intership report on improving employee engagement in lavie company hưng yên factory

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UNIVERSITY OF NICE SOPHIA ANTIPOLIS IAE School of Business Administration

THANG LONG UNIVERSITY

Hanoi, Vietnam

INTERNSHIP REPORT ON

SEVERAL SOLUTIONS OF YCH-PROTRADE TO IMPROVE THE LOGISTICS SYSTEM OF SUNTORY PEPSICO IN NORTHERN VIET NAM

Submitted by: Tran Hai Long

ACADEMIC SUPERVISOR

Dr. PHAM THI CAM ANH

School of Economics and International

Business Foreign Trade University

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I would also like to thank all the members of the Project Department, warehouse, transportation department, for their support and encouragement. Without their help, I was unable to complete the assigned task during the internship and completed this report.

With gratitude, I would like to thank all the AMI Master's professors from Unversity of Nice Sophia Antipolis and Thang Long University, who have provided me with the knowledge and skills to practice Current research through their useful and practical lectures.

Finally, thank you to all my classmates and family for helping me and supporting me in my internship, my work and my daily life.

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ABSTRACT

This report is the result of my 4-month internship with YCH-Protrade - a leading foreign-invested logistics company in Vietnam. Internship begins when the company is preparing for a new bidding round at the Suntory Pepsico Bac Ninh project. This is a great opportunity for me to gain practical knowledge in capturing operational activities and data analysis under the guidance of Mr. Nguyen Huynh Chien - Project Manager.

Firstly, the report gives an overall picture of the organization chart, financial status, traditional customers, the company's main products.

Secondly, this document summarizes all the tasks assigned during my internship and the goals I need to achieve to accomplish those tasks.

Finally, I used the SWOT analysis to show the external and internal factors that affect the project activities. Since then, with the guidance of the company supervisor, combined with the knowledge learned in the AMI course, I have come up with some solutions to improve the company's logistics system.

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TABLE OF CONTENTS

INTRODUCTION ... 1

CHAPTER I: COMPANY BACKGROUND ... 2

1.1 General background information about YCH Group ... 2

1.2.3 IT solutions: System & Solution- Service empowered by Innovations ... 7

1.2.4 Basic financial data ... 7

CHAPTER II: COMPANY STRUCTURE AND ORGANIZATION CHART... 9

2.1 Company Organization Chart ... 9

2.2 Explain the organization chart (Functions and duties of departments) ... 9

2.2.1 Director ... 9

2.2.2 Deputy General Manager ... 10

2.2.3 Supply chain Manager (country)... 10

2.2.4 Business Development ... 12

2.2.5 Procurement Department ... 12

2.2.6 Human resources Department ... 12

2.2.7 Information Technology Department ... 13

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2.2.8 Facilities, EHS and QA department ... 13

2.2.9 Financial Department ... 14

2.3 The intern’s position within the Company ... 14

CHAPTER III: THE MISSION: ASSIGNED TASKS AND GOALS... 16

3.1 The tasks assigned ... 16

3.2 The link between the subject matter and the mission ... 16

3.3 The desired goals ... 17

3.4 The Contribution to the Company ... 18

3.5 The theoretical knowledge to be put into Practice ... 18

3.5.1 International Economics and Globalization ... 19

3.5.2 International Business Plan ... 19

3.5.3 International Strategies ... 19

3.5.4 International Distribution Channel ... 20

3.5.5 International management ... 20

CHAPTER IV: DEVELOPMENT ... 21

4.1 An overview of Suntory Pepsico Bac Ninh factory ... 21

4.1.1 Introduction about Suntory pepsico Vietnam ... 21

4.1.2 Introduction about Suntory Pepsico Vietnam factory in Bac Ninh ... 21

4.1.3 The volume of goods ... 23

4.2 YCH logistics activities at Suntory Pepsico Bac Ninh factory... 23

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5.1 Achievements from the internship ... 36

5.2 Shortcoming of the internship ... 37

5.3 Suggestions to the company ... 37

5.4 Conclusion ... 38

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INTRODUCTION

According to a World Bank report, Viet Nam is one of the fastest-growing economies in the world, maintaining a growth rate of over 6% continuously for the past 10 years. Opening the domestic market and improving the legal and political system, has attracted a lot of foreign investors from developed countries such as Japan, the United States, Germany, France and South Korea.

After normalizing relations with Viet Nam. Many of the world's leading corporations in the United States have been present and invested in Vietnam. Pepsico is one of the first US companies to operate in Vietnam since 1994.

With the rapid growth of the economy along with rising incomes, the carbonated beverage industry is joined by leading brands in the world such as Pepsico, Coca-Cola and Vietnamese brands like Tan Hiep Phat makes the competition very fierce.

To dominate the market, Pepsico has put into operation 5 production plants across Vietnam, diversifying products, improving quality and organizing a nationwide distribution network. To implement a part of the above plan, YCH-Protrade is a logistics company that has been entrusted with the task of distributing goods from the Suntory Pepsico factory in Bac Ninh province to all northern provinces of Viet Nam. During my internship at the company, I was entrusted with the task of proposing solutions to improve the company's logistics operations.

This report presents my assigned tasks and recommendations after researching and analyzing ongoing warehousing and transport activities at the project.

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CHAPTER I: COMPANY BACKGROUND

1.1 General background information about YCH Group 1.1.1 History

YCH was founded in 1955 in Singapore by Mr Yap Chwee Hock with the first field being a passenger transport company. Later, the company expanded into the freight business and provided logistics services such as warehousing and freight management. Today, YCH is the largest supply chain solutions company in Singapore, providing supply chain solutions for many of the world's leading brands in the Asia Pacific.

The periods of development:

 The 1950s: Passenger Transport

 1980s-1990s: Integrate Logistics

 1995-2005: Supply Chain Management

 2005: Supply Chain Solutions Located in Singapore with four branches:

 YCH Supply Chain City

 YCH Buroh

 YCH ChemPark

 YCH Tampines Headquarter: Supply Chain City

8 Bulim Avenue, #08-01 Singapore 648166 Tel: (65) 6767 7777 | Email:

1.1.2 Vision and Mission

YCH’s vision is “The Logistics Superhighway™”, which will be achieved through the integration of three critical flows – Physical Flow, Information Flow and Financial Flow the Group’s mission

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1.1.3 Services

YCH provides logistics solutions in many fields ranging from electronics, chemicals, consumer goods, and customized solutions to meet the highest requirements of customers.YCH has also developed patented solutions which enable securitization of inventory along the supply chain, creating a seamless and optimally efficient flow of capital and managed risk.

The main activities of the company:

 Chemicals & Healthcare

 Electronics & Technology

YCH has a wide network in the Asia Pacific, with branches in 11 countries, including Singapore, Malaysia, Indonesia, Thailand, China, Korea, Hong Kong, Philippines, India, Vietnam, Australia and Korea.

1.1.5 Awards

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YCH has won numerous awards from domestic and international prestigious organizations for outstanding achievements in supply chain operations.

Typical awards that YCH has achieved such as:

 2015: Supply Chain Asia Logistics Awards - Asian 3PL of the Year

 2014: YCH Group was awarded the “Overall Supply Chain Partner of the Year” at the Supply Chain Asia Awards.

 2013: Supply Chain Asia Logistics Awards - Asian 3PL of the Year

 2010: Supply Chain Asia Logistics Awards - Asian 3PL of the Year, ASEAN Business Awards – Most Admired (Large) Enterprise for Innovation, Top Winner of IDC-Enterprise Innovation Awards

 2009: Supply Chain Asia Logistics Awards - Asian 3PL of the Year, Received CIO 100 Awards for demonstrating excellence in delivering business value through IT

1.2 YCH in Viet Nam 1.2.1 History

YCH is present in Vietnam on October 1, 2009. YCH's first plan is to join Binh Duong Export Production Company (Protrade) to open a logistics centre in Binh Duong (YCH - Protrade DistriPark) to meet the requirements of industrial supply chains from electronics manufacturing to consumer goods. Protrade Company is a state-owned enterprise established in 1982, headquartered in Binh Duong, business lines are agricultural and forest product processing, entertainment - entertainment, real estate and health care with chains company

Import-YCH Protrade Co, Ltd. Headquartered in Dong An Quarter, Binh Hoa Ward, Thuan An Town, Binh Duong Province.

Contact information of the Company:

 Phone number: 02743766820

 Fax: 06503766823

 Website:

 E-mail address:

 Company logo YCH:

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Besides the head office located in Binh Duong province, YCH-Protrade also has other branches throughout Vietnam such as Office in Hanoi city, warehouse and office in VSIP Bac Ninh industrial park, office in Hai Phong province.

1.2.2 Service

YCH-protrade is one of the few logistics companies in Vietnam capable of providing a variety of services in the supply chain: warehouse, international freight, customs procedures, and goods distribution, transportation… to meet the highest demands of customers. Currently, YCH-protrade is providing 3 main logistics services, namely:

The distribution center is designed to meet safety standards, has warehouses, fire protection systems, garages, modern forklift, loading and unloading equipment, advanced operating processes, applying public science. New technology in inventory management and import and export management of raw materials, other cooling and preservation systems.

YCH-Protrade’s distribution centers in Vietnam:

1. YCH Binh Duong Distri-Park (Dong An, Binh Hoa, Thuan An, Binh Duong)

area: 69,248.5 m2

 Built up Area:

 Convenient location: 20km away from Ho Chi Minh City

customers: TH true milk, Pepsico, Anova milk, Amore Pacific

 Product: diary, visicooler, Sugar, Retailer, Comestics

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2. YCH Park

Distri-(VSIP Industry, Tu Son, Bac Ninh)

gates

 Convenient location: 30 km away from Ha Noi city

 Products: Medical & healthcare, beverage 3. YCH Thuong

Tin Distri-Park (Ha Binh Phuong IZ, Thuong Tin, Ha Noi)

 Total WH area: 6,000 m2

 Cool area: 2200 m2

 Convenient location: 20 km away from Ha Noi city

 Ambient and air- con storage

 Products: Medical & healthcare, Visicoolers

Table 1: YCH-Protrade’s distribution centers in Vietnam

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Customs service is a strength of YCH-Protrade. With a professional staff, analyze and understand the problems of customers and have experience in making customs declaration procedures with many different types of products.

YCH-Protrade's customs services include:

 Import and export goods clearance service.

 Identification of taxes and import duties payable.

 Identify HS Code

 Import/export licenses for controlled items.

 Payment of customs fees on behalf of customers.

 Customs procedures for goods temporarily imported for re-export, temporarily exported for re-import.

 Customs procedures for long-term import and export goods.

 Customs procedures for goods shipped from bonded warehouses.

1.2.3 IT solutions: System & Solution- Service empowered by Innovations

 WX3: Automates warehouse operations, provide faster info and minimize time, handle multi- tenancies, multiple site and multiple owners at the same time.

 TX3 (TMS): manage orders from transportation planning, freight management, shipping documents and billing, interfaces to SAP and other systems for consolidate order delivery and rout optimization.

1.2.4 Basic financial data

The basic finance figure is illustrated in terms of sale revenue and profit after tax in the chart below:

Table 2: YCH-Protrade Basic Financial Data from 2014 to 2018

Total revenue 840,338 915,968 1,016,725 1,148,899 1,304,001Total expense 630,254 674,371 728,321 790,228 861,349Profit before tax 210,085 241,597 288,404 358,671 442,652Income Tax Expense 52,521 60,399 72,101 89,668 110,663

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Figure 1: Total revenue and profit after tax from 2014 to 2018

It is clear to see that during the period from 2014 to 2018, YCH-Protrade's revenue has risen sharply, from 840,338 million in 2014 to 1,304,001 in 2018, with a 55.2% increase in 5 years. Along with that, net profit also increased strongly by 110% from 157,563 million VND to 331,989 million VND. This can be considered a spectacular increase in the context of an increasingly competitive logistics market. This result is due to a combination of many factors, including the signing of many valuable contracts with leading FMCG companies such as Suntory PepsiCo Vietnam, Sabeco, BBraun ... etc, these projects push sales up fast. Besides, the application of information technology, investing in modern machinery and equipment in operation has reduced operating costs, contributed to an increase in net profit and increased competitiveness for the company in the market.

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CHAPTER II: COMPANY STRUCTURE AND ORGANIZATION CHART

2.1 Company Organization Chart

The Company’s organizational structure is illustrated in the following chart:

Figure 2: Organization chart of YCH-Protrade company

(source: YCH-Protrade's HR department)

2.2 Explain the organization chart (Functions and duties of departments) 2.2.1 Director

As the head of the company, the director has the authority to decide issues directly related to the company's daily business. The following activities are responsibilities of Director:

 Organize the implementation of decisions of the board of management and organize and plan the implementation of the business of the company.

 Propose plans to change the organizational structure and management regulations of the company.

 Appoint or dismiss managerial titles in the company (except for positions under the authority of the board of directors)

Deputy General Manager

Supply chain Manager

Warehouse Department

Distribution Department

Freight Department Business

Human resources

EHS&QA,

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 Decide salary, allowance with employees in the company, recruitment of employees.

2.2.2 Deputy General Manager

The Deputy General Manager is responsible for:

 Operate the production-business activities of the Company to achieve the Company's objectives. Develop and propose to the General Director about planning the development strategy of the Company in the short, medium and long term, building the main objectives of the Company.

 Organize personnel/transfer mechanism, streamline human resources, finance ... within the Company to ensure the requirements of resources and approved a budget to implement the objectives of the Company.

 Organize and arrange personnel throughout the Company to ensure the optimization and effectiveness, Assignment of work, control the implementation/assessment of the performance of employees throughout the Company.

2.2.3 Supply chain Manager (country)

At YCH-Protrade, the supply chain manager reports directly to the Deputy General Director and the General Manager, who will be responsible for the following activities:

 Advise the director of the company's development strategies in logistics in the short and long term. Coordinate with sales, search and market development according to the company's orientation. Responsible for managing all activities of the supply chain department: warehouse department, transportation department, project department, freight department. Includes operational activities, building organizational chart, managing active projects.

 Responsible for revenues, costs, profits, performance level of the operating projects. Having a plan to use labor, facilities, suppliers and other expenses reasonably to optimize warehouse capacity, improve productivity and reduce costs, ensuring the completion of the company's financial goals.

2.2.3.1 Warehouse department

As one of the three main business activities of the company, besides transportation and import and export. The warehouse department is responsible for: Organize receiving goods, exporting goods,

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inventorying goods, preserving goods in warehouses in all projects. Coordinate the human resources of the warehouse department to perform the above tasks to the highest efficiency. Using the warehouse management system of the company and customers, conducting a report on the quantity of goods exported, imported, and existed for customers and partners, periodically organizing the inventory of goods and assets at all projects.

2.2.3.2 Distribution Department

Report directly to the head of the national supply chain, YCH-Protrade company transport department is equipped with a large number of trucks, diverse types and sizes can meet all the requirements of the customer.

The Distribution department is responsible for:

 Manage and operate all activities of the Transportation and Distribution department with hundreds of trucks, with a staff of more than 200 staff members, drivers.

 Manage the transport resource system with the system of suppliers across the country to meet the need to provide 600-800 trips/day with effective vendor management policies to build a vendor-developed system quantity and quality to meet the ever-expanding production requirements.

 Take responsibility for the efficiency of production and business operations of the transport and distribution department, ensuring the transportation of goods in accordance with customer requirements in terms of time and quality of service.

 Proactively propose plans for handling functions in the project.

 Supervise project operation of parts in the supply chain, receive customer requests for complaints, change, supplement terms of the contract and offer appropriate solutions to meet such requirements.

2.2.3.4 Freight Department

 Prepare the necessary documents and carry out customs procedures, customs clearance with customers' goods both LCL and FCL.

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 Coordinate with the transport department, transporting goods from the port to the customer's warehouse or from the customer warehouse to the export port according to customer requirements.

 Coordinate with the warehouse department to preserve and preserve goods as required by customers.

2.2.4 Business Development

This is important department in the company, responsible for developing business plans, market development strategies to submit to the General Director for periodic approval. Then proceed to implement activities to sell services to achieve the set goals.

Another task is to take care of and maintain the existing customers of the company, handle problems arising in the process of providing services such as changing prices, expanding projects, changing terms in the contract. In addition, the sales department will find and develop new customers belonging to the target customer group of the Company according to the Company's development plan and strategy.

2.2.5 Procurement Department

Founded with the main purpose of planning for procurement of supplies based on the annual production and business plans, and from the requirements of management and other departments. The second main task of the department is to find suppliers who meet the company's requirements for capacity, quality, price and reputation. The management of the company's list of supplies, equipment, machinery and vehicles, building usage plans and equipment depreciation are also the main functions of the department.

Another important task is to monitor and evaluate monthly KPIs for suppliers, making replacement or supplement recommendations for unsatisfactory suppliers.

2.2.6 Human resources Department

Like other logistics companies, at YCH-Protrade, the HR department has the main functions and tasks:

 Conducting recruitment planning and deployment to meet the personnel needs of the company's departments, operations and development. Calculating salaries and related welfare policies for employees, calculating and settling personal income tax for employees with taxable income in accordance with the law. Notification of regulations

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 Managing labor contracts for employees, educating new employees about labor contracts, salaries and welfare policies at the company, monitoring, taking leave or expiring contracts as prescribed. Solving employees' sickness and maternity issues, planning and conducting employee training to improve knowledge and skills to meet job requirements. Instruct, train regulations, rules and corporate culture for new employees.

2.2.7 Information Technology Department

As a company with strengths in solutions of logistics, use and operation of warehouse and transport management systems, tracking and inspection system, GPS system ... so IT department at YCH-Protrade has a very important role and mission:

 Responsible for managing and managing all information technology activities in the company; setting up, monitoring and maintaining continuous operation of information technology system activities. Take timely measures to repair and remedy when the system has a problem.

 Install, repair, upgrade computer news equipment, network equipment; directly allocate network connections; manage and ensure information technology infrastructure in projects that the company is implementing.

 Coordinate with the project department, deploy training and guidance for staff to practice using software on warehouse and transport management system, update new versions, new features of the software.

2.2.8 Facilities, EHS and QA department

The partners and customers of the company are large multinational companies and corporations in the world and in the country such as Pepsico, Dell, Nestle, Sabeco, BBraun ... have very demanding business activities. High in security, safety, environment and quality control. Therefore, the EHS, QA & facilities department, at the company are responsible for:

 Check and supervise the implementation, maintenance and improvement of quality activities at the departments, ensuring the implementation process in accordance with the standards applied by the Company.

 Control and review the issuance, update and modification of the document system on quality standards. Organize, train and train staff in the department in the Company in accordance with the job functions as well as quality policies of the Company. Keep

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track of necessary amendments arising from quality problems and customer complaints.

 Ensure full implementation of the requirements of the State and the Laws in the field of Occupational Safety & Environment of the Ministry of Labor, War Invalids and Social Affairs, Ministry of Natural Resources and Environment, Ministry of Health, Fire Protection... at the company's projects.

 Implement and monitor the implementation of security, safety and environmental compliance of employees in the company's active projects across Vietnam.

 Set up and organize the company's warehouse and factory system according to the set standards. Plan and perform maintenance and repair of factory system periodically.

 Coordinate with relevant departments to set up business plans, annual and long-term financial plans of the Company. Timely and fully perform statistics and financial planning according to the company's regulations

 Implement and participate in implementing and directly managing financial investment and lending activities at the company's projects. Develop internal regulations on financial management: collection and spending processes; management of capital, liabilities, norms.

2.3 The intern’s position within the Company

The project at Suntory Pepsico Bac Ninh Province factory is the largest project of the Protrade in northern Vietnam with a turnover of about VND 15 billion per month. Under the contract, YCH will provide services and solutions about warehouses for all finished goods of Pepsico and responsible for distributing goods to all customers of Pepsico in the northern provinces of Vietnam.

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CHAPTER III: THE MISSION: ASSIGNED TASKS AND GOALS

3.1 The tasks assigned

I intern in the Project Department at YCH-Protrade. When I started the internship, the company have cooperated with Suntory Pepsico Bac Ninh for 5 years. Currently, the company is on the process to bid for another 5-year contract. However, the company has to face with great competition from both domestic and international competitors who are leading 3PL service providers with many years of experience. YCH-Protrade enhance their competition through many activitives such as improving operating procedures in warehouse operations and transport, offering new solutions to enhance logistics operations, applying information technology to management and operation systems to cut costs, save time and manpower,

The main tasks that I have performed during my internship are following:

 Learn about project activities: I was tasked with understanding the ongoing activities at the project, including warehouse operations and transportation operations. In addition, I also have the duty to master the quality assessment criteria between the company and customers such as inventory management, shipping capacity, safety, delivery time, POD return, process compliance, damage and loss.

 SWOT analysis: After I have the data about the ongoing activities at the warehouse and transportation division's project, I will be responsible for analyzing and evaluating the company's strengths and weaknesses. Besides, I will also have to analyze the opportunities and challenges that the company is facing in the project activities.

 Proposed solution: The SWOT analysis will help me to know the inefficient and unqualified activities of my clients' KPIs. Combined with my own knowledge and the instructions of my supervisor, I will have to propose solutions to improve logistics performance at the project.

3.2 The link between the subject matter and the mission

My mission is directly linked to my chosen topic "Proposing some solutions to improve Suntory PepsiCo logistics system in Northern Vietnam.

With the completion of the assigned tasks, starting from mastering the operations of the warehousing and transportation division at the project, conducting a SWOT analysis helped me

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of the company have led to the failure to meet customers' KPIs, leading to the fact that the project's activities are having many points to overcome. One of the criteria has not reached KPIs such as delivery time, POD return, inventory management, stocking capacity of the warehouse department. After finding the issues that need to be overcome from SWOT analysis, with the guidance of the supervisor, I have conducted research on solutions to overcome the above weaknesses and limitations by learning about The methods are applied at the leading logistics companies in the world, which solutions can be applied to the project to promote the existing strengths of the company and overcome weaknesses. From there, it is possible to meet the criteria to evaluate customer KPIs and improve the efficiency of logistics activities.

3.3 The desired goals

During my 4-month internship, my main goal was to learn about the company and its customers and provide appropriate solutions. In order to achieve my goals, I have to study in detail the organization chart of the company and the functions of the parts, the characteristics of the customers as well as the processes that are applied to running the project. From there, analyze the data and propose improvement solutions.

Below, are my personal action plans to solve the problems and accomplish the goals set out: Table 3: Individual Action Plan

1 Study the company

Learn about the company's organizational chart, the functions and functions of its departments, the products and services it offers, its key customers and direct competitors.

June 30th

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works in reality, the specific characteristics of customers

3 Study about operating procedures

Learn about warehouse and transport operation processes, performance

performance indicators, results achieved in the last 6 months evaluated by customers. Similar methods are being applied at companies with similar characteristics.

July 30th

5 Proposal of solutions

From SWOT analysis, analysis of the causes of failures KPIs, and combined with the company's strengths to propose solutions to improve warehouse and transportation activities in the project.

August 31st

3.4 The Contribution to the Company

During my 4-month internship at the company, I made a number of contributions to the company by analyzing the operations of the warehouse and transportation departments and finding out the company's weaknesses that need to be improved, and the main reason for not meeting customer requirement. From this analysis, combined with the company's strengths, I have proposed a number of solutions to improve logistics operations including some warehouse solutions and some transportation solutions. These are all practical solutions and can bring good results. This is very important because for customers the quality of service is always a top priority.

3.5 The theoretical knowledge to be put into Practice

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intership report on improving employee engagement in lavie company hưng yên factory

Total revenue 840,338 915,968 1,016,725 1,148,899 1,304,001Total expense 630,254 674,371 728,321 790,228 861,349Profit before tax 210,085 241,597 288,404 358,671 442,652Income Tax Expense 52,521 60,399 72,101 89,668 110,663

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