Air in Vietnam Essay Example

providers, such as Agents, Metro or Coop Mart supermarket, every bit good as alien providers. All providers from oversea could provide merchandises straight or travel through their maker to importer. The importer will administer straightly to Three Swan or through the wholesale. The supply procedure of Vietnamese providers are the same with foreign providers, they would bringing straight or travel through maker and sweeping. Many farms will provide vegetable which are adult clean without insect powder or any chemicals. The farm will be selected carefully in order to guarantee they provide safe nutrient for company. Furthermore, spices, catsups and others things will be supplied by retail merchants or supermarkets

In the procedure of doing sandwich of Three Swan, there are many stairss to do a sandwich. In order to do the procedure of doing sandwich travel swimmingly and supply good merchandises with high quality, Three Swan ever train their staff and recruit good chefs. After doing sandwiches, sandwiches will be packed into many separate parts for clients. Finally, the merchandises will be delivered to Jet Star air hose within that twenty-four hours for functioning riders.

Based on the distribution channel above, there are three cardinal participants in the procedure of providing sandwich to clients:

• Wholesales: all of the natural stuffs from other local or foreign providers will be collected and distributed to Three Swan by them. They provide all sort of nutrient with high quality, so that it can assist Three Swan company to cut down cost and clip to buy from little providers, every bit good as to supply good merchandises to clients.
• Third party logistics: natural stuffs will be transferred from providers to manufacturers, makers
  

and terminal users. They play a important function in the whole industry because it affect to the clip of presenting merchandise to clients.

At the minute, there are merely 2 companies which operate in the Vietnam air providing industry. One company was located in Noi Bai airdrome in Ha Noi City, and one company was located in Tan Son Nhat airdrome in Ho Chi Minh City. Both of companies were built inside the airdrome in order to do and bringing nutrient faster.

Sandwich is listed in the bill of fare of both companies for air hose companies order. In order to hold sandwiches for functioning clients during the flights, air hose companies have to order with the air providing company at least 1 twenty-four hours before the flights because the catering company necessitate more clip to order fresh stuffs from providers, made the sandwiches and bringing to aircraft. During the flight, it takes merely 10 to 15 proceedingss for functioning sandwiches to clients because the sandwiches are already made and storage in the aircraft. Therefore, it clearly shows that the lead clip is shorter than the ordering clip.

In add-on, the air providing company merely shops some fresh stuff for one twenty-four hours usage, such as meat, fish and sandwiches in order to guarantee that the nutrients are ever tasty and fresh. For nutrients which are imported, companies would order big sum and shop for 3 or 4 yearss. However, the expired

day of the month of spices and catsup is excessively long, so companies normally order with big figure and shop for more than one month. In order to guarantee fresh stuffs are ever fresh, companies equipped cold storage within their warehouse, every bit good as they built up cool topographic point to hive away dry stuff for long clip.

Furthermore, both of companies are located inside the airdrome, it will assist them to cut down a batch of transporting cost every bit good as the hazards in delivering.

Therefore, the two air providing companies have a batch of benefit in provide nutrients in the air providing industry, particularly sandwiches. Their operation in green goods and bringing are more efficaciously and efficient. Three Swan would confront a batch of challenges in this industry

1. SWOT analysis

Five logistics and supply concatenation direction issues

• CPI of Vietnam economic system have been increasing during recent old ages ( mean 8-9 % yearly ) , therefore diminish the currency value and do domestic importers enduring from thehigh cost of stuff and foreign merchandises, every bit good as the high rising prices rate doing clients less volitionally to buy extra service in a flight.
• Several unpopular incidents related to nutrient sectors, including the originating menace of avian grippe – bird grippe, Bovine spongiform encephalopathy - huffy cow disease, which significantly decrease the supply of natural stuff and raise the monetary value of production.
• The dependance of market grasp on nutrient related merchandises, based on multiple subjective factors, to a great extent relevant to clients nutrient ingestion behaviours, particularly whereas Vietnamese market are geographically fragmented, which makes people in different countries have immensely different penchant sing the culinary art gustatory sensation.
• Under developed transit substructure renders more trouble in nutrient and stuff bringing and effects the punctuation of overall supply concatenation,
• Due to the tropical clime and important conditions in different countries, fresh stuff and merchandise is more hard and dearly-won to continue or keep in good status. By and large after unpacked most of nutrient becomes barely comestible after 1-3 yearss, accepts dried nutrient, which are less favorite by air-flight clients. Therefore, the clip and agenda of bringing direction in the whole supply concatenation is critical to maintain the merchandise quality

Feasible scheme for Three Swans:

Supplier/vendor relationship

This scheme is explained to make the relationship with little

providers and sellers to make a supply concatenation nexus together, make an confederation between Three Swans and Vendors ( Coley, Langley, Gibson, Novack, Bardi, pp.574 ) . Therefore, with the belief of confederation, the stuff will ever be ensured high quality.

Execution:Three Swans will name out all the stuffs or merchandises they need for supply for end-users ( riders ) . For each different stuff, as follow the ordinance of Ministry of Industry and Trade, Three Swans have to take out over 3 chief providers and name them for portfolio and profile to do command. After taking one best providers for suited merchandises, clip bringing and cost, Three Swans can subscribe the contracts and will be approved by Viet Nam Airline BOD.

Outsourcing

Outsourcing is defined as a good scheme utilizing for commercial procurance of touchable and asset-based services like transit and repositing ( Coley, Langley, Gibson, Novack, Bardi, pp.662 ) . As Three Swans is strong in doing sandwiches instead than logistic and procurance ( transit and repositing ) , so

it is better Three Swans will outsource that service from a 3PLs.

Execution:Follow the ordinance of ministry of Industry and Trade, 3PLs service besides have to follow command procedure.

JIT ( merely in clip )

JIT is defined as managing clip to extinguish the waste and increases the efficiency. Merely one time Three Swans is in demand, supplier will provide instantly in order to assist Three Swans cut down the stock list to minimum. The of import of this scheme is“on-time delivery”

Execution:Three Swans must do contract with sellers to guarantee the bringing clip. With the agenda of bringing per twenty-four hours, the stuff will be ensured fresh and tasteful.

Execution

Operational program

Short term ( 12 hebdomads )

Long term (24 months)

Cardinal public presentation indexs

• Be 100 % on clip bringing to Jet Star.
• Increase company’s net income at least 15 % in following 2 old ages.
• Reduce nutrient waste and harm to 90 % .

Costss vs. Benefits

Quantitative rating

Ranking from 1 ( bad status ) to 10 ( good status )

Analysis

Multi standards determination matrix will be applied to demo the pros and cons of each scheme and demo the suited and effectual scheme for the company. After measuring, supplier/vender relationship scheme will be used for the state of affairs of the company.

Food Damage:

JIT will non be effectual for the company due to the fact that the quality of nutrient will non be guaranteed to be in the good signifier of quality. In item, the company will pass a batch of clip to look into the natural stuffs continuously and Vietnam substructure will non back up JIT method. However, supplier/vendor relationship scheme will do

the quality of the nutrient to be ensured in the contract of the company and provider. Furthermore, the provider will ever seek to keep of the nutrient quality to increase the volume of the order.

Cost decrease:

Vendor/supplier relationship scheme will assist the company to diminish the cost of natural stuffs because of long-run relationship with provider. Nevertheless, JIT will increase the cost of transit.

Company Profit:

All three methods above give the company give familiar benefits to the company such as sales-growth, maintain high quality of nutrient, provide the natural stuffs on clip, heighten the degree of the company image, etc.

Jet Star satisfaction:

Outsourcing will give Jet Star the most satisfaction because of the less work that they have done and the nutrient will be maintain in the good quality regardless of the higher cost.

The company will hold more advantages and less disadvantages if they use the vendor/supplier relationship scheme which comparison to the others.

Decision

The issues have been shown in the analysis above which is the harm of the nutrient, the insurance of nutrient quality and non in clip of the bringing due to the hapless substructure in Vietnam. The strategian theory which is vendor/supplier relationship will be applied to work out the job of the company in Vietnam. As a consequence, the solution will assist Three Swan Company to hold the competitory advantage to be rapid growing in Vietnam air providing industry.