Three spearheads in Vinamilk's dual-goal strategy

Implementing the dual goal not only helps businesses overcome the pandemic but also be ready to recover as soon as the epidemic is under control. Each business will have a different way of solving this problem. For Vinamilk, a typical large-scale enterprise, the dual goal is being implemented with 3 key spearheads: Management, Technology and People.

Finished products warehouse in a Vinamilk factory, flexible inventory ensures domestic supply and export according to the development of Covid-19. Photo: PV

Flexible management to respond promptly

For most businesses, even short-term production plans are usually planned at least 6 months in advance. However, the continuous outbreaks of Covid-19 have caused this to change significantly. According to Mr. Le Thanh Liem, Vinamilk's Finance Director, this situation forces businesses to be flexible, changing from 6-month to 1-year plans to plans under 3 months. The board of directors must closely monitor and regularly update the market situation in order to make timely decisions.

Vinamilk applies technology in many aspects of operations and management.

For example, at Vinamilk, in the early days of Covid-19, the company always had to find ways to reduce inventory to optimize cash flow. But when the epidemic broke out strongly and spread widely, the global supply chain was disrupted, and raw materials were scarce, Vinamilk adjusted to increase inventory to promptly supply production activities. "If we keep the inventory level as normal, we will not be able to ensure the implementation of the plan for the next quarter," said a Vinamilk representative.

In addition, Vinamilk takes advantage of having a nationwide production and distribution system to ensure stable production even when some localities have to implement social distancing. The problem lies in managing and coordinating this system to optimize efficiency.

The effectiveness of applying digital signatures and document digitization at Vinamilk.

Applying technology, increasing flexibility

One of the strongest impacts of Covid-19 is the forced “switch from offline to online”. This is also the time when technology can demonstrate its superiority in ensuring smooth business operations.

At Vinamilk, the application of technology and investment in digital transformation have been focused on for many years. For example, the ERP system (enterprise resource planning) invested by the company about 15 years ago has helped the activities between sales and distribution to run smoothly, improving business efficiency. Or thanks to the cashless payment system, Vinamilk does not encounter any difficulties in payment, helping the business run smoothly.

Vinamilk factories and farms thoroughly apply automation and 4.0 technology, ensuring remote and systematic management."Vinamilk's supply chain operates entirely based on an information technology system, connecting from input - the purchase of raw materials, to the final output - products reaching consumers,"Vinamilk representative said.

The company applies technology, equips tools and software to support communication and work from AZ such as: e-Office, online browser system, internal interactive applications, solutions to help employees access company data at home and digital signatures. These applications have helped Vinamilk's internal operations and those of its partners to be uninterrupted even during the "work-from-home" period. Vinamilk is also deploying the e-Office system to its subsidiaries synchronously.

Employees implementing “3T” at Vinamilk factories are tested periodically to ensure safe production and effective epidemic prevention. Photo: PV

Human, the decisive factor

In the face of Covid-19, the human factor becomes more important than ever. Businesses with effective policies and technological solutions but without an effective human resource system will also encounter difficulties. In addition, the "survival" issue at this time is also ensuring the health and safety of workers to maintain stable business and production activities during the epidemic.

Since the beginning of 2020, Vinamilk has established a Covid-19 Prevention and Control Professional Support Committee, which has been promoting and guiding employees to comply with and practice epidemic prevention regulations, and is available online 24/7 to support issues related to the epidemic. The company also provides employees with epidemic prevention equipment and nutritional products to enhance resistance.

In addition, Vinamilk also helps employees feel secure at work by maintaining a policy of paying full salaries and benefits; supporting and improving working and living conditions for on-site units; proactively supporting employees throughout the company in testing and vaccination against Covid-19.

Some positive results of Vinamilk in nearly 2 years of Covid-19 pandemic.

In a year when the world's food and beverage industry has experienced unprecedented fluctuations due to Covid-19, Vinamilk rose 6 places to 36th place in the "Top largest dairy companies in the world" (according to the ranking of market research company Plimsoll) and the Vinamilk brand was included in Brand Finance's "Top 10 most valuable dairy brands globally" with a valuation of 2.4 billion USD.

Covid-19 is a harsh “test” for businesses and the economy. After the pandemic, the market picture will never return to the way it was before. Businesses not only need strong strength and endurance, but also need to be flexible and agile to find a direction for development when the economy establishes a “new normal” state.