Improving Distribution Effectiveness of the Business (the Case Study of Vinamilk Company)

In today's dynamic market landscape, distribution plays a pivotal role in business success by ensuring that products reach consumers efficiently. This efficiency directly influences customer satisfaction, profitability, and overall market competitiveness. Despite its critical importance, distribution networks frequently encounter inefficiencies, particularly in the modern marketplace characterized by rapid technological advancements, globalization, and evolving consumer expectations. The Vietnamese dairy industry, with its impressive growth and market value exceeding $7 billion USD in 2023, offers a compelling case study for examining distribution effectiveness. Vinamilk, a leading company in this sector, operates an extensive supply chain network across Vietnam. However, it faces significant distribution inefficiencies that impact its supply chain performance and threaten its long-term growth and profitability. Optimizing Vinamilk's distribution network is crucial for maintaining competitive advantage in this burgeoning market. This thesis aims to explore the complexities of distribution effectiveness, focusing on identifying challenges and proposing actionable solutions. The research includes a comprehensive analysis of current distribution strategies, identification of critical improvement areas, and development of innovative methods to optimize logistics networks and leverage technology effectively. This study seeks to contribute to the broader understanding and enhancement of distribution effectiveness across various business sectors, ultimately providing companies with actionable insights to optimize their distribution networks and enhance competitiveness and profitability. To achieve these objectives, the following tasks were undertaken: a detailed description of Vinamilk's business activities, evaluation of its market position and financial performance, identification of bottlenecks in its distribution operations, literature review, assessment of principles to enhance distribution effectiveness, formulation of methods to address identified challenges, and evaluation of the economic efficiency and risks associated with proposed solutions. This thesis comprises 152 pages, including 50 tables and 39 figures, and is based on the analysis of 124 domestic and foreign sources of information. The findings underscore the importance of efficient distribution networks in capturing market potential and ensuring sustainable growth in the Vietnamese dairy industry.