Avon Supply Chain Analysis

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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…show more content…
The supply chain adapts responsively to demand and avoid stock-out. Disadvantages: + High cost of expertise, including Web-based technology and training cost. + Lack of trust in sharing information among players in supply chain because sensitive data can help one partner to take advantages of the other (Hamilton 1994). CPFR is proposed because it can help VDC, ingredients suppliers and Jetstar airline collaborate together to predict consumer sale demand. Since supply chain players exchange useful data, a win-win situation is created. From deep understanding about sale demand, the catering company can prevent the surplus amount of products, increase inventory turnover ratio and improve customer service level. Beside, the cost of inventory holding and also decreases because the manufacturer does not need to hold much safety stock. Theoretically, “an accurate CPFR forecast could be translated directly into a production and replenishment schedule since both quantity and timing are included in the forecast” (Coyle et al, pp.252, 2003). Hence, risk of stock out is not worried anymore while lead time also is reduced. II. EDI - Electronic Data Interchange According to Lee and Lee (2010), Electronic Data Interchange (EDI) is a type of inter-organizational electronic commerce (EC) that allows organizations to exchange business document electronically in a structured, machine-readable format. Information sharing can be

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