Propose solutions to improve the efficiency of am thuong garment company supply chain

CHAPTER 1: THEORETICAL BASIS ABOUT SUPPLY CHAIN MANAGEMENT 1.1 Defining supply chains “Supply chains is defined as a group of inter-connected participating companies that add value to

PREFACE AND ACKNOWLEDGEMENT

In recent years, Vietnam's textile industry has played an increasingly important role in the growth of the economy The textile and garment industry is considered as one of the key industries and key export industries of our country (PN, 2019) This is the most labor-intensive industry in the country, creating jobs for a large number of national people Vietnam has its advantages to develop the textile and apparel industry such as a large population, a young population structure, abundant labor force, cheap labor costs and a country attracting a lot of foreign investment capital Therefore, promoting the development of the textile industry is very appropriate and necessary

In recent years, Vietnam's textile and garment industry has widely penetrated the world market, achieved high turnover and promised to achieve more outstanding achievements in the future

However, our country's textile industry in general and textile enterprises in particular still face many difficulties and challenges on the path of international market integration Therefore, businesses need to constantly innovate policies to improve business efficiency, the efficiency of capital use, management capacity, efficient use of labor and assets to bring competitive advantages for the business, helping to create the highest profit During my internship at Am Thuong Garment Company, I learned a lot of useful knowledge and helped me to actualize the knowledge taught by teachers at school Thereby, accumulating experience for myself and better understanding the production and business activities as well as the supply chain of a manufacturing enterprise

Thanks to the help of the staff in Am Thuong Garment Company and with the enthusiastic guidance of my teacher Pham Thanh Ha, I completed my internship and internship report

My internship report consists of 3 chapters:

CHAPTER 1: GENERAL INTRODUCTIONS ABOUT AM THUONG GARMENT COMPANY

CHAPTER 2: CURRENT SITUATION OF AM THUONG GARMENT COMPANY SUPPLY CHAIN

CHAPTER 3: PROPOSE SOLUTIONS TO IMPROVE THE EFFICIENCY OF

AM THUONG GARMENT COMPANY SUPPLY CHAIN

CHAPTER 1: THEORETICAL BASIS ABOUT SUPPLY CHAIN

MANAGEMENT

1.1 Defining supply chains

“Supply chains is defined as a group of inter-connected participating companies that add value to a stream of transformed inputs from their source of origin to the end product or services that are demanded by the designated end – consumers (Dr.Dawei Lu – fundamentals of supply chain management)”

“A supply chain is less a chain but rather a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers (Ganeshan and Harrison, 1995)

A supply chain consists of all parties (manufacturers, suppliers, transporters, warehouses, retailers, and customers) and, within each organization, all the functions involved, directly or indirectly, in fulfilling a customer request (Chopra and Meindl 2010)

=> The supply chain is a system of businesses directly involved or indirectly meet customers' needs, including not only suppliers, manufacturer, but also shipping, warehousing, retailers and its customers It is a process that starts from the raw material until the finished product and delivered to the final consumer

Figure 1.1: Supply chain diagram

(Source: Cafeland.vn)

1.2 Defining supply chain management

“Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix

of responsiveness and efficiency for the market being served.” (ESSENTIALS of Supply Chain Management - Hugos)

Effective supply chain management requires simultaneous improvement customer service quality and internal operational efficiency of the business participating the supply chain The most basic level of customer service is the fulfillment rate of orders and the on-time delivery rate is always high while the rate of returned goods

is low in all cases internal operational efficiency of businesses in the supply chain means the ability to earn high revenue on capital invested in goods and other assets, while also meaning that businesses must find ways to reduce production costs

1.3 Participants of the supply chain

According Michael Hugos (2010), any supply chain needs a combination of businesses that perform many different functions These enterprises are manufacturers, distributors or wholesalers, retailers of goods and companies or individuals acting as customers Support for these businesses is the essential service providers

a Producers

Manufacturers are units that directly make products Manufacturers include companies specializing in the production of raw materials as well as enterprises that produce finished products Manufacturers use raw materials and machinery and equipment to make their products

Manufacturers can create intangible or tangible products The prevailing trend is that manufacturers of tangible industrial products are moving to areas with cheaper labor costs in the world However, more and more manufacturers in developed countries in the Europe and some countries in Asia focus on providing intangible products and services

distributors fulfill the “Time and Place” function – they deliver products when and where the customer wants them

A distributor is typically an organization that takes ownership of significant

inventories of products that they buy from producers and sell to consumers In addition to product promotion and sales, other functions the distributor performs are ones such as inventory management, warehouse operations and product

transportation as well as customer support and post sales service A distributor can also be an organization that only brokers a product between the producer and the customer and never takes ownership of that product This kind of distributor

performs mainly the functions of product promotion and sales In both these cases,

as the needs of customers evolve and the range of available products changes, the distributor is the agent that continually tracks customer needs and matches them with products available Michael Hugos – Essentials of supply management

customer may be the final end user of a product who buys the product in order to consume it

e Service provider

These are organizations that provide services to producers, distributors, retailers, and customers Service providers have developed special expertise and skills that focus on a particular activity needed by a supply chain Because of this, they are able to perform these services more effectively and at a better price than producers, distributors, retailers, or consumers could do on their own

Supply chains are composed of repeating sets of participants that fall into one or more of these categories Over time the needs of the supply chain as a whole

remain fairly stable What changes is the mix of participants in the supply chain and the roles that each participant plays In some supply chains, there are few service providers because the other participants perform these services on their own In other supply chains very efficient providers of specialized services have evolved and the other participants outsource work to these service providers

instead of doing it themselves

Figure 1.2: Examples of supply chain structure

(Source: Essentials of supply management)

1.4 How the supply chain works

There are five major supply chain drivers in a supply chain:

Figure 1.3: The major supply chain drivers

(Source: Essential of supply chain management)

1.4.1 Production

The fundamental problem that managers facing when making production decisions

is how to balance between the ability of responsiveness and production efficiency Therefore, the decision of the business will be based on questions such as: What

product does the market want to consume? How much should be produced and when?

This involves creating a flexible production cycle taking into account factory productivity, workload balancing, quality control and equipment maintenance It also means that the higher the level of wasted energy, the less efficient the operation Therefore, factories are built to serve one of two production purposes:

- Product Focus: A factory that takes a product focus performs the range of different operations required to make a given product line from fabrication of different product parts to assembly of these parts

- Functional Focus: A functional approach concentrates on performing just a few operations such as only making a select group of parts or only doing assembly These functions can be applied to making many different kinds of products (essential of SC)

The product-focused approach aims to specialize in a given product line at a cost dedicated to developing certain features Meanwhile, functional-focused approach aims to specializes in a specific function instead of just focusing on a specific product Businesses need to decide which combination of these two directions will give them the competence and expertise needed to be proactive in customer requirements

1.4.2 Inventory

According to Michael Hugos (2010), Inventories appear throughout the cycle supply chain advocacy, including everything organized by the manufacturers, distributors and retailers involved here, from raw materials to the final product Holding a large volume of inventory allows businesses or the entire supply chain to respond flexibly to market fluctuations However, the production and storage of

inventory is costly, so in order to achieve a high level of efficiency, storage costs must be as low as possible Therefore, enterprises should clearly identify the following issues: What types of goods should be stockpiled at each stage of the supply chain? How much raw material, semi-finished and finished products should

be stored?

The basic purpose of storing inventory in a warehouse is to prevent possible fluctuations in the supply chain However, the cost of warehousing is quite expensive, so businesses must be determined optimal inventory levels and new order timing

There are three basic decisions regarding the production and storage of goods:

 Cycle Inventory: This is the amount of inventory needed to satisfy demand for the product in the period between purchases of the product Companies tend to produce and to purchase in large lots in order to gain the advantages that economies of scale can bring However, with large lots also come increased carrying costs Carrying costs come from the cost to store, handle, and insure the inventory Managers face the tradeoff between the reduced cost of ordering and better prices offered by purchasing product in large lots and the increased carrying cost of the cycle inventory that comes with purchasing in large lots

 Safety Inventory: Inventory that is held as a buffer against uncertainty If demand forecasting could be done with perfect accuracy, then the only inventory that would be needed would be cycle inventory But since every forecast has some degree of uncertainty in it, we cover that uncertainty to a greater or lesser degree by holding additional inventory in case demand is suddenly greater than anticipated The tradeoff here is to weigh the costs of

carrying extra inventory against the costs of losing sales due to insufficient inventory

 Seasonal Inventory: This is inventory that is built up in anticipation of predictable increases in demand that occur at certain times of the year For example, it is predictable that demand for antifreeze will increase in the winter If a company that makes antifreeze has a fixed production rate that is expensive to change, then it will try to manufacture product at a steady rate all year long and build up inventory during periods of low demand to cover for periods of high demand that will exceed its production rate The alternative to building up seasonal inventory is to invest in flexible manufacturing facilities that can quickly change their rates of production of different products to respond to increases in demand In this case, the tradeoff is between the cost of carrying seasonal inventory and the cost of having more flexible production capabilities (trích dẫn)

1.4.3 Location

The location here is the geographical area chosen to build the factory of supply chain It also includes decisions regarding the activities to be performed in each factory The responsiveness versus efficiency tradeoff here is the decision whether

to centralize activities in fewer locations to gain economies of scale and efficiency,

or to decentralize activities in many locations close to customers and suppliers in order for operations to be more responsive Businesses need to answer the following questions: Where should the factory and warehouse be located? Where is the place that can bring the best performance? Should businesses take advantage of existing factories or build entirely new ones?

When making a position decision, managers need to consider the location-related factors were mentioned above, including factory costs, labor, labor skills,

infrastructure conditions, taxes and tariffs, as well as advantages near suppliers and customers Location decision is the strategic decision because they aim for long-term revenue

1.4.4 Transportation

Transport refers to the transportation of everything from raw materials to the finished goods between different factories in a supply chain Enterprises must consider the following factors: How to ship the goods from warehouse in a place in the supply chain to another place? Although the delivery method by air and truck is fast, it is costly Shipping by sea or railways are less expensive but transit times are longer and safety is not high Enterprises need to choose the appropriate shipping method for each case

There are six basic modes of transport that a company can choose: Ship, rail, trucks, pipelines, airplanes, electronic transport

Based on the different models of transportation and the location of the factories in the supply chain, managers need to choose the right route to transport the product According to the general rule, the higher the value of the product (such as electronics or pharmaceuticals), the greater the transportation network should focus

on flexibility In contrast, the lower the value of the product (high volume goods such as cereals or bulky furniture), the problem of the transport network that needs attention is efficiency

1.4.5 Information

Information is the basis upon for making decisions regarding the four factors that govern the supply chain, the connection of all activities and processes in the supply chain If businesses have the right information, this will help them make better decisions With reliable information, businesses can make an accurate decision on

the type and quantity of products as well as the location of the warehouse and the most optimal way of transport

In any supply chain, information is used for two purposes:

- Coordinating daily activities related to the functioning of the other four supply chain drivers: production; inventory; location; and transportation The companies

in a supply chain use available data on product supply and demand to decide on weekly production schedules, inventory levels, transportation routes, and stocking locations

- Forecasting and planning to anticipate and meet future demands Available information is used to make tactical forecasts to guide the setting of monthly and quarterly production schedules and timetables Information is also used for strategic forecasts to guide decisions about whether to build new facilities, enter a new market, or exit an existing market ( trích dẫn)

Each market and each customer group has unique needs Supply chains serving different markets need to be responsive these needs

1.5 The role and function of supply chain management

1.5.1 The role of supply chain management

Supply chain is the decisive factor to the efficiency of business operations:

The goal of businesses is to earn high profits To achieve that goal, businesses need: machines, human resources, materials, money, management Supply activities ensure two factors: machinery, equipment and materials If supply activities operate effectively: provide sufficient machines, equipment, materials, modern machinery, advanced technology, good materials, cheap prices…, production and business activities of enterprises can take place continuously with high productivity, cost savings and producing high quality products, reasonable

prices, meeting the requirements of consumers Especially in current conditions, the cost of raw materials in the production costs is higher, the supply activities will have important influence on the business performance of the organization

1.5.2 The functions of supply chain management

CHAPTER 2: CURRENT SITUATION OF AM THUONG GARMENT

COMPANY SUPPLY CHAIN

2.1 GENERAL INTRODUCTIONS ABOUT AM THUONG GARMENT COMPANY

2.1.1 Overview of Am Thuong Garment Company

- The company's name: Am Thuong Garment Company Limited

- Address: Ha Hoa town, Ha Hoa district, Phu Tho province

From 2011 to the present, along with the strong development of the textile and apparel industry, Am Thuong Garment Company has developed more small branches in the province Besides, the company promotes searching and expanding consumption markets, invests in infrastructure - technology, training, improving skills for workers and adopting recruitment policies qualified staff managing economic and technical matters With the development plan in the next 10 years,

Am Thuong Garment and Textile Company is striving to gradually assert its name and become a reputable and quality manufacturer in the garment sector

With achievements in production and business during the past 9 years, Am Thuong Thuong Garment Company is highly appreciated by Phu Tho Province and received many certificates and awards both in the province and throughout the whole country For Am Thuong Garment Company, product quality is always the top priority, which is the responsibility and pride of each employee In that spirit,

in the last years, the products of Am Thuong Garment Company have always received the trust, love, and support from consumers This is an extremely strong motivation to help the company determine to strive to develop, and improve the quality of products further towards high-quality products, reasonable prices to bring the most satisfaction to customers when using the products of the business

2.1.3 Functions and duties of Am Thuong Garment Company

2.1.3.1 Function

Am Thuong Garment Company specializes in manufacturing garments Applying advanced technology, producing in a closed process, checking from input to output, ensuring product quality at the highest level with the lowest price, bringing high profits for the company

The company's products are manufactured in trendy fashion, quality assurance, designed and sleek, complying with orders Especially with a team of skilled workers, professionally trained, experienced, always ready to meet orders Garment production is a traditional and essential product, so there are many competitors both at home and abroad that require the product to be of good quality and undergo rigorous testing The company must always create its initiative and creativity to meet the requirements of orders

2.1.3.2 Mission

It can be seen that the demand for apparel today is increasing This is a good opportunity for garment enterprises to develop The problem for Am Thuong Garment Company is how to make a breakthrough in the garment market, creating creativity, distinctiveness and brand for its products Achieving those things requires the company to make every effort and strive to be able to build its name and brand in the market

From there, some missions of Am Thuong Garment Company are drawn as follows:

- Develop and organize the implementation of production and business plans on schedule, ensuring timely delivery of orders with better product quality Creating customer trust, constantly strengthening and promoting the reputation of the company

- Actively seeking partners, penetrating deeply into new markets, maintaining and creating long-term and prestigious relationships with customers

- Ensuring life for workers

- Constantly improve the technological process to adapt to market demands, improve product quality, increase competitiveness and labor productivity

- Manage and use capital and facilities according to the company's plan to use the capital most effectively to bring maximum profits and the highest economic efficiency

- Managing the company's staff under the state policies, actively taking measures

to promote efforts and promote the creativity of each employee and prevent possible evils: reward, criticize, supervise, urge, discipline Ensure health and policies for employees

2.1.4 Organizational structure of Am Thuong Garment Company

2.1.4.1 Organizational structure diagram

Figure 1.1: Organizational structure diagram of Am Thuong Garment Company

MANAGING DIRECTOR

DEPUTY MANAGING DIRECTOR

PLANNING DEPARTMENT

RESEARCH AND

DEVELOPMENT

DEPARTMENT

TECHNICAL DEPARTMENT

BUSINESS DEPARTMENT

(Source: Administration department, Am thuong garment company)

2.1.4.2 Functions and missions of the departments

2.1.4.2.1 Administration and human resources department

- Building external relations with the relevant departments

- Support other departments and divisions of the company through administrative activities

* Mission

● Human resources department

- Planning human resources for the company's development strategy

- Building the personnel apparatus suitable for each time of the company

- Conducting recruitment and training activities

- Managing records of officials and employees of the company

- Signing the labor contract

- Being in charge of work related to social insurance and health insurance

- Developing organizational chart, functions, and tasks of the departments with the board of directors

- Coordinating with the board of directors and departments in evaluating the performance of officials and employees on a monthly and yearly basis to perform commendation or discipline in accordance with regulations

- Participating in organizing activities, movements, events of the company

- Representatives of the company carry out the visit, giving gifts to officials and employees of the company

● Administration department

- Supporting the board of directors in diplomatic activities with local authorities

- Promoting the company's image through media, sponsorship, humanitarian activities,

- Managing the company seal

- Managing office equipment of the company

- Being in charge of reception activities

2.1.4.2.2 Accounting - Finance Department

- Accounting - Finance Department is responsible for collecting, processing, checking, analyzing and providing financial and economic information by financial statements for those who need to use the company's information

- Checking and supervising financial revenues and expenditures, receivables, remittance, payment of debts, inspecting the management and use of assets Detect and prevent financial and accounting violations in the company

- Advising and proposing solutions to serve the company's management and economic and financial decisions

- Making financial statements and accounting reports of enterprises

- Planning production based on the actual capacity of the business

- Organizing and managing production

- Tracking the progress of the shipment and pay

- Managing and balancing materials for production

2.1.4.2.4 Research and Development Department

- Building the website, promoting the brand of the company

- Promoting, advising and developing projects and services to restructure the production and business structure of the company

- Developing new sources of goods, coordinating with the planning and care department, maintain relationships with customers

2.1.5 Summary of business activities in 3 years from 2017 to 2019

Table 1.1: Balance sheet of Am Thuong garment company

II Short-term receivables 130 170.669.587.327 83.180.385.048 64.311.590.370

1 Short-term Receivables from

Customer 131 47.009.872.564 35.132.090.500 27.398.125.540

2 Prepayments for suppliers 132 2.516.492.702 23.030.018.716 12.256.345.980

3 Receivables short term loans 135 - 7.000.000.000 4.800.000.000

IV Other current assets 150 736.018.148 2.602.046.405 2.044.807.364

1 Short-term prepaid expenses 151 30.299.058 70.176.258 41.235.700

2 Input VAT 152 703.615.681 2.529.766.738 2.001.468.255

3 Tax and Receivables from 153 2.103.409 2.103.409 2.103.409

State Budget

B – LONG-TERM ASSETS

(200 = 220+230+240+250+260) 200 73.946.009.558 118.324.455.030 74.749.609.406

I Fixed assets 220 23.813.944.379 30.894.144.609 26.147.907.490

1 Tangible fixed assets 221 23.813.944.379 30.894.144.609 26.147.907.490

- The original price 222 31.816.905.140 36.678.308.509 35.124.032.790

- Accumulated depreciation 223 -8.002.960.761 -5.784.163.900 -8.976.125.300

II Invested real estate 230 3.803.601.050 - -

V Other long-term assets 260 600.421.526 7.185.022.611 5.478.940.512

1 Long-term prepaid expenses 261 600.421.526 7.185.022.611 5.478.940.512

1 Payable to seller: short term 311 31.827.934.067 51.879.555.475 30.578.950.130

2 Short term Advances Received

from the Customers 312 5.130.133.975 5.159.874.850 3.987.321.210

3 Taxes and Obligations to State 313 5.654.987.008 1.237.902.695 897.120.350

Budget

4 Other payable expenses: short

term 315 80.890.000 80.890.000 80.890.000

5 Other short-term payables 319 9.080.820 - -

6 Short-term borrowings and

financial leases 320 37.220.326.518 4.352.991.304 7.897.345.541

7 Reward and Welfare Fund 322 954.277.029 991.277.055 700.456.280

II Long-term liabilities 330 6.626.895.737 9.244.172.223 10.237.584.122

1 Long-term borrowings and

- Undistributed profit of the

Table 1.2 Income statement of Am thuong garment company

INCOME STATEMENT

Net revenue from goods sold 10 110.655.350.000 87.974.560.365 72.864.230.470 Gross profit from goods sold 20 39.398.740.800 29.987.250.570 24.670.890.360 Operating profit 30 49.657.450.575 35.349.660.320 29.749.117.250 Profit from other activities 40 1.350.950.000 894.352.700 573.142.220 Accounting profit before tax 50 51.008.400.575 36.244.013.020 30.322.259.470 Net profit after corporate

income tax 60 50.021.080.270 35.135.672.140 29.456.255.695

( Source: Financial and accounting department, Am Thuong garment company)

From the income statement of Am Thuong garment company in 3 years from 2017

to 2019, we can see that the net revenue from goods sold by the company increased continuously for 3 years Revenue of the following years increased by more than 10% compared to the previous year Because of the increase in revenue, net profit after tax in Am Thuong garment company grew over 3 years from over 29 billion

VND in 2017 to 50 billion in 2019 The net profit of the company increased by over 17% after 3 years

2.2 Overview of the supply chain of Am Thuong Garment Company

The supply chain of Am Thuong Garment Company is generally not different from the supply chain of other garment companies in Vietnam Currently, the supply chain of Am Thuong Garment Company mainly starts from purchasing raw materials, then cutting, sewing to make products, then distributing them to the dealer stores or delivering to the buyer The supply chain of Am Thuong Garment Company is shown in the following diagram:

Figure 2.1: Supply chain diagram of Am Thuong Garment Company

(Source: Am Thuong garment company)

2.3 Current situation of Am Thuong garment company supply chain

2.3.1 Current situation of material purchasing in Am Thuong garment

company

2.3.1.1 Selecting material suppliers

In the supply chain of a garment manufacturing enterprise, research and selection of raw material suppliers are extremely important and necessary because

it is a direct determinant of the quality of output products (Dung) Besides, the

Supplier of raw

materials

Am Thuong Garment Company

Distributor

Materials

purchasing Manufacturing

choice of suppliers also requires reasonable prices and transportation costs Criteria for selecting raw material suppliers ensuring requirements, meet production needs are extremely important requirements to ensure the output products of good quality, prices consistent with the above premises market and under the financial condition of the company At the same time, suppliers need to ensure the schedule, time to supply raw materials, have the ability to meet the demand for raw materials

of the company to avoid cases such as shortages or delayed delivery, affecting the production plan of the company Therefore, calculating the aspects to choose the supplier that guarantees both quality and time as well as ensures the cost of purchasing and shipping is an extremely important requirement Based on these standards, Am Thuong Garment Company has selected the appropriate suppliers as follows:

● SUNG IL Vietnam Co., Ltd.: Fabric Supply

● KEUM HA Textile Joint Venture Company: Fabric supply

● EWHA VINA Company Limited: Fabric supply

● BONASSE VINA Company Limited: Material supply

● COATS PHONG PHU Company: Sewing thread supply

● PAIHO VIETNAM Company: Accessories supply

● SUNG BU VINA 1 Company Limited: Hangers supply

● CHUNSHIN PRECISION CO., LTD: Zipper supply

2.3.1.2 Classification of materials and auxiliary materials

After being purchased, materials will be carefully classified, managed and preserved by the company to ensure that the materials are used economically, reasonably and preserve the materials in each warehouse in the right place Am Thuong Garment Company divides materials and auxiliary materials as follows:

- Materials: The main components to create products such as main fabric, lining fabric, coordinated fabric, etc

- Auxiliary materials: the part of materials participates in creating products but accounts for a small proportion in the value of creating products such as buttons, keychains, labels, packaging, sewing threads, etc

2.3.1.3 Materials warehousing

After working with the material supplier and completing the purchasing procedures, the input materials will be shipped to the garment company at the agreed time As soon as raw materials are delivered, the materials will be checked for quality by the specialized department and only when such materials meet the quality, quantity and requirements are allowed to be stored The storekeeper will

be responsible for receiving the raw materials according to the quantity, quality and models stated in the sales contract After that, the storekeeper will check the quality and actual quantity of raw materials compared to the invoice or purchase contract, if any problems or errors are detected, immediately report them to the sales department to resolve and make a certification record of the inspection Finally, the storekeeper will record the delivery with the delivery and warehousing The process of receiving, using materials will be recorded and monitored daily

2.3.1.4 Advantages and disadvantages in purchasing materials

a Advantages

- Am Thuong Garment Company has a team of experienced and qualified purchasing staff to help the purchasing of materials be carried out effectively, saving time The purchasing staff of the company is responsible for the step of contracting with the supplier, tracking the delivery progress until the order arrives

at the company and is put into production

- The material suppliers for the company are mostly reputable companies The smooth contracting and delivery process, without shortages or slow deliveries, is

an important element to help make orders on time and production schedule Besides, the quality of materials provided to the company is of good quality and reasonably priced, helping the output of quality and consistent with the market price to satisfy consumers

b Disadvantages

9 years of operation in the field of apparel, Am Thuong Garment Company although it has achieved significant achievements in production and business activities in terms of the financial capacity of the company is still limited For large orders at the same time from many different customers, requiring products made from good materials at high prices, the company will have difficulty in purchasing materials

2.3.3 Current situation production in Am Thuong Garment Company

2.3.3.1 Production preparation

After sufficient materials are supplied, the planning department will start to carry out the production plan from organizing the supply of raw materials and providing information to production units When production information is delivered to the sales department, the sales department staff is responsible for checking the information and balancing the materials After that, the production units will start production immediately after receiving instructions from the sales department

2.3.3.2 Production process

During the production process, the supervising department will coordinate with the sales department to closely follow the production progress, monitor the

amount of raw and auxiliary materials provided, in case of shortage, request for additional supplies and vice versa, if surplus will proceed with the revoke At the same time, the monitoring department will monitor the daily production progress

of the production units, thereby regulating the production process to optimize production capacity of each unit The monitoring department to follow the daily production process is to minimize the defective products to help the production process operate most productivity and effectively The technical department will combine regularly to guide workers to perform the stages more effectively

The production process of garments of Am Thuong Garment Company: