NGÂN HÀNG NHÀ NƯỚC VIỆT NAM BỘ GIÁO DỤC VÀ ĐÀO TẠO HỌC VIỆN NGÂN HÀNG KHOA KINH DOANH QUỐC TẾ --------- Họ và tên tác giả Mai Đình Bách Tên đề tài KHÓA LUẬN TỐT NGHIỆP (hoặc CHUYÊN ĐỀ TỐT NGHIỆP) Hà Nội, tháng. NGÂN HÀNG NHÀ NƯỚC VIỆT NAM BỘ GIÁO DỤC VÀ ĐÀO TẠO HỌC VIỆN NGÂN HÀNG KHOA KINH DOANH QUỐC TẾ -------- Họ và tên tác giả Tên đề tài Chuyên ngành: Kinh doanh quốc tế Mã số: 734.20 KHÓA LUẬN TỐT NGHIỆP GIÁO VIÊN HƯỚNG DẪN Hà Nội, tháng. DECLARATION I assure that my Bachelor’s thesis with the research topic " Honda Vietnam’s supply chain management and the experiences for the newcomer – Vinfast LLC" is my personal research with the guidance of Ms. Nguyen Thi Thanh Tan - Lecturer of International Business faculty at Banking Academy Data sources and information used during the study are derived and cited in accordance with regulations.
Research results in the thesis topic serve for self-study and objectively analysis. I take all responsibility for my thesis. Hanoi, May 2019 ACKNOWLEDGMENT The thesis is completed at the Banking Academy. During the graduation thesis, I received much help to complete the thesis.
First of all, I would like to express my sincere thanks to the lecturer, Nguyen Thi Thanh Tan, who kindly guided and imparted knowledge and experience to me during the process of implementing this thesis. Thank you to the teachers of the International Business Department, the Banking Academy, who have conveyed valuable knowledge to me during the past study period. Finally, I would like to thank my family, friends, and K18KQTD students for their encouragement and help me in the process of writing my thesis. At the same time, I would like to thank the respondents who enthusiastically participated in answering the survey questions to help me complete this graduation thesis.
There are many limitations in the thesis; I hope to receive the comments and suggestions of the lecturers so that I can continously improve my research topic. Once again, sincerely thank you! Contents Introduction. The urgency of the subject. McCarter, (2008), "Benefits, barriers, and bridges to effective supply chain management".
Satyendra Kumar Sharma and Anil Bhat, 2013, Supply chain risk management dimensions in Indian automobile industry. Demand‐supply chain management: industrial survival recipe for new decade. 8 Chapter 1: Overview of Supply Chain Management. Introduction about Supply Chain Management.
The concept of supply chain and supply chain management. The role of supply chain management. The development of supply chain management. The operations of supply chain management.
Supply chain management participants. Supply chain management models. Push model and pull model. Push and pull model.
The factors affecting supply chain management effectiveness. Supply chain relationships. Analytics of Honda Vietnam’s Supply chain management. Overview of Honda Vietnam.
History of formation and development. Honda Vietnam's supply chain model. Participants in Honda Vietnam’s supply chain. Honda Vietnam’s supply chain model before 2016.
Evaluate supply chain effectiveness:. Lessons from the case of Honda Vietnam. Some suggestion for developing an efficient supply chain for Vinfast LLC. Introduction of Vinfast LLC.
Overview of Vinfast. The first steps of Vinfast:. The SWOT Analysis of Vinfast LLC. Vinfast's supply chain.
Some proposals to improve the supply chain efficiency of Vinfast LLC. Short-term strategy. Long-term strategy. 60 LIST OF TABLE TABLE PAGE Table 1.1 : SCM Definitions and key ideas 15 Table 1.
Compare Logistics and supply chain 16 Table 2. Retailers avarage order time 44 Table 2. Quantity market share 46 Table 2. Finished products average inventory 47 Table 3.
SWOT Matrix of Vinfast LLC 57 LIST OF DIAGRAM DAIGRAM PAGE Diagram 1: Brigde to effective SCM 9 Diagram 2: Demand- Supply Chain Management – Pull Model 11 Diagram 1.1: Push and pull model 24 Dỉagiram 2. Honda Vietnam supply chain model 30 Diagram 2. Honda Vietnam’s Supply chain model before 2016 41 Diagram 3. Vinfast Pull supply chain model 58 LIST OF CHART CHART PAGE Chart 2.
Costs structure of Honda Vietnam 43 Chart 2. Average order time 45 Chart 2. Market share on quantity 46 Chart 2. Average inventory 47 ABBREVATION SCM : Supply chain management SC: Supply chain DSCM: Demand’ supply chain management JIT: Just-in-time ERP: Enterprise resource planning VM: Vendor management HEAD: Honda Engine Authorized Dealer 1 Introduction 1.
The urgency of the subject The industrial revolution has given Western countries significant advantages and in turn, played essential roles in the world economy. Vietnam is gradually stepping up the process of industrialization and modernization of production. This process requires that all sectors in the economy generally have to improve actively, not only technically but also in terms of production and processes. Especially for industries with modern technology systems, can invest in synchronously as the automobile manufacturing industry should be paid special attention.
After more than 20 years of development, our country's automobile industry has been formed. Domestic supply of cars is stable, reducing demand depending on imported cars, making a significant contribution to the state budget. We also initially penetrated the international value chain with assembly plants in Vietnam to export to regional countries. The development of the automobile manufacturing industry has made significant contributions to foreign investors in terms of investment capital, technology, and management experience.
However, the domestic market of Vietnam with a market capacity of up to tens of millions of vehicles is entirely dominated by joint-venture enterprises. Typically, Honda, Toyota, those businesses have been too successful in the international market. They bring technology, management experience, and operational procedures to Vietnam and dominate absolutely from the 1990s to the present. Thanks to them, the market for Vietnamese transport vehicles has been growing stronger.
Naming some brands of dominant manufacturers, we do not see any brands that are 100% domestic capital. Every year our country consumes about 4 million new vehicles with an estimated value of billions of dollars. However, Vietnamese enterprises do not have a market share in that big market. Auxiliary businesses also have only about 10% of the value in the entire value chain.
2 We can mention the example of Vinaxuki, a business with the dream of building a standard supply chain for Vietnamese vehicles. They have also gone through a period of intense development. The company follows the model of Japan, Korea, accepts initial investment to learn more about production technology. After that, Vinaxuki is ready to invest in many modern production lines to improve the localization rate.
However, the mass production of materials that cannot produce finished products must all be in stock. Costs continue to rise but cannot consume finished products. The localization path of Vinaxuki also fails because of wrong decisions in the supply chain. By 2016, there was a Vietnamese enterprise continuing to follow the path of Vinaxuki.
They have taken bold steps to develop their production process initially. Vinfast gradually developed its supply chain. For long-term development, they should still learn the lessons learned from companies that have been very successful in Vietnam. In the framework of the graduation thesis, I would like to raise the status of the supply chain and lessons learned in the development process of Honda Vietnam.
From these lessons, orient specific strategies to develop the supply chain for Vinfast in the long term. The research goal of the thesis is to analyze the supply chain of a successful business in the market and propose solutions for new businesses that want to enter the market. To accomplish this goal, research issues include - Overview of supply chain, role, and supply chain models - Analysis of Honda Vietnam supply chain - Evaluate operational efficiency and draw experience of sustainable supply chain development - Suggest the development strategies needed for new businesses to enter the market. McCarter, (2008), "Benefits, barriers, and bridges to effective supply chain management" There are a number of hurdles that block the path of firms implementing an integrated SC practices and processes.
Fawcett et al. (2008) reviewed recent scientific literature on the potential barriers to SCM. They classified the barriers into two categories namely inter-firm rivalry and managerial complexity. They noted the following barriers under inter-firm rivalry category, in order of significance; internal and external turf wars, poor SCM planning, lack of vision of SCM, lack of trust, executive commitment and poor SCM understanding.
All these barriers work against agility in SC and management should reduce their impact. However the worst barrier, internal and external turf wars needs urgent attention by SCPs as its negative impact is fast and severe leading to the disruption of the SC. Poor planning and lack of vision are symptoms of failure by SCs, though their effects may be slow to appear their eventual impact is disastrous. Managerial complexity includes misaligned SC processes, structures and major differences in SCPs’ business culture (Fawcett et al.
And in the managerial complexity category Fawcett et al. (2008) noted the following barriers in order of significance; IS/IT deficiencies, organizational structure/culture, lack SC measurement and lack of alliance guidelines. These problems are both at enterprise level and SC level and hence the need to tackle them at both fronts. The worst barrier IS/IT deficiencies mean loss in competitive advantage by the whole SC.
4 Diagram 1: Brigde to effective SCM Source: Stanley E. McCarter, (2008), "Benefits, barriers, and bridges to effective supply chain management" Fawcett et al. (2008) reviewed solutions to the SCM barriers proposed in the scientific literature. They noted the following plausible solutions in order of importance; information transparency, collaboration, collaborative planning, IT architecture/internet, formal performance tracking, adopt strategies SCM vision, attention to human factors, supplier certification/reduction, target segmented customers and shared investment/benefits.
Fawcett et al. (2008) reviewed key benefits of SCM proposed in literature and noted the following in the order of their importance; increased inventory turnover, increased revenues, SCM cost reduction, product availability, decreased order cycle 5 time, responsiveness, economic value added, capital utilization, decreased time to market and reducing logistics costs. Conclusion:The success of a supply chain depends on many factors. Managers are aware of the potential and impact of the supply chain on business operations.
However, assessing and resolving barriers to supply chain effectiveness brings more problems. Applying resources in human resources for human resources, information systems. to overcome barriers to gain benefits is the ultimate goal of every business. Satyendra Kumar Sharma and Anil Bhat, 2013, Supply chain risk management dimensions in Indian automobile industry Supply chains always form many risks, from inside and outside.
In the context of global integration, shortened lifecycle products and services make businesses always change and adapt to new circumstances. However, the goal of supply chain management is always to meet the needs of the market best, maximizing the value given to businesses. Every problem in any process in the supply chain dramatically affects the ultimate goal of the supply chain. The detection of risks and prevention planning will ensure the ultimate goal of the business.
According to the two researchers, there are two ways to reduce risk in the supply chain of businesses, that is: - Active prevention: decisions and activities implemented to minimize the possibility of risks. This can be foreseen market demand, stockpiling in order to avoid input risks. It is possible that this system of preparation steps into three categories, including: o Avoidance: Avoidance occurs when the risks associated with operating in a given product market or geographical area are considered to be unacceptable. 6 o Investments on development: .Given the impact suppliers have on a company’s performance, it is important to know about one’s suppliers.
Companies who invest in supplier development gain improvements in supply performance. o Control strategies : Contract enforcement specifies the parameters governing the buyer supplier relationship. - Reactive strategy: Reactive strategies create capability within a SC to mitigate the effects of a disruption after the occurrence of said disruption.