THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH UNIVERSITY OF BANKING

PROJECT :

ACECOOK VIETNAM

SUPPLY CHAIN MANAEMENT

Instructor : Nguyen Van Thich

Class : MAG307_2311_9_TA_L25
Students :
Dinh Bao Anh : 050609210052
Nguyen Vu Tam : 050609211266
Pham Doan Gia Huy : 05060921
Duong Thi Ngoc Diem :

Ho Chi Minh city , 7th January, 2024

TABLE OF CONTENTS

INTRODUCTION..............................................................................................................4

1. Overview of Acecook Vietnam......................................................................................5

1.1 Introduction to Acecook Vietnam...........................................................................5

1.2 History and Establishment.......................................................................................5

1.3 Vision & Mission.......................................................................................................5

1.4 Core values.................................................................................................................6

1.4.1. Happy Customers.................................................................................................6

1.4.2. Happy Employees................................................................................................6

1.4.3. Happy Society......................................................................................................6

2. Supply chain diagram of Acecook Vietnam Joint Stock Company...........................7

3. Stakeholders of Acecook Vietnam................................................................................7

3.1 Suppliers....................................................................................................................8

3.1.1. Definition of supplier...........................................................................................8

3.1.2. Supplier of Acecook Vietnam.............................................................................8

3.2 Producers...................................................................................................................9

3.2.1 Definition of producer..........................................................................................9

3.2.2 Producer of Acecook Vietnam............................................................................10

3.3 Distributors..............................................................................................................12

3.3.1. Definition of distributors...................................................................................12

3.3.2. Goal of distribution channels.............................................................................12

3.3.3. Distribution network of Acecook Vietnam........................................................12

3.3.4. Distribution channels.........................................................................................13

3.3.5. Strategic evaluation of distribution channels.....................................................13

3.4. Retailers..................................................................................................................14

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 3.4.1 Definition of retailers..........................................................................................14

3.4.2 Acecook's consumer market...............................................................................14

4. Assessment of the supply chain of Acecook Vietnam joint stock company............15

4.1. The success of Acecook Vietnam..........................................................................15

4.1.1. Extensive supply chain, ensuring the right product, right quantity, and right
time..............................................................................................................................16

4.1.2. The supply chain is modern, friendly, streamlined and applies information
technology throughout the entire chain operation.......................................................16

4.1.3. R&D product research and development activities associated with customer
needs............................................................................................................................16

4.1.4. Focus on building and perfecting the supply chain...........................................17

4.1.5. Strict quality management from the process of purchasing input materials to
controlling the quality of output products...................................................................17

4.2. Challenge.................................................................................................................17

4.2.1. Raw material sources depend on imports..........................................................17

4.2.2. The distribution system for each type of product is not uniform......................17

4.2.3. The market is volatile and the environment is fiercely competitive..................18

4.2.4. Customer needs change rapidly, and substitute products are increasingly
expanding.....................................................................................................................18

5. Proposed solutions to improve the supply chain.......................................................18

5.1. Enhancing the relationship with suppliers...............................................................19

5.2. Strengthening the quality control of input materials, with the publication of partner
companies supplying raw materials................................................................................19

5.3. Proactively researching, collecting information, and forecasting data to quickly

research and develop new products to meet the ever-changing market demand............19

5.4. Enhancing the supply chain evaluation process.......................................................19

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CONCLUSION.................................................................................................................20

REFERENCES.................................................................................................................22

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INTRODUCTION

In today's era of globalization, supply chain management has become one of the
factors that determine the success of businesses, especially in the field of food production
and distribution. Facing increasing challenges from market fluctuations and the increasing
diversity of consumer needs, businesses must not only focus on product quality but also
build and Maintain a flexible and efficient supply chain. Supply chain management is an
important activity in the trend of globalization and the 4.0 revolution. All businesses must
participate in one or more supply chains to achieve certain successes.

In this context, Acecook Vietnam - one of the leading units in the instant food
manufacturing industry in Vietnam, attracts attention not only because of its reputation for
quality products but also because of its management model. unique supply chain. To
better understand how Acecook Vietnam has successfully built and maintained its supply
chain, we will delve deeper into important aspects from raw material sources, and
production processes, to distribution systems product.

Through learning about Acecook Vietnam's supply chain, we hope to have the
opportunity to see the unique management strategies and useful lessons that this business
has experienced during its operations. At the same time, from the successes and
challenges of Acecook Vietnam, we can draw valuable lessons, contributing to clarifying
and expanding our understanding of supply chain management in the modern business
context.

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1. Overview of Acecook Vietnam

1.1 Introduction to Acecook Vietnam

Acecook Vietnam is a subsidiary of Acecook Japan, one of the leading instant

noodle manufacturers globally. The company has a significant presence in the Vietnamese
food industry, specializing in the production and distribution of a wide range of instant
noodles, instant porridge, and other
convenient food products with high quality.

Acecook Vietnam is one of the

leading companies in the field of instant
noodle production in Vietnam. The
company’s supply chain is built on a closed system, optimizing overall management from
raw material procurement, production, sales, and distribution, to retail. Acecook Vietnam
has achieved many successes in supply chain management. Specifically, the company has
built an efficient warehouse management system, which helps the company manage
inventory levels, ensuring the supply of raw materials for production and distribution.
Additionally, the company also uses advanced technologies to manage the supply chain,
optimizing the production and distribution process while reducing costs.

1.2 History and Establishment

Established on 15/12/1993 and officially put into operation in 1995, Acecook

Vietnam Joint Stock Company, essentially an FDI enterprise, has constantly grown to
become the leading synthetic food company in Vietnam with a strong position in the
market, specializing in providing instant products with high quality and nutrition.

Formerly known as Vifon Acecook Joint Venture Company, the cooperation ratio is
60:40 between Japanese investor Acecook Co., Ltd and Vietnamese partner Vietnam Food
Industry Company (Vifon).

Acecook Vietnam's business philosophy: "Through the culinary path to contribute

to Vietnamese society".

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 1.3 Vision & Mission

To become a leading manufacturer of foodstuffs in Vietnam whose management

ability is commensurate with globalization. To bring new culinary consumption concepts
to local and foreign consumers by supplying high-quality products.

 Satisfy consumers’ demands

 Bring happy life and sustainable growth to employees
 Attain a strong position and support all over the world.

1.4 Core values

“COOK HAPPINESS” This is the slogan and value of Acecook company, which is
specifically expressed by the word “HAPPY” as follows:

1.4.1. Happy Customers

Acecook Vietnam will always strive to make customers, who use Acecook’s products,
feel happy. Therefore, the company will always produce and provide products that are
truly delicious, high-quality, safe, and meet the needs of customers.

Specifically, the company needs to achieve three objectives as follows:

 Ensure the use of safe raw materials.

 Use advanced production techniques from Japan, machinery and equipment to
ensure quality and strictly manage the production process.
 Monitor the distribution process, product management on the market, and require
no negative impact on quality.

1.4.2. Happy Employees

Acecook Vietnam always strives to make Acecook’s employees and their families feel
happy. Therefore, the company will always try to create good welfare policies, a good
working environment, and care about the work and life of employees.

1.4.3. Happy Society

Acecook Vietnam always strives to make the whole society feel happy.

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 The company always contributes to the development of the instant noodle industry in
particular and the Vietnamese economy in general and supports suppliers to improve
quality. In addition, the company actively sponsors and organizes charity activities, and
environmental activities to contribute to a better Vietnamese society.

2. Supply chain diagram of Acecook Vietnam Joint Stock Company

Starting as an enterprise in Japan, owning technology completely transferred from

the parent company, developed in a country that ranks 5th in the world, Acecook Vietnam
aims in 5 years (2016-2021) to continue to bring the instant noodle industry to develop by
actively providing information about instant noodles to people consumption, development
of new products in the direction of nutrition and expansion of exports.

Since then, Acecook has built the SCM supply chain management system, which is
an overall optimized management solution for coordinating finished products, semi-
finished products, and raw materials through the process of sharing information about
ordering, inventory, sales, and logistics between the company and customers.

Acecook Vietnam cooperates with Fujitsu Co., Ltd. to build a Logistics system,
applying the SCM software package (L-Series) of NTT Data, which is a system
integration company from Japan, named "Business Support System", including warehouse
management system, order management, Sales support for distributors and sales staff.

Acecook's supply chain diagram model

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3. Stakeholders of Acecook Vietnam

3.1 Suppliers

3.1.1. Definition of supplier

A supplier is an entity that provides goods and services to another organization.

This entity is part of the supply chain of a business, which may provide the bulk of the
value contained within its products. Some suppliers may even engage in drop shipping,
where they ship goods directly to the customers of the buyer.

A supplier is usually a manufacturer or a distributor. A distributor buys goods from

multiple manufacturers and sells them to its customers.

3.1.2. Supplier of Acecook Vietnam

a). Ingredients for making spices, real ingredients: made from fresh ingredients
with carefully controlled, reputable imported origin, guaranteed according to specific
standards from the company.

b). Raw materials for making noodles: imported directly from Australia, and
Canada. Other raw materials such as vegetable oils are imported from Malaysia. There are
still very few Vietnamese enterprises involved in supplying input materials for Acecook
(currently only Tien Hung Joint Stock Company is supplying raw materials to produce
noodles for the company)

c). Packaging:

Acecook Vietnam commits that the materials

used for packaging are specialized for storing food,
always strictly controlled by health safety criteria,
provided by reputable suppliers, and guaranteed to
comply with European Community regulations
(Regulation EU No10/2011).

Packaging is not only used for domestic

products but also export products, meeting fastidious markets in Europe and America.

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 d). Machinery system, and production technology: Acecook Vietnam has used
modern production technologies transferred from Acecook Japan with a large-scale
instant noodle production process. Inside Acecook Vietnam factory is an automatic and
modern line, all equipment used is high-tech equipment combined with the most
advanced instant noodle-making technologies from Japan.

First, Acecook Vietnam has been transferred in terms of modern Japanese

equipment and technology to produce instant noodles according to high technology in
Vietnam since 1994. Next, in terms of quality, Acecook's team has transferred techniques
to control and manage quality always at a stable level. The third is to be trained in how to
control quality from input to output in a synchronous way according to standards.
Besides, when there is a new technology in Japan, Acecook Vietnam is also approached
and quickly applied to its production activities.

In October 2020, Acecook Vietnam officially used "green energy" from the solar
power system to produce instant noodles and serve for activities at the company's main
office building in the Tan Binh industrial zone. (The system) is provided by Marubeni
Vietnam Company and constructed and installed by JESCO ASIA Company.

March 11, 2021 - Acecook Vietnam signed a cooperation agreement with Sojitz
Osaka Gas Energy Company on the installation of a modern boiler system to produce
instant noodles to bring high efficiency in production and improve the environment. This
modern boiler system uses liquefied petroleum gas fuel and is all imported from Japan.
Accordingly, it will be installed at Hung Yen and Binh Duong plants respectively, and is
expected to be put into operation within this year.

e). Service Partners: OMD Media (Omnicom Media Group Vietnam) is the
communications partner that manages integrated communications strategy as well as
planning and acquisitions for Acecook's major brands. OMD has proven that they are the
best partner for Acecook's business through the valuable insights and innovative tactics it
constantly provides, as well as a solid strategy for mass media. Acecook has a good
relationship with OMD and drives further success for its brands.

3.2 Producers

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 3.2.1 Definition of producer

Producers are organizations that perform the task of producing products, including
businesses that produce raw materials and businesses that produce finished products.
Manufacturers can produce intangible products or products that are services.

3.2.2 Producer of Acecook Vietnam

a). Manufacturing plant:

Acecook Vietnam currently owns 11 expansive manufacturing plants across the

country, employing over 10,000 staff in total, while consistently ensuring quality and
stability. The entire production process is fully
automated and enclosed; from raw materials to
finished products, it is monitored 24/7 according to
international food safety and hygiene standards.
Products that do not meet quality standards are
promptly identified and excluded.

To control quality uniformly on a large scale

at 11 factories, Acecook's technology is transferred
directly from Acecook Japan and everything is
equipped synchronously for all factories. Employees of factories and branches are always
trained periodically and when there are new points, they are updated and applied in
production and management, thereby applying synchronously to all locations.

Acecook's 11 manufacturing plants are spread across the three regions of North,
Central, and South Vietnam. In the Southern region, there are 7 plants: 3 in Ho Chi Minh
City, 2 in Binh Duong, and 2 in Vinh Long. In the Central region, there is 1 plant located
in Da Nang. The Northern region has 3 plants: 1 in Hung Yen and 2 in Bac Ninh.

b). Quantity output: Since 2008, the company has established and implemented a
quality management system according to ISO 9001-2008, an environmental management
system ISO 14001, a Hazard Analysis and Critical Control Points (HACCP) food safety
control system... Every minute, a production line in this factory produces 600 packs of

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noodles. The total annual output of the 11 plants under Acecook Vietnam is approximately
4.5 billion packs of various types of noodles.

c). Spice Packet Manufacturing Plant: Acecook has 11 factories in Vietnam, but
only one plant exclusively produces seasonings in Ho Chi Minh City. After manufacturing
all the seasoning packets, they are distributed to other factories for packaging along with
the noodles

d). Production process:

The production process of noodle products consists

of 12 main stages, from raw materials to the final
components. Firstly, the flour and necessary ingredients
are pre-processed and mixed in specific proportions using
automated and enclosed equipment. The mixed dough is
then rolled into sheets and cut into various strands
(depending on the product). These strands are primarily
steamed at a temperature of around 100°C. After
steaming, the strands are cut into shorter lengths by an
automated knife system to achieve the corresponding
shapes and then pass through a drying and cooling system.
The products and seasonings are then packaged. Before being packed into boxes, each
product undergoes a quality check, passing through three inspection devices, including a
metal detector, a weight scale, and a foreign object detector. Products that do not meet
standards are removed from the production line and sent to the defective product
processing section. Finally, the finished products are boxed according to the specifications
of each product, labeled with the production date, stored, and undergo quality control
checks by the Quality Control department before distribution to the market.

e). Product Research and Development Department: “Công nghệ Nhật Bản, hương
vị Việt Nam" is the guiding principle of Acecook Vietnam, when expanding into the
Vietnamese market, Acecook has a team of Vietnamese product development experts to
thoroughly understand the culinary preferences in each region. By doing so, they

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harmoniously combine “Công nghệ Nhật Bản” with “hương vị Việt Nam” to create
products that resonate with consumers.

Therefore, the year 2000, when the Hao Hao product was born, marked a turning
point in the instant noodle market. The company's R&D team had to travel to many
regions, enjoy famous local restaurants to learn the typical flavors and bring the tastes and
culinary tastes of each region into each product of Acecook Vietnam. , in which the sour,
spicy, and spicy taste has been successfully "instantly transformed".

In Ho Chi Minh City, the company has constructed a modern laboratory with a
multimillion-dollar investment in infrastructure, state-of-the-art equipment, and a
specialized workforce in the field of food biochemistry. The primary goal of the
laboratory is to ensure the safety of products and the health of consumers. The research
and development team at Acecook Vietnam consistently updates their knowledge of
technology, and conducts in-depth market research both domestically and internationally,
seeking opportunities and ideas for product development.

Thanks to careful research on Vietnamese people's preferences and tastes, Acecook

has helped Acecook "Vietnamese" Japanese noodle packages into Vietnamese instant
noodles. The company hopes that in the future, it will increasingly "take care and preserve
traditional flavors through each product so that traditional dishes can be eaten in 3
minutes".

Today, the trend of choosing healthy products is the top choice of consumers.
Understanding that need, Acecook has continuously launched products with natural
ingredients, convenient for customers in health care: Noodles combined with 7 types of
Samurai cold-relieving spices and shrimp cup noodles. real, real meat Handy Hao Hao,
Enjoy, Doraemon calcium supplement noodles,..

3.3 Distributors

3.3.1. Definition of distributors

A distributor is an independent contractor who buys goods on their own account

from an exporter or supplier and resells the goods to customers in their own territory.

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They do not have authority to create a contract between the customer and the supplier or
exporter.

3.3.2. Goal of distribution channels

 Market expansion: bringing Hao Hao

noodles to all Vietnamese consumers,
from cities to rural areas.
 Dealer expansion: facilitating dealers in
product distribution.
 Gradual increase in quantity and quality
of distribution channels: meeting diverse
needs of consumers.

3.3.3. Distribution network of Acecook

Vietnam

Acecook's distribution system is diverse across the country. Among them, there are 7
business branches, 700 level 1 agents distributed throughout all parts of the country. The
networks are centrally managed and divided according to operating areas:

 Company headquarters and main office: Tan Phu district, Ho Chi Minh
 Northern branches: Hanoi, Hung Yen, Bac Ninh
 Central branch: Da Nang
 Southern branches: Ho Chi Minh City, Binh Duong, Vinh Long

Distributors will be responsible for transporting goods to retail counters nationwide.

Acecook can reach a variety of target customers thanks to its extensive retail system.

3.3.4. Distribution channels

Traditional retail channel: is the main distribution channel of Hao Hao noodles,
accounting for about 80% market share. This channel includes grocery stores, retail
stores, traditional markets,...

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 Supply restaurants and fast food chains: Supply products to restaurants, eateries and
fast food chains to expand markets and strengthen the presence of products in the culinary
sector.

Export: exported to more than 40 countries: USA, Canada, UK, France, Germany,
Netherlands, Poland, Switzerland, Sweden, Norway, Czech Republic, Russia, Australia,
New Zealand, Slovakia, Korea, Singapore, Hong Kong, Taiwan, Malaysia, Cambodia,
Japan, UAE,...

3.3.5. Strategic evaluation of distribution channels

The distribution strategy of Hao Hao noodles has achieved certain successes. Hao Hao
Noodles is currently the leading instant noodle brand in Vietnam, accounting for about
50% market share. This product has also been exported to more than 60 countries and
regions around the world.

This strategy has contributed significantly to the success of Hao Hao noodles, helping
this product become one of the most loved brands in Vietnam.

3.4. Retailers

3.4.1 Definition of retailers

A retailer is a business that finds, buys, and gathers products or services from multiple
suppliers and sells them to consumers. Retailers provide value by offering consumers a
wide selection of products and services in one place. They also offer competitive prices
by buying products and services in large quantities at reduced unit costs. To make a profit,
retailers mark up the prices of the products and services they sell.

3.4.2 Acecook's consumer market

Instant noodles are a popular product, serving basic, daily human consumption needs.
Starting as a product to provide quick, compact, time- and cost-saving meals, nowadays,
instant noodles are no longer just noodles with a few basic flavors, it seem to have
become a dish with countless variations, requiring research and creativity from brands.

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 Acecook Vietnam, Masan, and Asia Food are three businesses that account for 70% of
the instant noodle market, of which Acecook always leads the market share with 50% in
urban areas and 43% nationwide.

Among the 25 types of noodles Acecook Vietnam is trading, products from the Hao
Hao brand still account for the largest consumption, contributing 60% of Acecook's sales
each year, and are recognized by 100% of Vietnamese consumers. Thanks to the strong
development of Hao Hao noodles, Hao Hao now also has a variety of flavors, from spicy
and sour shrimp to fried garlic pork ribs, and purple onion satay,... then fried noodles and
cup noodles were born one after another with affordable prices and needs of all classes.

 With the age group of 18-25: most of whom are students, Acecook has launched
Hao Hao instant noodles, SiuKay noodles, Thai Shrimp Hot Pot noodles,
MaxKay noodles... most of which have sweet and sour, spicy, and awakening
flavors. taste buds of this age group.
 For those aged 26-30 years old: those who are office workers, and those who
have families, they will pay more attention to nutrition in products. Acecook
offers products such as Block non-fried noodles and udon noodles for people
who can't eat spicy food.

Recently, as the economy develops, mass information has also widespread, and
consumers are gradually moving towards a lifestyle of choosing healthy products and
spreading rumors that eating a lot of instant noodles causes cancer. As a "big guy",
Acecook quickly dispelled this baseless rumor with many media activities and research
articles proving that instant noodles are completely a nutritional product if users eat them
properly. Not only that, Acecook also researches and produces many types of Mikochi
aerial noodles, supplemented with cool De Nhat Dutch starch, cooked noodles,... to meet
the diverse needs of users.

However, compared to Masan, Acecook's diversity still only revolves around the mid-
range segment. In addition to maintaining Hao Hao's position, other products are not
really impressive and widely communicated. Distribution of these products to consumers
is not as widespread as Hao Hao, some products are difficult to find or customers do not

16
know about to enjoy. Acecook Vietnam also invested a lot in this key brand when in July
2020 launched the HaoHao application - Instant noodles for every home, offering
suggested recipes to transform simple noodles into meals with Ingredients available at
home along with a specific nutritional value table for each dish. At the same time, the
application links with online shopping applications such as Sendo, Tiki, and Lazada. This
is a strategy that not only helps achieve the media goal of eliminating bad rumors about
instant noodles but also stimulates consumer demand and encourages electronic shopping,
consistent with the market situation.

4. Assessment of the supply chain of Acecook Vietnam joint stock company

4.1. The success of Acecook Vietnam

For 3 consecutive years (2018-2020), Acecook was named the Top 1 "Most Chosen
instant noodle manufacturer" in Vietnam, and the company's "spearhead" brand - Hao Hao
Noodles was also honored. is the "Most chosen food brand" in Vietnam (as of July 2019)
in urban areas. Such achievements are achieved thanks to the great contribution of supply
chain management activities.

4.1.1. Extensive supply chain, ensuring the right product, right quantity, and
right time

With support from Japan, Acecook Vietnam has made efforts to build a stable supply
chain with high-quality, standard raw materials and high-quality, uniform machinery,
technology, and equipment systems. 11 factories. The production process is scientifically
designed 11 learning, quick, and ensures the highest quality for the output product, the
steps follow each other without wasting time. Although instant noodle products do not
have high requirements in the transportation process, with the characteristics of popular
products with high consumer demand, easy to predict, and long product life cycle,
Acecook has focused on the storage stage. and transporting goods with 11 factories and 7
business branches, at the same time not leaving too many products in stock for too long,
but aiming to provide the freshest products to users.

4.1.2. The supply chain is modern, friendly, streamlined and applies

information technology throughout the entire chain operation.

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 Taking advantage of being a Japanese enterprise, Acecook Vietnam's supply chain
is always transferred with the most advanced technology. At the same time, Acecook also
cooperates with domestic and foreign technology companies to aim for a modern supply
chain with maximum support from machinery, ensuring accuracy in product quality
assurance. Foreign object scanners operate a 12-step production process, producing
hundreds of products within 1 minute with the lowest defect rate. Technology is also
applied to optimize Logistics activities, providing added value to customers. Acecook also
invests in green technologies, not only creating economic value but also contributing to
society, aiming to protect the environment.

4.1.3. R&D product research and development activities associated with

customer needs.

This is one of the important factors that help Acecook Vietnam succeed in the
Vietnamese market. Japanese technology, Vietnamese flavor, a company with mainly
foreign capital but owning products with typical, traditional Vietnamese flavors, with
high-quality raw materials that are strictly tested, Not only are they popular domestically,
but Acecook Vietnam's export products also receive a lot of praise and a large consumer
base, making many people surprised with the quality and flavor of noodles produced in
Vietnam.

4.1.4. Focus on building and perfecting the supply chain.

The SCM system has been cooperated and applied by Acecook Vietnam since
2014, putting the Logistics information system into operation and testing its effectiveness
in each phase in 2016, showing that not only focusing on core competencies is Producing
large-scale, high-quality products that meet management standards ISO 9001:2008, ISO
14001:2004, HACCP, Acecook has chosen to associate with many members to integrate
and connect to create capacity for Chain.

4.1.5. Strict quality management from the process of purchasing input

materials to controlling the quality of output products.

Input materials must meet food safety and hygiene standards according to the
provisions of domestic and international food laws. Suppliers are evaluated before 12 are

18
purchased periodically every year, meeting quality commitments, and batches of raw
materials are inspected before import. Similarly, the production process also meets 4
quality criteria, and the output products meet the regulations of Vietnamese law and
export markets.

4.2. Challenge

4.2.1. Raw material sources depend on imports.

Suppliers providing input materials also have an influence on product prices and
quality. There are many suppliers demanding to increase prices or reduce the quality of
raw materials to squeeze profits from businesses. Acecook always looks for suppliers in
the market to minimize competitive costs.

4.2.2. The distribution system for each type of product is not uniform.

As stated in section 2.3.4, Acecook's product lines do not clearly state whether they
are focused on urban or rural markets, but some products are not available in grocery
stores. In retail locations, small supermarkets, or in rural areas, the main product is still
only Hao Hao. With the strength of the Hao Hao supply chain, Acecook can absolutely
promote other products but this has not been done well.

4.2.3. The market is volatile and the environment is fiercely competitive.

20 years ago, sour and spicy Hao Hao created a turning point for instant noodles,
helping bring Acecook to the top position, but nowadays, sour and spicy flavor is the
flavor that any noodle business produces. and doing business in Vietnam are all there,
from intermediate to high-end. While Acecook Vietnam still focuses on the mid-range
segment, Masan with the Omachi brand is gradually promoting its R&D strengths in all
segments, launching many types of noodles that are comparable to the noodle quality of
Korean brands such as Omachi cooked noodles, hot pot noodles with seafood, Omachi's
flavors are increasingly creative and attractive. Not only that, businesses also invest in
communication activities much more widely than Acecook. Modern and advanced
technology to have the most "real" noodle packages is also popular, and even competing
businesses do better than Acecook.

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 4.2.4. Customer needs change rapidly, and substitute products are
increasingly expanding.

For customers now with higher incomes, especially in urban areas and young
customer groups, instant noodles must-have new flavors, chewy noodles, real meat, and
real vegetables. They are willing to spend money to enjoy such packages of noodles,
thinking that the price is equivalent to the quality. Accordingly, with the current strategic
direction of Acecook Vietnam, what retains customers the most is the longevity and
characteristics of Hao Hao noodles with spicy and sour shrimp. Although the quality is
good and the price is affordable, Acecook is currently facing many substitute products
because of its wide food network and the unique values that each type brings: Chinsu
launched a collection of 7 breakfasts. , Omachi mashed potatoes, auto-boil rice from 13
foreign countries,... not to mention Vietnam's rich cuisine such as porridge, sticky rice,
bread, vermicelli noodles, and bun cha,... now it's too simple to have a full meal without
instant noodles.

5. Proposed solutions to improve the supply chain

5.1. Enhancing the relationship with suppliers

For long-term cooperative partners, Acecook needs special commitments not only
to strengthen the relationship and mutual trust during the operation process but also to
save costs and human resources in reorganizing bidding. For new suppliers, before
signing a contract, Acecook needs to carefully study the profile, company origin, legal
status, sales volume, the market that is operating, and consider the suitability and
necessity level with the type of goods that the company intends to purchase.

5.2. Strengthening the quality control of input materials, with the publication
of partner companies supplying raw materials

This is something that Acecook has not yet announced on its website, although
Acecook has a factory tour program, an activity that has created a lot of trust for
consumers about the quality of instant noodles they use. However, if customers

20
understand clearly where the input materials are imported from, the supply chain will be
more transparent in the minds of customers.

5.3. Proactively researching, collecting information, and forecasting data to

quickly research and develop new products to meet the ever-changing market
demand

To meet the market, Acecook should diversify instant noodle products, especially
developing high-end segments to consolidate and increase a strong market share. Acecook
Vietnam can completely do this with modern technology and an experienced R&D team.
Each product is the passion of Acecook Vietnam with a unique flavor crystallized from
creativity in processing formulas and local ingredients. However, facing the fierce
competition in the instant noodle market today, facing the entry of prominent instant
noodle brands both domestically and internationally such as the Koreno noodle product
line of Korea, Omachi in Vietnam, etc..The effort to innovate and diversify products that
meet market demand will help Acecook gain a competitive advantage over other
businesses.

5.4. Enhancing the supply chain evaluation process

Acecook’s supply chain always needs to be regularly checked, and fully evaluated
for accurate results of business operations and efficiency. Acecook needs to understand
and grasp the strengths and weaknesses that still exist in the enterprise’s relationship
between the macro and micro environment to find solutions, make appropriate
improvements and innovations that are suitable for the changes of the market as well as
consumer demand.

Acecook should strengthen the application of scientific and technological achievements in

the evaluation process to optimize, achieve the best efficiency, and enhance data for
forecasting and planning activities of leaders. From there, gradually improve the supply
chain to achieve high labor efficiency, and increase the value of Acecook with the best
possible operating costs.

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CONCLUSION

Supply chain management is a critical activity that requires seamless coordination

among raw material suppliers, manufacturers, transportation units, distribution centers,
and points of sale to meet customer needs efficiently and cost-effectively. The success of
Acecook Vietnam and the instant noodle industry as a whole is greatly attributed to
effective supply chain management. In today's volatile market with increasing consumer
demand, it is crucial to prioritize, invest in, and regularly evaluate supply chain
management activities. This responsibility extends to all members within the supply
chain, not limited to the central enterprise. By focusing on supply chain efficiency and
control, companies can achieve improved operational performance and meet customer
expectations while minimizing costs. Strategies like demand forecasting, inventory
optimization, and streamlined transportation management are essential for achieving these
goals. Additionally, leveraging technology solutions, such as supply chain visibility tools
and data analytics, can provide real-time insights to enhance decision-making and
mitigate risks. Continuous improvement and collaboration among supply chain
stakeholders are key to adapting to market dynamics and delivering superior value. By
proactively addressing challenges and optimizing supply chain processes, companies can
gain a competitive advantage and ensure long-term success in the ever-evolving business
landscape.

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REFERENCES

[1] Duong My Ha. (2022). Diem sang trong cach quan tri chuoi cung ung cua Acecook.
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[2] Aviation Logistics. (2021). Phan tich ve chuoi cung ung cua Acecook tai thi truong
Viet Nam. Retrieved from https://als.com.vn/phan-tich-ve-chuoi-cung-ung-cua-acecook

[3] Kim Yen. (2022). Mo hinh Chuoi cung ung cua Acecook – Acecook Supply Chain.
Retrieved from https://egoexpress.vn/mo-hinh-chuoi-cung-ung-cua-acecook/

[4] Accounting CPE Courses & Book. (2023). Supplier definition. Retrieved from
https://www.accountingtools.com/articles/supplier

[5] LexisNexis Commercial Expert. (2024). Distributor definition. Retrieved from

https://www.lexisnexis.co.uk/legal/glossary/distributor

[6] Capital Security newspaper. (2023). Acecook Vietnam - story of 30 years of

investment and success in Vietnam https://www.vietnam.vn/en/acecook-viet-nam-cau-
chuyen-30-nam-dau-tu-va-thanh-cong-tai-viet-nam/

[7] Acecook Viet Nam. (2017). About Acecook. Retrieved from

https://acecookvietnam.vn/export/about-acecook/

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