(TIỂU LUẬN) ASSESSMENT 2 – GROUP REPORT DECATHLON VIETNAM SUPPLY CHAIN MGT

The portoncentrtson theupply chain procesofDecthlon Vienam,pecfical,demand management,procurement,producton,disrbution and iventory management.Besdes imso show aboutheshirproductofDecthl

OMGT2085: INTRO TO LOGISTICS AND SUPPLY CHAIN MGT

LECTURER: Dr Irfan Ulhag

ASSESSMENT 2 – GROUP REPORT DECATHLON VIETNAM

SUPPLY CHAIN MGT

GROUP: SGS04-8

GROUP MEMBERS & STUDENT IDS:

Oach Trong Tri – s3817876

Pham Anh Thu – s3817956 Nguyen Hoai Uyen Phuong – s3817690

Le Kim Chi – s3817951

Vu Viet Hoang – s3821856

WORD COUNT: 4085

ASSI GNMENT COVER SHEET

Name Whatwasyourommitment

to thegroup projet

Approximat

atualevelof

1.Iwehold asoftopy ofhisasgnmentwhich cn beproduced iheoriginalslostdamaged

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3.No parofhissignmenthasbeen wrien forme/usby ay otherperon ecpt

wher uch collboraion hasbeen authoried by thecdemictaherconcened and

adetid in thesignment

4.Iwehavenotpreviously submitd thiswork forny otherours/unit

5.Igiv permision formy asgnmento becnned forlcronicchecking ofplagiaim

6.Igiv permision for opy ofmy/ourmarked work to be tined by theDeparmentor

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sudentfile to expulson fom the Univri,scontaned in RMIT Staute 6.1 StudentDisipline (eAppendix in StudentGuideoronsultTurig.)

EXECUTI VE SUMMARY

Decthlon hasbeen etblihed forbout44 yeaswith themain mision being to makeportcesble

to many peoplea hey cn.Theompany aso wantsto inspir nd supportorvrybody by providing

sportquipmentwith high qualyThiscompany wasetblihed in French,fehatDecthlon

expanded in Asi uch aChina,Singapore t.nd now Decthlon hasalrgeupplirystm and

customern Asi.From now,Decthlon iuccsfuln providing high qualy product nd srvicsn

theport marketnd aso stfied thedemand ofustomer

The portoncentrtson theupply chain procesofDecthlon Vienam,pecfical,demand

management,procurement,producton,disrbution and iventory management.Besdes imso show

aboutheshirproductofDecthlon in theupply chain through logisisflow and i perormanceFurthermorehisrportlo identifiesthepotentilsuesorhalngesthatffeced thebusines'supply

chain durig operton and in theCOVID-19 pandemicthatDecthlon Vienam hasto fc.Additonal,

provideome commendatonsorDecthlon to solv hesproblemsn thisstuaton

Additonal,Decthlon ioneofhe rgesportng product tirn theglobalmarketthus,he

company hasasrong corecompetnceto improvethebusinesgrowth.Pariulal,Decthlon applid i

own R&D in ordero rducetmeo marketompard with competorsand aso coopertwith DHL to

disrbuteproductorotherountre.BesdesDecthlon applid apush srtgy forshirproductn

theupply chain to ahievehe quirmentofustomer

Theompany iheaded toward along-em rltonship and collboraion with supplir.Moreove,

beforebuilding rltonships,upplirhav o stfy thetndard ofDecthlon’srquirmentsThus,t

helpsheollboraion between Decthlon and suppliro cethebespossblevalueorheupply

chain and stfy customersdemand basd on rspec nd tustBesdesbig dat chnology appliaion

helpsDecthlon gain morecompetieadvantagehan competorsand undertnd theustomer end.FurthermoreDecthlon Vienam hasto fc omehalngeswith supply ustomerdemand,

intenatonalrnsportton and lck ofqualfied human rsourcsdueo COVID-19 pandemicAlso,

providesanotherproblem lkeoreatbily and inventory managementn Decthlon’upply chain

Thus,hiseportuitblercommendatonsnd solutionsorDecthlon.Thes olutionsxpechefirm

to pay moreatntion to foreatustomerdemand,etmentffort nd improvethegenerlupply

chain to overomehisstuaton

Ta bl e f Co nt e n t

EXECUT I VE S UMMAR Y 4

I NT RODUC T I ON 6

I NDENT I FY UP P L CHAI N P ROCES S ES EL ECT ED 6

I S up pl y c ha i h n ne l ma p 6

1 Pr o du c fl o w 6

2 I n oma t n fl o w 7

3 Fi nnc i l flo w 7

I Ma j r at ie f Lo g s i s 8

1 De ma n d Ma ngme nt 8

2 Pr oue me n Ma na gme n 9

3 Pr o du c i n Ma ngme nt 9

4 I net r Ma ngme nt 10

5 Di s r bt n Ma na g me n 10

DI S CUS S ON A 11

1 Co r Co mp e e nc e o Th e S up pl y Cha i n 11

2 Pu l & Pu s h Srt g e 12

3 Ex i t n Re l t o ns h p be t we e n S pp lr ad Bu yr 12

4 Te cno l g Ch a ng e / Di su t n 13

DI S CUS S ON B 14

1 COVI D- 1 Pa nd e mi c 14

2 F oe at cuay ad e ffe c i e i vnt oy ma ngme n 15

3 Th e l c k o ul fi e d h uma n r sur cs 16

CONCL US I ON 17

REFERENCES 18

AP P ENDI CES 22

I NTRODUCTI ON

Decthlon company i French sportng product tirwith 1543 sore nd 90.000 tam membern

53 countre.Theompany iknown forwn many common brandsboutportoodsuch aKenlenjiQuechuand DomyosDecthlon,n.d.)ThepurposeofDecthlon io makeport an approach to a

many peopleapossbleTo acs ustomer,Decthlon hasmany productinessuch a hoes shir,

backpack,wimsuitec (Decthlon,n.d.)Additonal,Decthlon expanded to Vienam in 1995 and

rnked theeond biggesproducton with morethan 100 fcorisin Vienam.Apar om online

lunchesin 2017,Decthlon wilopen two major ore n Hanoind HCM cty with amso bring more

benefitofportorVienames onsumer nd cet posiv mpreson in Vienam (PS News,2019).Supply chain managementSMC)ncluding movementmanagement,ogisischannel,ogisisssem

in supply chain (Anca2019)n ordero incraethealueofustomer nd competivedvantage

(Rober,2020).Decthlon hasove40 yasofxperncein producing sportgoods.Neverhels,he

company aso hassomemajorompetorssuch aNike,Adidaswhich aso provideport lothesin

Vienam thateding to customerdemand cn esly change.HenceDecthlon needso analysethe

supply chain managementnd improvehebrand awarnes ffecieyMorethan thatDecthlon aso has

aB2B srtgy which meansombined with ecommeresuch aShopeeand Lazadao help customer

esly orderon multplewebsis

Thiseportimso identiy and analysetheogisisflow and supply chain managementofDecthlon

Vienam.Specfical,dentiy supply chain processand fivemajorcivitssuch aDemand

Management,Procurement,Producton,nventory Managementnd Disrbution.TheDecthlon’ssupply

chain srtgie r socitd with supply chain’scorecompetncenetwork ofupply chain, cnt

tchnologiclnd rltonship between supplir nd buyer.Besdesothersuesthatmay affeche

supply chain aso wilaso benalyzed

I NDENTI FY SUPPLY CHAI N PROCESSES SELECTED

I Su ppl y c ha i ha nn e ma p

1 Pr ouc t flo w

Theproductflow involvesthemovementsofphyscloodsn which the w matrasdeleed to the

manufaturesby theupplir,o produceproducthatwilrah i finalustomer.Theproductflow i

supply chain managementlo concensustomer'eurn.n theaeofDecthlon,frbeing produced

by themanufaturen Vienam,heproductwilbedelverd to two kindsofwarhouse.Thefirsone

iCAC warhousewhich i ontinentawarhouselocaed in Malyi,goodsrom thiswarhousewil

bedelverd to otherountrsin theSoutheatAsin rgion.Theeond one CAR warhouse n

Vienam,heswarhouse rnamed rgionalwarhouse.Decthlon Vienam produce nd disrbute

productdircly to theswarhouse,lthedisrbutionso thesCARsnd CAC aethe sponsibily

ofDHL GlobalForwarding which i ttgicparnerofDecthlon.BesdesDecthlon Vienam aso

hasaflexibily poliy ofproduct disrbution through parnerd-cubsoroffeeshops,nabling

customero hav morewindowsofdisrbution’smethod.Moreove,rom theview of-ommerehe

product an bedisrbuted through theofficilwebsi orcommereplaformskeShopeeand Lazda

2 I nf oma t o n fl o

Asmportntsotherenswithin theupply chain,nformaton flow in fc rucilatorhat

intechangebly affecsmatra nd csh flowsswelCompanie r specily dependableon

informaton in ordero lvrgeheiupply chain perormance(Childerhousee l2003).nformaton flow comesfom both sdesofupply and customerdemand,emostofhevolaity and uncetinty

comesfom thebottom sdewherfinalustomer r.nformaton aboutustomer’demand mix would

then contrbuteto the unch ofnew product,disontinuaton ofold ones dditonalproductupportnd

so on (Walker2015).n theaeofDecthlon Vienam,heompany aso maximizsi ogisi upport

systmsor an supply chain smilro alofDecthlon’sbranchesworldwide.MostofDecthlon’

informaton i loud basd,ntegraing customer’rnsatonstonlinend offline ore o i RFID

systm in soragend tnsportton parner’ystm (Cameron 2019).Fully integraed chain a he

company moved fom B2B to B2C modeln Vienam hasgiven Decthlon acompetivedvantageof

smooth informaton flow,ostnd qualy controlsonceproudly saed by Thao Nguyen,heompany’

head ofprocurementSmith 2020).Specfical,heompany hasbeen applying smplified web-nate

managementystm by Openbrao (Openbravo 2018),dedictg arsaoad shipmentob to one

exclusiveparner DHL whoseoneontrol wersspecaly dedictd only forDecthlon in ordero

provideinglepointontatnd fullvisbly forheompany’slogisi am (Nhung 2019)

3 Fi na nc i l fl o

According to Aluko (2016),hefinancilflow ihend-to-end procesthatnvolvesthemovementofmoney amongstheupplir nd customerwith theompany.Thefinancilflow i onsiderd aone of

theprimary pilrofupply chain managementbecuseii necsay approach to monitornd

eauatheurrntfinancilposion ofompanie swela heffecienesofupplir nd customer

in ordero makeheSCM work smoothly (Wuttke,Blome& Henke2013;Zaini& Leng 2012).n 2020,dueo theCOVID-19 impac,halofhortem Decthlon’sya-nd debthasbeen used to fund saonalworking cpitlwhich sgnificantly constute hefluctuaton in Decthlon'sfinancilflow and the

decinen rvnue.To tcklethisadverestuaton and rbuild aconsitntfinancilflow,Decthlon inow minimizng i purchassby about€1 bilon and cuttng cpitlxpenditure(CAPEX)o about€400

milon,ompard to 2019 (SGB Media2020)

I Ma j r a t v t e f Lo g s i s

1 De ma nd Ma na gme nt

Demand management heprocesthatbalnce heequirmentofustomerwith supply chain

cpabilisbesdeshisprocescn alw companieo bemoreproaciven predicig customer

demand (KeeyDougla,Sebasin,Dal,2002).Additonal,demand foreatng ilo acompulsory

principlein producton planning which helpsbusinese o predicheuturedemand,optimiz ventory

lvelnd rducetheostholding (Mark,Rolando & An-Sing 2009)

Applying to Decthlon Vienam,hatan makeompany identiy themarketpredichedemand-dries

in ech scion and managehe end ofdemand in theuture(Wilam n.d.)Asmostlothing fom

Decthlon in Vienam i mas-producton (Decthlon n.d.)which meansheompany hasto bason the

foreatdemand to meeheustomer'needsnd avoid the ock out.Besdeshemanagerhaveo be

rsponsibleforMRP foreatd demand in ordero optimiz he ad tmend iventory (Smar

Recuitrn.d.)Theooperton between customermanagementnd supply chain operton ihekey to

cetprofitorbusines nd rspond to customerstfcion (im,Petr& Stephan 2004).Decthlon

aso collboraewith customer,ae nd marketng to undertnd demand and foreathehangein

demand in ordero rducethedemand vclton (SmarRecuitrn.d.)Furthermore halnge or

Decthlon aeforeatg thedemand and iventory management.TheCPFR modelsacomplee

cooperton srtgy forbusinese y promotig demand foreatng and planning atvitsto rducethe

iventory and improveheoreatdemand in goodsDavid & Raj2014).TherforeCPFR cn support

Decthlon to overomehalngesin foreatproductby saonalnd managehenventory lvel

2 Pr our e me nt Ma ngme nt

Atsoreprocurementn logisisand supply chain ivolvstheprocessofourcng and purchasng

the w matrlo producegoodsnd srvicswith theim ofdisrbuting them to finalustomer

(Chritopher2016).Notonly supportng daiy busines sksnd complex decson-making process

procurementlo supportheompany in efficincy ffecienes nd profitabily through theoleof

srtgicsourcng and purchasng (Bienhaus& Haddud 2018)by maintaning heaty rltonshipswith

theiupplirBasholm & Munksgaad 2020)

Being aglobalompan,nhancementn manufaturing i rucilparofDecthlon Vienam and to

ahieethesgoal,heompany ipursuing sustinableinnovaton a tudy showed thathishas

posiv mpacon thebusines Eikelboom,Gelderman & Semein 2018)hrough improving working

conditonstproducton fclisand incraing supplirapabilisTheompany belvesthato

ahieecostfficincy during theprocurementprocesmaintaning along-rm rltonship with

supplir sentilhrough theoperton ofproducton tamsn Vienam.The sponsibilisofhes

tamsr ourcng and managing theupplirhatwilproduceproductorDecthlon (Smith 2020)

Henceo incraethemanufaturing procesefficincy through collboraion and tansparncy

Decthlon ieking to ahieve150 supplirby thend of2026.Besdesheompany i lo aming to

help preentheiupplir nvironmenta skshrough theion-st amsnd wilnotbegin busines

with non-complintupplir.By doing thisDecthlon Vienam ixpeced to enhancetheiqualy

control,volumend expanded acountabily (Decthlon 2018a)

3 Pr ouc t o Ma na gme nt

Producton hasawaybeen theoreofDecthlon,specaly Decthlon Vienam a heompany has

been oneofhebiggesproducton hubsofDecthlon globaly snce1995 (VIR 2017).Generl,

Decthlon Vienam doesnotwn any ofsproducton fcorisbutssrtgicparner r.Thishas

assed theompany in rducig initlnvetmentostnd theik ofbeaig high valueoffixed ast,

ythisfc lo broughtnotherik which ixposureto underqualfied producton fom parner.n

answerng thismatrDecthlon Vienam hasadedictd tam ofproducton laderwho aesaffed to

work on thefield,dircly in orderto controlparner’qualy fom rw matrasto finalproduct(Decthlon Vienam n.d.)

On theotherhand,besdescommitmento purchasmasquantie om subcontrcorsDecthlon has

weletblihed along-rm rltonship with ech ofssrtgicparner,with themajoriy ofhem

winning 5 to 10 yeaslngth ofevic Decthlon 2016).Notonly did Decthlon enjoy theconomy of

saebutlo theconomy ofcopeoncetheompany haslunched theB2C modelWith consitncy in qualy controlnd loyaparnerhip,Decthlon ovealnd Decthlon Vienam parculal,ould indeed

enjoy the w pried buthigh-qualy product

4 I vnt oy Ma na gme nt

Inventory management parofupply chain managementhatsacontinuing procesofplanning,

organizng and controllng inventory lvelof w matrasorWIP and finished goodsn ordero

minimiz henventory invetmentnd maximiz ustomerevicwhilbalncing demand and supply (Singh & Verma2018).With thempacofCovid-19 lading to theuncetinty in demand and supply

esntilo hold acran inventory lveln-hand in sorage clisneiherurplusnorhortge,o

adapto thequick changing demand and providedequat evic o theustomer Tsang 2020).n

Decthlon, now deploying two typesofwarhouse,namely CAR and CAC logisiswhich i

chalngen controllng and maintaning theflow and lvelof ventory acuraey throughoutheupply

chain.An ineffecieiventory managementwilcuseDecthlon higherogisiscost hipping cost

iventory crying costnd in-tansicost nd mostmportnt,poore ustomerevic.Therforeo

manage ventoryDecthlon hasbeen aquirng theobotusing RFID tchnology to inspeche ock

lvelhroughoutssorehen snd thesdato every deparmentn theupply chain (Berhiaume2020).ThisalowsDecthlon to hav onsitntprogrammat plenishmento ensurei helvesawayshave

sufficinttocksorulfillment

FurthermoreDecthlon aso implementsustn-Time IT) ventory systm to rducetheproducton

sagesand minimiz henventory costIn pariula,IT srtgy io synchroniz Decthlon producton

shedulewith rw matrlorder om i ontrc upplir,o thatDecthlon cn orderxacly whatt

5 Di s r but i n Ma na gme nt

Disrbution management defined a procesofmanagementofgoods'movement om thepointof

producton to thend ofonsumption,which comprie diveriy ofomponentsn an integraed supply

chain such apackaging,warhousing,nventory nd logisisto mee ustomeraifcion (Alan e l

2010).Effeciedisrbution management undamentaolein deleing theghtproducto theght

locaion aheghtmewith an affordablecostAndra2020).Hencehefirmsan enhancecompetie

advantagesand maintan customeroyaly (Asimah e l2013)

Decthlon'srtirn Ho ChiMinh and Hanoiutiz hetoresspacsadisrbution cntrs

alowing thefirmso fulfil-ommereorder om customer.Theealulfilment useul chnology

to optimiz heupply chain procesdircly affecig theustomernd Decthlon'sprofitmargin

Decthlon'smanager r lo enabled to controlheproductmovementfficintly through thei

disrbution channel.n theong-em,n-sorefulfilment fred to awarhousemanagementystms

aeconducieto maintaning ra-menventory visbily and optimizng opertonalost.Decthlon

Vienam hascollboraed with DHL GlobalForwarding, ading company in theogisisfield.DHL opertsthemostfficintmultnatonalupply chain thatupportDecthlon in tnsportng sportng

producto vrousountrsthrough thei e nd road feghtevicsDuring COVID-19,Decthlon

hasfcd somehalnge n meeing thehangen customerneeds.Hence ducig tmeo marketsa

prioriy solution forDecthlon and DHL.Door-o-moresrvic hertadisrbution implementaion

in DHL,which supportDecthlon shortnshehipping tmeon themarketplaeand minimizsthe

disrbution costThisprogram hasrsultd in thequickerupply ofproducto consumer nd betrrk

controlwhen enteing anew marketDHL,n.d)

DI SCUSSI ON A

1 Co r Co mpe t nc e o Th e Su p pl y Ch a n

Supply chain competncy apprasd a undamentaoolorffecieperormanceand competive

advantageswhich providestheprofesonalknowledgend skil nd theunique sourcsand

cpabiliswith apurposeto managehemovementofgoods,ncluding logisiswarhouse ventory

and disrbution (aya,2014).Decthlon ihe rges tirboutportng productn theglobalmarket

Henceheorecompetncein Decthlon iocused on innovaig thefirm businesgrowth model