
external factors and internal factors. The group of external factors includes the following
factors: economic demand, market demand, economic level, production level, creation of new
or alternative materials, improvement, or innovation. technology, product improvement, and
testing new products and the effectiveness of the management mechanism. For the actual
situation of the company, this group of factors has little influence on product quality and mainly
considers groups of factors within the organization.
In the micro organization (group of factors within the organization), we pay special attention
to 4 basic factors (4M) affecting product quality:
- People (Male): The workforce inside the organization includes managers, leaders, employees,
and direct production. The capacity and quality of each member and the connection between
members have a direct influence on the quality.
- Method: Method of technology, organization and management, and production organization.

With appropriate technological methods, with a good level of management and production
organization, it will create conditions for the organization to best develop existing resources,
contributing to improving product quality.
- Machinery: The ability of the organization's technology, machinery, and equipment

organization. The level of technology and equipment has a great impact on improving the
technical features of products and improving labor efficiency.
- Materials: Supplies, raw materials and the organization's system to ensure the organization's
supplies and fuels. The source of materials and materials is guaranteed to meet the quality
requirements and is provided in the right quantity and on time, which will create certain
conditions and improve product quality.
In addition to the 4M factors mentioned above, the group of factors inside the organization also
includes information (Information), environment (Environment), measurement
(Measurement), and system (System),...
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With the customer-aware formula at the heart of all our activities, our company is committed
to building, documenting, implementing, and maintaining a quality management system and
regularly improving its effectiveness. the system according to the requirements of quality
management standard ISO 9001:2008 and food safety and hygiene standard HACCP Code:
2003. The company's quality system is built in accordance with the requirements of the HACCP
Code standard. :2003, presents a unified format with ISO 9001:2008. In addition, the company
is currently applying an improvement model according to 5S.
The company's quality management system applies the provisions of ISO 9001:2008 (clauses
4, 5, 6, 7, 8; each clause is divided into sub-clauses), except not apply clause 7.5.2 on Validation
of production and service processes because all of these processes of the company have outputs
that can be verified by monitoring, measure. In the quality management system, the company
also conducts the making of quality management diagrams of the parts in the system. It
describes in detail the input of the process, the process of transforming the program, the output,
avoid the approval tasks of the departments and the process of the Board of Directors, the Head
of the Department. In the quality management system, the company also applies the
improvement model according to 5S. The company invests in 5S message boards with a variety
of content on quality improvement product quality and work quality. The forbidden rooms are
applying 5S because of the quality of work.
The 5S program first appeared in Japan, then expanded to other countries.
The purpose of applying 5S is to improve the working environment and help the application of
the quality system, increasing customer confidence. Content of 5S implementation:
- SEIRI: Screen, sort and remove unnecessary items from the workplace.
- SEITON: Arrange the necessary items in an optimal order for easy use.
- SEISO: Keep the workplace clean so that there is no dirt on the field houses, machinery, and
equipment.
- SEIKETSU: Maintain a comfortable and efficient workplace by repeating regularly

throughout the above 3S.
- SHITSUKE: Ready stock. Train people to have a sense and habit of implementing 5S
regulations in the workplace
3.4. Distribution channels of products
3.4.1. Customer Relationship Management
Bibica's customers are divided into 3 main customer groups: GT distribution channel (including
all distributors), MT channel (including all supermarkets), and special channel (including
schools, hospitals, and channels. organization sales, export). Which, the distributor channel and
the supermarket channel show a binding relationship by signing an annual contract, while the
other special channel is only shown through the statement of commitment to the main purchase
and preferential policies. GT channel: including 117 distributors and over 14,000 agents, retail
points covering all provinces and cities nationwide, this is the channel with the highest
proportion of total sales in the country. MT channel: sales channel to supermarkets, the
company's products are available on most shelves of big supermarkets such as Co-op mart, Big
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C, Metro... Special channel: sales channel to schools, hospitals, sales to organizations, and
export, this is a channel that brings high revenue during the Mid-Autumn Festival and Tet.
Depending on the requirements of the customer, the volume of goods the customer needs to
buy, and the delivery location, the company will decide on the appropriate form of
transportation. To save costs the company tries to coordinate the delivery schedule according
to the route. The dispatch department will arrange to combine different orders to achieve the
optimal load, then deliver the goods.
Figure 3. Bibica’s distribution system
For sales channels besides exclusive discounts, the company also offers incentive policies to
support other sales in each cycle to promote the consumption of goods such as supporting
promotional products. , discounts on products on special holidays of the year, ..and advertising
and marketing activities (Ads on television, participating in product introduction sessions at
fairs, scientific seminars on nutrition, etc.), participate in community activities to enhance
brand value and reputation in the eyes of consumers.
Currently, Bibica is focusing on building relationships with distributors mainly because this is
the channel that accounts for a high proportion of the company's revenue. To manage and
improve the relationship with distributors, the Company has the Sales staff to regularly monitor
sales at the distributors as well as support the distributors' retail stores to keep up to date. Update
product consumption information, customer feedback as well as market information. However,
the company only
has just stopped building sales relationships with distributors, has not yet built relationships
with retailers, and assigns the task of controlling retailers to distributors but many distributors
work as distributors for many different manufacturers. Therefore, these distributors have not
really put their efforts into taking care of the company's products to retailers and end
consumers.
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Policies to support salary and bonus for PG force standing shop at retail stores and distributors
as well as rewarding sales targets that have not been determined on time make PG force and
distributors unhappy leading to dissatisfaction. delayed sales promotion to meet consumer
demand.
Searching for new customers to expand the sales system throughout the provinces has not been
focused, almost the search for new distributors only arises when the old distributor dissolves.
The assessment of the capacity (financial, sales reputation, ..) of new customers has not been
interesting, leading to the quick opening but also quick liquidation.
3.4.2. Customer Service Activities
The company manages orders according to the ERP system (Enterprise Resource Planning)
Oracle E-Business Suite Release, so the exchange of data back and forth in the supply chain
happens quickly.
Figure 4. Order processing
Customer Service Department staff will receive orders via fax, email, and phone. According to
the above procedure, normally when receiving an order from a customer, the customer service
department will process the order on the ERP system and then respond to the processed order
to the customer by fax or email, because orders are made on the ERP system, so the warehouse,
accounting and related departments will be able to connect the orders immediately to provide
the necessary invoices and documents without taking much time. If the quantity of goods is
enough to meet the order, the Customer & Service Department, Logistics department, and
dispatch department at the factories will schedule delivery for customers: within Ho Chi Minh
City and the vicinity of the factory, the delivery time is 1 day. For customers in neighboring
provinces, the delivery time is from 1-2 days, in the Central region and out, the delivery time
is from 3-5 days.
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3.4.3. Manage warehouse operations
Bibica Joint Stock Company conducts warehousing activities at the main warehouses in Bien
Hoa, Binh Duong, and Hanoi factories, intermediate warehouses, and controls the number of
goods at the distributors according to the cycle. period and according to the needs of the
customer. Due to poor coordination between warehousing and forecasting, when there are
erratic fluctuations in market demand and inefficient peak periods of order, temporary
shortages of goods still occur in this period
Two external factors that affect the location of a warehouse are geographical location and cost.
Bibica Bien Hoa factory is a major factory producing confectionery and confectionery
products, so the delivery rate to customers in the southern provinces is higher on time than in
the North (because it takes more time, traffic situation from South to North, the influence of
weather,…). In addition, at present, the Company's strategy is "low cost, stable quality", so
reducing costs to reduce costs is an indispensable requirement. In the supply chain, Bibica is
implementing measures to reduce operating costs with the goal of reducing 10%, reducing
transportation costs by 5%, and warehousing costs. If in all stages of the supply chain, the
company controls and reduces a part of costs, the costs of the whole system will be significantly
reduced, and this is also the goal of supply chain management.
Two internal factors that bring success to Bibica are quality of labor and competitive advantage.
It can be said that the success of Bibica is thanks to the business that appreciates the strength
of the collective. As of the end of 2019, Bibica has nearly 1,000 employees including in various
subsidiaries. Before joining the PAN Group in 2015, Bibica's personnel apparatus was operated
in a relatively methodical manner. After returning to the common house, the PAN Group has
accompanied Bibica to improve both its human resource structure and individual development
through many new human resource strategies, many professional training programs, and
coordination. building many quality management systems to improve the capacity of each
individual and the whole team. In the context of increasingly fierce market competition, Bibica
has been making efforts to maintain its growth rate over the years. Currently, the company
owns 03 factories in Bien Hoa, Hanoi, Binh Duong, with over 10 modern production lines and
the ability to supply 70 tons of confectionery per day. Bibica Confectionery Company strives
to reform Bibica as a pioneer in the confectionery industry applying a quality management
system according to ISO 9001 and ISO 22000 standards, ensuring Bibica confectionery
products are always under quality control. Strictly quality products from input materials to
finished products, so that when they reach consumers, they are safe, quality products with
nutritional value and ensure food hygiene. All products are manufactured on modern
production lines in Europe such as the UK, and Italy... with advanced technology that meets
HACCP standards and completely natural materials.
3.5. Goods return processes
When the goods reach the customer but do not meet the quality standards, the Company will
conduct a recall of the goods to check and return the product to the customer promptly if it is
determined that the error has arisen from the Company.
The company usually conducts a recall operation in the following cases:
- For products that are close to the expiry date, unpopular items in each region sell slowly to
flexibly move goods to better-selling areas to quickly push these items to the market.
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- Focus on quickly recalling defective products due to manufacturing defects such as defects
in appearance (packaging, quality, ..) affecting business reputation and consumer health.
- Due to the characteristics of fast-moving consumer goods, for some products that are sold
slowly by distributors leading to near-date, the Company also supports the recall of goods and
exchange of goods with long-term dates for distributors depending on the date. according to
the accompanying agreements.
4. Basing on the business and supply chain strategy:
4.1. Identify the most similar strategy of the company among the following: (1) Lean
supply chain, (2) Sustainable supply chain, or Agile supply chain. Use empirical evidence
of the business activities to support your opinion.
To facilitate the determination of the supply chain development direction closest to the
company's development orientation; the group will propose business activities based on the
SCOR model mentioned in question 3.
About the application of information technology in the supply chain:
Bibica's business strategy is that the company is constantly improving the management,
reducing costs, optimizing the production process to introduce the best products and services
with the best price. To do that, Bibica has deployed MFCA tools at factories, in order to reduce
waste in production from 1.69% in 2015 to 1.57% in 2016. At the same time, invest in new
chain projects in products like cookies with a capacity of 20 tons/day; bread aims to diversify
products on the bread transfer rope at Hanoi factory... In addition, Bibica also implements a
solution to improve the moisture of the roller cake higher than only 1% but make more foam
cake and help Bibica reduces waste of materials to 400 million VND per year; research
solutions to improve the quality of moon cakes (this has contributed to increasing sales for the
first time reaching 100 billion, exceeding 3% of the plan).
Currently, Bibica has used a lot of 4.0 technologies to the management system such as: M.office
(Electronic Office), Office 365 (Business Connection), Oracle - ERP (Business
Administration), DMS and DMS and PDA (Sales system management and distributor), HRM
(Human Resource Management System)... These are the premises for Bibica to continue
putting the best software in the world into the management and construction system Building
future sales solutions, shortening the connection time with domestic and foreign partners, and
shortening geographical distance despite the difficult situation. In addition, thanks to the Pan
Group being strong in food, Bibica gathered leading manufacturers in Vietnam to develop an
on-premise channel (on-site consumption channel) - sales channel providing products for the
system of restaurants, hotels, shops, cafes, bars... In addition to providing the entire product
system, this channel also integrates many technological solutions, helping partners to manage
and build the system, reduce the system, reduce costs and increase business efficiency.
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About inventory situation:
VND
No Year Inventory Value Deviant
1 2019 93.337.455.984
2 2020 130.864.135.243 37.562.679.259
3 2021 119.019.919.369 -11.844.215.874
Source: Annual report over the years
Through the above data sheet, we see that the inventory value in 2020 increases compared to
2019 with the amount equivalent to VND 11.84 billion. However, in 2021, inventory value
decreased compared to 2020, equivalent to the amount of VND 37.56 billion. This shows that
the company has made an effort to reduce the value of inventory to increase the amount of cash
and save costs for the company.
About vehicle management:
From 2010 to now, the company has assigned the trucks that have been purchased for previous
drivers, on the one hand, it gives workers more income, on the other hand, the company does
not have to pay for repair and management of a fleet. Currently, the company is signing a
shipping contract with two service companies: Nam Van and Thang Loc. The current number
of vehicles is about 42 vehicles with a tonnage of 500kg to 10 tons. In addition to transporting
products to the North, the company also signed a contract to transport containers by sea. The
advantage of sea transport is that it can transport large quantities at a cheaper cost than road
transport.
After analyzing the company's mission and business strategy as "Low Cost Strategy" , we can
come up with Bibica’s supply chain strategy that is consistent with the outlined business
strategy as an Efficient Supply Chain.
4.2. Suggest two realistic solutions to improve the mentioned strategy. Solutions should
be linked to one of the processes in their SCOR model in Question 3.
4.2.1. Solutions for inventory operations:
For manufacturing enterprises, inventory management is always a very important and special
issue. Because inventory management is implemented effectively, it will help businesses
reduce costs for storing raw materials, avoid occupying a lot of capital for inventory, and reduce
costs for renting warehouses to store raw materials, while ensuring adequate supply of raw
materials for production.
Category 2019 2020 2021
Cost of goods sold (VND) 1.019.916.536.412 889.301.451.589 770.006.470.567
Inventory Value (VND) 93.337.455.984 130.864.135.243 93.337.455.984
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Inventory turnover (times/year) 9,4 7,3 5,4
Source: Financial report over the years
Inventory is a liquid asset, it is always moving. In order to speed up the turnover of working
capital, each period in which working capital is retained must be shortened, and inventories
must be properly stocked. The situation over the past 3 years has been continuously decreasing.
In 2019, inventory turned nearly 9 times, indicating the largest consumption time, proving that
the inventory turnover is very fast, the number of days in the warehouse is reduced and the
efficiency is reduced. capital efficiency is improved. In 2020, inventory turns 7 times, the
inventory turnover rate is still fast, showing that capital efficiency is still stable, but there is a
slight decrease compared to 2019 mainly due to the decrease in cost of goods sold from
1.019.916.536 thousand dong in 2019 down to 889.301.452 thousand dong in 2020 and
gradually increasing the value of inventory over the years. The year 2021 shows a continued
decline in inventory turnover from 7,3 in 2020 to 5,4 in 2021, signaling a backlog of inventory
due to a decrease in COGS but an increase in the value of inventories during the year reduces
the inventory turnover rate. Holding too much inventory means capital is inefficiently used
(cash flow will decrease due to underperforming capital and thus interest will increase). This
increases the cost of holding inventory and increases the risk that this inventory will be difficult
to sell because it may not match consumer demand as well as a weaker market.
Therefore, enterprises need to release inventory quickly to avoid the loss of value after long-
term inventory storage, and should consider to determine if the inventory period is reasonable
according to the business cycle. business and the industry average as well as a reasonable level
of inventory to ensure normal supply.
Determining the effective ordering scale is to manage inventory in order to reduce storage costs
to the maximum while maintaining the level of service required by the customer. The increase
in order size first increases the amount of inventory and then increases the average inventory
level, which will increase inventory costs. On the other hand, with the assumption of annual
demand; Bibica must know in advance the order cycle, short and constant order cycle; The
shortage of inventory does not occur; The increase in order size will reduce the number of
orders, thus reducing order costs and some other costs related to orders. Thus, the order size
affects costs in two opposite directions. The total cost of ordering can manifest on two types of
costs: inventory costs and order costs.
Inventories in Bibica have two forms: Inventory in the company's warehouses and inventory in
distributors. Currently, inventories at distributors are almost not tightly controlled and cannot
control the expiry date as well as the quantity. When placing an order, the sales admin
department needs to keep a close eye on inventory issues at the distributor to have reasonable
sales forecasts and plans.
In order for the warehouse to always have a reasonable level of existence, the company needs
to perform well the coordination of goods and control the supplier. In order to manage the
supplier, the purchasing staff coordinates with the quality management department to evaluate
the supplier every 3 months. The evaluation is based on the actual situation in trade to evaluate
the quality, delivery, transport equipment ... These assessments are sent to the planning
department and the workshop reference and the direction in the purchase. ingredient. If the
supplier has poor quality and service, gradually replace these suppliers. And also from the
above reviews, find the best quality supplier to maintain relationships, or potential suppliers to
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help them understand how to work and quality standards of the company, to modify good
quality and service, become a long-term supplier in the future
4.3. Solutions to complete the cost reduction plan:
The company needs to plan costs to reduce costs in all management departments, production
processes, transportation, packaging ... and especially pay more attention to the problem of
existence so that the real value of socks Both expenses are reflected more accurately and the
business will be more effective.
The company needs to enhance the quality control of stages such as importing materials,
production and inventory is the main measure to lower costs. The cost of material costs is
closely related to the product cost calculation. Because the volume consumed is low, the
production volume is high, the cost of raw materials will increase profits for the company.
Saving external buying services and other cash costs, making compensation to reduce costs
when exceeding the packaging supplies for suppliers violating contracts.
The company needs to increase productivity, the volume of products produced to reduce fixed
costs. On the other hand, it is necessary to ensure regular processing materials and increase the
purchase of raw materials to have good production conditions and limit the work of workers to
quit because of lack of raw materials.
Bibica needs to educate the sense of saving and combating waste for all employees, associated
with the encouragement, reward and timely sanctions for workers' production workers
associated with the encouragement and encouragement. Reward and timely sanction for
workers who do not comply with savings such as increasing product norms, exhibitions of raw
materials, electricity, water ... These costs can be saved properly and well when the
consciousness of the person Good labor, but besides that, there must be a number of regulations
to limit the exhibition when using the above vehicles.
5. Conclusion
5.1. Remarks on the overall success of the operations and supply chain management
(OSCM) of the firm.
Every year, the company has plans to target the output of finished products, detailed plans for
each type of product, production norms .... Each department is also based on annual production
needs, monthly for monthly and monthly production. Make a detailed plan for the room and
each member of the room arrangement for each person.
The company's raw materials are mainly products from agricultural products, so the supply is
relatively stable, currently the company has a clear supply assessment process with criteria
such as finance, prestige, basis Material, storage level, quality of raw materials …
The Bibica company ranked No.2 in Vietnam's confectionery market and for many years,
Bibica was also voted as a national brand. Despite the influence of the general situation of
economic and epidemic, compared to the Bibica rivals still have good performance.The
advantage of the strong and uniform distribution system, long -term cooperation has always
been maintained and increasingly promoted.
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In order to enhance the competitiveness of price and in the situation of the world being
degraded globally, the company has initially taken measures to reduce the types of expenses
incurred in the production process (owner. Weakness is input price inflation), circulation costs,
product distribution costs and even sales promotion. The other eye also shows the positive
signal from the beginning of 2022 until now, because the last 2 years Bibica has actively shared
difficulties with customer agents but now has gradually recovered the indicators of the
business. Revenue, profits, receivables, inventory rotation, ... in a positive direction.
Technology upgrade investment is always strongly invested by the company. Bibica's

production capacity is huge and plans to increase output to meet the increasing demands of the
market and peak stages. In addition, Bibica products have increasingly gained large market
share in Vietnam and export through countries such as the US, Japan, Thailand, Malaysia,
Indonesia, ...
5.2. Summary (Relate the role of OSCM to the selected firm under many uncertainties
these days.)
Good supply chain management will bring competitive advantage. A good competitive strategy
is a strategy that can maximize the effectiveness of the value chain in the business, starting
with the development of new products, marketing/sales, production, distribution and services.
The implementation requires the participation and uniform coordination of parts in the chain,
from the new product development strategy to provide orientation of any product development
in the future; Marketing and sales strategy identifies market segments, product positioning
methods, valuation and sales policies to the strategy of purchasing, transportation, inventory,
distribution, customer service, etc.
For companies, supply chain management plays a great role, because it solves both the output
and input of the business effectively. Thanks to the optimization of the process of rotating
materials, goods and services, SCM can help save costs, increase competitiveness for
businesses. There are many businesses that have achieved great success by applying the
appropriate SCM solution, on the contrary, there are many companies that have difficulty and
failure due to making wrong decisions, such as choosing the wrong source of the original
supply. Materials, choosing the wrong warehouse location, calculating inappropriate reserves,
organizing trouble transportation, overlapping…
OSCM plays a key role in bringing the product to the right place to come at the right time. The
biggest goal of SCM is to provide products and services to customers with the smallest cost.
29

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TÀI LIỆU THAM KHẢO
1. “BÁO CÁO KẾT QUẢ SẢN XUẤT KINH DOANH NĂM 2020 VÀ KẾ HOẠCH NĂM
2021.” BÁNH KẸO TRÀNG AN, 19 April 2021,
http://trangan.com.vn/uploaded/CoDong/2021/TB_HOP_AT_9.pdf. Accessed 11 December
2022.
2. “Giải pháp triển khai hệ thống hoạch định nguồn lực doanh nghiệp ERP tại các doanh
nghiệp Việt Nam.” Tạp chí Công Thương, 4 July 2018, https://tapchicongthuong.vn/bai-
viet/giai-phap-trien-khai-he-thong-hoach-dinh-nguon-luc-doanh-nghiep-erp-tai-cac-doanh-
nghiep-viet-nam-28984.htm. Accessed 11 December 2022.
3. “Kiểm soát 2.” SlideShare, 20/10/2015 October 2015,
https://www.slideshare.net/DucDungDucDung/kim-sot-2. Accessed 11 December 2022.
4. Lê, Giang Thị Trà. “Hoàn chỉnh BIBICA.” Academia.edu, 2016,
https://www.academia.edu/38786628/Ho%C3%A0n_ch%E1%BB%89nh_BIBICA. Accessed
11 December 2022.
5. “Losing Paradise.” YouTube, 29 October 2012,
https://www.studocu.com/vn/document/truong-dai-hoc-cong-nghe-thanh-pho-ho-chi-
minh/kinh-te-chinh-
tri/bibica/35625646?fbclid=IwAR0Zszn6B8sBlu2RKwLDyEiKXjzpLhyEFRcBR_0oFfME-
LRZLtCvLpOTlpc. Accessed 11 December 2022.
6. Nguyễn, Nhi Ngọc Yến. “Bibica: “Tổng tiến công” vào ngành thực phẩm trong năm
2021.” The PAN Group, https://thepangroup.vn/bibica-tong-tien-cong-vao-nganh-thuc-pham-
trong-nam-2021-2809.htm. Accessed 11 December 2022.
7. “Nhóm 4, phần tích tình hình tài chính công ty bibica -BỘ TÀI CHÍNH- TRƯỜNG ĐẠI
HỌC TÀI CHÍNH.” StuDocu, https://www.studocu.com/vn/document/truong-dai-hoc-tai-
30

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chinh-marketing/phan-tich-va-du-bao-trong-kinh-doanh/nhom-4-phan-tich-tinh-hinh-tai-
chinh-cong-ty-bibica/26046481. Accessed 11 December 2022.
8. “Quy trình sản xuất bánh kẹo Bibica.” Cùng Hỏi đáp, https://cunghoidap.com/quy-trinh-
san-xuat-banh-keo-bibica. Accessed 11 December 2022.
9. “Thị phần bánh kẹo Việt Nam năm 2022.” Mới cập nhập, https://moicapnhap.com/thi-
phan-banh-keo-viet-nam-nam-2022. Accessed 11 December 2022.
10. “Thị trường bánh kẹo Việt: cuộc đua 'ngọt ngào' của những người cũ - Tạp chí Kinh tế
Sài Gòn.” Saigon Times, 18 September 2022, https://thesaigontimes.vn/thi-truong-banh-keo-
viet-cuoc-dua-ngot-ngao-cua-nhung-nguoi-cu/. Accessed 11 December 2022.
11. “Untitled.” Bibica, http://www.bibica.com.vn/templates/pictures/files/94_20220420%20-
BBC%20-%20BAO%20CAO%20THUONG%20NIEN%202021.pdf. Accessed 11
December 2022.
31

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Bibica-Final-Report - Supply Chain Management

Studocu is not sponsored or endorsed by any college or university

FINAL EXAM REPORT

Lecturer: Master Tran Thi Anh Tam

Class Code: 22C1BUS50313501

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FINAL EXAM REPORT

Lecturer: Master Tran Thi Anh Tam

Class Code: 22C1BUS50313501

Downloaded by HUYEN PHAM THI KHANH (huyenpham.31211572205@st.ueh.edu.vn)

Nguyễn Phước Lộc 31201025486 locnguyen.31202015486@st.ueh.edu.vn

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4.3. Solutions to complete the cost reduction plan: -------------------------------------- 28

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1.1 Introduction of the Bibica

1.1.1 Bibica’s history and background

Bibica Corporation is one of the top

The history and development of Bibica:

1.1.2 Products of Bibica

- Cake: Pie, sponge cake, cookies, cracker or mooncake.

- Candy: hard candy, soft candy or jelly

- Other: nutritious products such as cereal or powdered milk, chocolate, syrup.

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1.1.3 Bibica’s competitors - Kinh Do & Hai Ha

1.2. Overview of the confectionery industry context

1.2.1. General assessment of Vietnam's confectionery industry in 2020-2021

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According to preliminary statistics of the General Department of Customs, exports of

1.2.2. Trends and development potential of the confectionery market

Besides, with the development of technology, consumers are "empowering" themselves in

1.2.3. Bibica's position in the market

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"Along with about 30 industrial-scale enterprises, Bibica is contributing significantly to about

2.1 Bibica’s domestic supply chain

Figure 1. Bibica's domestic supply chain

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2.2. Detail of 3 flows of Bibica’s supply chain

2.2.1. Material Flow

- Stage 1: Importing materials from suppliers.

- Stage 6: And finally, customers can approach the products.

2.2.2. Information Flow

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2.2.3. Financial Flow

Currently, the company's planning department is in charge of the following activities:

Evaluate the Record and

- Maintain stabilizing sales market share of existing agents.

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3.1.1. The most competitive factors in the OSCM strategy

- Enterprise Resource Planning (ERP): Business resource management - a multi -module

+ On October 1, Bien Hoa Confectionery Company (Bibica) officially signed a contract to

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- Applying distribution management system DMS:

DMS (Distribution Management System -) is a professional solution to help effectively manage

3.1.2. Comment on the OSCM strategic plan of Bibica

- Hai Ha has a relatively large

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marketing activities infrastructure is still small, unable

Conclusion: Compared to 2 competitors, although it is still behind Kido in terms of market