MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION THESIS INDUSTRIAL MANAGEMENT COMPLETE PURCHASING ACTIVITIES OF THE SHOE PRODUCTION CHAIN AT TBS GROUP INSTRUCTOR: HO THI HONG XUYEN, PhD. STUDENT: TRAN NGUYEN HIEN VAN SKL012794 Ho Chi Minh City, November 2023 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION, HIGH-QUALITY TRAINING FACULTY GRADUATION THESIS THEME: COMPLETE PURCHASING ACTIVITIES OF THE SHOE PRODUCTION CHAIN AT TBS GROUP Student Conducting : Tran Nguyen Hien Van Student ID : 20124348 Course : 2020 Industry : Industrial Management Instructor : PhD. Ho Thi Hong Xuyen HCMC, on November 2023 INSTRUCTOR REVIEWS ……………………………………………………………………………………. HCMC Instructor PhD.
Ho Thi Hong Xuyen ACKNOWLEDGMENTS To complete the graduation thesis with the topic "Complete purchasing activities of the shoe production chain at TBS Group", the author would like to sincerely thank the lecturer's Faculty of Economics - Ho Chi Minh City University of Technology and Education provided fundamental knowledge, shared experiences, and wholeheartedly conveyed information to the author during the learning process both at the school and making the report. The author would like to express her sincere and deep thanks to Ph. Ho Thi Hong Xuyen – the direct instructor who is a very enthusiastic, dedicated, and thoughtful lecturer. She was willing to share her knowledge and experience for the author to have appropriate orientation and complete this research report.
Besides that, her enthusiastic guidance and support of the author were great inspirations to the author to complete the essay in the best way. In the process of making the report, the author could not avoid mistaking, some limitations in the process of the Report that the author looks forward to receiving teachers’s evaluations. Moreover, the author would like to wish that all teachers are filled with happiness, good health success. The author wants to express sincere gratitude to the Board of Directors of Factory I – Thai Binh Investment Joint Stock Company for providing the author with a professional working environment and opportunities to enhance both the author’s knowledge and interpersonal skills.
The author especially would like to express sincere thanks to the Purchasing Department, in which Mr. Nguyen Van Tien wholeheartedly guided the author to share knowledge and experience, and provided valuable documents to complete this report. The author would like to express special thanks to Mr. Truong Van Nam, who wholeheartedly guided the author and evaluated the work the author performed at the enterprise.
Finally, the author hopes that the Quality Management Department in particular and Factory I – Thai Binh Investment Joint Stock Company, in general, will develop and flourish more and more, achieve the goals and get many outstanding achievements in the future, become a leading enterprise and contributing to spreading the name of Vietnamese enterprises to the world market. Thank you very much! Tran Nguyen Hien Van. LIST OF ACRONYMS Acronyms Explanation (English) B Bill BOM Bill Of Material CTM Come to market CFM Confirm Material CIF Cost, Insurance&Freight DPU Delivered at Place Unloaded DAP Delivery at Place DDP Delivery Duty Paid ETD Estimated Time of Arrival ECN Notice of technical changes ETA Estimated Time of Arrival ECN Engineering Change Notice EXW Ex Works FIFO First In, First Out FOB Free Carrier HTS Code Customs declaration code HC Hand carry INV Invoice LT Leadtime LIFO Last In, Last Out MOQ Minimum Order Quantity MRP Material Requirement Planning PR Purchasing Request PL Packing List PD Asia Product Development PO Purchasing Order PP Connecting information between customers and the company R&D Research and Development RTD Estimated date of manufacture Revise Edit, change Release PR Release Purchasing Request SMS Selling simple SAP Sapping Material Code SOP Standard Operating Procedure SPEC Standard Operating Procedure SC Swatch Confirm TBS Group Thai Binh Investment Joint Stock Company WWW Wolverine XF Shipment date TABLE CATALOGUE Table 1.1 Methods of Collecting Secondary Information.2: Business situation of Thai Binh Investment Joint Stock Company. 10 in the period from 2018-2022 .3: Production quantity by customer at Wolverine chain.1: Report on synchronous balancing of materials from 07-10 months .3: Number of pairs of canceled shoes from 01/2023 – 08/2023 .4: Statistics of outstanding costs of materials.1: Summary of Supplier selection criteria for TBS.2: Comparison matrix of the importance of criteria .3: Weighting matrix for criteria.4: Data processing for CR Calculation .5: Factor randomization index (RI).6: Supplier weighting matrix according to "Price" criteria .7: CR calculation data for "Price" criterion .8: Supplier weighting matrix according to "Quality" criteria .9: CR calculation data for "Quality" criteria .10: Supplier weighting matrix according to the criterion "On-time delivery" 58 Table 4.11: Data used to calculate CR for the criterion "On-time delivery" .12: Supplier weighting matrix according to the criterion "Supplier Capacity"58 Table 4.13: CR calculation data for "Supplier Capacity" criteria .14: Supplier-weighted matrix according to "Technology and innovation" .15: CR calculation data for "Technology and innovation" .16: Supplier weighting matrix according to "Payment" criteria .17: CR calculation data for "Payment" criteria .18: Supplier weighting matrix according to "Defect failure rate" criterion.19: CR calculation data for "Defect failure rate" .20: Summary of calculation results in .21: Weighting of criteria after inspection .23: Selection of provider assessment through criteria .24: Specific evaluation scale of Supplier selection criteria.
73 PICTURE BIBLIOGRAPHY Figure 1.1: Well-known shoe brands .2: Business results from 2018-2022.1 Major Purchasing Processes .2: The seven steps of a purchasing process. The hierarchical structure for Supplier selection .4: Supplier selection steps .5: Various Supplier Selection Methods .1: Life cycle from prototype product development to production.3: Additional purchasing process diagram.4: Percentage of synchronous supplies from 07-10 months.5: Chart showing supplier's current priorities for cooperation.1: Saving supplies in the wrong color.2: Saving supplies in the wrong color.3: Supplier evaluation selection criteria process. 70 TABLE OF CONTENTS INSTRUCTOR REVIEWS ACKNOWLEDGMENTS LIST OF ACRONYMS TABLE CATALOGUE PICTURE BIBLIOGRAPHY TABLE OF CONTENTS LEARN ABOUT WOLVERINE SHOE CHAIN PURCHASES AT TBS GROUP PROLOGUE. Reasons for forming the topic.
Objectives of the topic. Subjects and scope of research. Graduation Thesis Structure. 5 CHAPTER 1: INTRODUCTION TO THE PURCHASING DEPARTMENT OF WOLVERINE SHOE MANUFACTURING CHAIN - TBS GROUP .1 About TBS Group.
Field of activity. Markets and customers. Vision, mission, and core values .2 Introduction of the purchasing department of the Wolverine shoe manufacturing chain .1 Organizational structure of the Wolverine chain.2 Organizational structure of the purchasing department. 16 CHAPTER 2: LITERATURE REVIEW.1 Overview of purchasing activities in the enterprise.2 The importance of purchasing for businesses.2 Overview of the purchasing process at enterprises.
26 CHAPTER 3: PURCHASING ACTIVITIES OF WOLVERINE SHOE MANUFACTURING CHAIN AT TBS GROUP.1 Current status of purchasing.1 Purchasing Process Overview.1 General Order Purchasing Process .2 Additional Purchasing Process.2 Effective control of purchasing activities.1 Synchronization of materials to prepare for production.2 Purchasing-related Processing .3 New supplier changes .3 Factors influencing Wolverine chain purchases.1 Distributor of raw materials and supplies .1 Human resources of the purchasing department.2 Personnel of the sourcing and purchasing department .4 Assessing the status of TBS Group's purchasing activities. Limitations and Causes. 50 CHAPTER 4: PROPOSING SOLUTIONS TO IMPROVE THE PURCHASING MANAGEMENT PROCESS AT THAI BINH JOINT STOCK COMPANY. Some solutions to improve the purchasing process at TBS Group.1 Solutions for Evaluating and Selecting Raw Material Suppliers.
Basis for solution proposal. Applying the AHP method to select raw material Supplier for TBS.2 Solutions to complete the purchasing process.1 Process of the proposal for processing purchasing from the main raw material source.2 Flow of proposal for purchase from auxiliary materials. Some additional solutions. 84 LEARN ABOUT WOLVERINE SHOE CHAIN PURCHASES AT TBS GROUP PROLOGUE 1.
Reasons for forming the topic The current market is harsh business competitive both domestic and foreign competitors. These are always significant factors for businesses to find the optimal and the best direction way for the company to cut down on costs, improve product quality, and increase competitiveness in the market. Moreover, the importance of the supply chain plays an important role, urgent role in minimizing costs from many different factors such as reducing the cost of raw materials, operating costs of machinery and sophisticated electronic equipment, or work-forcing costs along with many other types of costs, decrease costs for the company still ensure and remain product quality, increase competitiveness in the market. By way of illustration, a complete product for consumers must go through many different periods from product research to development, sourcing, production, purchasing, and logistics so on that contribute to the company's supply chain which plays an essential role, as well as other governance-related activities in the enterprise.
In particular, purchasing seems to be a considerable factor in the business, mainly related to people interacting with one another, combining each other in identifying needs, finding and selecting suppliers, monitoring and checking the delivery, and evaluating purchase results. Furthermore, the synchronous combination of workforce and machines in each given period creates consistency, achieving optimal benefits for the business activities of the company. As a result, it helps the company cut down on costs, reduce inventory operation as well as purchase goods at the lowest cost, ensure the quantity, and raw materials quality in the warehouse at an available material, help the production department stay on schedule as well as meet customer requirements. Therefore, the purchasing department plays an essential role in every business helping businesses go up in profitability, cut non-essential cos, ts and minimize production costs to create further profits for the company.
Purchasing is an indispensable condition for enterprises to maintain and develop despite it playing an important role, however, this is still a backlog problem both in purchasing in general and in Thai Binh E-commerce Joint Stock Company in particular. 1 During the internship at TBS company where the author found that purchasing activities at the company took place in a smoothly complete and efficient process, nevertheless, outstanding problems arising in purchasing activities have been inevitable. Not only has the purchasing department had lots of impacts from suppliers such as the delivery time procrastinated but also suppliers' products had an unexpected quality or external and internal influences affected the company's purchabyout significant percentages. Especially, the synchronous planning of production, which had an indirect impact of more than 50% due to overwhelming conditions for production.
And the handling of supplies later than expected along with objective and subjective conditions affected almost 20% of the purchasing department. Not only that, but also had a go straight and indirect impact on the company's business for purchasing activities which made sure adequate materials for production account for about 70% of the main material, and 30% of the source of auxiliary materials. Furthermore, Wolverine customers account for a relative market share budget of 25%, bringing profits as high as $ 14,000 / year in the company's business. Therefore, the synchronous and smooth combination between departments in the company to create products and meet customer needs the purchasing department also plays a very essential role.
However, with certain limitations in the purchasing department at the company, the introduction of proposed and overcome solutions to further improve purchasing activities in the supply chain is inevitable and urgent. That is the reason why the author decided to choose the topic "Complete purchasing activities of shoe production chain at TBS Group" to solve purchasing problems at the company such as improper purchase of required materials, and other errors in ordering and purchasing leading to inventory and unnecessary expenses. Objectives of the topic - Analyze and recognize the actual situation of purchasing activities for the Wolverine chain at Thai Binh Joint Stock Company from the time of receiving orders to the time of finishing delivery and storage. - Find out the issues and causes that impact purchasing activity.
- Propose solutions to improve the efficiency of purchasing activities for the Wolverine chain at Thai Binh Joint Stock Company. Subjects and scope of research - Research subject: Actual purchasing activities for Wolverine chain at Thai Binh E- commerce Joint Stock Company.