The gap in supply chain management at Golden Sea Company

Abstract

Golden Sea Company is a company with 100% investment capital from Thailand and is also currently the top company in the production and distribution of rope and net products in Vietnam today. Golden Sea Company is using 2 main types of plastic materials: PP and PE plastic. The source of plastic beads produced in the country is currently not enough to meet the demand, plastic enterprises have to import from abroad. Especially, the increase in import tax on plastic to 3% from January 1, 2017 also makes the costs incurred by plastic businesses increase significantly. The import of plastic materials also makes businesses "worry" about fluctuations in exchange rates in the market. Not only is the company interested in the price of raw materials, but the quality of raw materials is also a top priority. The company always choose the leading suppliers of plastic materials, both domestic and imported in order to ensure the quality of production inputs to help the Golden Sea brand always be highly appreciated by consumers, creating trust for future growth. Not only the fluctuation of raw materials in the current market, Golden Sea Company is also facing supply chain problems within the company. There is a difference between the forecasting, planning and actuality from the Sales, Planning, Purchasing and Production departments. Although the company can still manage during the "Coronavirus" pandemic occurred from the second quarter of 2021. However, the gap between forecasting, planning and actuality is often much different, which will have many impacts on production plans, waste operating costs and importantly, not meet the demand of customer about finished products. Through interviews and research from theoretical frameworks, the author has discovered the root cause of the problem being faced at Golden Sea company is that there is no over quotas by level. Finally, the author proposes a solution with reasonable estimated cost that is to apply the OKRs model to the Sales department so that each employee can know what their individual goals are, which is committed by staff level and management levels.