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Higher Nationals - Summative Assignment Feedback Form

Student Name/ID Nguyễn Thanh Tâm/ GBH210124

Unit Title Principles of Operations Management

Assignment Number 1 Assessor Nguyễn Thị Ngân

Date Received
Submission Date
1st submission
Date Received 2nd
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submission
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P1 P2 P3 P4 M1 M2 D1 D2

Assessor Feedback:
*Please note that constructive and useful feedback should allow students to understand:

a) Strengths of performance
b) Limitations of performance
c) Any improvements needed in future assessments
Feedback should be against the learning outcomes and assessment criteria to help students understand how these
inform the process of judging the overall grade.

Feedback should give full guidance to the students on how they have met the learning outcomes and
assessment criteria.

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* Please note that grade decisions are provisional. They are only confirmed once internal and external
moderation has taken place and grades decisions have been agreed at the assessment.

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Table of Contents
I. Introduction................................4

II. Main contents.............................................................................................................................................4

1. Roles and effectiveness of operations management in meeting organizational objectives....................4

1.1 Transformational model....................................................................................................................4

1.2. Dimensions of operations process....................................................................................................6

1.3. Relationship between operations function with others.....................................................................8

1.4. Role and effectiveness of operations management to meet organisational objectives.....................9

2. Contribution of effective supply chains to the organization.................................................................11

2.1. Supply network...............................................................................................................................11

2.2. Capacity management....................................................................................................................12

2.3. Supply chain management..............................................................................................................14

2.4. Inventory management...................................................................................................................16

2.5. The contribution of supply chain management..............................................................................17

3. Operations management problems and solutions..................................................................................18

4. The use of digital technologies for effective operational performance................................................20

III. Conclusion..............................................................................................................................................22

References.....................................................................................................................................................23

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I. Introduction
This analytical reporting activity's goal is to undertake a thorough evaluation of Viet Tien Garment
Corporation's operations and procedures and offer suggestions for enhancing productivity and efficiency
that align with the company's business plan. The author of the report is responsible for managing activities
in Viet Tien. The Operations Management Department serves as the core function, connecting with other
departments within the company to manage daily operations that are run efficiently and effectively. As
Operations Manager, the author directs overall operations strategy, ensuring operational performance and
strategic goals are aligned with business strategy with a shared understanding of operations and processes
as well as how to turn strategic goals into reality. Design the activities' resources and processes. Plan and
control the supply process. Develop process performance, ensure continuous improvement activities to
achieve efficiency and effectiveness for process performance improvement. The report includes 5 main
parts. The function and efficacy of operations management in achieving organizational objectives is
covered in the first section. The organization's benefit from efficient supply networks comes in second.
The issues with the company's operational management and their fixes come in third. Utilizing digital
tools to run the business efficiently comes in fourth. The report's overall conclusion comes last.

II. Main contents

1. Roles and effectiveness of operations management in meeting organizational objectives


Definition of operations and operations management: Operations is the process that transforms inputs,
or the components of production, into outputs, or products and services (Lumen, 2024). The task of
managing the resources used to produce and deliver goods and services is known as operations
management. To guarantee optimal organizational performance, operations managers must collaborate
with different departments (Hayes, 2024).

1.1 Transformational model


Definition: In operations management, the transformation process is all about turning inputs into outputs.
Processes for manufacturing or services can be used to accomplish this. Enhancing the information to
make it more valuable than the sum of its parts is the aim of the transformation process. The input has to
be changed into something more advantageous for the client in order to offer value (Edureka, 2022).

Every link in the transformation process adds value to the finished product, making it possible to think of
it as a value-added chain. Selecting the appropriate inputs is the most critical step in the transformation
process. An unsatisfactory result might result from using the incorrect input. Similarly, choosing the
incorrect manufacturing or servicing procedure might result in less-than-ideal outcomes. Gaining a
competitive edge and optimizing your operations require an understanding of the transformation process
(Edureka, 2022).

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Figure 1: The transformation processes (Weebly, 2024)

Viet Tien has many transformation processes, but the next process is the transformation of the company's
most typical clothing products.

a. Input process

Input materials

There are now three different kinds of warehouses utilized for storage by Viet Tien: warehouses for raw
materials used in manufacturing, warehouses for raw materials preserved, and warehouses for raw
materials due to clients. The goal of Viet Tien's raw material and accessory management is to protect and
utilize the primary raw materials as cheaply as possible. In each warehouse, the firm maintains raw
materials according to their intended usage (Yen, 2013).

Viet Tien imports from outside (China, India, etc.) as well as purchases domestically for raw materials for
manufacture, such as cloth. Vinatex is the primary local provider of cotton yarn (Yen, 2013).

Facilities

Utilizing digital technology, Viet Tien makes investments in a range of cutting-edge tools and machines,
utilizing the most sophisticated methods such automated cutting, pattern creation, diagram cornering, and
hanger systems run and get technology transfer from Singapore, Japan, and the US (Chi, 2018).

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Additionally, Viet Tien makes investments in the usage of Lean Manufacturing technology, a production
approach that is centered on cutting waste, adding value for clients, and figuring out how to keep
processes improving (Landau, 2023).

b. The transformation process – Production

Cutting the cloth is the first step in the production process. Viet Tien creates cutting plans, which are
determined by the number of items to be produced and the designs of the products. Subsequently, using an
industrial fabric cutting machine, cut the cloth in accordance with the product sample. Examining the
cutting quality comes next. To make sure the cloth satisfies manufacturing standards, it is meticulously
examined for size, cutting lines, etc. after cutting (Tram, 2024).

The stitching stage comes after the cutting stage. Finished goods are put together by workers piecing
together the details using stitching. The product is carefully examined for seams, stitching quality, and
other factors after sewing to make sure it satisfies production specifications (Tram, 2024).

The quality control stage comes after the stitching stage. To make sure they fulfill the high requirements
of both the business and its clients, products are carefully examined for overall quality, taking into account
factors like size, style, and material. A product will either be fixed or thrown away if it turns out to be
faulty (Tram, 2024).

c. Output process

Products are made by Viet Tien's apparel manufacturing process, including the company's polo shirts,
shirts, khaki pants, and t-shirts. This is the end product of Viet Tien's process, which involved turning raw
resources like cotton, fabric, and other ingredients into completed goods that could be sold. Additional
goods and services including accessories, sportswear, and formal attire may be included in the total
income of the company, along with support services like customer assistance and marketing campaigns.
However, in terms of the clothing production process, the output is mainly clothing items.

Clothes products are what Viet Tien produces. Numerous brands and market groups are served by these
output goods. For instance, Viet Tien Brand specializes in offering things like wallets, belts, vests, ties,
shirts, and khaki pants. A range of women's apparel products called Or Viet Tien Women consists of
dresses, skirts, vests, and many more fashionable items. Furthermore, Viettien Kids is a fashionable
product line that caters to children aged 2 to 11 years old and features T-shirts, polo shirts, shirts, casual
vests, shorts, pants, dresses, and skirts (Viettien Annual Report, 2022).

1.2. Dimensions of operations process


The conversion process of fashion clothes and accessories is not only Viet Tien's only process but also
other production processes Uniforms, Workwear and Other Products.

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Volume - Definition: The "quantity" of goods or services that an organization produces is referred to as
its "volume" (Gartside, 2022).

The volume of Viet Tien is very high. Viet Tien has revenue of VND 8,462 billion in 2022, making it a
comparatively significant revenue stream (Vinatex, 2023). Significantly more than the total revenue of
other businesses in the same sector, such as 10 Garment Corporation, which reported 4,500 billion VND
in 2022 (Mi, 2023), and Nha Be Garment Corporation, which reported 4,614 billion VND in sales (Thang,
2023), etc.

In mature fashion markets, Viet Tien has a good market share. Of its output, 31% comes from Japan, 21%
from the US, 16.5% from the EU, 3.9% from Korea, and 27.6% from other nations (Viet, 2021).

Variety - Definition: "variety" describes how many distinct "types" of goods or services are produced as
well as how diverse they are from one another (Gartside, 2022).

The variety of Viet Tien is very high. Because Viet Tien manufactures and stitches a wide range of
fashionable items, including men's underwear, socks, coats, sweaters, sports pants, shirts, trousers, and
khaki pants or women's skirts and dresses. Children's long trousers, polo shirts, and T-shirts are part of the
fashion product range (Viet Tien Annual Report, 2022).

Variation - Definition: It speaks to the degree of demand volatility and predictability that an
organization's operations encounter. Certain enterprises will encounter significant fluctuations in demand,
for instance because of the seasons, days of the week, or unpredictable customers (Gartside, 2022).

The demand for stylish clothing from Vietnamese consumers is consistently quite strong. Consumers
require a wide range of apparel goods, from sporting to workplace attire to casual wear (Ha, 2022).

In the apparel sector, customer demands also fluctuate with the seasons, and Viet Tien has to modify its
manufacturing and distribution to satisfy these demands. Customers frequently search for items that are
airy, light, and appropriate for hot weather in the spring and summer. Products might be dresses, shorts,
and t-shirts. Customers frequently prioritize warmth, comfort, and waterproofing throughout the fall and
winter. Products that are in demand include windbreakers, jeans, thick-lined shirts, jackets, and sweaters
(Ha, 2022).

The demand from customers for imported goods is rising. Viet Tien will need to come up with a remedy
for the propensity to favor foreign goods and "criticize" Vietnamese goods for lacking a diversity of styles
and materials (Ha, 2022).

Visibility - Definition: It speaks about how the customer can see the business and its operations, and how
the business can see the consumer (Gartside, 2022).

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The visibility of Viet Tien is moderate. In order to facilitate consumer connection, Viet Tien has set up
hotline numbers, email addresses, websites, and other platforms (Viet Tien, 2024). It also offers tools and
platforms that allow customers to track and assess the manufacturing process and sets up environments
where they may voice their thoughts and provide feedback. This entails putting in place a system for
managing customer interactions and quality control, giving thorough updates on the status of production,
the caliber of the final product, and the working environment, and creating a market that is cooperative
and receptive to information sharing between the company and its clients. Although Viet Tien constantly
pays attention to what customers have to say, the firm does not always adapt to their suggestions. Rather,
it will choose reasonable, modifiable opinions (Viet Tien, 2024).

With Viet Tien's 4Vs discussed above, Viet Tien's operations management is applying the Mass
production - Mass process method.

1.3. Relationship between operations function with others


Definition: Any organization's operations are its beating heart, and they are interdependent with all other
organizational activities. An organization's division’s work together to accomplish shared goals both
personally and collectively. They are only relevant as a component of an intricate network of
organizational activities and cannot live or prosper in isolation (Diaries, 2024).

To implement 4V elements and transformation models at Viet Tien, the operations department works
closely with other departments in close coordination. Viet Tien Capacity's operations cannot be fully
credited to the efforts of any one department; rather, they are influenced by the collaborative dynamic
between the operational unit and other significant departments within the firm. This win-win partnership
highlights how crucial cross-functional cooperation is to attaining operational excellence and successfully
satisfying customer demands and expectations.

One such collaboration is between the Marketing and Operations functions. Operations plays a crucial
role in converting marketing's identification and forecasting of market demands into tangible goods and
services (Duc, 2022). Men's fashion trends, for instance, are deemed necessary by the marketing
department to reflect one's masculine taste and style, comfort, standards, confidence, maturity, and style.
Viet Tien's "Vietnamese elegant temperament" product line, which reflects the elegant temperament and
fashion message of Vietnamese men via contemporary imagery and content, was so popular that it was
introduced in 2019 and followed the aforementioned trends several mediums, such as television
advertising and social media campaigns (Brands Vietnam, 2024). Additionally, in order to fulfill the
increasing demand brought on by marketing efforts, the Operations section makes sure that the
manufacturing procedures are executed efficiently. The way that Operations turns Marketing's insights
into the actual products that draw customers is one way that this partnership demonstrates the interaction
between Marketing and Operations (SimERP, 2021).

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Conversely, the comparable symbiosis is represented by the collaboration between the departments of
Product Development and Operations. According to Viet Tien, in 2018 in certain product lines, such as
lotus or eucalyptus shirts, improvements in materials and design were made possible by the Product
Development Department in collaboration with the Operations Department. Operations depends on the
Product Development division to assist in coordinating new product offers with shifting consumer
preferences and market conditions. These two divisions are interdependent, which emphasizes the critical
role each division plays in fostering product innovation and satisfying the wants and preferences of picky
customers (Launch , 2024).

1.4. Role and effectiveness of operations management to meet organisational objectives


Viet Tien has expanded rapidly in recent years, especially in the fields of marketing and technology. The
Fabric Factory project, which Viet Tien signed with Viet Thai Tech, is one of the highlights. The project's
goal is to develop textiles and clothing using green production technology in place of traditional dyeing
and printing techniques. This includes integrating new technologies into the manufacturing process to
expedite product design and time. Viet Tien has also updated their digital marketing approach to be
relevant in the current day. They now successfully target clients using social media platforms like
Facebook and YouTube (Ha, 2020).

In this regard, Viet Tien's activities are greatly impacted by social and environmental challenges. Viet
Tien has changed production practices, switching to more environmentally friendly fabrics like silk and
lotus fiber fabric, and providing procedures to maintain compliance with environmental and consumer
welfare standards and regulations, as a result of growing awareness of the issues pertaining to the
environment and society today (Viet Tien, 2024). The operations division of Viet Tien is in charge of
modifying and streamlining manufacturing procedures to adhere to social and environmental
requirements. Using materials as efficiently as possible, reducing waste, enhancing working conditions,
and adhering to occupational safety regulations are all included in this. Viet Tien's operational function
has, on the whole, contributed significantly to the company's ability to compete in the market by putting
new technical factors into production models and closely collaborating with other departments to
guarantee that social and environmental regulations are followed (Viet Tien, 2024).

According to Viet Tien (2024), becoming a powerful economic force in the textile and apparel industry is
one of Viet Tien's primary objectives. Viet Tien consistently places a high priority on product
development and innovation while optimizing the production process to swiftly, efficiently, and
effectively satisfy market demands. The actions of Viet Tien the achievement of certain organizational
goals serves as evidence of management success.

Operations managers oversee the manufacturing and supply chains, making sure that goods are made to
standard specifications, on time, and within budget. Furthermore, it is important for operations

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management to guarantee that the production process is flexible and can promptly react to shifts in the
market (Imarticus, 2024). The objectives of the business and the operational management of Viet Tien are
closely related. By guaranteeing effective production and supply processes, operations management assists
Viet Tien in meeting customer expectations and preserving its competitive position in the textile industry.
This aids in the company's accomplishment of its objectives, which include upholding its position as a
leader in the textile sector and producing high-quality products (Thang, 2022).

The core values of Viet Tien are: Honesty, Quality, Responsibility, Innovation, and Creativity. The goal of
Viet Tien is to provide the greatest goods and services while consistently raising employee and customer
satisfaction. Viet Tien's operations management places a strong emphasis on streamlining the supply and
production processes to make sure that the company's goods and services are in line with its objectives,
mission, and core values (Viet Tien, 2017). From supply chain management to the creation of superior
products, Viet Tien efficiently utilizes resources. By creating the greatest goods and services, Viet Tien
creates value for not just their clients but also for their businesses and investors. Through ongoing
innovation and the creation of new products, Viet Tien's operational management also fosters innovation.
Furthermore, Viet Tien maintains a flexible and responsive production and supply system that helps the
firm develop in the textile industry while holding onto its competitive edge (Viet Tien, 2024).

When it comes to making the most use of resources to produce goods and services that satisfy consumer
demands and advance organizational objectives, operations management is crucial. For instance,
Starbucks consistently improves its coffee production and offers premium goods while cutting down on
customer wait times. To guarantee that every cup of coffee is consistently supplied and tastes as good as
possible, they make investments in improving coffee makers, streamlining processes, and providing staff
training (Maleki, 2023).

According to Techie (2022), in the field of personal transportation, there is also Uber. Uber's primary goal
is to give users individualized, flexible transportation options. To fulfill the market's increasingly varied
mobility demands, its operations management must guarantee that resources, like as vehicles and drivers,
are managed effectively and creatively. They provide a platform that links drivers and passengers and
offers a distinctive and adaptable travel experience, including customer service and booking services.

These illustrations highlight how critical it is for operations managers to use resources wisely in order to
provide output that satisfies specified market demands and advances a number of goals organization via
supply and manufacturing process optimization based on the unique requirements and objectives of every
sector and company.

Starbucks focuses implementing fast and immediately approaches to enhance bartending operations in
addition to streamlining manufacturing procedures. They cut expenses and improve product quality by
getting rid of waste in the coffee process. As a consequence, Starbucks is able to maintain its
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competitiveness in the worldwide market alongside its rivals thanks to a flexible and effective dispensing
procedure (Starbucks, 2024). Uber, meanwhile, is committed to utilizing all of its resources—including
drivers and transit vehicles—to give users convenient and adaptable travel options. In addition to
enhancing transportation services, their transformative strategy concentrates on building a platform for
communication between drivers and passengers. Every consumer now has access to a wider range of
transportation choices and enjoys a more customized travel experience. Uber's capacity to adjust and react
to specific market demands is demonstrated by the variety and flexibility of its transportation services
(Uber, 2015)

This illustrates the flexibility with which both businesses may respond to particular market demands. Uber
and Starbucks place a higher priority on visibility, variety, volume, and distinction when it comes to
operational factors. This enables them to react to shifts in the market and customer preferences with
greater flexibility.

2. Contribution of effective supply chains to the organization

2.1. Supply network


Viet Tien collaborates with around 50 providers of raw materials and materials, such as yarn suppliers,
fabric factories, button and zipper suppliers, and other vendors (Viet Tien Annual Report, 2022). Viet
Tien's main production facilities are almost all affiliated factories located in Ho Chi Minh City such as Sig
- VTEc Factory, Garment Factory 1 -2, VIMIKY Factory, etc. Viet Tien can produce up to 2 million items
per month, including sportswear, undergarments, and shirts (Viet Tien, 2017).

According to Viet Tien (2022), Viet Tien has agreements in place with top freight providers including
FedEx, DHL, and Vietnam Airlines Cargo to guarantee prompt and secure delivery of cargo. The shipping
and storage process is managed by a state-of-the-art logistics system, which includes warehouses located
in strategic locations around the country.

According to Viet Tien (2024), More than 200 local and foreign distribution and retail partners, including
major retail chains like AEON Mall and Lotte Department Store, as well as independent retail agents,
work with Viet Tien. Viet Tien exports its goods to over 20 nations worldwide and distributes its products
through over 1,000 retail locations nationally.

According to Viet Tien (2022), Viet Tien collaborates with additional service providers, including printing
houses, supply chain management (SCM) firms, and fashion design studios. Viet Tien's relationships with
these partners enable them to provide clients premium goods and extensive support services. Numerous
clients from various industries are served by Viet Tien, including end users, wholesalers, and well-known
fashion companies. Major clients of Viet Tien include numerous international fashion companies, such as
Zara, Gap, Calvin Klein, and Uniqlo.
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To put it briefly, Viet Tien's supply network is a big and intricate system that consists of several partners
and procedures to guarantee the effective and high-quality manufacture and delivery of their large number
of clothing goods.

2.2. Capacity management


Definition: Making sure a company optimizes its potential activities and production output—at all times,
under all circumstances—is known as capacity management. A company's capacity is a measurement of
what it can do, make, or sell in a specific amount of time (Bloomenthal, 2020).

Managing Capacity at Viet Tien

At Viet Tien, capacity management entails determining the production facilities' capacity and making the
best use of them to effectively satisfy client demand. Typically, capacity is expressed in a number of units,
including:

The greatest output that a manufacturing facility can attain in optimal conditions is known as its design
capacity. It is frequently stated as production units per time interval, such as pieces per hour or clothes per
month (Thang, 2022). Actual Output, Taking into account things like maintenance, downtime, and other
operational restrictions, this shows the actual production that company was able to produce in a given
amount of time (MOF, 2018).

For example: The primary production plant of Viet Tien, located in Bắc Ninh, has a design capacity of
800,000 garments per month. However, the actual output for the previous month was just 720,000
garments because of things like worker availability, scheduled maintenance, and machine problems (Viet
Tien, 2022).

Through the process of comparing actual output to planned capacity, Viet Tien is able to assess the
effectiveness of its manufacturing processes and pinpoint areas in need of improvement. The allocation of
resources, scheduling, and general operational effectiveness are all improved by this assessment.

Demand Forecasting at Viet Tien

To precisely estimate client demand, Viet Tien uses a variety of demand forecasting techniques. Among
the forecasting techniques used are:

Time Series Analysis: According to Loffredo (2023), this technique looks for patterns, trends, and
seasonality in client demand by examining previous sales data. Viet Tien forecasts future demand based
on historical sales success using sophisticated statistical methodologies.

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Collaborative Planning, Forecasting, and Replenishment (CPFR): According to Viet Tien (2022), to
exchange information and manage demand planning initiatives, Viet Tien works closely with important
clients and suppliers. Viet Tien can better adapt to variations in demand and reduce stockouts and excess
inventory by combining customer projections with internal production planning and inventory
management.

Technological Forecasting: According to Viet Tien (2022), to provide more precise demand projections,
Viet Tien makes use of sophisticated software and technologies that combine artificial intelligence (AI),
machine learning, and predictive analytics. To forecast future demand patterns, these technologies
examine a wide range of variables, including social media trends, consumer behavior, and economic data.

Importance of Forecasting to Organizational Objective Management

For a number of reasons, demand forecasting is essential to Viet Tien's organizational goal management.

Optimal Production Scheduling - Viet Tien may more efficiently plan production schedules, assign
resources, and control inventory levels thanks to accurate demand projections. This aids in reducing
production costs, optimizing operational effectiveness, and fulfilling client delivery commitments (Viet
Tien, 2022).

Demand predictions are a useful tool for making strategic decisions about new product launches,
capacity expansions, and market growth plans, among other things. Viet Tien can better match its business
plans with market opportunities and client preferences by predicting future patterns in demand (Viet Tien,
2022).

Viet Tien can guarantee product availability, save lead times, and improve customer satisfaction by
precisely forecasting consumer demand. Exceeding or meeting client expectations increases brand
impression, boosts customer loyalty, and creates prospects for repeat business.

Variations in Demand and Capacity across Time

May see variations in the company's production capacity based on Viet Tien's quarterly and yearly
financial reports. For instance, Viet Tien's manufacturing capacity climbed from 750,000 goods per month
to 825,000 products per month in the second quarter of its 2023 Financial Report, a 10% increase over the
same time in the previous year.

But, because of the effects of the pandemic and the economic climate, there was also a change in market
demand during that time. Despite having more capacity, Viet Tien's monthly sales only grew by 5% in the
second quarter, going from 700,000 to 735,000 goods (Viet Tien Financial Report, 2023). This
demonstrates the disparity between market demand and output.

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How to Use Demand Side Management for Overarching Goals

Viet Tien can modify pricing seasonally in order to manage the demand side, based on the 2023 Financial
Report and Market Report. For instance, Viet Tien may raise product pricing or develop unique
advertising packages for summer-appropriate products during the busiest summer months, when demand
for sporting goods rises.

Marketing and promotional tactics can also be used to increase consumer demand. In a short amount of
time, discounts, product giveaways, or other promotions can draw clients and generate revolutionary
demand (Pace, 2024).

Another crucial element is profit management. Viet Tien must think about boosting sales and maximizing
earnings. In all circumstances, steady profitability may be maintained by modifying pricing and
manufacturing costs flexibly.

Assess the Role of Capacity Management

According to information from the 2023 Financial Report and Market Report, capacity management is
crucial to ensuring that Viet Tien has sufficient production capacity to efficiently and adaptably fulfill
market demand. Through the optimization of resource use, production scheduling, and demand
forecasting, capacity management keeps businesses competitive and adaptable in a changing business
climate. Simultaneously, a thorough grasp of market demand and the company's production capacity is
necessary for managing the demand side through pricing, marketing, and promotion tactics. To meet the
organization's overall objectives, demand-side adjustment procedures must be grounded on precise and
comprehensive data regarding the company's demand and capacity changes.

2.3. Supply chain management


Definition: The administration of the complete manufacturing flow of products or services, from the
procurement of raw materials to the delivery of the finished product to customers, is known as supply
chain management. A business establishes a network of suppliers to transfer the product from vendors of
raw materials to businesses that interact directly with consumers (IBM, 2019).

Supply Chain Management integrates resource management, partner relationship management, and
information management to optimize supply chain operations. A supply network comprises several
organizations, suppliers, and other partners who work together to develop and provide a product or service
for the market. In order to satisfy consumer demands and maximize overall performance, supply chain
members interact to create a supply network (Daniel, 2020).

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Within a supply network, supply exchanges can take many different forms, such as relationship- and
contract-based. In order to work with independent retail agents, Viet Tien routinely forges partnerships
with major shops like Aeon Mall and Lotte Department Store. Numerous worldwide fashion brands, like
Zara, Gap, Calvin Klein, and Uniqlo, are among Viet Tien's main clientele (Viet Tien, 2022). Viet Tien
gains a lot from its long-term, stable partnerships with major retailers. These partnerships enable the firm
to guarantee its capacity to sell certain items, optimize the distribution process, consume products, and
reduce supply chain risks. The decision to choose between contracting and networking can have a
significant impact on the objectives and activities of a company. Trust-based and long-term committed
relationships assist achieve operational objectives including cost and time reduction, quality improvement,
and supply chain performance optimization. Contracts, on the other hand, guarantee that statements are
accurate and transparent, supporting cost- and risk-reduction strategies. The organization's capacity to
achieve worldwide objectives, such as raising sales, boosting brand awareness, and maximizing profits, is
directly impacted by this choice.

Large Vietnamese clothing manufacturer Viet Tien employs a variety of sourcing strategies to preserve
the caliber and functionality of its goods. A multi-sourcing approach is a typical illustration. For instance,
Viet Tien sources raw materials like cotton and other components from several sources in order to meet
the needs of the textile industry. Select a large number of suppliers from a wide range of national
businesses, such Mex Viet Phat Production Business Joint Stock Company, Binh An Textile and Garment
Construction Materials Joint Stock Company, Vang Poly Cotton Sheet Production Company - Vtec, and
many more additional supply sources (Viet Tien, 2022) and importing raw resources from international
nations including China, India, Pakistan, and Central Africa (Yen, 2013). Viet Tien reduces the danger
associated with using a single source in this way. Viet Tien is therefore assured of a varied, flexible, and
dependable supply source.

On the primary sourcing strategy chart, Viet Tien will be positioned in the "Multi-sourcing" area. The
performance and quality of the finished product depend heavily on the supplier's items and raw
ingredients. With a wide and flexible variety of sourcing options, Viet Tien's multi-sourced strategy
minimizes risks and maximizes productivity. Viet Tien can guarantee the regularity and dependability of
the supply of raw materials by cultivating strong connections with its suppliers. Creating a bridge between
Viet Tien and suppliers enhances communication, comprehension, and the capacity to resolve issues
swiftly and efficiently. This aids in achieving performance, quality, and product improvement objectives
in operations management.

A typical business, Viet Tien holds a significant place in the fashion and office clothes supply chain.
Because of its dominant position in the Vietnamese garment industry, Viet Tien has developed and gained
influence in the fields of fashion and office wear. They constantly consider shifting customer wants and

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make necessary adjustments, such as adjusting for fashion events and the PESTEL elemental model's
cultural, economic, social, and political effects.

Nonetheless, there may still be risks connected to shifts in consumer demand. Variables including shifts in
public awareness of sustainability concerns, modifications to trade laws and regulations, or shifts in the
status of the global economy can all have an impact on demand and operational economics. Product
profiles and marketing strategies are subject to change in response to factors such as shifts in customer
preferences or modifications to workplace legislation that may affect manufacturing costs. If these risks
are managed, Viet Tien will be more capable of adjusting to shifts in market demand.

Innovations in e-business, e-commerce, and e-procurement are obviously essential to Viet Tien's
expansion and flexibility in response to shifting customer needs. For instance, Viet Tien's e-commerce
system, which consists of a website and an electronic gadget, makes it simple for clients to purchase
online from anywhere. Viet Tien may now effectively communicate and engage with clients via various
marketing platforms.

Viet Tien may be able to get useful data from online transactions on consumer opinions of goods and
services as well as buying habits. Viet Tien can enhance the way it provides its goods and services to
better fulfill the demands of its customers by using this data to predict and assess market demand. Viet
Tien also saves time and money by using e-procurement to streamline its purchasing and supply chain
management procedures.

Viet Tien can create a flexible and adaptive environment thanks to these technologies, which enables them
to quickly react to changes in the market and modify their business strategies. This makes it easier for Viet
Tien to withstand strong competition and provides room for more development.

2.4. Inventory management


Definition: Inventory monitoring, which involves moving goods from producers to warehouses and from
these locations to the point of sale, is a crucial component of the supply chain. Having the appropriate
items at the right location at the right time is the goal of inventory management (IBM, 2023).

The physical inventory of Viet Tien consists of produced completed goods including dresses, suits, shirts,
and other jewelry pieces, in addition to clothing supplies like yarn, fabric, and accessories different attire
(Yen, 2013).

Queues of customers: Viet Tien's order management system stores client orders. This contains details on
the requested product, the amount, the preferred delivery window, and any additional needs from the
client (Yen, 2013).

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Information in database: In order to record data regarding client lists, contact details, order histories,
payment information, and other specifics, the company keeps a customer database. This aids Viet Tien in
managing client interactions and delivering superior services (Yen, 2013).

A continuous inventory control system is used in Viet Tien's inventory information. By using this
system, the corporation may keep an eye on the inventory levels of individual items and record and update
any import and export actions. As a result, the business may simply manage the quantity of inventory at
each stage and proceed in the proper and suitable manner. Additionally, Viet Tien Garment Joint Stock
Company's inventory management is extremely uniform. All inventory categories—raw materials, semi-
finished goods, and completed goods—go through rigorous quality and quantity inspections. Viet Tien
meticulously calculates its inventory based on demand at the same time. Current client demands as well as
projections for future needs (Yen, 2013).

In order to fulfill client production and order requirements, Viet Tien kept a steady inventory level prior to
COVID-19. Viet Tien had significant variations in inventories throughout the pandemic as a result of
supply chain interruptions and shifts in consumer demand. To meet the new circumstances, Viet Tien has
modified its inventory management strategy, reducing superfluous inventory and improving inventory
demand tracking and forecasting. Once things have stabilized, keep refining the inventory management
procedure to maximize efficiency and accomplish corporate objectives (Viettien Garment Corporation,
2021).

2.5. The contribution of supply chain management


Strategic choices on product selection, competitive advantage, customer happiness, etc. are all part of
business strategy. Corporate strategy addresses the overarching goal and reach of the company in order
to satisfy stakeholders (Patni, 2022).

An illustration of Operation Level Objectives for Viet Tien. Optimizing the production process is the aim
in order to cut expenses and boost efficiency. Prior to putting improvement measures in place, Viet Tien
produced around 10,000 shirts on average each month. The intelligent production management system
was put into place, and monthly average output shot up to 12,500 shirts. The average cost of production
dropped to 70.000 VND per shirt from 80.000 VND per garment. At Viet Tien, information systems and
internet technologies are crucial to the optimization of production procedures and inventory control. Viet
Tien is able to maximize resources and reduce waste in the production process with the use of efficient
inventory management. Using smart manufacturing technology, Viet Tien is able to streamline production
procedures and boost automation. Viet Tien is always searching for ways to apply cutting-edge techniques
and technology to enhance production operations. In contrast to other apparel sector businesses, Viet Tien
has an innovative mindset and a readiness to leverage technology to enhance management and production
capabilities (Viet Tien Annual Report, 2022).

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Viet Tien is able to increase productivity, save expenses, and preserve its competitiveness in the apparel
sector by utilizing cutting-edge technology and optimizing production procedures and inventory control.

3. Operations management problems and solutions


Viet Tien's present problem is that the company is expanding its distribution channels too quickly due
to the sharp rise in its stores and agents, which has several negative effects on the company. Viet Tien
now has more than 1,300 agents and outlets spread throughout the country's provinces and cities. Viet
Tien's agent stores compete fiercely with one another due to the excessive close proximity of their
establishments on several huge streets. Viet Tien is highly challenging to handle because of its vast outlets
and large agent count. Because the dealership itself does not do repairs or engage in innovative design
during business hours, a large number of dealerships now have very few or no customers (Yen, 2013).

The aforementioned issue has a significant effect on Viet Tien. First, at the operational level, opening
many dealerships will affect product quality. Because Viet Tien lacks tight regulation, it is possible for
counterfeit items to be sold inside of legitimate establishments. This may result in refunds and unfavorable
comments from clients. Customers' faith in Viet Tien will drop precipitously as a result, and the
company's reputation will suffer along with it.

At the strategic level, Viet Tien's revenue will be affected. Operating costs are considerable when many
stores are opened. That issue will have an impact on Viet Tien's earnings on a social level. Viet Tien will
make less money since running expenses must still be paid on a regular basis despite a decline in sales
income.

There are presently more than 1,300 Viet Tien shops (also known as Viet Tien Agents) all throughout the
nation, according to data from the Viet Tien Garment Joint Stock Corporation. Not to mention the shops
and supermarkets who carry Viet Tien items, those are level 1 agents that have been registered directly
with the corporation. This demonstrates unequivocally how vast Viet Tien's agent network is and how
fiercely agents in the same region compete with one another. Single agents will find it harder to compete,
and their management of a store's distribution strategy will be less polished. The following is suggestions
for Viet Tien to consider in order to enhance its distribution channel.

One of the biggest fashion businesses in the world, H&M, has likewise experienced lower sales and losses
as a result of opening too many locations. H&M established a lot of stores all over the world as company
developed, however some of them did not function as well as anticipated financially, wasting money and
resources. As a solution, H&M assessed its stores and shuttered those that weren't working. A total of 303
H&M shops have closed, primarily in well-established areas for all of its brands. After then, growing
markets will be the primary locations for H&M's future store openings. By taking this action, H&M was
able to optimize its retail network and address the issue of building too many locations (Hao, 2023). This

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supports H&M's ongoing achievement of its short- and long-term corporate objectives, in addition it help
Viet Tien have a solution to solve the problem of opening too many stores.

Assessing the aforementioned solution in relation to the Balance Scorecard will facilitate the evaluation
of significant elements from a variety of angles, such as financial, customer, internal processes, and
learning and development

Perspective Objectives Measures Targets Initiatives

Financial Reduce operating Total number of Reduce operating Track and update
perspective costs of inefficient stores operating costs by 10% in incurred costs
stores with low revenue the first 6 months according to
of implementing monthly reports
the solution

Customer Customers know Number of stores Reduce the rate at Combined with
perspective the company's known to be which customers marketing
target stores inefficient before do not visit campaign for
closing inefficient stores stores

Internal process Increase the There was a Detect customer Develop working
perspective efficiency of market survey tastes at store procedures and
closing stores with before opening the locations inspect stores
low revenue and store
ineffective
operations

Learning and Ensure employee Employees are All employees Organize monthly
growth awareness of the fully aware of the working 2 months training for
perspective issue impact if it occurs or more are aware employees
working at the
company

In order to help Viet Tien reach or maintain targets in all three Levels of Balance objectives, it will be
crucial to apply balanced solutions and pay close attention to the application of established corporate
standards. Based on the difficulties the business is facing, the scorecard was created. Should Viet Tien put
in place the required measures, define target projects, and enhance internal processes in order to maximize
operational efficiency and assure the accomplishment of both short- and long-term goals. By learning

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from successful companies, Viet Tien will also acquire the most effective strategies and techniques for
overcoming setbacks and enhancing performance.

4. The use of digital technologies for effective operational performance


a. The importance of digital technology to company operational performance

Businesses may create more intelligent work processes, cut out pointless stages, and maximize staff
performance with the help of digital transformation. Errors and lead times are decreased by technologies
like artificial intelligence, machine learning, and process automation. This raises labor productivity,
lowers organizational expenses, and increases production efficiency (VR360, 2024).

Businesses must adjust to a dynamic market environment and compete in a sustainable manner.
Businesses may adapt their development plans and business models to new markets with the aid of digital
transformation. Digital technology helps organizations operate more efficiently, deliver better products
and services, become more competitive, and draw in new clients by being used to business stages like
marketing, sales, resource management, etc (VR360, 2024).

Better customer experiences are becoming more and more expected from organizations. Businesses may
connect and engage with clients more quickly and efficiently by utilizing new channels of contact
provided by digital transformation, such as chatbots, interactive websites, and mobile applications.
Customers will have a better experience as a result, which will assist firms in establishing enduring
connections and boosting client loyalty (VR360, 2024).

b. Viet Tien's goals and the problems the company is facing. The company's technology solutions

The objectives of the Viet Tien firm are to fulfill market demand, increase customer happiness, and
improve supply chain management and manufacturing performance and broaden markets while boosting
corporate effectiveness in both urban and rural regions (Viet Tien, 2022).

Lack of information in manufacturing and supply chain management is the issue Viet Tien is dealing with,
which makes it challenging to forecast and satisfy market demand. Inefficient inventory control results in
wasteful storage expenses, which may generate shortages or surpluses of inventory (Yen, 2013).

Solution: Information Processing Technology is the technology category that includes the Supply Chain
Management (SCM) system.

This solution's main strengths are its ability to integrate data from many sources, including the supply of
raw materials, production procedures, and market data, to produce an all-encompassing picture of the
supply chain. Utilize data analysis to forecast consumer demand and streamline business procedures
(Pace, 2024).

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Solution: The Material Processing Technology technology category includes the Digital Inventory
Management System. This solution's main function is to automate the inventory management process,
starting with data gathering and ending with automated ordering and management. Track inventory
location and status in real time with IoT (Internet of Things) technology (Kholodenko, 2022).

These two technological solutions enhance supply chain management and manufacturing operations by
focusing on information and material handling. They provide Viet Tien firm capabilities for process
automation, data integration, and data analysis to boost productivity and adaptability in corporate
operations.

c. Applying that technology, how will the variety and volume of the company's operations
dimensions change? So, how does it affect the quality, speed, dependability, flexibility, and cost of
operations and how does it help the company in decision making and problem solving?

Supply Chain Management (SCM) System

By streamlining the supply chain management procedure, the SCM system's application expands Viet
Tien's operational variety and volume. By automating ordering, distribution, and inventory management
procedures, this system improves the company's capacity to satisfy customer demand and diversify its
product offering.

Operations components are impacted by SCM. The first is quality; by guaranteeing premium raw
materials and resources, supply chain optimization helps to increase product quality. The automated
ordering and delivery system Speed comes next. It speeds up order completion and improves customer
response times by cutting down on processing time. Dependability: Supply chain management (SCM)
increases operational dependability by reducing process failures and guaranteeing on-time product deliv.
Regarding Flexibility, Supply Chain Management (SCM) systems offer the ability to adjust to variations
in market demand and modifications in production procedures. Supply chain process optimization reduces
the cost of inventory management, transportation, and warehousing (Fernando, 2024).

Digital Inventory Management System

By automating inventory management procedures and forecasting market demand, implementing a digital
inventory management system may boost volume and diversity (Hoa, 2023).

Affects the operational aspects. The first is quality, which is enhanced by digital inventory management,
which makes sure that only superior products are transported and kept. The second is Speed, which
involves streamlining the inventory management procedure to cut down on the amount of time needed to
find inventory and deliver items to clients ery (Osa , 2023).

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The third system is Dependability, a digital inventory management system that reduces excess and deficit
inventory to boost dependability. The fifth feature is Flexibility; inventory management procedures may
be adjusted using digital technology to accommodate changes in the market. To save storage and
inventory management expenses, Cost implements a digital inventory management system (Osa , 2023).

All things considered, Viet Tien's activities are more varied and productive thanks to the implementation
of these technological solutions, which also have a favorable impact on operational variables like cost,
quality, speed, dependability, and flexibility. As a result, businesses are better able to make choices and
find solutions to issues more quickly, which improves performance and increases their ability to compete
in the market.

III. Conclusion
The Operations Management Department plays a crucial role in the smooth and successful management of
day-to-day operations within the framework of Viet Tien Garment Corporation's ongoing development.
The paper investigated operations management's role and efficacy in accomplishing corporate objectives.
It addressed the advantages that businesses derive from having a strong supply network in particular and
highlighted the company's operational management issues along with solutions. The report's discussion on
employing digital technologies to operate firms efficiently, showcasing operations management creativity
and innovation, is similarly significant. Lastly, the report's overall conclusions give a summary of the
efficacy and efficiency of management activities and stress the significance of process modification and
ongoing improvement in order to keep the company competitive and develop sustainably in the future.

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