Wrigley Vietnam: Operations Management
No of words: 3.236 (excluding table of contents, references and appendices)
Chapter 1: Introduction
1.1 Company products
Wrigley Vietnam (WVN) has been running its business in Vietnam’s confectionery market for nearly 20 years and now is recognized as a Gum market leader. Specifically, it exploits in the chewing gum & candy categories with the well-known brands such as Doublemint, Cool Air and Extra gum & Sugus candy. However, its gum takes account for around 90% sales contribution in total. Therefore, this paper would only seek to focus on operational aspects of WVN’s chewing gum.
1.2 Customers
a) Internal customers: they are the labor force from cross-functional levels such as marketing, finance, sales, supply chain and manufacturing. Furthermore, sales teams play such an important role in selling products to external customers as retailers or wholesalers and expand the products distribution in the market.
b) External customers: they are the ordinary ones that purchase WVN’s chewing gum products, mainly partners, distributors and supermarkets.
1.3 Order qualifiers & Order winners
a) Order qualifiers
In the confectionery market, “foods hygiene and safety” is the utmost concern when the customers would like to buy the company’s products. WVN itself commits to deliver the well-qualified gum products censored and certified by the ministry of health.
b) Order winners
Once the foods hygiene and safety requirements have been satisfied, other top performance dimensions such as “customer care, selling price and volume flexibility” would be chosen to determine what kind of products customers would instantly purchase from the company rather than competitors.
1.4 Three main operational processes
a) Input: gum base, sweeteners, softeners, flavorings (majorly mint) & colorings and preservatives.
b) Transferring:
Figure 1: The process of making Gum in WVN (Wm. Wrigley Jr. Company, 2013)
The details in each step can be found in the Appendix 1
c) Output: the
Chapter 1: Introduction
1.1 Company products
Wrigley Vietnam (WVN) has been running its business in Vietnam’s confectionery market for nearly 20 years and now is recognized as a Gum market leader. Specifically, it exploits in the chewing gum & candy categories with the well-known brands such as Doublemint, Cool Air and Extra gum & Sugus candy. However, its gum takes account for around 90% sales contribution in total. Therefore, this paper would only seek to focus on operational aspects of WVN’s chewing gum.
1.2 Customers
a) Internal customers: they are the labor force from cross-functional levels such as marketing, finance, sales, supply chain and manufacturing. Furthermore, sales teams play such an important role in selling products to external customers as retailers or wholesalers and expand the products distribution in the market.
b) External customers: they are the ordinary ones that purchase WVN’s chewing gum products, mainly partners, distributors and supermarkets.
1.3 Order qualifiers & Order winners
a) Order qualifiers
In the confectionery market, “foods hygiene and safety” is the utmost concern when the customers would like to buy the company’s products. WVN itself commits to deliver the well-qualified gum products censored and certified by the ministry of health.
b) Order winners
Once the foods hygiene and safety requirements have been satisfied, other top performance dimensions such as “customer care, selling price and volume flexibility” would be chosen to determine what kind of products customers would instantly purchase from the company rather than competitors.
1.4 Three main operational processes
a) Input: gum base, sweeteners, softeners, flavorings (majorly mint) & colorings and preservatives.
b) Transferring:
Figure 1: The process of making Gum in WVN (Wm. Wrigley Jr. Company, 2013)
The details in each step can be found in the Appendix 1
c) Output: the
References: Blackstone, J., 2010. APICS Dictionary. 13th ed. Chicago: American Production & Inventory Control Society, Inc. . Bozarth, C. C. & Handfield, R. B., 2013. Introduction to Operations and Supply Chain Management. 3rd ed. s.l.:Pearson Education Limited. Bridge, V., 2013. Vietnamnet. [Online] Available at: http://english.vietnamnet.vn/fms/business/73719/vietnamese-labor-force-is-cheap-or-expensive-.html Guy, Q., 2011. Cost of quality. [Online] Available at: http://www.costofquality.org/cost-of-poor-quality-basics/ Hayes, R. & S.Wheelwright, 1984. Restoring Our Competitive Edge: Competing through Manufacturing. New York: Wiley. Heizer & Render, 2011. Operations Management. 10th ed. England: Pearson Education. Johnston, R., Clark, G. & Shulver, M., 2012. Service Operations Management Improving Service Delivery. Pearson Education Limited ed. s.l.:s.n. Matthyssens, P. & Vandenbembt, K., 1998. Creating competitive advantage in industrial services. Journal of Business & Industrial Marketing, 13(4/5), pp. 339-355. Quality, A. f. H. R. a., 2011. AHRQ. [Online] Available at: http://www.ahrq.gov/professionals/systems/hospital/red/swimlane.html Reid, R. D. & Sanders, N. R., 2011. Operations Management An Integrated Approach. 4th ed. s.l.:John Wiley & Sons, Inc.. Russell, R. S. & Taylor, B. W., 2011. Operations Management Creating Value Along The Supply Chain. 7th ed. s.l.:John Wiley and Sons, Inc. Slack, N., Brandon-Jones, A. & Johnston, R., 2013. Operations Management. 7th ed. s.l.:Pearson Educaiton Limited. U.S Deparment of Transportation, 2013. United States Department of Transportation. [Online] Available at: http://ops.fhwa.dot.gov/publications/fhwahop10027/chap_2.htm Wise, R. & Baumgartner, P., 1999. Go downstream - the new profit imperative in manufacturing, s.l.: Harvard Business Review. Wm. Wrigley Jr. Company, 2013. Wrigley Global. [Online] Available at: http://www.wrigley.com/global/about-us/how-gum-made.aspx Source: (Wm. Wrigley Jr. Company, 2013) 1st step - The process begins by melting and purifying the gum base