Case Study Of Lothamilk's Supply Chain Strategy

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Supply chain management
Lothamilk’s supply chain activities in Vietnam:
• Livestock farming:
The Lothamilk’s supply chain starts with growing crops to feed dairy cows. Till the end of 2014, Lothamilk had 6 dairy farms under operation with the total of 10000 heads of cow. The majority of feed is grown on the farms owned by Lothamilk.
Milk production:
Cows are raised and milked on dairy farms in Vietnam, including Lam Dong, Da Nang, and Can Tho. On average, Lothamilk produces about 300 million liters a year.
• Milk transport:
Milk is transported from dairy farms to processing factories in tanker trucks. On average, a truck can carry up to 5500 gallons of milk.
• Processing:
The job of is to process milk and turn it into different products
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An example is Trung Nguyen’s Legendee weasel coffee, the world’s rarest coffee with distinctive flavour produced from the beans of coffee berries that have been eaten and digested by civets. Trung Nguyen was the innovator of this procedure and it has not been reproduced by any coffee maker. When iced, the coffee releases an explosive flavour, in many consumers’ opinion, the world’s best iced coffee that cannot be found anywhere else.

Lothamilk’s differentiation strategy
According to research, there is a growth in the sales volume of milk powder for children in recent years. The market opportunities of Vietnam dairy industry are growing. It is because the increasing living standard, which is $1,912 GDP per capita (The World Bank, 2015). Furthermore, Vietnamese families now have fewer children than in the previous; therefore they always want the high quality products for their children. In this competitive market, Lothamilk stands out by many competitive advantages.
Firstly, Lothamilk’s operational strategy is taken through customer focus. The organization maintains its success and competitive advantage by forming different ways to deliver customer value through innovation in response to customer needs in a fast way and in a right time, an example are Vfresh and Lincha natural relaxation

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