The material supply chain and the farm system: 110,000 cows from the system of 7 dairy farms and the farming households provide 216,485 tons of raw fresh milk in 2015, averaging 600 tons of raw fresh milk daily. This source of fresh milk is combined with other selected materials from over 200 suppliers to generate quality products of Vinamilk.
Distribution system: …show more content…
After being bought from the farmers, the fresh milk will be immediately moved to the milk hubs within 1 hour in cold storage system and then they will get the quality check with the set of standard which are dry matter, fat, microbiology in order to make sure the material is good enough. Especially, for the UHT milk production, the fresh milk has to be tested with 75 degree alcohol to inspect the precipitation. After that, the qualified fresh milk will be transported to the factories and wait for the production and in 2013, Vinamilk has bought 156,562 tons of milk from the farms in …show more content…
Currently, in the domestic market, there are two distribution channels: modern and traditional channels:
• Modern channel: Vinamilk directly sell the products to approximately 600 nationwide supermarkets. The revenue in this channel contributes to 10% of domestic revenue.
• Traditional channel: Vinamilk established a system including 266 exclusive widespread contributors. The locations for these contributors are divided clearly to serve the nearby retailers. On 31st December 2013, Vinamilk has owned more than 224,000 retailers, which was 24,000 more increased compared to the end of 2012.
• Moreover, Vinamilk has set up 60 product showrooms so far and it is expected to be 39 more in 2014.
For foreign markets:
The export in 2012 and 2013 accounted for 14% of total revenue and the primary exported products are condensed milk and powdered milk and the export sales reached 4,415 billion VND. The markets for these products are focused mainly on South East Asia, Middle East and Africa; there are many more markets as we can see from the picture