OBJECTIVE:
As Vinamilk and TH true milk belong to the dairy industry, the roles of procurement managers of both companies can be seen as having the same set of responsibilities. According to TH true milk (2015), there were 5 duties that the company required the procurement manager to take. Firstly, the procurement manager has to source new products and manage its buying volume. After that, the manager should manage its supplier network as well as negotiate the best purchase deal. The third duty is to monitor the firm’s sales, gross profit, other sources of income, cost and selling price so as to be able to control and respond to any changes of them. Furthermore, the procurement manager is suggested to coordinate with related divisions so that …show more content…
Therefore, Vinamilk is incentivized to diverse its milk supply sources rather than importing (Nakagawa, 2015). Furthermore, Vinamilk needs to increase the number of its in-house cow farms as well as the quantity and quality of its imported milk cows so as to reduce the dependence level to the international milk supply. Last but not least, Costelloe (2014) advised that the procurement department of Vinamilk should prepare a health check for its activities which contains the company’s spendmap, savings, value chain, contract and supplier relationship management in order to be more effective and efficient. Firstly, about the spendmap, Vinamilk needs to understand what and how the company will spend. Therefore, it is easier for Vinamilk to get the right balance between its short and long term spendings. After that, Vinamilk is suggested to focus more on not only its demand and sources lever but also fulfill and manage levers. Last but not least, Costelloe (2014) advised Vinamilk to realize the value of managing efficiently its contract and supplier relationship so as to have more effective contracts and long-lasting relationship with strategic
As Vinamilk and TH true milk belong to the dairy industry, the roles of procurement managers of both companies can be seen as having the same set of responsibilities. According to TH true milk (2015), there were 5 duties that the company required the procurement manager to take. Firstly, the procurement manager has to source new products and manage its buying volume. After that, the manager should manage its supplier network as well as negotiate the best purchase deal. The third duty is to monitor the firm’s sales, gross profit, other sources of income, cost and selling price so as to be able to control and respond to any changes of them. Furthermore, the procurement manager is suggested to coordinate with related divisions so that …show more content…
Therefore, Vinamilk is incentivized to diverse its milk supply sources rather than importing (Nakagawa, 2015). Furthermore, Vinamilk needs to increase the number of its in-house cow farms as well as the quantity and quality of its imported milk cows so as to reduce the dependence level to the international milk supply. Last but not least, Costelloe (2014) advised that the procurement department of Vinamilk should prepare a health check for its activities which contains the company’s spendmap, savings, value chain, contract and supplier relationship management in order to be more effective and efficient. Firstly, about the spendmap, Vinamilk needs to understand what and how the company will spend. Therefore, it is easier for Vinamilk to get the right balance between its short and long term spendings. After that, Vinamilk is suggested to focus more on not only its demand and sources lever but also fulfill and manage levers. Last but not least, Costelloe (2014) advised Vinamilk to realize the value of managing efficiently its contract and supplier relationship so as to have more effective contracts and long-lasting relationship with strategic