Report
Report
REPORT
INTERNSHIP 1
ID: IELSIU22362
No. 207
8/2024
Advisor Evaluation
Advisor Signature (Chữ ký Người Hướng dẫn): Evaluation Date (Ngày đánh giá):
This report provides valuable information and practical experience gained by students upon
completing the Internship 1 course at the School of Industrial Engineering & Management at
International University, VNU-HCM, which provides opportunities to bridge academic theories
with practical industrial experiences. Through field trips to five different companies and factories,
students gain firsthand insights into fundamental manufacturing processes and the internal
workings of essential departments. Guided by company representatives, students observe
production operations, engage in detailed discussions, and apply their academic knowledge to
analyze and recommend improvements. This course not only enhances students' understanding of
engineering standards but also offers strategic advantages for their future studies and careers in the
Logistics and Supply Chain Management industry. The culmination of this experience is a
comprehensive report that reflects students' observations, analyses, and learned knowledge,
serving as a crucial foundation for further academic and professional challenges.
ACKNOWLEDGEMENT
In general, without the assistance and guidance of many individuals, this project would not have
been successfully completed. I would like to express my sincere gratitude to all those who
contributed to the completion of this project report.
I would like to extend my heartfelt thanks to the International University – VNU-HCM and the
School of Industrial Engineering & Management for providing me with the opportunity to work
on this course and gain practical knowledge in my field. Throughout the course, I received
invaluable support from the faculty, including lecturers, teaching assistants, and faculty specialists,
who facilitated my connection with professional companies and businesses. Their dedication and
enthusiasm have deepened my understanding of my major.
I would also like to express my appreciation to all the companies I had the opportunity to visit
during this course, including Yakult Vietnam, Kewpie Vietnam, Lazada Logistics, Ajinomoto
Vietnam, and Wanek Furniture Company. Their staff guided us during the tours and generously
shared valuable information about each production stage within their companies. They attentively
addressed my questions, enabling me to expand my practical knowledge and complete the tours
successfully. The completion of the project would not have been possible without their help and
insights.
Through the course, which included five company tours, I gained firsthand experience of the
working environment and learned extensively about production processes, machinery, and
technologies applied across various industries. This project has been an enriching experience, and
I am grateful for the opportunity to explore the complex world of Logistics and Supply Chain.
TABLE OF CONTENTS
ABSTRACT .....................................................................................................................................
ACKNOWLEDGEMENT ..............................................................................................................
TABLE OF FIGURES....................................................................................................................
CHAPTER 2 – COMPANIES...................................................................................................... 3
1. Introduction ......................................................................................................................... 3
2. Observation .......................................................................................................................... 5
3. Analysis ............................................................................................................................... 8
4. Conclusion ........................................................................................................................... 9
1. Introduction ......................................................................................................................... 9
2. Observation ........................................................................................................................ 12
3. Analysis ............................................................................................................................. 14
4. Conclusion ......................................................................................................................... 15
1. Introduction ....................................................................................................................... 16
2. Observation ........................................................................................................................ 18
3. Analysis ............................................................................................................................. 21
4. Conclusion ......................................................................................................................... 22
1. Introduction ....................................................................................................................... 23
2. Observation ........................................................................................................................ 27
3. Analysis ............................................................................................................................. 32
4. Conclusion ......................................................................................................................... 32
1. Introduction ....................................................................................................................... 33
2. Observation ........................................................................................................................ 35
3. Analysis ............................................................................................................................. 37
4. Conclusion ......................................................................................................................... 38
REFERENCE .............................................................................................................................. 40
TABLE OF FIGURES
In this report, I will provide a detailed examination of five companies and factories visited during
the Internship 1 course at the School of Industrial Engineering & Management, VNU-HCM. These
visits offered valuable insights into various industries, including food production, logistics, and
manufacturing.
The first company, Yakult Vietnam, is renowned for its production of probiotic beverages,
contributing significantly to the health and wellness sector. Established in Japan and now operating
globally, Yakult has become a household name, promoting the benefits of probiotics in daily diets.
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Figure 3 - The current logo of Lazada Logistics
Ajinomoto Vietnam, part of the global Ajinomoto Group, is a prominent manufacturer of
seasonings, food products, and amino acids. The company has a longstanding presence in Vietnam,
where it plays a pivotal role in the food industry by offering products that enhance the flavor and
nutritional value of meals.
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CHAPTER 2 – COMPANIES
I. Yakult Vietnam
1. Introduction
Yakult is the world's leading probiotic beverage founded in Japan in 1935. Its history dates back
to the 1930s, when Dr. Minoru Shirota discovered and seeded the Lactobacillus casei Shirota
bacteria. In 1935, Yakult was established as a commercial company by Dr. Shirota himself to
implement his work and make a healthy fermented drink. Yakult then began to be distributed to
customers. In 1955, Yakult Honshu company was founded with its Research and Development
Center located in Kyoto. Yakult made its first step into the global market in 1964, when it
established operations in Taiwan. Since then, the company has gradually expanded to countries in
Asia, South America, and Europe.
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Figure 7 - The current distribution of Yakult worldwide
Yakult Vietnam was established on June 26, 2006 and then started its business in August 2007.
With its factory located in Binh Duong province, Yakult products are currently available in most
supermarkets and retail outlets around Vietnam. Furthermore, Yakult is directly distributed to
consumers' homes in Ho Chi Minh City, Hanoi, Hai Phong, Dong Nai, Binh Duong, Da Nang,
Nha Trang, and Vinh via the Yakult Lady delivery system. Particularly in Ho Chi Minh City, about
350,000 bottles are consumed every day.
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In Vietnam, Yakult factory is currently located in Vietnam - Singapore Industrial Park, Thuan An
District, Binh Duong province with large scale. It adheres to the same highest quality standards
throughout the manufacturing process as the factory in Japan. The Yakult manufacturing process
adheres to high production standards, assuring that the product is obtained by almost 99% (this
indicates that 99% of raw materials are fully utilized to the finished product, with very little waste
released). Yakult's philosophy of "contributing to the healthy lives of people around the world"
includes the belief that protecting the earth's environment is the most important part of operating
production in harmony with life and society.
With only 60 employees, Yakult Vietnam factory can produce 45,000 bottles of milk every hour,
all thanks to a fully automated and self-contained production process following Japanese
technology. The entire lean manufacturing process brings efficiency, high productivity and cost
savings to Yakult. The production process is carried out by six successive function rooms: seed
culture, fermentation and mixing, quality control, bottle molding, milk filling, and packaging.
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Figure 10 - The production process of Yakult
There are 20 key steps involved in creating a complete Yakult bottle that reaches customers.
Step 1: Ingredient preparation
The ingredients including skimmed milk powder, glucose and white sugar, which are completely
imported from Japan, are prepared for the whole manufacturing process.
The skimmed milk powder is dissolved in hot water along with glucose and white sugar.
The mixture is sterilized at high temperatures to produce sterilized milk and sterilized sugar
solution.
Yakult yeast is added to the sterilized milk tank, where it is fermented for several days. After
fermentation, the tank contains billions of live bacteria, and the milk becomes thick. This mixture
is then homogenized.
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Step 5: Yakult yeast breeding tank
The L.casei Shirota bacteria, which have been activated and cultivated in the laboratory, are
inoculated into the tank and fermented to create the Yakult culture. This culture is used to inoculate
the fermentation tank.
The fermented milk is pumped through the homogenizer to produce homogenized fermented milk.
After homogenization, the product is transferred to a large tank containing the sterilized sugar
solution.
The fermented milk after homogenization is pumped into the storage tank and mixed thoroughly
with the sugar solution to create the semi-finished milk.
The condensed milk solution after fermentation is mixed with sterilized water to dilute into semi-
finished drinking milk. The purpose of this stage is to neutralize the sour taste of the product after
fermentation, and sugar will be a source of nutrients for L.casei Shirota bacteria to live during the
shelf life.
Polystyrene plastic bottles are produced at the factory using a bottle forming machine. Polystyrene
plastic pellets are heated and molded into the shape of Yakult bottles, which are then transferred
to large sterile storage tanks for the next stages.
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Step 15: Expiration date and product information printing machine
Ten 5-bottle packs are packaged into one box made of polypropylene plastic.
The final product is transported to a cold warehouse at temperatures below 10°C, where it is kept
for 1-2 days for quality inspection before being distributed to consumers.
After passing the quality inspection, the product is distributed to Yakult stores and delivered to
consumers, ensuring the best quality.
3. Analysis
From observations, it is clear that Yakult production process adheres to high food safety standards
and transparent manufacturing practices. The factory does not necessitate a large number of
workers due to the use of modern technology and automation, which help streamline production,
boost productivity and reduce defects. Besides, Yakult also fosters a professional and safe work
environment for its employees. Yakult aims to inform people about the benefits of its probiotic
drinks and expand its consumer base to promote health and happiness of people around the world.
However, its operations strategy has some issues.
Firstly, Yakult lacks product diversification, offering no new flavors or beverages. Since Yakult
faces competition from brands like Vinamilk, Nestlé and Probi in today’s market, it must
strengthen its business strategy to improve its performance to attract more customers. Thus, Yakult
could consider developing new flavors, for example, fruit-flavored fermented products or low-
calorie options for dieters to cater to the diverse customer preferences in the market.
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Secondly, the "Yakult Lady" strategy is quite ineffective in Vietnam since it is not widely known
and is inaccessible in some areas. The company should consider developing a more efficient home
delivery system. Enhancing the work environment and marketing strategy for the Yakult Lady will
boost their focus on sales activities. Furthermore, in the retail channel, the company may expand
its market to drugstores along with other channels such as supermarkets and convenience stores.
Nowadays, drugstores not only sell medicine but also other products like personal care products,
food and beverages; therefore, the collaboration between Yakult and drugstores will be beneficial
for both parties.
4. Conclusion
After visiting the Yakult factory, I was deeply impressed by the company's commitment to high
food safety standards and modern manufacturing process. Directly observing each stage of the
process from the examination of raw materials to the final packaging of each bottle allowed me to
gain better understanding about the safety operations in food manufacturing. The factory's
adherence to strict hygiene and the use of advanced technology ensure that each bottle of Yakult
meets the highest quality standards, providing consumers with a product they can trust.
Observing the production process firsthand also allowed me to appreciate the level of precision
and coordination required to produce Yakult on such a large scale. I gained a deeper understanding
of how technology can be leveraged in the production line to enhance efficiency while maintaining
safety standards. This experience not only broadened my knowledge of food industry but also
reinforced the significance of maintaining rigorous safety standards to protect public health.
1. Introduction
In 1919, Kewpie Group was founded by Toichiro Nakashima in Japan with the main product of
Mayonnaise sauce, which has quickly been trusted by many housewives and chosen for family
meals. In 1925, based on his intention to "help improve the physiques and health of Japanese
people by making delicious, nutritious mayonnaise so widely available that it becomes a daily
necessity", the company launched KEWPIE Mayonnaise, a very nutritious egg-yolk-based
mayonnaise.
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Figure 11 - The early Kewpie Mayonnaise on sale
The Kewpie Group has expanded its business and valued its founder's "desire to contribute to the
health of customers" since being Japan’s first company to manufacture and sell mayonnaise.
Following the aspirations of its founder, who promoted the delicious and nutritious appeal of
mayonnaise with the hope of improving Japanese people’s physiques and health, the company is
also addressing social issues by providing customers with delicious and healthy food. Going
forward, it will continue to follow this original ambition, with the aim to be a group contributing
to the food culture and health of the world through “great taste, empathy, and uniqueness.” Kewpie
also strengthen customer relationships through home-cooked meals, ready-made foods,
restaurants, and various global sales channels, and continue to provide products and services that
contribute to customer the food culture and health throughout the world.
Today, Kewpie is proud to be one of the world's leading food manufacturing companies with a
worldwide distribution network of products, mainly in the US and Asian markets. At present, the
Kewpie Group provides Kewpie brand products to customers in over 60 countries and regions.
Kewpie Vietnam Company was established in 2011 and is the 7th branch of Kewpie in the world
and the 5th branch of Kewpie in Asia, following China (Beijing, Hangzhou), Thailand, and
Malaysia. Its head office/factory is currently located in Vietnam – Singapore Industrial Park, Tan
Uyen city, Binh Duong province and is equipped with advanced semi-industrial technology and
equipment, as well as a system of standards to assure food safety and hygiene according to HACCP
standards to always bring customers the best products.
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Figure 12 - Kewpie Vietnam factory in Binh Duong province
With over 100 years of experience in the production of sauces and mayonnaise, Kewpie has
constantly strived to become the most loved and trusted food supplier by consumers, contributing
to the flavorful and colorful culinary culture of Vietnam. Kewpie Vietnam strives for the goal of
"Quality is the top priority" to dedicate products "Good products made from good ingredients" to
help families' meals become richer and more enjoyable. Always upholding the Group's ideology
and philosophy, with the criteria of "Delicious taste - Sophistication - Uniqueness", Kewpie
Vietnam Company aims to contribute to maintaining and enhancing the health of all Vietnamese
people by helping people eat more vegetables.
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Figure 13 - Kewpie Vietnam's aim to enhance the health of all Vietnamese people
2. Observation
The production process of Kewpie products is meticulously designed to ensure the highest quality
and safety standards, following a series of carefully controlled steps.
Eggs: Eggs are carefully selected from the freshest and most nutritious sources. Kewpie partners
with professional poultry farms that are strictly managed, ensuring the quality and hygiene of the
feed provided to the chickens.
Vegetable Oil: Only specialized vegetable oils used in food processing are selected. These oils are
sourced from certified manufacturers who meet high-quality standards and are recognized by
Japanese experts.
Vinegar: A special type of vinegar, specifically produced for Kewpie mayonnaise, is used.
Sesame Seeds: Sesame seeds are a key ingredient in the production of Kewpie dressing.
After inspection, ingredients are weighed according to the production line for different products,
ensuring that the ingredient name, production date, and expiration date are correctly logged.
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Step 3: Ingredient Mixing
Ingredients are initially dissolved in small tanks according to standard parameters before being
transferred to a main tank, where they are mixed with oil, vinegar, and sesame seeds. The mixture
is then passed through a magnetic filter and pasteurization system. After each batch, the product
undergoes physico-chemical and sensory evaluations. Only those that meet the standards proceed
to the next stage.
Step 4: Filling
The salad dressing filling process is fully automated, with the caps sealed using microwave heat
sealing technology.
Figure 15 - The mayonnaise filling process is semi-manual, carried out by a skilled team.
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After filling, all products pass through a metal detection system and undergo weight checks to
ensure consistency. Expiration dates are verified using an automated system.
Step 5: Packaging
All products undergo a final weight check before being transferred to the finished goods
warehouse.
Step 6: Storage
In the final stage, products are inspected before shipping. Samples from each batch are retained
until the expiration date to ensure traceability and quality assurance if needed.
Figure 16 - Samples from each batch are retained until the expiration date.
3. Analysis
Based on the observations from the visit, there are several analyses on the production process of
Kewpie and suggestions for potential improvements.
Kewpie's production process is marked by a strong focus on quality control and safety, which is
evident in their meticulous approach to ingredient selection. By partnering with professional farms
and certified manufacturers, Kewpie ensures that only high-quality materials are used. Their
commitment to safety is further demonstrated by their rigorous testing procedures, including
physico-chemical and sensory evaluations, as well as metal detection and weight checks, all of
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which contribute to a consistent and reliable final product. In addition, retaining samples until the
expiration date ensures that any issues can be traced back to specific batches, which is crucial for
maintaining consumer trust and managing potential recalls effectively.
However, there are opportunities for Kewpie to enhance their operations. One area for
improvement is further automating the semi-manual processes, such as mayonnaise filling, could
increase production efficiency and reduce the potential for human error. Introducing more
advanced automation technologies could help scale up production and a more streamlined
manufacturing process.
Furthermore, Kewpie could consider expanding its product line to cater to the growing demand
for healthier food options, such as low-fat or plant-based alternatives. Innovation in packaging,
particularly in terms of sustainability and smart technology, could also set Kewpie apart from its
competitors.
4. Conclusion
Visiting the Kewpie factory was a valuable experience that left a lasting impression on me,
particularly regarding the company's commitment to food safety and public health. The
opportunity to observe their every stage of production is crucial in expanding my knowledge about
food manufacturing industry and safety standards.
Beyond safety, I was also impressed by Kewpie's dedication to promoting healthier eating habits.
Their efforts to encourage people to consume more vegetables through innovative products and
dressings align with a broader mission to enhance public health. This emphasis on health-
conscious products not only benefits consumers but also reflects Kewpie's role in addressing global
health challenges, such as poor nutrition and lifestyle-related diseases.
Additionally, one of the most interesting activities of the visit was mixing different vegetables with
different Kewpie dressings to create a unique mixed salad. This hands-on experience not only
demonstrated the diversity of their products but also inspired me to think more creatively about
how I incorporate vegetables into my diet. It was a fun and educational experience that highlighted
the potential of Kewpie's products to make healthy eating both enjoyable and accessible.
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III. Lazada Logistics Park
1. Introduction
In March 2012, Lazada Vietnam was established. As an integral part of Lazada Group, which is
Southeast Asia's leading online shopping platform, Lazada Vietnam operates as a prominent e-
commerce site in the country. By 2013, Lazada.vn accounted for over a quarter of the total online
market revenue in Vietnam.
Lazada Vietnam aims to become the largest online supermarket in the country, providing
customers with the most competitive prices and top-notch services. The company's mission is to
deliver an exceptional shopping experience to customers, ensuring complete peace of mind
regarding product quality and pricing, backed by a commitment to free returns for products that
do not meet quality standards.
Lazada Express Vietnam (LEX VN), established in October 2015, is known as the logistics service
for Lazada Vietnam. Originally part of Lazada’s own delivery team, LEX was founded to better
meet the growing demands of the platform, ensuring faster and more efficient delivery from
suppliers to consumers.
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In August 2021, Lazada reorganized its logistics services into two main branches: Lazada
eLogistics (LEL), which handles order processing and manages partnerships with delivery
providers, and Lazada Express (LEX), responsible for delivering parcels directly to customers.
These branches were unified under Lazada Logistics, with a new blue-themed identity representing
operational efficiency.
On March 23, 2023, Lazada Logistics Vietnam celebrated the opening of Lazada Logistics Park,
which includes a cutting-edge sorting center located in the Song Than 1 Industrial Park, Binh
Duong province. Covering nearly 20,000 square meters, this new facility can handle up to one
million parcels daily, with automation reaching 99% thanks to advanced technologies like artificial
intelligence (AI) and machine learning. These innovations enhance operational efficiency,
allowing the center to better meet the increasing demand for online shopping.
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- Operating in 33 major provinces and cities, with over 700 locations for sending and
receiving parcels.
- Managing two automated sorting centers and three warehouses in Bắc Ninh, Ho Chi Minh
City, and Long An.
- Over 150 delivery facilities and a network of more than 4,000 delivery partners.
Lazada Logistics caters to two main types of customers: Those using the Lazada marketplace and
those outside the Lazada marketplace.
2. Observation
At Lazada Logistics Park, operations are streamlined into three key stages: inbound, inventory,
and outbound. The center employs several advanced technologies to enhance efficiency, speed,
and accuracy in managing the high volume of parcels handled daily, some of which are listed
below:
Telescopic conveyor system: This system is used in the truck unloading area, significantly
reducing unloading times while ensuring worker safety. By automating this part of the process, it
minimizes manual labor and boosts overall efficiency, allowing goods to move more quickly from
trucks to the sorting area.
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Singulator: Singulator is a key part of the logistics automation system. It efficiently separates bulk
or stacked parcels, organizing them into a single file for easier and faster sorting. This technology
is especially valuable during peak times, ensuring that large volumes of parcels are processed
quickly and accurately.
Dim Weight Scanners (DWS): These advanced scanners use 6-sided cameras to automatically
weigh and measure the 3D dimensions of parcels with high precision. The system also includes
barcode scanning technology enhanced by machine learning, which improves accuracy and
operational efficiency. This ensures parcels are correctly categorized, aiding in precise shipping
cost calculations and efficient space usage during transport.
Wheel sort system: This system, featuring modular O-belt structures, is designed to handle small
packages efficiently. It improves the overall sorting process by accommodating various shapes and
sizes, ensuring that the system runs smoothly even with a diverse range of parcel types.
Cross-Belt Sortation System: Integrated with Artificial Intelligence (AI) and Machine Learning,
this system sorts parcels with an impressive accuracy rate of up to 99.95%. It directs parcels to the
correct delivery zones with precision, continuously learning and adapting to improve efficiency
and reduce errors over time.
Small Parcel Cross-Belt Sorting: This system is tailored for sorting smaller items, handling
parcels under 100g and measuring between 10-100cm. Its speed and precision are crucial for
processing the high volume of small parcels typical in e-commerce, particularly during busy
periods like sales events and holidays.
Automated Barcode Reading Software: This software automatically records all orders as they
enter and exit the system, enabling real-time tracking of parcels throughout their journey. This
ensures transparency and allows for quick intervention if any issues arise, maintaining the
reliability that customers expect.
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Figure 20 - Advanced technologies used at sortation area
2.3 Outbound Area:
Auto-Outbound Function: This feature automatically updates the system with the status of
outgoing parcels, ensuring every package is closely monitored from the sorting center to its final
destination. This automation helps reduce errors and keeps the delivery process running smoothly.
Sensors and Signal Lights: Sensors at each exit point monitor the flow of parcels, redirecting
them if a bag or chute becomes full. Signal lights help staff quickly identify and manage these
areas, ensuring that parcels are dispatched without delay.
Mobile Telescopic System: This system is designed to speed up the process of loading parcels
onto trucks, further improving the efficiency of outbound operations. By automating this final step,
Lazada Logistics Park enhances delivery speed and ensures packages reach their destinations
faster.
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Figure 21 - Advanced technologies used at outbound area
Additionally, Lazada Logistics Park is committed to sustainable logistics practices. The center is
adopting eco-friendly initiatives, such as using energy-efficient machinery and optimizing delivery
routes to lower carbon emissions. These efforts align with Lazada’s broader commitment to
sustainability, balancing operational growth with environmental responsibility.
3. Analysis
At Lazada sorting center, human intervention is minimal throughout the entire sorting process.
Workers are only involved in helping with unloading goods from trucks onto the conveyor belts
at the inbound stage and collecting the fully sorted parcels at the outbound stage, ready for delivery.
These sorted parcels are then loaded onto motorbikes, electric bikes, or trucks for final delivery.
The center is equipped with specialized sorting machines that can categorize parcels by size.
Smaller packages are prioritized for delivery by motorbikes or electric bikes, while larger or
heavier parcels are transported by trucks. This approach ensures that each package is handled in
the most efficient way possible, speeding up delivery times and cutting down on costs.
In addition to these cutting-edge sorting technologies, Lazada Logistics has built an extensive
network of drop-off points (DOPs) by partnering with various businesses. This network includes
thousands of locations where customers can drop off parcels, along with hundreds of collection
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points (CPs) and smart lockers, where customers can conveniently pick up their orders at a time
that suits them.
Moreover, Lazada Logistics is known for its fast delivery speeds, offering same-day and next-day
delivery for orders within cities. The success rate is impressive, with more than 97% of parcels
being delivered on time.
To further enhance the customer experience, Lazada Logistics offers a range of value-added
services. These include options for partial delivery, updating order information, warehousing and
redelivery, cash-on-delivery verification, customer returns, and guaranteed delivery services. All
these features are designed to ensure that both sellers and buyers have a smooth and satisfying
experience on Lazada’s platform.
While operations at Lazada Logistics Park are highly efficient and productive, driven by advanced
technologies and effective material flow, there is a pressing need to improve workplace conditions.
During my visit, the environment was notably hot and noisy due to a large number of machines,
which could negatively impact workers’ well-being and productivity. Hence, to create a healthier
workplace, Lazada should consider implementing better climate control systems, such as advanced
HVAC (Heating, Ventilation, and Air Conditioning) systems or localized cooling solutions, to
regulate temperatures and improve air quality. Additionally, reducing noise levels by installing
sound-absorbing materials or providing workers with noise-cancelling headsets would reduce the
impact of the loud machinery. These improvements would not only enhance the well-being of
workers but also potentially boost overall efficiency and job satisfaction.
4. Conclusion
Visiting Lazada Logistics Park was an a amazing experience that highlighted the cutting-edge
advancements in automation and technology within the e-commerce supply chain. I was deeply
impressed by the integration of automated machinery at every stage of the process, from inbound
handling to inventory management and outbound logistics. The precision and efficiency of these
automated systems not only optimize productivity but also significantly reduce the need for human
labor, allowing for faster order processing and quicker delivery times to customers.
The impact of this high level of automation on the overall e-commerce supply chain is profound.
By streamlining operations, Lazada is able to increase the flow of products through its logistics
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network, ensuring that customer demands are met promptly and accurately. This not only enhances
customer satisfaction but also reinforces Lazada's position as a leader in the fast-paced world of
online retail. The visit allowed me to understand the importance of leveraging technology to stay
competitive in the rapidly evolving e-commerce landscape.
Moreover, observing these advanced systems directly gave me a deeper understanding of how
technology is reshaping traditional logistics and supply chain models. The shift towards
automation represents a significant evolution in how goods are moved and managed, setting new
standards for efficiency and reliability in the industry. This experience left me with valuable
insights into the future of logistics, where speed, accuracy, and technological innovation are
paramount.
1. Introduction
The Ajinomoto Group story began in 1908 when scientist Dr. Kikunae Ikeda discovered that the
amino acid found in traditional Japanese seaweed soup (also called dashi), L-glutamic acid, is the
source of umami – the savory, fifth flavor found in many foods. This discovery led to the founding
of Ajinomoto Co. and the introduction of the world’s first umami seasoning, monosodium
glutamate. In 1909, Dr. Ikeda launched a business venture to begin selling AJI-NO-MOTO®, the
world’s first umami seasoning. The origins of the Ajinomoto Group lie in this ideal: “Eat Well,
Live Well.”
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Since its founding, the Ajinomoto Group has been consistently engaging in initiatives to resolve
social issues through its business. By improving economic value through the creation of shared
value with society and local communities, these initiatives have contributed to the Group’s growth.
These kinds of initiatives have been named ASV (The Ajinomoto Group Creating Shared Value).
They have positioned ASV at the core of the Group’s corporate philosophy as they strive to realize
their purpose adopted under this philosophy.
Today, the Ajinomoto Group continues to pursue their goal “Eat Well, Live Well” by contributing
to society in our spheres of Life Support, Healthcare, Food Science, and Amino Science, and by
continuing to explore the potential of amino acids in every aspect of life.
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Figure 24 - Ajinomoto Group is now present in many countries around the world.
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Deriving from AJI-NO-MOTO®, for over 30 years, Ajinomoto Vietnam has always strived to
provide a diverse portfolio of seasoning, food, beverage and nutritionally supplemented products.
With the mission of contributing to the further growth of Vietnam, the happiness and good health
of people in Vietnam, through food culture and food resources development, Ajinomoto Vietnam
is constantly making our efforts to provide the diversity of high-quality and safety food products
that meet the Vietnamese local taste. In addition, the Company also provides other products for
better nutrition & mental health of consumers in this busy modern lifestyle nowadays, as well as
helping to increase mental benefits such as “relaxation” & “comfortable” and contributing to the
well-being of consumers, such as “Blendy”. At present, the company markets more than 35 brands
that are introduced nationwide such as Ajinomoto umami seasoning, Aji-ngon, Aji-quick, Pancake
mix powder.
Apart from providing high-quality products to the market, Ajinomoto Vietnam has pursued the
essential business principles of ASV with many activities contributing to addressing three critical
issues of society and the environment in Vietnam (1) Environment and natural resources (2)
Agricultural food resources (3) Nutrition and quality of life.
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2. Observation
The process begins with the selection of raw materials, including sugarcane, corn, rice, sugar beet
and tapioca, which are chosen for their high starch or sugar content. These materials are rich in
carbohydrates, which are essential for the fermentation process.
The sugarcane is processed to extract its juice. The juice is then boiled and concentrated to produce
molasses, a by-product rich in sugars, primarily sucrose. This molasses serves as the primary
feedstock for the fermentation process.
Step 3: Fermentation
The molasses is subjected to a fermentation process, where specific strains of bacteria are
introduced. These bacteria metabolize the sugars in the molasses, producing glutamic acid as a by-
product. This step is crucial as it transforms the carbohydrate-rich raw material into the desired
amino acid.
The fermentation broth, which now contains glutamic acid, is filtered to remove the bacterial cells
and other impurities. The glutamic acid is then extracted from the broth through various
purification processes such as filtration and precipitation.
Step 4: Neutralization
The purified glutamic acid is neutralized with a sodium compound, resulting in the formation of
Monosodium Glutamate (MSG). This chemical reaction forms the basis of MSG production,
converting the free glutamic acid into its sodium salt form.
Step 5: Crystallization
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The MSG solution is then concentrated and cooled, prompting the formation of MSG crystals. The
crystallization process is carefully controlled to ensure that the crystals are of the desired purity
and size.
After crystallization, the MSG crystals are separated from the liquid and dried to remove any
remaining moisture. This drying process ensures the stability of the MSG crystals and prepares
them for long-term storage and use.
The dried MSG crystals may undergo additional refinement to ensure uniformity in size and purity.
Finally, the MSG is packaged into the iconic AJI-NO-MOTO® sachets or other packaging formats
for distribution.
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2.2 Production process of Aji-Mayo Mayonnaise
The process starts with the selection of high-quality fresh eggs sourced from trusted farms. These
farms are certified by health authorities, ensuring the eggs meet strict quality standards. The eggs
are transported to the production facility within 48 hours of being laid, ensuring maximum
freshness.
Inspection and washing: The fresh eggs undergo a stringent washing and sanitization process to
remove any contaminants.
Breaking the eggs: The clean eggs are then carefully broken to separate the egg content, which
will be used in the mayonnaise.
Pasteurization: The egg liquid is pasteurized, a heat treatment process designed to eliminate any
harmful bacteria while preserving the nutritional and functional properties of the eggs.
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Post-pasteurization handling: After pasteurization, the egg mixture is inspected to ensure it
meets all safety and quality standards before it is used in the mayonnaise production.
The processed egg is then combined with other key ingredients to create the mayonnaise:
• Vegetable Oil: High-quality vegetable oil is added to the mixture. This oil is specifically
selected from reliable suppliers who meet rigorous quality standards.
The ingredients are then thoroughly mixed and homogenized to ensure a smooth and consistent
texture.
Step 4: Packaging
After the mayonnaise mixture is homogenized, it is packaged into bottles or sachets. The
packaging process is designed to maintain the freshness and safety of the mayonnaise until it
reaches the consumer.
To protect water resources, Ajinomoto Vietnam has implemented two systems: modern cooling
towers and a wastewater treatment system using advanced biological nitrogen technology. The
cooling towers, equipped with separate water reservoirs and a recirculation system, have reduced
water usage for cooling by 84.5% since their implementation.
The wastewater treatment system at the Bien Hoa Factory, with an investment of over 100 billion
VND, has a capacity of 3,400 m³/day and meets stringent Vietnamese environmental standards
(QCVN 40:2011/BTNMT column A) and Ajinomoto's "Zero-emission" target. Wastewater is only
discharged into the Dong Nai River after meeting these standards, with strict monitoring and online
reporting to the Department of Natural Resources and Environment of Dong Nai province.
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Additionally, Ajinomoto Vietnam minimizes natural water extraction by reusing treated
wastewater for various activities, such as cleaning and sanitation within the factory. This practice
saves up to 2,400 m³ of clean water per month, contributing significantly to water conservation
efforts.
3. Analysis
Ajinomoto has maintained a reliable supply chain and strong relationships with local suppliers and
customers, even during the pandemic, by adopting an outsourcing strategy. This approach allows
the company to optimize resources while upholding quality systems, utilizing advanced
equipment, and fostering a productive working environment. Ajinomoto has focused on
researching and developing premium foods, beverages, snacks, and nutrient-rich products tailored
specifically for the Vietnamese market.
Ajinomoto Vietnam, with 100% foreign investment from the Ajinomoto Group, excels in quality
systems, advanced machinery, and resource optimization, creating a productive working
environment. However, there’s a notable disparity in investment between its factories. While the
Bien Hoa plant employs an advanced wastewater treatment system to maximize water usage and
prevent pollution, the Long Thanh factory lacks similar infrastructure. Thus, to ensure consistent
environmental and operational efficiency across all facilities, Ajinomoto Vietnam should prioritize
uniform investment in advanced technologies across all its sites. This approach would enhance
environmental compliance, operational consistency, and overall sustainability.
4. Conclusion
Visiting the Ajinomoto factory was a remarkable experience that highlighted the company’s
dedication to both quality and sustainability. I was particularly impressed by the high standards of
food safety they maintain, ensuring that every product meets strict guidelines to protect consumers’
health. This commitment to quality is evident in their diverse range of products, many of which
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are well-known and beloved by Vietnamese people. It was fascinating to see how these familiar
items are made with such care and precision, reinforcing the trust that consumers place in the
Ajinomoto brand.
Another amazing aspect of the visit was Ajinomoto's advanced wastewater treatment system. This
system is a clear evidence to the company’s commitment to environmental sustainability. I was
impressed by the level of investment they’ve made to ensure that water is utilized efficiently and
that pollution is minimized. It’s encouraging to see a company that not only focuses on delivering
high-quality products but also prioritizes the health of the planet. This experience showed me that
sustainability and business success can go hand in hand, setting a great example for other industries
to follow.
1. Introduction
Wanek Furniture is a key company in the global supply chain of the world's largest furniture
manufacturers. Established in Vietnam in 2008, Wanek has rapidly expanded its operations across
5 facilities, including 4 factories and 1 logistics center with over 9,000 employees.
The products of Wanek Furniture Vietnam are very diverse, from indoor and outdoor furniture.
The company specializes in various categories of furniture production, including cutting and
sewing fabric and leather sofa kits, producing low-melt fiber for internal operations, and
manufacturing PU, plastic, and wood furniture components and upholstery.
Almost 100% of Wanek Furniture Vietnam’s products are exported. In 2019, the export revenue
of Wanek Furniture Company ranked first in the wood furniture industry in Vietnam, with VND
18,300 billion (775 million USD).
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Figure 31 - Products of Wanek Furniture Company
Wanek's vision is to be the best furniture company, a vision that drives its commitment to quality,
innovation, and operational excellence. The company’s mission includes improving quality,
reducing cost, doing more business, being profitable and staying in business. Through its extensive
distribution network, Wanek Furniture reaches more than 123 countries, ensuring that its products
meet the highest standards of craftsmanship and sustainability.
- 23 acres-under-roof manufacturing
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In terms of product development, Wanek launches new products every quarter, attracting over 100
global customers to its shows, where the latest designs are unveiled. For its special customers,
Wanek offers exclusive private shows that give a personalized experience and enhance customer
relations.
Wanek’s success is also rooted in its implementation of Lean principles and a culture of continuous
improvement. It therefore ensures minimization of cost through optimization of its activities and
maximizing positive outputs. Moreover, Wanek encourages idea generation and provides rewards
to patent ideas to maintain the continuous process of development and innovation, guaranteeing
the company leading position on the market.
2. Observation
Conceptual design: Designers create initial sketches and digital models of furniture pieces,
considering aesthetics, functionality, and market trends.
Prototyping: Physical prototypes are built to evaluate the design, materials, and structural
integrity. Adjustments are made based on feedback.
Wood and other materials: High-quality hardwoods, veneers, metals, and upholstery materials
are selected based on the design and intended use.
CNC Machining: Computer-controlled machines cut and shape the wood and other materials with
precision.
Handcrafting: Skilled artisans may also perform hand-carving or detailing, especially for high-
end or custom pieces.
Step 4: Assembly
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Joinery: Components are joined using techniques like dovetail joints, mortise and tenon, or screws
and adhesives, depending on the design and strength requirements.
Sub-assemblies: Parts like drawers, legs, or frames are often pre-assembled before being
integrated into the final piece.
Step 5: Finishing
Staining and painting: Depending on the desired finish, pieces are stained, painted, or left natural.
This step may include multiple layers for depth and durability.
Sealing: A final coat of varnish, lacquer, or other sealants is applied to protect the piece from wear
and environmental damage.
Padding and covering: For upholstered furniture, padding is applied, followed by the careful
fitting of fabric or leather.
Tufting and detailing: Any decorative elements, such as tufting or nailhead trims, are added.
Inspection: Each piece undergoes a thorough inspection to ensure it meets the company's quality
standards. This includes checking for structural integrity, finish quality, and overall appearance.
Testing: Functional tests, such as weight-bearing tests for chairs or drawers, are conducted to
ensure durability.
Protective Packaging: The furniture is carefully packaged with protective materials to prevent
damage during transit.
Logistics: The finished products are then shipped to retailers, distributors, or directly to customers.
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Installation (if needed): Some pieces may require professional installation or assembly at the
customer's location.
Warranty and Support: Wanek Furniture may offer warranties and customer support for
maintenance or repairs.
3. Analysis
Despite Wanek’s strong international reputation, it appears that the brand has not yet achieved
significant recognition in Vietnam. This could be due to a lack of targeted marketing efforts or a
product range that does not fully cater to the diverse needs of the local market. There are several
opportunities for improvement that the company should consider. Firstly, introducing a wider
range of products that cater to different price points and preferences can help Wanek appeal to a
broader segment of the Vietnamese market. Offering budget-friendly options, mid-range products,
and premium lines can meet the diverse economic and stylistic demands of Vietnamese consumers.
Moreover, developing products that reflect local tastes, cultural preferences, or living conditions
in Vietnam can make the brand more relatable and attractive to local customers. Secondly,
investing in targeted advertising campaigns that focus on raising brand awareness in Vietnam is
crucial. This can include digital marketing, social media engagement, collaborations with local
influencers, and traditional media like TV and print.
At Wanek, the reliance on manual labor for critical stages like cutting may limit production
efficiency and scalability, especially as demand grows. The company may consider investing in
automation technology in the manufacturing process to enhance productivity and efficiency.
Automation can ensure consistent precision, reduce the time required for production, and lower
the risk of human error. This can lead to increased output without compromising on quality.
• Market Penetration in Vietnam: Wanek should prioritize expanding its market presence in
Vietnam by diversifying its product offerings and increasing its advertising efforts. By
understanding and catering to the specific needs and preferences of Vietnamese consumers,
the company can build a stronger local brand identity.
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• Adoption of Automation: To remain competitive and meet growing demand, Wanek should
consider investing in automation technology for key production processes. This will not
only improve efficiency but also allow the company to maintain its reputation for high-
quality products while scaling operations.
4. Conclusion
Visiting Wanek Furniture Company was a fascinating experience that helped me gain more
understanding of how familiar kinds of furniture, like sofas, are made from scratch. Observing the
entire process of making actual furniture from raw materials made me appreciate the effort and
precision required to create the furniture that we use in our homes. Besides, the factory was
massive with several smaller buildings and a large number of employees who all contributed in
the manufacturing process. This highlighted how structured and well-managed such a large-scale
establishment needs to be to function.
What I did find most interesting though was the working environment at Wanek. Despite the size
of the operation, the mood in the workplace was cheerful and active. I noticed that the managers
often stir up the atmosphere and encourage the workers every hour. This regular engagement not
only helped enhance productivity but also kept the workday exciting, preventing the monotony
that can come with repetitive tasks. It was clear that this approach helps in creating a positive
workplace culture, where employees feel encouraged and motivated, which in turn benefits the
overall production process.
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CHAPTER 3 – CONCLUSION
Through the Internship 1 course organized by the School of Industrial Engineering & Management
(IEM), students had a chance to gain practical knowledge about production processes and
industrial facilities. By visiting five different factories and companies, students were able to apply
theoretical lessons gained from university to real production systems, receiving an overall view of
the business workplace. The course introduced students to different company cultures, strategies,
management methods, and the application of digital technology in supply chain productivity. This
hands-on experience not only broadened our understanding but also equipped us with useful
knowledge that will be helpful for the Internship 2 course and our future careers. After the course,
students will be encouraged to learn more and orientate themselves towards career paths, with the
insights gained during this internship serving as a foundation for their academic and professional
development.
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