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BUS305 Date: 02/12/2023

Export
Research
Project - Step 2
Professor: Dr. Cam Tu Doan & Dr. Tessa Tien Nguyen

LE THANH NGAN
NGUYEN BAO GIANG
NGUYEN THANH HUY
LE NGUYEN DANG KHOA
TEAM BE SERIOUS
VI KHANH TRANG
Team Be Serious

NGUYỄN THANH HUY NGUYỄN BẢO GIANG LÊ THANH NGÂN


31211026603 31211022120 31211023824

LÊ NGUYỄN ĐĂNG KHOA VI KHÁNH TRANG


31211022316 31211020078 2
Table of Contents

1. Executive Summary
2. Key Research Question and Result
3. Company Analysis
4. Trends and Challenges
5. Preliminary Recommendations
6. References

3
Executive Summary

4
Executive Summary
GODACO Seafood exporting strategy to Canada
Context market for Pangasius Well-trimmed Fillet
Improvements for packaging & weighting process

Analyse GODACO Seafood packaging procedure of


Pangasius Well-trimmed Fillet for exporting from
Objectives Tien Giang to Toronto for further improvement
Propose short, medium & long-term
recommendations for related packaging issues

Key Product Pangasius Well-trimmed Fillet

5
Executive Summary
Vertically integrated system
Competitive Stable and consistent quantity
Advantage Quality management
Full traceability
(Godaco Seafood, n.d.)

Short-term: Process improvement


Maintain sealing machine
Improve defect detection procedure
Recommendations Operator training
Medium-term: Seal-Sensor PQX for inline
inspection
Long-term: Replacement of sealing machine
6
Research Question
&
Results

7
Methodology

Interviewee: Mr. Phan Cong Ven


Business Development Executive
Take the key role in Packaging &
Weighting management process
Interview duration: 02 hours
Interview context: face-to-face interview
at Godaco Seafood Office in Tien Giang
Province

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Research Question

How should GODACO Seafood improve the


packaging procedure of Pangasius Well-trimmed
Fillet for exporting from Tien Giang to Toronto?

06
9
Key results

WHY
06
10
Toronto - Canada
Canada has been a regular export market for
Vietnam’s Pangasius companies.

Canada is Vietnam's pangasius industry's


second-largest export market in the CPTPP
market bloc.

92% of pangasius products exported to this


market are frozen fillets/cuts

In the first quarter of this year, the average


export price of frozen pangasius fillets was
relatively high, varying from $3.15 to 3.35/kg.
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Key results

WHAT
06
10
Flow
Center Tien Giang
Agricultural and
Fishery Quality
Management
Process and
Sourcing from package in Chau Customer testing at
Enterprise farm in Thanh, Ben Tre and Godaco's warehouse
Tien Giang & Ben Tre My Tho, Tien Giang in Tien Ginag

Toronto distributor Vancouver port Cat Lai port


Travel by train Liner: Hapad Loyd
11
Key results

WHO
06
10
Stakeholders

Supplier
in Inland
transport
Packaging
Long An Custom

Distributors
in Toronto
Freight
forwarder

Liner
Enterprise Hapag-lloyd
private farms Process

Testing
system
GODACO in Tien Giang

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Key results

WHEN

WHERE
06
12
Production
Go Dang factory Apply JIT Strategy
An Hiep Industrial Park, An Hiep
Commune, Chau Thanh District,
Ben Tre Province
Production time
1 day (available materials)
An Phat & An Hiep factory
Enterprise farm in 1.5 - 2 days (without
My Tho Industrial Park - Trung An
Tien Giang & Ben Tre Commune - My Tho City - Tien
Giang
enough material)

Inventory level

Productivity: based on the requirements of clients (processing technique, weighting),


the factories can make enough quantity of fish for 3-4 or 7-8 containers/day
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Post-production phase
Center for Quality of Agriculture, Forestry
Quality and Fisheries
Lead time

Inspect and take samples for testing 5 to 7 days


Assurance => Food safety certificate

Inland transport
Customers' Representative Tractor-trailer
Warehouse of Email the schedule
Transportation Lifting procedures (advance payment)
Godaco
order
Random Marine transport
sampling test Freight forwarder
Booking vessels, loading & unloading,
managing container

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Transportation

All the products Ho Chi Minh City Time from Canada Canada
are centralized Cat Lai Port container come Vancouver Toronto
at one large to the port to Port
Vung Tau Railroad
warehouse (miss Cat Lai CT) departure time Liner: CMA or (customers
Go Dang Cai Mep Port Hapag-lloyd take care)
factory
Time: 2-3h Time: 4 - 4.5 days Charge fee at Time: 6-7 days
An Hiep
port
factory
Time: 40 days
Time: 1-2 days

15
Transportation

Loading time: 0.5 to 1 day Distance: 83.3 km - Time: 2-3 hour


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Transportation

PORT
Vessel departure day
Closing time
How to optimize electricity bills
Total time: 3.5h - 4h

Closing time
Departure day Reduce electricity bill
7 a.m, 1/11 Loading
7 a.m, 3/11 7 a.m, 31/10
Loading and 0.5 to 1 day
Cat Lai Port Free electricity/ 24h
document finished

17
Transportation

18 (Hapag-Lloyd, 2023); (Searate, 2023)


Transportation

Unloading time: 1 to 2 days Time: 6-7 days


Distance: 4411 km 19
Key results

HOW
06
20
Sales contract
Production
department
Production criteria
Incoterms
Packaging
Packaging
Quantity
Planning department department
Delivery date issues production
orders Technical
International sales department
(booking) executives
deal with customers
Sales
Deposit: 20-30% of department
contract value

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Packaging & Weighting
Packaging material is purchased from 1 supplier in Long An
- near manufacturing plant - short delivery time

Material: PA Material: PE 40'


Capacity: 6 fillets Namecard Container and seal number
(Canada crits) Net weight: 10kg Refrigerated: -18C
Welding, sealing, (1kg*10; 2.5kg*4; 5kg*2) Max gross weight:
vacuuming Gross weight: 10.5-11kg 30,000kg

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Weighting
The capacity of ref container 40': Max gross weight of 1 pallet
35,000 kg (77,161 lbs)

Regulation
Ocean: max gross weight of Godaco: 35000 - 4700 kg
Railroad: max gross weight 27217kg

Caculation
Container 40': 12.025m long x 2.352m
wide x 2.393m 1 container
1 carton: 0.4m x 0.3m x 0.2m

80 cartons/pallet
23-24 pallets/container
Total weight: 19200kg

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INCOTERM
Depend on customer demand
FOB and CIF: Obligations transfer to customers when containers are on board
FOB = Value of goods
CIF = Value of goods + Insurance fee + Transportation fee

FOB more favorable for Godaco


Importer: Better prices for importers, experience
in international logistic management

CIF
However, Covid 19 may increase risk for customers

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INCOTERM
Depend on customer demand: FOB & CIF

Obligations transfer to customers when containers are on board

FOB = Value of goods CIF = Value of goods + Insurance fee


+ Transportation fee
Importer: Better prices for importers,
experience in international logistic Covid 19 may increase risk for customers
management

FOB more favorable for Godaco


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Documents
Export Document Requirements for Canada
Canada Customs Invoice
Bill of lading
USMCA certification of origin
Detail Packing list original
Safety certificate
Sales contract
Proforma invoice
Customs declaration
Insurance policy

(Noah, 2023)
(Government of Canada, 2023)
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Risk Management
The container temperature is not maintained at -18C

CARGO If the product are not been loaded yet, another container will be assigned

RISK Unexpected problem Freight forwarder will contact port employees


During the journey Cargo insurance

The ship bypasses the port where the container is located

DELAY Delay time: 7 days, the port will keep container at -18C, no overhead cost

SCHEDULE Expiry date: 2 years


Report to customers

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Landed Cost
Raw Pangasius Processing cost Inland transport
61,53% 31.54% 1,06%
Food Medicine Depriciation Workers Deprication Others
Breed Workers Package Ware house Tractor-trailer Loading
Fish farm Interest rate Transport Energy

Port fee Vessel Insurance


1,35% 2,16% 0,14%
Agent fee Emergency fuel
Service fee Electricity
Freight Forwarder Custom
Seal
Fumigation
Security
Upload/unload 1,09% 0,11%
(OOCL Loggistics, n.d., p. xx); (Searate, 2023); (Công ty Cổ phần Gò Đàng, 2013, p. xx) 26
Company Analysis
Packaging

27
Packaging Process
Theory

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(Open Textbooks for Hong Kong, 2016) (Choudhary et al., 2019)
Packaging Process
Situation
Expanded polystyrene
foam cooler top

Coolant

Proper fold-over bag closure

Seafood (Pangasius)
Packaging specialization
2-mil sealedplastic bag
(double-bagged)
Single plastic bag (1kg, 2.5kg, 5kg)
Coolant Carton box (10kg)
Pallet (optional)
Absorbent pads
Container (FCL 40' / -18'C)
Expanded polystyrene
foam bottom

Outer corrugated box

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Potential Causes
Long lead
Symptom time

Long purchasing UNOPTIMIZED Transportation


Problems lead time PRODUCTION PROCESS issues
(IN DEFECT DETECTION)

Causes Long distance Sudden Machine Poor workers’ Transportation Container and
between supplier demand rise failures performance disruption vessel shortages
& company (Cucchiella & (Ahmad et al., (Fletcher, Bainess & (Wilson, 2007) (Din, Reason & Ncube, 2021)
(Watukara, 2023) Gastaldi, 2006) 2018) Harrison, 2006)

Supply Inappropriate
interruptions method
(Mohebbi & Hao, 2006) (Hazeltine &
Bull, 2003)
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Potential Causes
Fishbone 3M analysis

Machine Method

Wrong setting
Limited planning & scheduling
Malfunctions
Unoptimal prodedure
Obsolete
Unoptimized
production
Lack of workers process

Lack of communication

Lack of trainings

Manpower

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Main Cause
Five whys analysis

Inefficient Ineffective Inappropriate


Inappropriate manual defect High defect machine
Machines
sealing malfunction
method detection rate packaging operations
process

Old sealing machine


(since 2007) Failures of sealing machine:
Improper sealing temperature
Improper sealing time
Lack of routine Improper sealing pressure
maintenance

Sealing machine failures cause adverse impacts on operational efficiency


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Trends & Challenges

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Specific Trends
Intelligent packaging
“Contains an external or internal indicator providing information”
(Ghaani et al., 2016)

Are integrated with a target-specific sensor

Sensors can be placed either outside or within the package


Measuring the quality of the packaged foodstuff
provide precise information about the ‘actual’ shelf life;
directly indicate the current quality state of the food to ensure
product quality & safety

(1) Freshness Indicators


(2) Time-Temperature Indicators (TTI)
(3) Leakage Indicators.
34
Specific Trends
Seal-sensor PQX
Ensure seafood package seal quality with automated inline inspection
Safe & desirable condition;
Maintaining taste;
Maintaining freshness;
Maintaining nutritional value.

-> Ensure the quality of their package seals with greater speed, precision & reliability.
(PTI, n.d)
Automated Seal Quality
Benefits
Inspection using Seal-Scan PQX
100% pouch seal inspection;
Scans the final pouch seal
Easy integration into production
online at high speed;
lines;
ASTM Test Method F3004;
Adjustable for different size
Features a user-friendly full-
pouches;
screen HMI;
Manual load or robotic pick &
Inspection rates can reach up to
place;
350 mm/sec.
Built-in reject chute. 35
Recommendations

36
Recommendation
Short-term

1
Performing regular maintenance checks:
Daily: check settings (temp, pressure, time); clean jaws
Machine Weekly: lubricate moving parts; check connections
maintenance Kaizen
Monthly: replace worn/damaged parts
a process of continuous
=> Preventive maintenance
improvement of the
standard way of work

2
Continuously collect and analyze data on defects (Singh & Singh, 2009)

Improvement
Implement quality checkpoints at various stages of the
of defect
production process
detection
Streamline the time period for the error investigation PDCA Cycle
procedure
process of defective products Plan: plan for change
Do: implement plan

3
Provide comprehensive training to packaging line operators Check: evaluate
(new maintenance & detection processes) effectiveness
Operator
Encourage open communication between operators and Action: act to improve
training (Singh & Singh, 2009)
maintenance personnel
Implement performance incentives 37
Recommendation
Medium-term
Seal-Sensor PQX for inline inspection

Inline production Sealing track Defection detect


Intergrate defection Automatically scan the Define defective
process into the final pouch seal by sealing packages by
production line robotics different color

(PTI, n.d) 38
Recommendation
Medium-term

Supplier: CCIT, PTI’s European Operation

NEED
Apply inspection
technology for inline 6 machines
production
Combine the use of $132.000
inspection machine &
HR for random check
Capacity: 350 mm/sec
~ 4000 - 5000 pouchs/hr (PTI, n.d)
39
Recommendation
Long-term

Inline vacuum packaging


machine
Price: $19,600.00 –
$24,500.00
Capacity: 2000-3000
pouchs/hr

NEED
REQUEST FOR PROPOSAL
Replace current
machine at Go Dang
8 machines
A large investment and An Phat factory
Require technical knowledge Inspection rates: $156.000
Distance between buying time is long Unit: 1kg/pouch

(Jacobs & Chase, 2017, p. xx)


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(Yide Machinery, 2023)
Recommendation: Long-term Planning
Form a project team, define project scope, develop
implementation plan, assess existing machines, Planning &
evaluate sealing machine options, select vendor Preparation
preliminary, finalize purchase order & due diligence
Issue RFQ, evaluate proposals, select vendor,
Procurement
coordinate delivery, install machines, prepare
& Installation
factories for installation (4 machines)

Develop training materials, conduct training


Training &
sessions, implement knowledge transfer plan, Transition
implement change management strategy

Establish KPIs, collect and analyze data,


Monitoring &
conduct employee satisfaction surveys,
Evaluation
prepare project evaluation report

Continuously monitor KPIs, make


Monitoring &
adjustments to the implementation
Evaluation
plan as needed, address any ongoing
employee concerns Plan for Evaluate the need for additional sealing
expansion machines based on production volume and
and demand, identify opportunities for further
optimization automation and efficiency improvements
Plan for
Implement additional sealing machines as expansion
needed, make any necessary adjustments to the and
production process, conduct a comprehensive optimization
review of the sealing machine project to identify
Expansion
lessons learned and best practices (4 machines)
and Evaluate & optimize the manufacturing process
optimization

41
Year 1 Year 2 Year 3 Year 4
Learning

36
Learning
Teamwork
WHAT WENT WELL

Held a meeting to communicate effectively;


Had critical thinking in objectives & parts in the project;
Had the insightful & nice flow of discussion;
Had the company visit trip early & memorable in Tien Giang;
Took instructions from the lecturer & instructor carefully to improve better.

EVEN BETTER IF

Focus more on details rather than general content at first;


References
A theoretical framework of the packaging system. Open Textbooks for Hong Kong. (2016, January 19).
https://www.opentextbooks.org.hk/ditatopic/27198
·Ahmad, S., Badwelan, A., Ghaleb, A. M., Qamhan, A., Sharaf, M., Alatefi, M., & Moohialdin, A. (2018). Analyzing
critical failures in a production process: Is industrial IoT the solution? Wireless Communications and Mobile
Computing, 2018, 1-12. https://doi.org/10.1155/2018/6951318
Choudhary, S., Nayak, R., Dora, M., Mishra, N., & Ghadge, A. (2019). An integrated lean and green approach for
improving sustainability performance: a case study of a packaging manufacturing SME in the UK. Production
planning & control, 30(5-6), 353-368.
Commitments. Godaco Seafood. (n.d.). https://godaco-seafood.com.vn/en/commitments
Công ty Cổ phần Gò Đàng. (2013). Báo cáo tài chính hợp nhất. (Jacobs & Chase, 2017, p. xx)
Cucchiella, F., & Gastaldi, M. (2006). Risk management in supply chain: A real option approach. Journal of
Manufacturing Technology Management, 17(6), 700-720. https://doi.org/10.1108/17410380610678756
Fletcher, S. R., Baines, T. S., & Harrison, D. K. (2006). An investigation of production workers’ performance
variations and the potential impact of attitudes. The International Journal of Advanced Manufacturing
Technology, 35(11-12), 1113-1123. https://doi.org/10.1007/s00170-006-0793-y
Ghaani, M., Cozzolino, C. A., Castelli, G., & Farris, S. (2016). An overview of the intelligent packaging technologies in
the food sector. Trends in Food Science & Technology, 51, 1-11.
Government of Canada. (2023, February 16). Vietnam – Export requirements for fish and seafood. Canadian Food
Inspection Agency. https://inspection.canada.ca/exporting-food-plants-or-animals/food-
exports/requirements/vietnam-fish-and-seafood/eng/1304219514425/1304219682673?
fbclid=IwAR1rl51dvRb3rzmQuWiSpzeAPVTZ4VEy2PvHQQlCu9gOsVGUN7ESX-7ftQg
42
References
Hapag-Lloyd. (2023). Security check. Security Check - Hapag-Lloyd. (Jacobs & Chase, 2017, p. xx)
Hazeltine, B., & Bull, C. (2003). Field guide to appropriate technology. Academic Press.
Jacobs, F. R., & Chase, R. B. (2017). Operations and supply chain management.
Mohebbi, E., & Hao, D. (2006). When supplier’s availability affects the replenishment lead time—An extension of
the supply-interruption problem. ScienceDirect.
https://www.sciencedirect.com/science/article/abs/pii/S0377221705005175
Noah, D. (2023, November 27). Exporting to Canada: What You Need to Know. Shipping Solutions Export
Document Software - Home Page. https://www.shippingsolutions.com/blog/exporting-to-canada
OOCL Loggistics. (n.d.). BIỂU PHÍ VÀ PHỤ PHÍ DỊCH VỤ VẬN TẢI BIỂN KHÔNG TÀU (NVOCC). OCCL Logistics.
(Jacobs & Chase, 2017, p. xx)
PTI - Inspection Systems. (n.d.). Airborne Ultrasound for Seal Integrity Testing: Seal Scan - PTI. Packaging
Technologies And Inspection. https://www.pti-ccit.com/technologies/airborne-ultrasound?
gad_source=1&gclid=CjwKCAiApaarBhB7EiwAYiMwqnHxoZm15-
ICupsEhKewkQx6UrbgtytfKzYMJcRHF3mmnS1awL0RUxoCTC8QAvD_BwE
Searate. (2023). Shipping routes map | Freight & cargo shipping routes. SeaRates. (Jacobs & Chase, 2017, p. xx)
Singh, J., & Singh, H. (2009). Kaizen Philosophy: A Review of Literature. ResearchGate | Find and share research.
https://www.researchgate.net/publication/268284725_5_1_Kaizen_Philosophy_A_Review_of_Literature_Kaizen_Phil
osophy_A_Review_of_Literature
Watukara, A. (2023, June 18). Supply chain lead time management: How it impact your business:. LinkedIn.
https://www.linkedin.com/pulse/supply-chain-lead-time-management-how-impact-your-ajith-watukara/
Wilson, M. C. (2007). The impact of transportation disruptions on supply chain performance. Transportation
Research Part E: Logistics and Transportation Review, 43(4), 295-320. https://doi.org/10.1016/j.tre.2005.09.008 43
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TEAM BE SERIOUS

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