Inbound Logistics: Case Study: Lothamilk '

Great Essays
Value chain activities
• Lothamilk’s inbound logistics:
The inbound logistics for Lothamilk refers to selecting the healthiest dairy cows in order to produce the best quality of milk. In the case of Lothamilk, the milk is collected directly from the dairy farms across Vietnam. The milk will be transported to the processing factories in order to process and package milk into different products such as yoghurt, cheese, and milk power. These are now ready to be delivered to the distribution centers of which are owned by Lothamilk.
• Lothamilk’s operations:
Lothamilk operates with 169 distributors, 350 national chains of supermarkets and 55 showrooms locating over every province and city. According to its report, the organization generated revenue
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Trung Nguyen used to develop relationship with the 60 different countries that import Trung Nguyen’s coffee beans. Moreover, Trung Nguyen also provides a tight relationship with their employee and local community. The company project in the coffee industry could give 5,000 jobs for the local. Recently, Trung Nguyen has opened its sixth manufacture in Bac Giang province. The manufacture will drive at a capacity of more than 90 tons of coffee a day and provide more than 400 jobs. Therefore, the ethical commitment is a durable part of the operation strategy to strengthen competitiveness.
Secondly, Trung Nguyen’s differentiation strategy aims at putting the emphasis on the product quality in order to differentiate from the competitors. 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
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Thus, Lothamilk has contributed significantly to the country’s prosperity. There are main priorities of sustainability that Lothamilk focuses on, including:
• Responsibility for products:
Products quality is Lothamilk top priority to sustainable development. Lothamilk believes that its products meet the top requirements for the quality through the adoption of a closed loop production cycle. Lothamilk’s product development strategy targets at quality and safety benefits for its customers. Therefore, it has been regularly researching and investing in new technologies. Moreover, it also applies strict management system throughout processing stages, including pre, mid and post production in order to maintain the best quality and safety.
• Environment and energy:
Due to environmental problems, Lothamilk has been constantly researching and investing in new technologies in order to decrease the energy consumption and environmental impacts. Lothamilk aims to decrease by 5% of power consumption for every five years by using LED and Compact light which it helps to save up to 50% of energy

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