Batagro

Mr.Pannawat Chanta
ID.6531209073

Submit to
Dr. Pornwasin Sirisawat

Subject: Principle of logistics and supply chain management

Semester 2, Academic year 2023
Logistics and Supply Chain Management Program,
School of Management, Mae Fah Luang University
 preface

This report is part of the Principle of logistics and supply chain

management, designed to analyze and explain the supply chain system and
logistics activities of Betagro, which covers various activities in the value
chain and describes their functions stakeholders. By searching for
information from the Internet through relevant websites that have content
such as the history, source of raw materials and regular customers of
Betagro.

The authors sincerely hope that the contents of this report will provide
useful information to readers who are interested in studying the supply chain
system and logistics activities of Betagro.

Mr. Pannawat Chanta

Table of content Page
Preface

Chapter 1 Company Background 1

Chapter 2 Supply Chain System Analysis
About stakeholder 2
Infrastructure 3
Human Resource Management 3
Technology 4
Procurement 4
Chapter 3 Logistics Activities Analysis
Inbound logistic 5
Production processes (Operation) 5
Outbound Logistic 6

References 8
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Chapter 1
Company background
Founded in 1967 with a registered capital of Baht 10 million, the Betagro Group
began as a single entity, to produce and distribute animal feed. The first factory was
located at Phra Pradaeng, Samut Prakan Province. Since then, Betagro's business has
continued to grow. Expanded production base to Lopburi province to support full business
expansion. Covering products in the agro-industrial and food business groups. Let's start
with the production of animal feed. Breeding and development of animal breeds which
covers pigs, broilers and laying hens, manufacture and sale of veterinary medicines to
quality food products. To complete the supply chain of integrating poultry and pigs. and
to support core competencies in the agro-industry. Betagro has established several
specialized companies. These businesses are currently engaged in manufacturing.
Cultivation and genetic development of pigs, broilers and laying hens, including the
establishment of parent breeder farms. and production and distribution of veterinary
drugs. At present, Mr. Vasit Taepaisitphongse is a member of the Corporate Governance
and Sustainable Development Committee and the Chief Executive Officer and President.
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Chapter 2
Supply Chain System Analysis

Here are Betagro inbound processes, production processes, and outbound processes,
from left to right.

About stakeholder

Supplier tier 2 includes chemical companies that sell fertilizers and chemicals
related to plant and animal care. Betagro is sometimes part of the Supplier tier 2 as
Betagro also has an animal pharmaceutical business. There are also companies selling
plastic resin for packaging production to packaging factories in Supplier tier 1.

Supplier tier 1 consists of frames such as chicken, swine and maize farms that are
Betagro partners and also packaging companies that produce packaging for Betagro such
as packaging for food, packaging for animal feed

Betagro's Production Process is receiving products from Supplier Tier 1 to be

processed into various products such as Ready-made food, frozen food, animal feed, and
then packaged and distributed to various places.
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Customer tier 1 consists of Wholesalers and Retailers such as convenience store

supermarket to distribute products to final consumers It is also sold to food service
businesses such as restaurants, hotels, airlines for use as raw materials for cooking.

Customer tier 2 is a general person who consumes products such as eating.

Including farmers who are and are not Betagro suppliers.

Next is an analysis of Betagro's supporting activities in the value chain that help
Betagro's main activities give the company a competitive advantage.

Infrastructure

Betagro believes that a good technological infrastructure will help Betagro manage
efficiently and give Betagro a competitive advantage. Betagro's financials in 2022,
Betagro's turnover is approximately 8 billion baht, while in 2021, the turnover is 8 hundred
million baht. Which multiplied many times, making the financial situation in the company
in a good position. Since it is a food business, it is in high demand despite the impact of
the Covid-19 pandemic.

Human Resource Management

Betagro has personnel who are knowledgeable and skilled in doing good work.
Betagro has a human resource training and development policy that encourages
employees to gain knowledge to increase work efficiency, divided into 3 programs:
1) Leadership Program to develop skills in management and working together. 2)
Functional Program to develop knowledge Professional performance skills 3) Talent and
Succession Program to develop the potential of high-potential employees. to be able to
drive business and create a competitive advantage.

In addition, Betagro also supports education for employees. With continuing

education support from Bachelor's degree, Master's degree and Doctorate degree to
bring knowledge to extend and raise the level of work.
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Technology

Betagro has deployed SAP, a centralized software system, to enable different

departments of the company to access and share information together. Example of the
benefits of SAP is that SAP systems enable Betagro's business units to share information
in real time and improve customer satisfaction and loyalty by using the Customer
Relationship Management system. There are also other systems used in operations to
improve supply chain management, including:

1. E-Sourcing System.
2. Internal Information Analysis System for marketing to increase sale.
3. Real-Time Information Access and Analysis System.
4. Betagro Livestock Management System (It is a farm management platform
that can collect and analyze daily data.)

In addition, there is an information technology policy. which includes information

technology security measures. For the security risk management of Betagro's information
systems It has implemented ISO 27001 (Information Security Management System)
standards and includes the use of various security measures including firewalls and data
encryption to increase safety protection.

Procurement

Betagro has established a procurement policy and recommends operational

principles to its suppliers. Including considering and selecting trading partners who
adhere to practices throughout the supply chain. It is assessed from the management of
labor, human rights, community and environment. Including having a process to verify the
origin and safety of food to meet Betagro's standards. Betagro has promoted the
procurement of raw materials from local farmers such as maize. Soybeans for animal
feed and livestock, such as pigs, to be frozen products or to produce final food.
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Chapter 3
Logistics Activities Analysis
Inbound logistic

It is an activity related to the management of all raw material imports. Starting from
receiving and checking the quality of raw materials, storage and inventory management.

The source of raw materials for the production of Betagro products comes from
farmers in the area near the production plant who have been trained and supervised by
Betagro. In addition to being able to control the quality of raw materials to meet Betagro's
standards, it also creates jobs and good relations with the community. Farmers will create
contract farming between farmers and Betagro, which allows farmers to access markets
more easily. Betagro's main raw materials such as Maize, soybean, broiler, swine.

Production processes (Operation)

Betagro's animal feed production starts from planting to harvesting. After harvest,
those crops are processed into animal feed products, for example, soybean-based foods
require the soybeans to go through a process known as extrusion. This ripens the beans
and improves their digestibility. Corn needs to be ground down before it can be used as
animal feed. Both processes require Specialized machines to perform industrial scale
operations.

Betagro's food production begins with raising animals, whether broilers, laying
hens, pigs, livestock ready for the market are brought to the slaughterhouse. Midstream
processes include slaughtering, chilling, cutting & weighing.

Egg production in midstream eggs are processed. which has various steps
including cleaning weighing and checking for cracks and gentle heating to kill any bacteria
in the eggs.

In order to cover all areas of the company's operations and gain competitive
advantages in the market, Betagro had to choose the location of its factories and
warehouses appropriately.
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The company's first production base It consists of a chicken farm, a pig farm, an
animal feed factory, an hatchery at Pak Chong , Nakhon Ratchasima , and has expanded
its production base to Lopburi due to the suitability in terms of raw material sources and
locations to develop into a complete agro-industrial business base. It also creates
cooperation with farmers in the area near the production plant to help run the business.
Animal Feed Business Betagro Public Company Limited has established subsidiaries
in various provinces. across the region of the country as a base for production and
sell products. The company has a feed mill. Located in the following locations:
1) Phra Pradaeng, Samut Prakan.
2) Muang, Nakhon Pathom.
3) Phatthana Nikhom, Lop Buri.
4) Pak Chong, Nakhon Ratchasima.
5) Nong Bun Mak, Nakhon Ratchasima.
The other 2 factories are stationed in the northern and southern regions, namely
1) Muang, Lamphun, producing food and distributes it to customers in the upper
northern region.
2) Rattaphum, Songkhla, producing food and distributing to all customers in the
southern region.
In addition to that, working in the warehouse is also important. The warehouse worker
must check the quantity of goods. Prepare product stock. Coordinate with the sales
department in issuing invoices and delivering goods correctly and on time. Organize
incoming and outgoing products according to the "First In-First Out" system to prevent
product damage. due to expiration or spoilage.

Outbound Logistic

Betagro has a wide range of product distribution channels both domestically and
internationally to provide their customers with access to quality products.
Agricultural products distribution channels.
Products sold such as animal feed Animal pharmaceuticals and supplements, farm
equipment. The company has four main distribution channels: (1) Distribution to various
farms in the country. (2) Distribution through local distributors covering all areas (3)
Distribution to industrial customers operating in the food industry (4) Distribution to
international customers.
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Food product distribution channels.

Products sold such as Fresh and frozen chicken, pork, eggs, processed meat in
packages and ready-to-eat food. The company sells food products through six main
channels, namely (1) direct export to 18 countries around the world, with key markets
including the UK, EU, Japan, Singapore, Hong Kong and China (2) food service providers
such as hotels. Restaurants, cafes, schools and airlines (3) Supermarkets hypermarket
and convenience stores (4) Betagro's distribution channels are Betagro branches,
Betagro shops, Betagro deli stores (5) Traditional retail business, such as local markets
(6) Sales to industrial customers such as processing plants.

Pet products distribution channels

The company sells pet products in Thailand through various channels including
retail stores. veterinary clinic and e-commerce channels. It also exports pet food products
overseas. Mainly exported to the Philippines, Indonesia, Malaysia, Japan and India.
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References

BETAGRO PUBLIC COMPANY LIMITED. (2022, 4 12). About Us. Retrieved from BETAGRO:
https://www.betagro.com/en/about-us/betagro-at-a-glance

BETAGRO PUBLIC COMPANY LIMITED. (2022, 4 29). BETAGRO PUBLIC COMPANY LIMITED. Retrieved from
Securities and Exchange Commission:
https://market.sec.or.th/public/ipos/IPOSGetFile.aspx?TransID=427025&TransFileSeq=576

BETAGRO PUBLIC COMPANY LIMITED. (2023, 4 12). BRANDS AND DISTRIBUTION CHANNELS. Retrieved
from BETAGRO : https://corporate.betagro.com/brands#ANIMAL-FEED-PRODUCTS

BETAGRO PUBLIC COMPANY LIMITED. (2023, 4 15). Information Technology. Retrieved from BETAGRO :
https://www.betagro.com/en/innovation-and-quality-management/information-technology

BETAGRO PUBLIC COMPANY LIMITED. (2023, 4 15). Why Join Betagro. Retrieved from BETAGRO:
https://www.betagro.com/en/join-us/why-join-betagro

The Securities and Exchange Commission, Thailand. (2022, 12 31). Finanacial Statements . Retrieved
from The Securities and Exchange Commission, Thailand:
https://market.sec.or.th/public/idisc/en/FinancialReport/FS-0000001302