VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY NGUYEN TRUONG THUY TRANG DRIVERS TO IMPLEMENTING LEAN SUPPLY CHAIN MANAGEMENT SUCCESSFULLY: STUDY ON FMCG COMPANIES IN VIETNAM Major: Business Administration Major code: 8340101 MASTER’S THESIS HO CHI MINH CITY, June 2024 THIS THESIS IS COMPLETED AT HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY – VNU-HCM Supervisor: Dr. Nguyen Thi Duc Nguyen Examiner: Dr. Do Thanh Luu This master’s thesis is defended at HCM City University of Technology, VNU- HCM City on 24th June, 2024. Master’s Thesis Committee: 1.
Le Phuoc Luong 2. Nguyen Thuy Quynh Loan 3. Do Thanh Luu Approval of the Chair of Master’s Thesis Committee and Dean of Faculty of Industrial Management after the thesis being corrected. CHAIR OF THESIS COMMITTEE DEAN OF FACULTY OF INDUSTRIAL MANAGEMENT VIETNAM NATIONAL UNIVERSITY - HO CHI MINH CITY SOCIALIST REPUBLIC OF VIETNAM HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY Independence – Freedom - Happiness THE TASK SHEET OF MASTER’S THESIS Full name: NGUYEN TRUONG THUY TRANG Student ID: 2270798 Date of birth: 24/04/1996 Place of birth: Da Nang Major: Business Administration Major ID: 8340101 I.
THESIS TITLE (In Vietnames): Các yếu tố thúc đẩy thực hiện quản lý chuỗi cung ứng tinh gọn thành công: Nghiên cứu tình huống tại doanh nghiệp FMCG ở Việt Nam. THESIS TITLE (In English): Drivers to implementing lean supply chain management successfully: study on FMCG companies in Vietnam. TASKS AND CONTENTS: − To explore the drivers for the implementation of LSCM within FMCG companies. − To explore the advantages that could support implementing LSCM in the FMCG supply chain of two big companies in Vietnam.
− To recommend approaches to apply lean supply chain for typical company in Vietnam to enhance overall business outcomes and reduce waste during supply chain operations. THESIS START DAY: 15/01/2024 V. THESIS COMPLETION DAY: 20/05/2024 VI. Nguyen Thi Duc Nguyen Ho Chi Minh City, date 05/06/2024 SUPERVISOR HEAD OF DEPARTMENT Dr.
Nguyen Thi Duc Nguyen DEAN OF FACULTY OF INDUSTRIAL MANAGEMENT ACKNOWLEDGEMENTS First of all, I would like to send my sincerest and deepest thanks to Dr. Nguyen Thi Duc Nguyen - who has always enthusiastically advised and guided me throughout the thesis implementation process. My instructor gave extremely useful comments and suggestions that helped my essay become more and more perfect. Sincere thanks to the experts in Lean Supply Chain Management who are always ready to help support as well as contribute ideas and create the most favorable conditions for me while I am doing my thesis.
Sincerely thank the Teachers and Faculty of Industrial Management for their dedicated guidance and for imparting extremely valuable knowledge to me throughout the course. Sincerely thank you K2022 - those who have always been by my side helping, sharing useful information and knowledge with me and encouraging me during my study process. Finally, I would like to express my deep gratitude to my parents who created the conditions that allowed me to participate and complete the course and helped me make the progress I have today. Ho Chi Minh City, 5th June 2024 Nguyen Truong Thuy Trang i ABSTRACT The fast-moving consumer goods industry in Vietnam has experienced rapid growth in recent years, leading to an increased focus on improving supply chain efficiency and competitiveness.
Lean supply chain management is a strategic approach that can help FMCG companies in Vietnam achieve this goal. However, the successful implementation of LSCM remains a challenge. This qualitative study aims to explore the key drivers that enable the successful implementation of LSCM in Vietnamese FMCG companies. A multi-method approach was utilized, including a literature review, in-depth interviews with industry experts, and case studies of leading FMCG companies.
The findings reveal six main driver categories with 34 underlying sub-drivers for LSCM success. These include top management commitment, employee engagement, supplier integration, customer focus, continuous improvement culture, and technological integration. The study provides valuable insights by comparing the drivers identified in the literature with the perspectives of industry experts and the experiences of the case study companies. FMCG companies in Vietnam must focus on developing these key drivers to unlock the full benefits of LSCM and enhance their overall supply chain performance and competitiveness.
The research offers a comprehensive framework that managers can use to guide their LSCM implementation efforts and ensure sustained success. TÓM TẮT LUẬN VĂN THẠC SĨ Ngành hàng tiêu dùng nhanh tại Việt Nam đã trải qua sự tăng trưởng nhanh chóng trong những năm gần đây, dẫn đến việc tập trung nhiều hơn vào việc cải thiện hiệu quả và tính cạnh tranh của chuỗi cung ứng. Quản lý chuỗi cung ứng tinh gọn là một phương pháp tiếp cận chiến lược có thể giúp các công ty ngành hàng tiêu dùng nhanh tại Việt Nam đạt được mục tiêu này. Tuy nhiên, việc thực hiện quản lý chuỗi cung ứng tinh gọn vẫn là một thách thức.
Nghiên cứu định tính này nhằm khám phá những động lực chính tạo điều kiện cho việc thực hiện thành công quản lý chuỗi cung ứng tinh gọn trong các công ty ngành hàng tiêu dùng nhanh tại Việt Nam. Trong luận văn này, các phương pháp được sử dụng bao gồm việc đánh giá tài liệu tham khảo, phỏng vấn chuyên sâu với các chuyên gia trong ngành và các nghiên cứu tình huống về các công ty ngành hàng tiêu dùng nhanh hàng đầu. Các phát hiện cho thấy có 6 nhóm động lực chính với 34 tiểu động lực nằm bên dưới để đảm bảo thành công của ngành hàng tiêu dùng nhanh. Các động lực đó bao gồm cam kết của ban lãnh đạo cấp cao, sự gắn kết của nhân viên, quản trị nhà cung cấp, tập trung vào khách hàng, văn hóa cải tiến liên tục và tích hợp công nghệ vào quản trị.
Nghiên cứu cung cấp những hiểu biết quý giá bằng cách so sánh các động lực đã được xác định trong tài liệu tham khảo với quan điểm của các chuyên gia trong ngành và kinh nghiệm từ cấp quản lý của các công ty được nghiên cứu tình huống. Các công ty ngành hàng tiêu dùng nhanh tại Việt Nam cần tập trung vào việc phát triển những động lực then chốt này để khai thác trọn vẹn các lợi ích của việc tinh gọn quản lý chuỗi cung ứng và nâng cao hiệu suất chuỗi cung ứng cũng khả năng cạnh tranh tổng thể của họ. Nghiên cứu này cung cấp một khung toàn diện mà các nhà quản lý có thể sử dụng để hướng dẫn nỗ lực triển khai quản lý tinh gọn chuỗi cung ứng của họ và đảm bảo thành công bền vững. THE COMMITMENT OF THE THESIS’ AUTHOR I declare that this is my research work.
The data and research results in this thesis are truthful and have never been used to defend any academic degree. I hereby declare that all help in carrying out this thesis has been gratefully received and that all information in this thesis has been clearly cited. Ho Chi Minh City, 5th June 2024 Nguyen Truong Thuy Trang iii TABLE OF CONTENTS CHAPTER 1.1 Background of study .4 Scientific and practical significance of the thesis .5 Methods of implementation .2 Supply Chain Management .4 Lean Supply Chain Management .5 Successful Lean Supply Chain Management .2 Perspectives of research on Lean Supply Chain Management .1 The resource based view.2 The Extended resource-based view .3 The Relational view .4 The Theory of Contraints .5 The Dynamic Capability Theory .3 The previous research about drivers to successful implementing Lean .4 Situation of FMCG Industry in Vietnam .5 Research gap of study .6 Research opportunities identification .7 Proposed study framework .2 Problem solving tools in the study .1 In-depth interview.3 Interpretive Structural Modelling .2 Supplier relationship factors .3 Customer focus factors .4 Organizational culture factors .5 Personal capability factors .5 In-depth expert interview.1 In-depth expert interview design .2 In-depth expert interview results .1 Results of exploring the drivers in implementing LSCM in the FMCG industry in Vietnam .2 Case study in typical FMCG companies in Vietnam .1 Case study in Company A .2 Case study in Company B .3 Comparison of the key factors in Lean Supply Chain Management practices with the in-depth industry expert interviews and the case studies of Company A and Company B 92 4.1 The key factors in Lean Supply Chain Management practices that are consistent between the in-depth industry expert interviews and the case studies of Company A and Company B .2 The key factors in Lean Supply Chain Management practices that are different between the in-depth industry expert interviews and the case studies of Company A and Company B .4 Recommendations for the company to improve the Lean Supply Chain Management 107 4.1 Enhancing the importance of Leadership to improve the Lean Supply Chain Management practices .2 Enhancing the importance of Supplier relationship to improve the Lean Supply Chain Management practices .3 Enhancing the importance of Customer focus to improve the Lean Supply Chain Management practices .4 Enhancing the importance of Organizational culture to improve the Lean Supply Chain Management practices .5 Enhancing the importance of Personal capability to improve the Lean Supply Chain Management practices .6 Enhancing the importance of Communication to improve the Lean Supply Chain Management practices. CONCLUSION, MANAGERIAL IMPLICATIONS, LIMITATIONS AND FURTHER RESEARCH DIRECTIONS .1 Conclusion of the study .3 Limitations and further directions.
125 vi LIST OF FIGURES Figure 2-1. The Supply Chain Stages (Sunil Chopra, Peter Meindl, 2016). Proposed research framework. The thesis flowchart.
The ISM model to analyze the drivers in successful Lean Supply Chain Management as experts’ advice. Distribution of Key Factors in Lean Supply Chain Practices Based on Expert Opinions Using the MICMAC Method. ISM model for company A. Distribution of Drivers in Lean Supply Chain Practices in Company A Using the MICMAC Method.
ISM model for company B. Distribution of Drivers in Lean Supply Chain Practices in Company B Using the MICMAC Method. 91 vii LIST OF TABLES Table 2-1. The definition of Supply Chain.
Definition of Supply Chain Management. Definition of Lean Supply Chain Management. Perspectives of Lean Supply Chain Management. Summary of previous research.
The need of information of thesis. The Leadership factors .The Supplier relationship factors. The Customer Focus factors. The Organizational culture factors.
The Personal capability factors. The Communication factors. The factors have been revised based on the expert interviews. The factors in Implement Lean Supply Chain Management in Company A.
The factors in Implement Lean Supply Chain Management in Company B. Leadership factors in lean supply chain practices that are equivalent. Supplier relationship factors in lean supply chain practices that are equivalent. Customer focus factors in lean supply chain practices that are equivalent.
Organizational culture factors in lean supply chain practices that are equivalent. Personal capability factors in lean supply chain practices that are equivalent. Communication factors in lean supply chain practices that are equivalent. Supplier relationship factors in lean supply chain practices that are different.
Customer focus factors in lean supply chain practices that are different. Organizational culture factors in lean supply chain practices are different. 107 viii LIST OF ACRONYMS FMCG Fast-moving Consumer Goods LSCM Lean Supply Chain Management ISM Interpretive Structural Modeling JIT Just-in-time ix CHAPTER 1. INTRODUCTION Chapter 1 provides a general introduction to the study, including the rationale for the research topic, the objectives of the study, the scope of the research, the methodological approach, the significance of the research, and the structure of the study.
This chapter serves as the foundation for the development of the subsequent sections and helps to orient the research activities along the appropriate trajectory.