CHAPTER 1:

SUPPLY CHAIN PROCESSES

1. Manufacturing Firm: VinFast (Electric 2. Service Firm: VietJet Air (Airline Service
Vehicle Manufacturer) Provider)
1. Raw Materials Suppliers 1. Aircraft Suppliers
o Steel, lithium, plastic, electronics o Airbus (aircraft manufacturing)
components (sourced globally) o GE/CFM (jet engines)
2. Parts Manufacturers 2. Service Providers
o Batteries, tires, EV motors, o Fuel suppliers
semiconductors o Catering companies
3. VinFast Factory (Hai Phong, Vietnam) o Maintenance services
o Vehicle assembly o Airport ground handling
o Quality control 3. VietJet Operations
o Packaging o Scheduling & ticketing
4. Distribution Centers o Customer support
o National and international o Flight crew management
warehousing 4. Airports / Travel Agencies
5. Dealers / Retail Stores o Check-in, baggage handling,
o Showrooms, VinFast app, online lounges
channels 5. Customers (Passengers)
6. Customers o Use the airline service for
o End users who purchase and use domestic/international travel
the vehicles
DIFFERENCES BETWEEN SERVICES AND GOODS
1. Services require direct interaction with customers
Unlike manufacturing, where goods can be produced in isolation, service delivery often involves direct and
continuous interaction with customers. This requires service providers to design not only efficient internal
processes but also physical spaces and customer experiences.
• Example: Vinmec International Hospital must design its service process to ensure smooth patient
interaction—from reception to examination rooms. This includes trained staff, waiting area layout,
and service flow to ensure comfort and clarity for patients. In contrast, a pharmaceutical
manufacturer like DHG Pharma focuses mostly on machinery, GMP standards, and efficient batch
production with minimal direct customer interaction.
2. Services cannot be inventoried
Unlike tangible goods that can be produced in advance and stored in warehouses, services are consumed
at the moment of delivery and cannot be stockpiled. This makes demand forecasting and capacity
management far more difficult.
• Example: A spa or massage service must provide services in real-time when customers arrive. They
cannot “store” massages for later use. In contrast, a cosmetics company like Thorakao can
manufacture creams and store them until sold.

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3. Service quality depends on multiple visible and intangible factors
Service design must consider not just the core offering, but also the service environment, supporting
elements, transparency, and intangibility.
Customers evaluate services based on both the experience and the outcome, which makes the process more
complex to manage.
• Example: A Vietnamese airline like Bamboo Airways must ensure not only on-time flights (the core
service) but also clean cabins, friendly staff, in-flight meals, and easy check-in processes. In contrast,
a company like Casumina(tire manufacturer) focuses mainly on producing quality products that
meet technical standards—customer evaluation is based primarily on product performance, not the
surrounding service.
SCOR
1. Planning
Example: TH True Milk uses demand forecasting software to plan for peak seasons like back-to-school and
the Lunar New Year. This allows them to plan production and distribution accordingly, avoiding overstock
or stockouts.
2. Sourcing
TH True Milk signs long-term contracts with suppliers for raw materials such as corn, soybeans, and also
imports dairy cows from New Zealand to ensure a high-quality, stable supply for their dairy farms.
3. Making
At TH’s farms, milk is collected automatically and processed in a closed-loop production system. It is
pasteurized, packaged, and stored with strict hygiene and safety standards right at their factory.
4. Delivering
TH True Milk uses refrigerated trucks to transport dairy products nationwide through supermarkets and
their own TH retail stores, ensuring the cold chain is maintained from factory to customer.
5. Returning
If a customer receives a defective product, TH has a clear return and exchange policy through its retail
stores or customer service hotline. The company also recalls and destroys products if any production issue
is detected.

CHAPTER 2:
TRIPLE BOTTOM LINE (TBL) EXAMPLE ANALYSIS
For example, Tesla focuses on the Triple Bottom Line by promoting clean energy (Planet), creating high-
quality jobs (People), and maintaining procitability (Procit) through its electric vehicle and battery
business.
1. Economic prosperity (ProYit):
What makes the company continue to move forward and invest more in moonshot projects, such as the
global satellite 5G network, is the massive increase in revenue. As the company continues to invest in
massive projects such as the latest mega battery factory in Texas, Tesla may continue to run with a low level
of net income but certainly very high revenue and thus, indicating a very procitable future (Hull and Marik,
2021). It was estimated that if someone invested in Tesla with Elon Musk in 2010, the stock value in 2021
would be worth $1.8 million which is a 63% average annual return (Krantz, 2021). Certainly, investing in
Tesla is one of the most procitable investment options in the world for the last 10 years.

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 After all, Elon Musk is still a business owner and he is responsible for other shareholders of Tesla. For
this reason, the ultimate goal of Tesla must be generating procit for shareholders. Thus, the key point of
interest for Elon Musk or any future CEO of Tesla in sustainable development is developing goodwill and
corporate social responsibility. Therefore, the interest of Tesla's CEO is leading the innovation of
sustainability in transportation, which is currently indicated by its cutting-edge technology in electric cars
and auto-pilot.
2. Social Responsibility (People):
Its social benecits include low operating costs and reduced maintenance—requiring no oil changes,
transmission cluid replacements, and fewer brake repairs.
Tesla has satellite ofcices located in both Los Angeles and Amsterdam. Recently, through Tesla's Savvy
Charity initiative, Tesla opened its patents to the public to encourage the production of electric cars, aiming
to help other vehicle companies transition to a more sustainable economy.
Additionally, Tesla's focus on people is evident in its mission to create cars that benecit society by
enabling efcicient transportation. Tesla vehicles are manufactured in the U.S., where strict labor regulations
ensure no exploitation concerns. With advanced driving support technology, Tesla is also recognized as one
of the safest car brands in the world.
3. Environmental Stewardship (Planet):
Tesla’s environmental benecits include the reduction of pollution because Tesla vehicles are primarily
developed to be hybrid or electric cars, which reduces the dependence of transportation on fossil fuels such
as petroleum. This revolution in transportation leads to remarkable contributions in preventing the
greenhouse effect, utilizing domestic energy (which creates jobs and reduces the trade decicit), and
achieving zero emissions. Its renewable energy sources have helped decrease the need for coal-cired power
plants. Their batteries are non-toxic to the environment. Their new Superchargers can rapidly recharge the
car within a reasonable amount of time. Tesla also offers an extended battery pack that travels up to 300
miles before needing a recharge. In addition, Tesla recycles their batteries at UMICORE’s UTH Facility.
SUPPLY CHAIN RISK
**Thaco Auto (Trường Hả i Auto Corporation – Vietnamese Car Manufacturer)**
1. **Risk of Disruption in Global Component Supply**
In 2024, the ongoing global semiconductor shortage—partly due to geopolitical tensions such as U.S.–
China trade restrictions—continues to affect the auto industry worldwide. Thaco, which imports many
components like chips, sensors, and electronic control units from foreign suppliers, faces the risk of
production delays due to slow or interrupted component shipments.
2. **Risk of Increasing Logistics and Fuel Costs**
Global fuel price volatility and rising shipping costs—partly incluenced by conclicts, such as those in the
Red Sea region, or new tariffs—can lead to higher transportation expenses. For a company like Thaco,
which distributes vehicles across Vietnam and exports to countries like Laos and Cambodia, this raises total
supply chain costs and reduces procit margins.
3. **Risk of Reduced Consumer Demand**
With the Vietnamese economy facing challenges in 2024, such as inclation and declining consumer
concidence, Thaco may experience lower car sales, especially in the mid- and low-end segments.
Additionally, competition from imported electric vehicles (EVs), such as those from BYD and Tesla,
pressures domestic manufacturers to keep pace with technological trends or risk losing market share.
CHAPTER 18:

3
 CPFR EXAMPLES
The Coca-Cola and McDonald’s partnership, dating back to 1955, is one of the most successful supply chain
collaborations. Coca-Cola is McDonald’s largest supplier, while McDonald’s is Coca-Cola’s biggest
restaurant customer.
A. Market expansion
Both companies are leaders in their respective industries and possess extensive resources and operational
expertise, which enhances their shared vision for global expansion (David, 2014). For instance, to facilitate
McDonald’s worldwide growth, Coca-Cola frequently offers its existing offices in various regions as
operational bases for McDonald’s to establish itself (Gelles, 2014).
B. Product development
The expertise and know-how of Coca-Cola have significantly contributed to McDonald's product
development. In 1993, Coca-Cola provided valuable business insights that led to the creation of the Extra
Value Meal (David, 2014). In 2002, the two companies implemented collaborative strategies in Latin
America, focusing on the design and testing of new drink packaging (Taina, 2002). More recently, Coca-
Cola assisted McDonald's in launching a new line of smoothie meals (David, 2014).
C. Unique strategic values created by the supply chain integration
The unique supply chain collaboration between Coca-Cola and McDonald’s adds significant value to both
brands. Evidence suggests that the finest flavor of Coca-Cola is exclusively available at McDonald’s (Mark,
2011), due to their establishment of a specialized system for the delivery and production of the beverage.
Typically, Coke syrup is delivered in plastic bags; however, because McDonald’s sells a higher volume of
Coca-Cola, the syrup is transported in stainless steel tanker trucks (Chart Inc., 2013). Furthermore,
McDonald’s utilizes a reverse osmosis filter, which ensures the cleanest water for preparing the drink.
These factors contribute to a fresher and superior tasting Coke, giving McDonald’s a competitive edge with
its exceptional product.
D. Advertising and Corporate social responsibilities (CSR)
From opposing Bloomberg’s stance on large sodas (Watson, 2012) to becoming prominent sponsors of
Brazil’s 2014 World Cup (Smith, 2014), McDonald’s and Coca-Cola have partnered on numerous global
initiatives over the years. Recently, in the Philippines, the two companies launched the #BetterTogether
social media campaign to promote McDonald’s BFF Bundle, which features Coca-Cola beverages (Adobe
Magazine, 2014).

Furthermore, McDonald’s and Coca-Cola are committed to collaboratively innovating for a more
sustainable supply chain. In 2002, they sought new sponsorship and charitable opportunities in Latin
America, assisting over 100 local schools in providing students with access to collections from an art
museum (Taina, 2002). They also introduced a new cup with a locking lid designed to prevent children
from spilling their drinks.

CHAPTER 7
MANUFACTURING PROCESSES
1. Make-to-stock:
A good example of Make-to-Stock (MTS) is a company that manufactures t-shirts. This company recognizes
that it typically sells more t-shirts during the summer than at any other time of year. As a result, it produces a
certain quantity of t-shirts in advance and keeps them in stock until customers make purchases.

4
 Similarly, a computer manufacturer might produce a specific number of computers each month, regardless
of whether there are actual orders for them. These computers are then sold to distributors, who in turn sell
them to retailers. Retailers finally sell the computers to customers. Brands like Apple and Samsung often
manufacture popular items, such as smartphones and tablets, in advance to ensure that these products are
readily available for customers during their launch or in retail stores. Because the demand for these products
is predictable, using an MTS strategy is effective for ensuring quick delivery.
2. Assemble-to-order:
Dell serves as a prominent example of a company utilizing the Assemble to Order (ATO) technique. This
approach allows customers to select from a diverse array of components, including processors, disk drives,
monitors, and more, facilitating numerous customizable concigurations for their orders.
The company maintains an inventory of these components and engages in assembly only after receiving
specicic orders from customers.
Similarly, Flint Subsea, a provider of safety solutions within the offshore oil and gas sector, exemplicies
the use of the ATO technique. Flint Subsea procures components and assembles them exclusively upon
receiving customer orders, thereby aligning its operations with the principles of the ATO model.
3. Make-to-order:
The prominent automobile manufacturer BMW employs a make-to-order strategy to enhance customer
appeal. This approach allows customers to personalize their vehicles according to their individual
preferences, such as selecting specicic interiors and wheels. Additionally, the company offers a video link to
customers, showcasing the customization process of their cars prior to cinal delivery.
Cakes and Bakery businesses exemplify a make-to-order model. Wedding and birthday cakes are crafted
by bakers according to the specicications provided by customers, which vary based on the occasion. Orders
are taken along with the specicic requirements, and then unique cakes are created to be delivered to the
respective customers.
4. Engineer-to-order:
Aluminum Precision Products (APP) specializes in the manufacturing of custom-engineered aluminum
and titanium products. They exemplify how offering engineer-to-order products can foster growth, having
expanded from cost reduction in the aerospace industry to exploring more opportunities in both the
aerospace and defense sectors, which has generated new demand.
Currently, APP provides engineering, testing, and manufacturing services across a diverse range of
industries. Their product offerings include strong, lightweight components for the automotive industry and
titanium implants for the medical sector. Additionally, they offer several concigure-to-order products, such
as forged wheel blanks, to complement their made-to-order (MTO) items.
LEAD TIME
Decinition: …

1. Improve production planning and schedules:

Proper production planning helps avoid bottlenecks, minimize idle time, and ensure that operations
flow smoothly, especially during high-demand periods.
Example: Vinamilk—Vietnam’s leading dairy company—prepares detailed production and distribution
plans before national holidays like Tet. Months in advance, they adjust their schedules to produce higher
volumes of condensed milk and yogurt, ensuring consistent stock availability at retail locations across the
country during peak demand.

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 2. Upgrade production technology:
Investing in modern machinery and automation can significantly increase production speed and
accuracy.
Example: Dien Quang Lamp Joint Stock Company, a leading Vietnamese lighting manufacturer,
implemented automated assembly lines and smart warehouse systems. This upgrade allowed them to
produce and package lighting products faster, reducing turnaround time and meeting large-volume orders
more efficiently.
3. Work with reputable carriers and optimize logistics:
Choosing efficient logistics partners and streamlining transportation processes helps reduce
delivery time.
Example: SABECO (Saigon Beer-Alcohol-Beverage Corporation) collaborates with trusted logistics firms
like Gemadept and uses regional distribution centers to reduce delivery times across Vietnam. By
optimizing transport routes and warehouse locations, SABECO ensures that beer products reach
distributors and retailers faster, even during the busy Lunar New Year season.

CHAPTER 9:
SERVICE PACKAGE

- Decinition:
- Feature:
o Supporting facility: …
o Facilitating goods:
o Information:
o Explicit services:
o Implicit services:

CHAPTER 14
LEAN SUPPLY CHAIN MANAGEMENT
Decinition: …
Example: …
Nike is one of the world’s leading companies in athletic footwear and apparel. Over the years, Nike
has successfully implemented lean production principles across its supply chain and manufacturing
operations, particularly in its contract factories in Asia. The company focuses on eliminating waste,
improving efciciency, and ensuring that every step in the production process adds value for the customer.
One of the core strategies Nike employs is the elimination of waste in manufacturing. This involves
closely collaborating with factory partners to reduce overproduction, unnecessary transportation, and
excess inventory. For example, in its footwear factories, Nike has redesigned production layouts to minimize
movement between steps, resulting in faster assembly times and fewer delays.
Nike also emphasizes the concept of the value chain, ensuring that every action in its supply process
creates value. A practical application of this is Nike’s initiative to reduce packaging waste by simplifying
shoe box designs and eliminating unnecessary packaging steps. These changes not only lower costs but
also contribute to Nike’s sustainability goals.

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 Moreover, Nike invests in training factory workers and managers in lean principles such as
continuous improvement (kaizen) and root cause analysis. These practices have led to enhancements in
product quality, on-time delivery, and employee morale. Factories that adopt lean methods have reported
signicicant gains, including up to a 50% reduction in defects and a 30% increase in delivery performance.
Finally, lean production at Nike supports its broader sustainability objectives. For instance, through
its "Reuse-A-Shoe" program, Nike recycles worn-out shoes to create materials for sports surfaces like
basketball courts, helping to reduce landcill waste. This demonstrates how lean practices can align with
both economic and environmental goals.
CHAPTER 15:
LOGISTICS
Decinitions: …
Example:
A Vietnamese coffee brand such as Trung Nguyê n Legend exports packaged coffee to international
markets like Germany or the United States. The coffee beans are harvested in the Central Highlands of
Vietnam (e.g., Dak Lak), then transported by truck to a processing and packaging plant in Ho Chi Minh City.
From there, the coffee is sent to Cat Lai Port, loaded into a shipping container, and travels by cargo
ship across the Pacicic or Indian Ocean. After arriving at a port in the destination country, it may continue
by train or truck to warehouses and cinally to retail shelves in supermarkets like Costco or Aldi.
To stay competitive, the entire journey—often over 9,000–12,000 km—must be coordinated
precisely to keep transportation costs low and ensure the product arrives fresh and on time.
THIRD-PARTRY LOGISTIC COMPANY
Decinitions: …
Example:
Amazon has become one of the world's largest e-commerce and cloud computing companies. Its
logistics division, primarily represented by "Fulcillment by Amazon (FBA)," operates within the third-party
logistics (3PL) industry.
The company's innovative strategies include advanced robotics, machine learning, and articicial
intelligence to optimize its extensive logistics network. Amazon's multi-channel fulcillment system allows
sellers to leverage its infrastructure for orders from various sales channels. Tools like Supply Chain by
Amazon extend the company's advanced capabilities to the entire supply chain.
In conjunction with services such as Amazon Global Logistics (AGL) and Buy with Prime, users
benecit from improved inventory placement, automated replenishment across sales channels, and reduced
shipping and storage costs.
Amazon's ongoing investment in technology and infrastructure, along with its data-driven approach,
has set new benchmarks in the logistics industry. This has compelled traditional 3PLs to adapt and innovate
in order to remain competitive.
WAREHOUSE DESIGN
CROSS-DOCKING:
✅ Advantages:
Reduces storage costs: Since goods are not stored long-term, warehousing costs are minimized.
Speeds up delivery time: Products move through the supply chain faster.
Improves inventory turnover: Helps companies maintain lean inventory systems.
❌ Disadvantages:

7
 Requires precise coordination: Timing between suppliers and transport must be exact to avoid
delays.
Not suitable for all products: Perishable, fragile, or complex items may need temporary storage.
High setup cost: Initial investment in technology and organization can be signicicant.
HUB AND SPOKE:
✅ Advantages:
EfYicient consolidation: Shipments from different suppliers can be consolidated at the hub before
distribution.
Cost-effective for large networks: Reduces the number of direct routes needed.
Centralized management: Easier inventory control and streamlined logistics operations.
❌ Disadvantages:
Risk of delays at the hub: Any issue at the central hub can impact the entire network.
Longer delivery time to spokes: Compared to direct shipments, transit through the hub may add
time.
High dependence on hub performance: The system’s efciciency heavily relies on the central hub’s
capacity and accuracy.

CPM
The Critical Path Method (CPM) is a widely used technique in project scheduling. This method helps
determine the shortest possible time needed to complete an entire project and identicies which activities
are critical—meaning that any delay in these tasks would directly affect the project's completion time.
✅ 1. Accurate Project Planning
CPM enables project managers to set realistic timelines by identifying critical tasks and
understanding their dependencies. This ensures that no task is overlooked, all activities are completed on
time, and the risk of delays is minimized.
✅ 2. Resource Optimization
By identifying the critical path, project managers can allocate resources more efciciently. It
highlights areas where additional resources might be needed to prevent delays and where resources can
be optimized or reduced during the process.
✅ 3. Risk Assessment and Mitigation
CPM helps project managers identify potential bottlenecks, critical activities, and high-risk areas. By
understanding these factors in advance, proactive measures can be taken to mitigate risks and prevent
project delays.