Vinamilk's warehouse. (Photo: VNA) Eachbusiness will have a different way of solving this problem.
Ata typical large-scale enterprise like Vinamilk, dual goals (stabiliseproduction and prevent the disease) are implemented based on three keyspearheads: Governance, Technology and People.
Flexiblemanagement for speedy response
Formost businesses, even short-term production plans are usually drawn at leastsix months in advance. However, continuous outbreaks of COVID-19 have changedthis significantly.
Accordingto Vinamilk’s CFO Le Thanh Liem, businesses had to change their planning from a6-month or 1-year plan to a less than 3-month plan. The management board mustclosely monitor and regularly update the market situation to make timelydecisions.
Forexample, at the initial stage of the pandemic in Vietnam, Vinamilk had to findways to reduce inventory to optimise cash flow. But at the time when thedisease intensified, disrupting the supply chain and causing inputmaterials to be in short supply, Vinamilk adjusted its strategy to increaseinventories to promptly supply production activities.
"Ifkeeping inventory at a normal level, it will not meet the plan implementationof the next quarter," Liem said.
Inaddition, Vinamilk has taken advantage of its nationwide production anddistribution system to stabilise production even when some localities had toimplement social distancing measures.
Technologyincreases flexibility
Oneof the most profound and obvious impacts of COVID-19 is forcing businesses tomove “from offline to online”. At this time, technology comes to the fore inensuring smooth business operations.
AtVinamilk, the employment of technology and investment in digital transformationhas been implemented for many years.
Forexample, the ERP system (enterprise resource planning) was employed 15 yearsago which helped facilitate sales and distribution activities, improvingbusiness efficiency. The cashless payment system also helped Vinamilk’s paymentsystem run smoothly.
Vinamilk’sfactories and farms all apply automation and 4.0 technology, ensuringsystematic and remote management.
"Vinamilk'ssupply chain operates entirely on the information technology system, connectingfrom the input - the purchase of raw materials - to the final output - theproduct to the consumer," Vinamilk’s representative said.
Thecompany also equips technologies, tools and software to support communicationand remote work including e-Office, online browser system, solutions to helpemployees access company data from home and digital signatures to ensuresmooth operation in the company and with partners even during the"work-from-home" time.
People- the decisive factor
ConfrontingCOVID-19, human issues have become more important than ever. The critical issueat this time is to ensure the health and safety of employees to maintain stablebusiness and production amid the pandemic.
Fromthe beginning of 2020, Vinamilk has established a professional supportcommittee for COVID-19 prevention and control, disseminating information andguiding employees to comply with the preventive measures while beingonline 24/7 to support problems related to the disease. The company alsoprovides employees with preventive tools and nutritional products.
Inaddition, Vinamilk also makes employees feel secure to work with full salaryand welfare payment policy; enhancing support for employees at “three on-site”units; and proactively supporting employees in testing and vaccination.
Bravingchallenges, Vinamilk still rose six notches to 36th position in the world’s Top50 dairy producers by total sales in the 2021 ranking by UK-based PlimsollPublishing Ltd. The company also appeared in Brand Finance's Top 10 MostValuable Milk Brands in the world with a valuation of 2.4 billion USD.
Evenwhen the pandemic is under control, the market picture will never return to theway it was before. Businesses need not only strength and endurance, but alsoflexibility and sensitivity to find development directions when the economyreturns to "new normal"./.
VNA
