FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION
MASTER OF INTERNATIONAL BUSINESS
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GRADUATION THESIS
Topic:
EXPERIENCES IN BUILDING SUPPLY CHAIN OF GROUPS IN THE WORLD AND LESSONS LEARNED
EXPERIENCE WITH VIETNAMESE ECONOMIC GROUPS
Student: Bui Thi Bich Hue Class: English 4
Course 44
Instructor: Master Nguyen The Anh
Hanoi - May 2009
ACKNOWLEDGEMENTS
The thesis “Experience in building supply chains of corporations in the world and lessons learned for Vietnamese economic corporations” was completed under the dedicated guidance of the teacher, Master Nguyen The Anh. I would like to express my gratitude to those who have helped me prepare and complete this thesis. In particular, I would like to sincerely thank the teacher, Master Nguyen The Anh for spending a lot of time and using his knowledge to guide me during the thesis process.
I would also like to express my deep gratitude to the teachers in the Faculty of Business Administration as well as all the teachers in Hanoi Foreign Trade University for their valuable lectures during my time at the school, contributing to creating a foundation for me to develop my knowledge.
Finally, I would like to express my gratitude to my family and friends who have helped me complete this thesis.
Hanoi date month year
Student
Bui Thi Bich Hue
LIST OF ABBREVIATIONS
WTO
World Trade Organization | ||
BTS | Build to stock | Supply chain manufacturing for forecasting storage |
CTO | Configure to order | Supply chain shaped by order |
BTO | Build to order | Manufacturing supply chain order |
ETO | Engineer to order | Supply chain design order |
SKU | Stock keeping unit | Reserve unit |
EOQ | Economic Order Quantity | Order Quantity Model economy |
QR | Quick response | Quick response |
ECR | Efficient consumer response | Effective customer response |
VMI | Vendor managed inventory | Supplier managed inventory grant |
SMI | Supplier managed inventory | Supplier managed inventory grant |
CPFR | Collaborative planning, forecasting and replenishment | Planning, forecasting and replenishment by cooperative model |
DC | Distribution center | Distribution Center |
CRM | Customer relationship management | Customer relationship management |
ISCM | Internal supply chain management | Internal supply chain management |
SRM | Supplier relationship management | Supplier Relationship Management |
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TMF
Transaction management foundation | Transaction management facility | |
ERP | Enterprise resource planning | Enterprise resource planning career |
RFQ | Request for quote | Request a quote |
EDI | Electronic Data Interchange | Electronic Data Interchange |
RFID | Radio Frequency Identification | Frequency Identification Technology radio number |
EPS | Earnings Per Share | Earnings per share |
HVI | High Volume Instrument | Large scale measurement tools |
EDLP | Every day low price | Daily Discount Strategy |
POS | Point of sale | Only time and place at that sales activity occurs |
LIST OF TABLES, FIGURES
Table 1.1: Characteristics of the In-transit merge model 25
Table 1.3: Characteristics of the network of manufacturers/distributors stocking and customers picking up goods 29
Table 1.4: Characteristics of the retail network of stockists and customers coming to pick up goods 31
Table 1.5: Comparative efficiency between distribution networks 32
Table 1.6: Distribution network effectiveness for product characteristics
.......................................................................................................................... 33
Table 1.7: Choosing a transportation network based on the number of customers and distance to customers 42
Table 1.8: Supply chain transformation according to product demand and value 43
Table 2.1: GLOBAL FORTUNE 500 LIST (2007) 53
Table 2.2: Walmart's business situation from 2006-2008 53
Table 2.3: Dell's business situation 2004-2008 64
Table 2.4: Sales in Dell's main markets 64
Figure 1.2: Manufacturer stock and direct delivery model 22
Figure 1.3: In transit merge model 24
Figure 1.4: Network of stock distributors and delivery transport companies 26
Figure 1.5: Last mile delivery distribution network 27
Table 1.2: Characteristics of Last mile delivery network 28
Figure 1.6: Cross-docking network 30
Figure 1.7: Three possible supply chain policies for supply chain 44
Figure 2.2: CPFR 60 technology
Figure 2.3: Dell's supply chain model 66
Figure 2.4: Esquel's supply chain (Source: Hau Lee, Building supply chain excellence in emerging economies, Springerscience-business media, 2006, pp 315 74
INDEX
LIST OF ABBREVIATIONS LIST OF TABLES, FIGURES
INTRODUCTION 1
CHAPTER I 4
GENERAL THEORY OF SUPPLY CHAIN 4
I. GENERAL OVERVIEW OF SUPPLY CHAIN 4
1. Introduction to supply chain 4
1.1. Supply chain concept 4
1.2. Feature 6
1.3. Classification 7
1.4. Objectives and importance 11
2. Factors affecting the supply chain 12
2.1. Customer needs 12
2.2. Globalization process 12
2.2. Product life cycle 13
3. Distinguish between supply chain and value chain 13
II. BUILDING SUPPLY CHAIN 14
1. Overview of supply chain construction 14
1.1. Definition 14
1.2. Outstanding characteristics of supply chain construction in the global context 15
2. The significance of building a supply chain 16
3. Supply chain design process 17
3.1. Supply chain structure 17
3.1.1 Facilities 17
3.1.2. Inventory 18
3.1.3. Transport 18
3.1.4. Information 19
3.2. Supply chain network building process 19
3.2.1. Construction of facilities 19
3.2.1.1.. Building a distribution network 19
3.2.1.2. Building a warehouse system 34
3.2.2. Building a transportation network 38
3.2.2.1. Transport network in supply chain 38
3.2.2.2. Options for building a transport network 38
3.2.2.3. Balance in transport network design 40
3.2.2.4. Appropriate transport network 41
3.2.3. Application of information support technology in supply chain.. 45
3.2.3.1. Overview of information and information technology in the supply chain 45
3.2.3.2. Information technology structure in supply chain 46
CHAPTER II EXPERIENCES IN BUILDING SUPPLY CHAIN OF GROUPS IN THE WORLD AND LESSONS LEARNED FROM VIETNAM 51
I. The supply chain building process of two leading supply chain corporations 51
1. Wal mart and cross docking 51
1.1. Introduction to Walmart Group 51
1.1.1. History of formation and development of Walmart 51
1.1.2. Overview of Walmart's business performance 52
1.2. Walmart supply chain 54
1.2.1. Distribution network 54
1.2.2. Facilities 56
1.2.3. Transport network 56
1.2.4. Information support technology 58
1.3. Benefits obtained 61
2. Dell and the “build to order” model 61
2.1. Introduction to Dell Corp., Inc. 61
2.1.1. History of formation and development 61
2.1.2. Recent business situation 63
2.2. Dell's Supply Chain 65
2.2.1. Overview of Dell's supply chain 65
2.2.2. Information support technology 69
2.3. Rating 70
3. Esquel and the textile supply chain 71
3.1. Introduction to Esquel 71 textile group
3.2. Esquel 73's textile supply chain
3.2.1. Supply chain structure 73
3.2.2. Information support technology 80
3.3. Rating 81
II. Lessons learned 81
1. Lessons learned from Dell and walmart 81
2. Lessons learned from Esquel 83
CHAPTER III CURRENT SITUATION AND PROPOSALS FOR BUILDING SUPPLY CHAIN FOR VIETNAMESE CORPORATIONS 84
I. Overview of Vietnamese economic groups 84
II. Current status of supply chain construction of Vietnamese economic groups 90
1. Current status of building supply chain elements 91
1.1. Advantage 91
1.2. Limitation 96
2. Chance 99
3. Challenge 100