Air in Vietnam Essay Example
Air in Vietnam Essay Example

Air in Vietnam Essay Example

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  • Pages: 11 (2790 words)
  • Published: August 31, 2017
  • Type: Paper
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Executive sum-up:

Vietnam’s air catering is an industry that ever creates an exhilaration for different companies that want to entry because of the changeless and steady growing of the net income. However, this industry creates the high barrier for new company to entry. Consequently, Three Swan Company they have to do their best attempt for their program to be successes in this market.

The program is made to concentrate onsandwiches providing. Furthermore, the tools that have been used such as current state of affairs,distribution channel, Swot analysis andfive logistics and supply concatenation direction jobsfor the company to their state of affairs

The penetration that is within the scheme has to be effectual and on the right path to take the company goes in the right manner. In progress, the scheme will incorporate thepros and cons of each scheme, Multi-criteria determination matrixto measure and c


alculate out the suited program.

Implementation portion will explicate in inside informations of thelong and short term period. Similarly, KPIis besides an of import tool for the company to look into that they have reached their marks or non.

In general, the company’s Operational Management Plan will supply the indispensable factors for Three Swan to hold the right scheme tomaximise their gross revenues and better their quality of serviceto Jet Star

Research and Analysis:

Channel Distribution:

The foreign provider and Vietnamese provider will provide all stuffs for doing sandwich ( including meats, fish, egg runt, salad or vegetable, ketchup, spice and sandwich.

Kinh Do, ABC and Duc Phat which are the providers of sandwich meet the nutrient criterion of Three Swan. In add-on, in order to guarantee the quality of merchandise, Three Swan ever purchase meat, fish and runt from sur

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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.

  • Importers: all of stuffs which is purchased abroad will be imported and distributed to wholesale or straight to Three Swans with acceptable monetary values and good quality, every bit good as precisely ordered measure.
  • Current Fortunes:
  • 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
    Strength Failings
    • High quality beginning of merchandises and stuff from long term providers, both domestic and over sea
    • Experienced and good trained human resource
    • Competitive engineering and equipment in fabrication sandwich
    • Reliable on providers in term of merchandises and stuff quality
    • Over sea imported increase the fabrication cost
    • The monetary value offered less competitory than some other companies.
    Opportunities Menaces
    • TPP pact and WTO engagement of Vietnam diminish the import duty and revenue enhancement, render more good for domestic importers
    • Advancement of high tech provide more chance to upgrade and increase productiveness and operation efficiency.
    • National development of economic provide better transit substructure and market growing, accordingly expand the market of in-flight catering demand.
    • Under developed traffic web, frequent transit hold caused by hapless traffic system
    • Incompleted logistic ordinance, doing frequent unexpected adjutstment in legal system, render trouble to follow the trnalportation statute law
    • Air providing market

      spread outing attract multiple rivals to fall in the market, therefore increase the competition among air providing service and merchandise providers

    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.

    Advantages Disadvantages
    • Under the name of ALLIANCE, sellers have to guarantee the quality of stuff or merchandises that supply for Three Swans to keep the contract and repute.
    • After sign the contract, Three Swan will guarantee the stable end product for providers and sellersi?the cost they offer for Three Swan can diminish every bit high volume.
    • As subscribing the contract, Three Swans have to confront with the restriction of beginnings because they have to follow the ordinance agreed from both sides
    • It may cut down the flexibleness of company. After finish the contract, if the providers stop working with Three Swans, it will confront with deficiency of stuffs.

    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 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.

    Advantages Disadvantages
    • Cost decrease: Three Swans don’t need to put money on procurance or other field that they don’t have experience.
    • It will assist company to concentrate on their major and take concentration into bettering service and merchandises without refering about other Fieldss
    • Three Swans can lose image due to the unpredictable service from 3PLs. they may damage the bundle when bringing which affect to our reputes
    • The dependance of 3PLs because Three Swans haven’t invested in HR every bit good research on this field.

    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.

    Advantages Disadvantages
    • Ensure the gustatory sensation will be fresh as bringing every twenty-four hours.
    • The stuff is delivered and used one twenty-four hours merely, so it will guarantee the minimize the stock.
    • Delivery mundane i? increase the cost of bringing.



    Operational program

    Short term ( 12 hebdomads )

    Undertakings Duties Timeline
    Inside Three Swans Company Stipulate the end and scheme of company. Top Management Week 1
    Review the fiscal position of the company Finance Week 1
    Analysis of current state of affairs of air providing industry. Selling and Gross saless Week 2
    Specify selling tools that is appropriate for company such as ocular presentation,


    Selling Week 3, 4
    Forecast competitor’s actions to come up with a program and undertake it. Selling and Gross saless Week 5,6
    Improve company’s engineering, quality of client service and employee preparation. IT and Administrator Week 5, 6, 7,8
    Jet Star place Behavior market study for Jet Star about clip bringing, nutrient quality and other issues… Market research workers Week 8
    Behavior market study for passenger/customer about gustatory sensation of the nutrient, conformity, service … Selling Week 9
    Gather all the required informations and asses it. Selling Week 10
    Analyze the current state of affairs of Jet Star to come up with a suited program for providing. Selling and Gross saless Week 11
    Three Swans’ action Execute a selling run to advance and beef up trade name consciousness. Selling Week 5
    Direct meetings with supplier/vendor to familiarise and acquire citation for the good monetary value and high quality of stuff. Procurement and Logisticss Week 10
    Direct contact with 3rd party outsourcing company. Procurement and Logisticss Week 10
    Cost and benefit analysis. Finance Week 11
    Report and proposal. Week 12

    Long term (24 months)

    Undertaking Duty Timeline
    Training plan for employees, supervisors and higher direction staffs. HR and Administration Month 1, 2
    Implement the supplier/vendor relationship and execute outsourcing to cut down cost Procurement Logisticss Month 3, 4
    Pull off the stock list more expeditiously to cut down the order clip rhythm. Inventory/Warehouse and Gross saless Month 5, 6
    Buttockss, select and use the most suited distribution method. Top Management Month 7, 8
    Manage expeditiously the distribution web and concatenation. Procurement and Logisticss Month 9, 10
    Train and authorise the logistics section for their effectual operations. Procurement and Logisticss Month 11, 12
    Promote and strengthen trade name consciousness in air catering industry Selling Month 13, 14
    Behavior market study for client satisfaction. Selling Month 15, 16
    Invest in more production lines so can hold more options and options for nutrient, beverage… Top Management Month 17, 18
    Develop and launch company’ web site to acquire direct interaction with client and order direction. Information technology Month 19,


    Quality control of nutrient from supplier/vendor. Quality Control Month 21, 22
    Land contracts with other air hose companies. Gross saless Month 23, 24

    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

    Cost Benefit
    • Invest more in and better public presentation of logistics section.
    • Maintain good relationship with suppliers/vendors and 3rdparty logistics Company.
    • Training employees to be more professional and effectual.
    • Improve company’s order engagement and handling system.
    • Maximize company’s net income.
    • Reduce nutrient waste and harm.
    • Shorten order rhythm clip.
    • Provide high quality of client service.
    • Increase customer’s satisfaction.

    Quantitative rating

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

    Strategy Criteria Food ‘s quality ( 0.3 ) Cost decrease ( 0.25 )


    ( 0.25 )

    Jet Star satisfaction ( 0.2 )


    ( 1.0 )

    Supplier/vendor relationship


    ( 2.4 )


    ( 1.75 )


    ( 1.5 )


    ( 1 )


    ( 6.65 )



    ( 1.2 )


    ( 1.75 )


    ( 1.5 )


    ( 1.6 )


    ( 6.05 )



    ( 1.8 )


    ( 1 )


    ( 1.5 )


    ( 1 )


    ( 5.2 )


    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.


    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.

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