Avon Supply Chain Analysis Essay

2685 Words Dec 1st, 2010 11 Pages
Introduction
Vietnam Delight Catering (VDC) is one of the most succesful company in Vietnam catering industry. Since the very first step in 1995, VDC has a significant grow to expand the market in all three regions of Vietnam. The company is well known for providing food service for company events, business conferences, weddings and other special occasions. With twenty six industrial kitchens located across five big cities, VDC established itself as an national wide recognized catering company to supply the best of service and product for its business partners throughout Vietnam.
This supply chain plan will present some potential logistic and supply chain issues that VDC could face in order to provide an effective service of supplying
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- 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 increases.
- Weak collaboration between components in supply chain: the lack of communication and information sharing such as point of sales data may lead to the uncontrollability of inventory. It is obvious that raw materials for catering service could not be stored for a long time. This may result in loss of revenue for the company if inventory are not well-managed.

B. Strategy Proposal
From deep understanding about 5 main issues that VDC and Jestar Pacific Airways could face in the supply chain of airline meal, 3 logistics strategies will be presented to solve the problems mention above.

I. CPFR - Collaborative Planning, Forecasting and Replenishment:
CPFR is a method of incorporating players in a supply chain, negotiating to meet an agreement of items demand forecast (Coyle et al, pp.249-252, 2003). According to Fliedner (2003), CPFR focuses on coordinating the activities of production and purchase planning, demand forecasting and inventory replenishment through collaboration among all supply chain trading partners. Through an Internet-based, the partners in a supply chain will sit together and exchange their information, negotiate, do

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