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Logistic and Supply chain issues:
- Long lead time: the complicated procurement and the unprofessional management of raw materials suppliers can increase the waiting time for the manufacturing process. Furthermore, the poor transportation system and inner-city truck ban law also add time to the flow of goods in supply chain.
- Error in order fulfillment: without application of modern communication such as email or electronic program, partners in supply chain mostly use telephone or face to face communication to make order. This increases the risk of causing error because of human mistakes. The result will be wrong quantity of products or late delivering.
- Risk of stock out: the demand of airline meal goes along with the demand of customers using aviation service. The number of customer fluctuated between every flight and every period of time in year.
- Risk of inventory perishability: raw materials and finished product is high perishable. Vietnam has a hot climate so it is easy for fresh food to perish. If they are not well maintained, or the product is not consumed on time, they will take the risk of being reduced in quality. The cost of inventory holding …show more content…
The application of EDI will bring many benefits to the supply chain between VDC-Jestar and also between VDC and the raw materials suppliers. EDI will reduce the error of order fulfilment by making the flow of information more quickly and reliable. VDC could control the exactly number of airline meal needed for a flight and also the exactly time for the flight take off so wrong delivery is decreased. Moreover, with the fast information transmission, raw materials will be ready in shorter time which can accelerate delivery process and reduce lead time as a …show more content…
VMI was first used in the late 1980’s. Two first companies that put the theory into practice were Procter & Gamble (P&G) and Wal-Mart in the USA (Waller, M, Johnson, M & Davis, T 1999). P&G is one of the leading company producing and distributing consumer goods throughout the world while Wal-Mart is the world third largest retailer with a chain of department stores and warehouse stores selling consumer products.
By placing goods in all Wal-Mart chain stores, P&G goods are introduced to consumers. P&G is responsible for managing the inventory regarding order quantities, shipping and timing as well as resupplying for Wal-Mart in their VMI relationship. After receiving purchase order from Wal-Mart, P&G will send an order acknowledgement to the buyer which is considered as a transaction though the goods have not distributed yet. In order to help P&G manage the inventory effectively, sale reports are designed for P&G to track their goods sold from the warehouses in regards as timing, numbers of customers and
- Long lead time: the complicated procurement and the unprofessional management of raw materials suppliers can increase the waiting time for the manufacturing process. Furthermore, the poor transportation system and inner-city truck ban law also add time to the flow of goods in supply chain.
- Error in order fulfillment: without application of modern communication such as email or electronic program, partners in supply chain mostly use telephone or face to face communication to make order. This increases the risk of causing error because of human mistakes. The result will be wrong quantity of products or late delivering.
- Risk of stock out: the demand of airline meal goes along with the demand of customers using aviation service. The number of customer fluctuated between every flight and every period of time in year.
- Risk of inventory perishability: raw materials and finished product is high perishable. Vietnam has a hot climate so it is easy for fresh food to perish. If they are not well maintained, or the product is not consumed on time, they will take the risk of being reduced in quality. The cost of inventory holding …show more content…
The application of EDI will bring many benefits to the supply chain between VDC-Jestar and also between VDC and the raw materials suppliers. EDI will reduce the error of order fulfilment by making the flow of information more quickly and reliable. VDC could control the exactly number of airline meal needed for a flight and also the exactly time for the flight take off so wrong delivery is decreased. Moreover, with the fast information transmission, raw materials will be ready in shorter time which can accelerate delivery process and reduce lead time as a …show more content…
VMI was first used in the late 1980’s. Two first companies that put the theory into practice were Procter & Gamble (P&G) and Wal-Mart in the USA (Waller, M, Johnson, M & Davis, T 1999). P&G is one of the leading company producing and distributing consumer goods throughout the world while Wal-Mart is the world third largest retailer with a chain of department stores and warehouse stores selling consumer products.
By placing goods in all Wal-Mart chain stores, P&G goods are introduced to consumers. P&G is responsible for managing the inventory regarding order quantities, shipping and timing as well as resupplying for Wal-Mart in their VMI relationship. After receiving purchase order from Wal-Mart, P&G will send an order acknowledgement to the buyer which is considered as a transaction though the goods have not distributed yet. In order to help P&G manage the inventory effectively, sale reports are designed for P&G to track their goods sold from the warehouses in regards as timing, numbers of customers and