II.

MAIN CONTENTS
1. Examine the Procurement Principles and Processes Used by A Range of Organizations
Introduction about Sabeco
SABECO is one of the oldest national brands in the beer - alcohol - beverage industry in Vietnam. Saigon Beer
- Alcohol - Beverage Corporation (Sabeco) was formerly known as Saigon Brewery, established in 1977. After
ThaiBev controlled nearly 54% of Sabeco since 2017, the new owner of this brand has made many changes in
brand identity towards a youthful and modern.
Sabeco currently holds 40% of the beer production market share in Vietnam, distributed nationwide and
exported to nearly 20 countries around the world. Saigon Beer and 333 Beer are still the leading Vietnamese
brands in the Vietnamese beer market and are on the way to conquer demanding markets such as Germany,
the US, Japan, and the Netherlands.
(Vnr500. 2024)
The purchasing principles in the Vietnamese beer industry are built on the specific requirements of the
industry, to ensure product quality, stabilize supply and optimize costs. In order to clearly state the
purchasing principles of the Vietnamese beer industry, the author will take two representatives, Heineken
and Habeco, as general purchasing principles for the beer industry.
* Quality Assurance
For HABECO, we prioritize reputable suppliers whose products meet international and Vietnamese
standards. At the same time, we carefully evaluate and only cooperate with reputable suppliers who have
quality management systems that meet international standards (such as ISO 9001, HACCP). Habeco also
combines with on-site surveys and conducts inspections at suppliers' factories and warehouses to directly
assess the production process and storage conditions. On the other hand, Habeco pays great attention to
checking the quality of raw materials and checking the warehouse, each batch of imported goods must
undergo a strict inspection process on quality indicators such as purity, content of substances, and
microorganisms. Habeco also tries to diversify its supply sources to avoid dependence on a single supplier to
ensure stable production and have better negotiation opportunities. Thanks to focusing on many
synchronous solutions to improve and enhance product quality, promote brands, and expand consumer
markets, in 2018, the Corporation was honored to receive major awards such as: Being honored as "National
Brand" for the 4th consecutive time; Vietnam Golden Star Award 2018; Certificate of High-quality
Vietnamese Goods; Certificate of Key Products of the Capital; Vietnamese Goods Loved by Consumers;
Certificate of Vietnamese Service Quality; Top 10 Prestigious Enterprises in the Food and Beverage Industry
of Vietnam in 2018.
(Tapchilaodongxahoi, 2024)
For Heineken, strict standards are set for all input materials that must meet international quality standards
and Heineken's internal standards. At the same time, strict inspection is carried out for each batch of goods,
which are thoroughly checked for quality, purity and food safety. In addition, combined with supplier
evaluation. Heineken only works with suppliers with good quality management systems, capable of meeting
the company's strict requirements. Heineken always complies with a series of strict regulations on pure
water sources, premium raw materials, product packaging. Along with that, quality assurance processes are
applied at all Heineken factories worldwide.
(Thanhnien, 2024)
* Developing long-term relationships
For HABECO, as a state-owned enterprise with a long history and a long-standing brand, it has established
special purchasing principles to develop long-term relationships with suppliers. HABECO prioritizes and
always supports domestic production to promote the development of local businesses. Working with
domestic suppliers helps minimize risks in transportation, customs procedures and other uncertainties.
(Vinabeco, 2024)
For Heineken, with its global scale and influence, it has built a purchasing system that not only focuses on
quality and price but also pays special attention to developing long-term relationships with suppliers.
Heineken is committed to accompanying and supporting, developing supplier capacity. Heineken is not only
a customer but also a partner supporting suppliers to improve production capacity, product quality and
operational efficiency. At the same time, sharing knowledge and technology, the Company is willing to share
knowledge, experience and technology to help suppliers better meet market requirements, Heineken
regularly carries out investment activities in the communities where suppliers operate, helping to improve
living conditions and improve the quality of life of people.
(Heineken, 2024)
* Compliance with the law
For HABECO, as a large and reputable state-owned enterprise, always puts compliance with the law first in
all activities, especially in the procurement process. HABECO's procurement principles are built on the basis
of Vietnamese law and industry regulations, to ensure transparency, fairness and efficiency. HABECO always
strictly complies with the provisions of Vietnamese law related to commercial activities, bidding,
competition, environmental protection and other relevant regulations. At the same time, always be
transparent in the bidding process. All bidding activities are public and transparent, ensuring that all
suppliers have the opportunity to participate fairly.
(Tapchitaichinh, 2024)
For Heineken, as one of the world's largest beer corporations, transparency and legal compliance are always
top priorities in all business activities, especially in the procurement process. These principles not only help
protect the brand's reputation but also ensure the sustainable development of the business. Heineken is
always transparent in the bidding process, the entire bidding process is carried out publicly and under the
supervision of relevant parties and at the same time always public information, all information related to the
bidding process is public, creating equal opportunities for all suppliers. In addition, the criteria for evaluating
suppliers are built specifically, transparently, and without causing misunderstanding.
 (Thesaigontimes, 2024)
SABECO's Purchasing Principles
* Quality assurance
Quality is a core factor in the beer industry, and SABECO has built a strict purchasing system to ensure the
quality of input materials, thereby contributing to creating standard final products. Carefully selecting
suppliers and applying strict criteria, SABECO sets very high standards for quality, production capacity, and
supplier reputation. At the same time, combining comprehensive evaluation, Potential suppliers will be
comprehensively evaluated, including inspection of production facilities, production processes, and product
quality. SABECO also regularly sends staff to directly inspect suppliers to ensure product quality right from
the production stage. At the same time, SABECO also applies international quality management systems
such as ISO to ensure that all activities are strictly controlled. According to the 2022 Annual Report, the
suppliers for SABECO must meet the requirements and technical standards based on legal regulations, with
reference to information from specialized organizations in the food and beverage sector such as the
European Brewery Convention (EBC), Mitteleuropọische Brautechnische Analysenkommision (MEBAK),
American Society of Brewing Chemists (ASBC) and Deutsches Institut für Normung (DIN).
(123docz, 2024)
* Developing long-term relationships
Building and maintaining long-term relationships with suppliers is one of the core elements in SABECO's
procurement strategy. This not only ensures a stable, quality supply but also contributes to the sustainable
development of both parties. SABECO also pays special attention to building relationships with potential
customers through sales and public relations activities.
* Compliance with the law
Compliance with the law is one of the core principles in SABECO's business operations, especially in the
procurement process. Compliance with the law not only ensures transparency and fairness but also helps
SABECO build a good brand image in the eyes of the public and partners. SABECO complies with bidding
regulations and conducts bidding in an open and transparent manner, creating equal opportunities for all
suppliers. with supplier evaluation criteria built on the provisions of law and industry standards. In addition,
the bidding documents are complete, clear, and provide all necessary information for suppliers. In addition,
SABECO must comply with tax regulations and declare taxes fully and accurately. SABECO fully performs tax
obligations according to the provisions of law, and provides full invoices and documents. SABECO and
suppliers must provide full invoices and documents to serve the inspection and examination work.
(Sabeco, 2019)
* Compare these principles to those commonly practised within the chosen industry to identify any
alignment or unique approaches
SABECO's weak points in the principle of legal compliance
One of Sabeco's subsidiaries was fined and had to pay back taxes of more than VND8.6 billion by the tax
authority. The main reason for this was that this subsidiary had made mistakes in the process of declaring
and paying taxes. This issue directly affected SABECO's brand image and the company's finances. SABECO
collected nearly VND6.7 billion in back taxes through inspection, including: corporate income tax (TM 1052)
of nearly VND4.6 billion, VAT (TM 1701) of more than VND192.8 million, and personal income tax (TM 1001)
of more than VND1.9 billion. In addition, the penalty for incorrect declaration of 20% on the additional tax
amount through inspection (TM 4254) due to incorrect declaration leading to a shortage of corporate
income tax and VAT was more than VND958 million. The fine for incorrect declaration of 20% of the
additional tax amount through inspection (TM 4268) due to incorrect declaration leading to a shortage of tax
payable for personal income tax is nearly 380.4 million VND. The fine for incorrect declaration based on the
basis for determining tax obligations with 15 VAT declarations (the company declared additional declarations
after the inspection team announced the inspection decision) but did not lead to a shortage of tax payable
(TM 4254) is 106.6 million VND. Late payment of corporate income tax (TM 4918) is nearly 498.2 million
VND, according to the provisions of Point a, Clause 2, Article 59, Law No. 38/2019/QH14 dated June 13, 2019
on Tax Administration and Clause 2, Article 16, Decree No. 125/2020/ND-CP dated October 19, 2020 of the
Government. This late payment amount is calculated until October 18, 2024. Saigon Beer North must
calculate and pay the late payment amount arising from October 19, 2024 to the date of completion of
payment to the State budget. The total amount of fines and tax arrears for Saigon Beer North is more than
VND 8.6 billion.
According to the audited financial report for the first 6 months of 2024 of Saigon Beer - Alcohol - Beverage
Corporation (Sabeco - HoSE: SAB), this "giant" in the beer industry owns 94.72% of the charter capital of
Saigon Beer Trading Corporation North.
(Nguoiquansat, 2022)
2. Examine the Supply Chain Principles and Processes Used by A Range of Organizations
ERP concept: ERP is a comprehensive management solution, supporting leaders in planning and operating all
resources of the enterprise (Goods - Assets - Finance - Human Resources) and assisting all departments of
the enterprise in operating and sharing information effectively through standardised work processes when
designing the software.
- ERP functions
+ Accounting and finance functions
+ Production and distribution process management functions
+ Sales functions
+ Service management functions
+ Some flexible features based on the specific application of ERP in management
- SABECO implements and uses ERP
Since 2013, SABECO has confidently chosen BRAVO as a partner to provide enterprise management software
solutions. The enterprise management software system - BRAVO 7 ERP-VN solution is deployed at both the
Corporation and SABECO's member units nationwide such as: Central Brewery, Saigon - Cu Chi Brewery,
Saigon Beer - Alcohol - Beverage Trading Service Company Limited, Binh Tay Liquor Joint Stock Company,
Saigon - Quang Ngai Beer Joint Stock Company, Saigon - Dong Xuan Beer - Alcohol Joint Stock Company...
The application of the software is used in many departments such as: accounting, warehouse, production...
At the SABECO units where BRAVO has completed the software implementation, specific management
problems have been solved to meet the requirements of the enterprise: The problem of handling bottles and
crates is clearly separated and distinguished; data at the units is easily monitored and reported, information
is looked up; purchase and sale transactions are presented specifically and in detail... and many other
benefits that the software system brings to the enterprise. With the effective support from BRAVO software
solution, it will contribute to increasing the management efficiency of SABECO's operations, bringing the
business further and further on the path to success.
Step 1: Prepare the project: This is the time when both parties sign the contract and prepare the project,
including establishing a project team, agreeing on the implementation time, implementation steps, tasks
that need to be prepared before implementation, implementation time, and implementation stages.
Step 2: Survey the current status of the business: This is considered the first step, creating the foundation for
the following steps. Therefore, if the business skips this step, the business may face many difficulties during
the implementation process, or the implementation may be off track. The process of surveying the current
status of information technology application in the organisation needs to be conducted seriously,
methodically, and in close coordination between the enterprise and the ERP enterprise management
solution provider
Step 3: Build standard business processes and a system of standard indicators: After the BA team directly
surveys the current status of the enterprise, they will create a URD document describing the entire operating
process of the enterprise and the requirements of each department. This is a very important stage of the
project. After the survey, the supplier can provide advice and propose technical solutions, accounting
processes, etc. to handle the customer's management problems.
Step 4: Analyse and design the system: After the two sides agree on the URD description document. The
Developer team will proceed to design and program the software according to the description document.
After the programming team designs the software, it will be transferred to the testing team to test the
system and check for errors.
Step 5: Develop and edit the system: Proceed to modify the software: Data structure, program structure,
input screen, business features… Check the correctness of the design, edit and modify the software.
Step 6: Deploy (Install and train): The software provider will write a description document and directly install
the software at the enterprise. Then the provider can train, and users will directly use the program in their
work. The forms of high-level training, people into work. Basic support forms include: Remote guidance or
direct support to the customer's office. During the use process, users can regularly interact with staff to
receive advice and answers to questions in the best way.
Step 7: Trial operation: Support the conversion of existing data (on Excel, Txt files...) into categories,
documents… and check the correctness of the converted data with the customer. And any remaining errors
will be fixed.
Step 8: Go-live (Putting the system into operation): In an ERP project, the go-live phase is the time when the
software deployment process has been completed and the software is moved from testing to actual
application. When go-live, it means that the old system stops. From then on, it will no longer be used, the
data will be moved from the previous system to the new ERP system.
Step 9: Overall software acceptance: Acceptance is the step that marks the end of the software solution
transfer process according to the contract signed by both parties, including: Handing over the system
according to the provisions of the Contract including: Business modules developed according to the User
Requirements and Business Process Description Document (URD), System Administration Account and other
related accounts; System User Guide, Scenarios and test data for UAT acceptance, System Setup Manual.
* Logistics management
- Logistics management is the process of planning, implementing, and controlling the efficient flow and
storage of goods, services, and information from the point of origin to the point of consumption. Key
elements of logistics management include:
+ Order processing logistics: Saigon Beer products are transported to warehouses, distribution centres,
dealers, and stores nationwide. SABECO has an extensive distribution network, making products easily
accessible to consumers. This is an important factor connecting inventory management with dealer
requirements, acting as the first step in the actual delivery process. Efficient order processing can
significantly improve the customer experience, leading to increased satisfaction and loyalty. It is closely
related to inventory levels and replenishment capabilities, as adequate inventory ensures that the company
can meet its commitments to customers in the future.
+ Product and material handling logistics: Product and material handling is an important part of the
logistics management function. The main raw materials required to produce Saigon beer include malt, hops,
yeast, and water. The company imports or purchases from local suppliers to ensure quality and stable
supply. This function ensures that items are transported safely within the warehouse or between different
locations while maintaining product quality. In addition to protecting and transporting goods safely, product
and material handling logistics also includes the strategic selection of cost-effective equipment and methods
that improve labour efficiency.
+ Product packaging: In logistics management, logistics packaging plays a fundamental role in
protecting products during transportation and ensuring that they reach the end consumer in intact
condition. After the production process is completed, beer is packaged into bottles, cans, or drums
depending on the customer's requirements. The packaging process is also strictly controlled to ensure food
hygiene and safety.
+ Inventory control management: Inventory control management is the foundation of logistics
management functions, ensuring that inventory levels are sufficient to meet SABECO's customer orders
without causing excess inventory that wastes the company's resources. Proper inventory control not only
helps reduce costs but is also essential for order fulfilment.
+ Transportation and delivery management Logistics: The transportation management aspect of the
logistics management function plays a key role in coordinating logistics activities. Saigon Beer products are
transported to warehouses, distribution centres, agents, and stores nationwide. SABECO has an extensive
distribution network, making products easily accessible to consumers.
Effective logistics management can help reduce costs, improve service quality, and increase customer
satisfaction.
(Inbound logistics, 2023)
* Inventory Management Strategies
JIT is also known as lean management. In JIT, all parts of any production or service system, especially people,
are interconnected. Parts inform each other and are interdependent in producing successful results. The
roots of this practice come from Kaizen, a Japanese term that means “change for the better.” The business
philosophy here is to continuously improve operations and involve all employees, from assembly line
workers to CEOs.
- The steps in the continuous improvement cycle for JIT inventory management include:
+ Design: JIT begins with a review of the basic manufacturing process: product design, process design,
personnel, and production planning. Plans are then made to eliminate interruptions, minimise waste, and
build a flexible system.
+ Manage: Total Quality Management (TQM) assessment ensures continuous improvement throughout
the process. Management assessment defines worker roles and responsibilities, defines and measures
quality control, checks schedules and capacity, etc.
+ Engage: Educate the team on production methods such as Kanban.
+ Establish: Supplier relationships are critical to JIT success. Reviewing supplier lists, selecting preferred
suppliers, negotiating contracts, discussing on-time delivery metrics are all required.
+ Refine: Determine product requirements, policies, and inventory control.
+ Build: Inform the team of the skills needed to complete the job, conduct training sessions, and
empower the team to practise.
+ Lean: Reduce the number of parts and steps in production by standardising and reviewing the entire
process.
+ Review: Conduct root cause analysis of problems and implement measures to improve every aspect.
(VTI, 2021)
SABECO has made significant efforts to improve the speed and reliability of its product production and
distribution. Speed and reliability in distribution are also a top priority competitive advantage factor of this
beverage company. Regarding distribution speed, "according to SABECO's 2021 financial report, the rate of
products released from warehouses on the same day reached 98.5%, the rate of products delivered on time
reached 99.9%"
(Sabeco, 2023).
* Demand Forecasting Techniques:
- Push System: A push system anticipates supply chain operation plans, inventory levels and activities in
advance, based on forecasts and projections. It represents the initial point of the supply chain cycle, focusing
on the warehousing and transportation of goods. A push system helps you anticipate future demand and
manage inventory accordingly. The push strategy focuses on predictions. It uses forecasts to plan inventory
levels, procurement, and the distribution centres activities. While this supply chain strategy still requires a
level of predictability, it is robust against demand uncertainty and maximises capacity utilisation in the best
warehouse fulfilment centres. This strategy is an innovation in the supply chain and production process that
helps in solving the problem of demand uncertainty. However, its effectiveness depends on the accuracy of
methods of how to forecast demand and the data used.
- Pull System: A pull strategy, on the other hand, responds directly to customer demand, ensuring
flexibility and efficiency. Both strategies aim to deliver the right products at the right times. Read more about
push and pull strategies here. In contrast, the pull strategy is customer-first. It bases operations on actual
customer demand rather than predictions, offering flexibility in response to changes in immediate consumer
demand and patterns. This strategy plays a key card in meeting immediate customer needs, hence
enhancing customer experience. It provides solutions to the problem of sudden changes in demand.
(Shiphero, 2024)
According to the Vietnam Report, in the beverage group, Sabeco, Heineken, and Pepsi are the 3 leading
companies in terms of reputation in the Vietnamese market. Unlike the food group, beverage companies did
not appear strongly in the media last year. However, according to many experts, the entry of foreign
beverage brands through M&A will make the beverage market more exciting in the coming time.
The food and beverage market is assessed to have great potential in 2020-2021. According to some experts,
after a few years of signs of stagnation, the food and beverage industry is gradually regaining momentum
and growing again the organisation
Business Monitor International (BMI) forecasts that the growth rate of the food and beverage industry will
maintain a compound annual growth rate of 10.9% for the period 2021 - 2022 thanks to improved income
and the trend of consuming higher value products. According to the most recent statistics from the General
Statistics Office, food production and processing in the first 9 months of 2022 increased by 6.6%, beverage
production increased by 5% over the same period last year. With a population of more than 95 million
people, and the number of tourists increasing rapidly in recent years, the food and beverage industry in
Vietnam is considered a fertile land for domestic and foreign investors, including foreign investors. That
leads to the fact that SABECO will face many competitors in the near future.
(Mordorintelligence, 2022)
* Supply Chain Integration and Coordination:
- Overview of SABECO's domestic supply chain: Regarding raw materials, SABECO mainly cooperates with
suppliers:
+ Malt, hops, yeast are imported from European countries, Australia and the US.
+ Packaging is delivered by Miguel Yamamura Phu Tho, Crown Saigon Company, Malaya Glass
Company Vietnam.
+ Additives are imported from reputable foreign suppliers and companies in Vietnam. SABECO
supports supplier diversification to increase competitiveness among suppliers and limit risks in the supply
chain. SABECO transports raw materials by truck, train or ship. Most of these raw materials are transported
to many warehouses located in some central locations throughout the country (Cu Chi, Vung Tau ...). Then,
the raw materials are transported to the factory for production. Currently, SABECO has 26 factories
equipped with modern machinery and equipment, integrating automation into production and
management. The production process is strictly monitored and controlled by experienced experts in the beer
industry. After production, qualified products are transported to warehouses for storage. These products are
transferred to SABECO distributors. SABECO currently has 10 member trading companies nationwide
including: SABECO North, SABECO Northeast, SABECO North Central, SABECO Central, SABECO South
Central, SABECO Central Highlands, SABECO East, SABECO Central, SABECO Song Tien, SABECO Song Hau.
Products from these distributors are transferred to level 1 agents and these intermediaries continue to
distribute to level 2 agents and then to retail agents with a network of more than 100,000 points of sale
across the country and finally to consumers. After the customer has used up the product, the glass bottles
and metal cans are collected by retailers or collection points for recycling and continued production. The
product flows from the supplier to the consumer. The financial and information flows back from the
customer to the supplier. When that beer is collected, the product and information flows from the consumer
to the supplier and the money flows from the packaging supplier to the consumer.
(Studocu. 2023)
* Technology in SCM
Sabeco has applied AI to optimise its logistics operations. Faced with these challenges, applying AI to logistics
operations, many logistics and transportation management optimization strategies have been implemented
to improve its effective supply chain management (SCM).
+ Improve the efficiency of import and export: Sabeco's import and export processes are significantly
improved with the intervention of AI and IoT. Smart cameras and sensors not only scan product barcodes
but also use AI to identify and classify goods. These systems can analyze images and compare them with
databases to determine products and optimal storage locations. When products are scanned, data is
immediately updated to the warehouse management system (WMS) without human intervention.
Autonomous guided vehicles (AGVs) and smart robotic arms, controlled by AI algorithms, take on the tasks
of moving, arranging and loading and unloading goods, thereby minimizing errors and increasing the speed
of goods processing.
+ Smart inventory management: In inventory management, AI plays an important role in helping to
monitor and adjust the quantity of goods accurately. Based on data on inventory levels and the status of
each product from sensors installed throughout the warehouse, the algorithm analyzes to make predictions
about when to replenish inventory.
+ Optimize warehouse arrangement: AI helps Sabeco analyze data on the frequency of use of products,
the size and weight of each type of beer to optimize the arrangement of goods in the warehouse.
(Digital, 2024)
* Supplier and Customer Relationship Management
- Effective relationship management between stakeholders in the supply chain (Supply Chain
Management - SCM) plays an essential role in optimising performance and ensuring the sustainability of the
entire system. Below are some important aspects related to relationship management and their impact on
the efficiency and sustainability of SCM.
+ Strengthening cooperation between stakeholders: Currently, distributor companies can directly
distribute beer to convenience stores and supermarket chains such as Circle-K, Family Mart, GS25, WinMart
and department stores such as Bach Hoa Xanh, while supermarket systems including Go and CoopMart can
directly reach consumers. According to the digitalization program that SABECO calls 4.0 with an effort to
restore the broken supply chain after the pandemic, implemented since 2020, aiming to synchronize and
unify the supply and sales process including transportation tracking systems, logistics systems, warehouse
and transportation system management. Through these operating systems, SABECO's deliveries are always
guaranteed to be accurate and transparent in terms of delivery time and are always displayed in real time
during the delivery process.
+ Risk management: Relationship management also involves assessing and mitigating risks in Sabeco's
supply chain. By building trusted relationships with suppliers, the company can develop contingency plans to
deal with incidents such as supply disruptions or changes in regulations. This not only ensures continuity of
operations but also contributes to the sustainability of the supply chain.
- SABECO has taken many important steps to strengthen its position in the beer industry. Typically, it
focuses on product distribution through a wide network and multi-channel sales strategy. At the same time,
the company also strengthens brand promotion and marketing to increase sales, including improving
product quality, designing new packaging and implementing communication campaigns. Compared to
Heineken, SABECO has the advantage of large scale production and distribution nationwide. In addition,
SABECO has also been the leader in sales and market share compared to Habeco for many consecutive years.
SABECO is the second largest beer brand in Vietnam as of 2021, with famous products such as Saigon Lager
Beer, 333 Beer and Saigon Special Beer. With quality and reliability highly appreciated by customers, SABECO
has a strong brand in the beer industry in Vietnam.
(Docsity, 2023)
* Compare and contrast your chosen company's approach with the practices of other organisations in the
same industry
Sabeco focuses on applying science and technology to production. The first 9 months of 2022 also witnessed
remarkable leaps in SABECO's business with impressive indicators. In the first 9 months, SABECO recorded
nearly 25,000 billion VND in net revenue, up 44% over the same period in 2021 and 4,420 billion VND in
profit after tax, up 75%. One of the important factors contributing to these positive results is the strategy of
controlling input costs well by investing in science and technology to optimise fuel costs and operating costs.
In addition to upgrading modern machinery and equipment, factory infrastructure, warehouses, and
auxiliary works, SABECO has also switched to using solar energy at 8 large factories, helping to improve fuel
efficiency by up to 14%. In addition, breweries in the SABECO system also use biomass fuel from plants (rice
husks, sawdust, cashew shells and leaves) instead of fossil fuel boilers, contributing to environmental
protection.
As a result, SABECO's factories have all had their Environmental Impact Assessment (EIA) reports/
Environmental Protection Commitments/Environmental Protection Plans approved and have environmental
management system certificates according to ISO 14001:2015. All 26 factories have also been certified to
meet ISO 9001 (Quality Management System), ISO 14001 (Environmental Management System), ISO 22000
(Food Safety Management System), and HACCP (Hazard Analysis and Critical Control Points in the Production
Process).
(Baodautu, 2021)
Heineken Vietnam focuses on 6 key areas, including: Promoting responsible drinking; Protecting water
resources; Reducing CO2 emissions; Supporting the community; Sustainable sourcing; Health and safety.
Over the years, Heineken Vietnam's production processes have been continuously improved to transform to
a circular economy model, in which resources are reused, recycled and recovered throughout the product
life cycle, thereby allowing for the efficient and responsible use of resources. In 2017, 99.01% of by-products
and waste were reused and more than 52,800 tons of rice husks, worth about VND 42.2 billion, were
purchased, generating 100% of thermal energy for 4 out of 6 Heineken Vietnam breweries.
(Tapchimoitruong, 2018)
This shows that not only Sabeco cares about cost efficiency and sustainability, but also other competitors.
The data shows that in 2017, Heineken performed well in sustainable development activities, while Sabeco
has only recently focused on sustainable development. Although it started later than its competitors, Sabeco
has so far achieved its goals and also achieved ISO standards.
3. Compare Risks and Challenges Faced by Organisations in Procurement and Supply Management
SABECO is one of the leading beer producers in Vietnam, like many large enterprises in the manufacturing
and distribution industry, facing many risks and challenges in supply chain management and procurement.
The main risks that SABECO may encounter include natural disasters, political instability, supplier failure,
price fluctuations, quality control, ethical and sustainability issues, cyber security threats, regulatory
compliance and competitive pressure. Because the main raw materials in the beer production process are
agricultural products such as strong rice, hops, and houblon flowers imported from abroad, the impact of
climate change, weather, and seasonality is very large. Natural disasters, droughts or floods directly affect
the quality, quantity and price of input materials. This can disrupt the company's supply chain and
production process.
Moreover, there are currently many fluctuations and instabilities in world politics. Typically, the conflict
between Russia and Ukraine, the increasing geopolitical tensions, causing the division of the world economy
into blocs, which leads to many trade restrictions, causing high food prices, disruptions in the supply chain,
restrictions on the flow of goods between regions, fluctuations in raw material prices due to shortages and
disruptions in the supply chain also directly affect the production process and output of SABECO. Next are
the issues of the Law on Prevention of Harmful Effects of Alcohol and Decree 100 related to the content of
penalties for violations of alcohol concentration, which have been in effect for more than 3 years. However,
in 2023, the authorities have especially tightened control over the use of alcohol when participating in traffic
with continuous alcohol concentration testing campaigns across the country. This has strongly affected
consumer psychology towards beer and alcohol products. In addition, in 2023, the Ministry of Natural
Resources and Environment has drafted a Prime Minister's Decision approving reasonable and valid recycling
cost norms for a unit volume of products, packaging and administrative management costs for management,
supervision and support of waste collection and treatment responsibilities of manufacturers and importers.
Thereby, when the Decision is officially issued, it will increase production and sales costs of enterprises.
In addition, ethical and sustainable development issues are also paid more attention in the procurement
process, such as raw materials must ensure quality, waste treatment and environmental protection during
the production and procurement of raw materials. This requires SABECO to choose suppliers with social
responsibility and environmental protection. Finally, the beer industry has more and more strong
competitors at home and abroad, SABECO must constantly improve its procurement process, invest and
digitally transform to reduce costs and increase supply chain efficiency to compete effectively.
(Sabeco, 2024)
4. Analyse Procurement and Supply Chain Management Integration in Global Operations
The supply chain of SABECO (Saigon Beer - Alcohol - Beverage Corporation), one of the largest beer
producers in Vietnam, includes procurement strategies and is divided into many stages to ensure the supply
of high-quality products and meet market demand.
At SABECO, a centralised procurement strategy has been applied to purchase all imported raw materials
such as malt, hops, enzymes. The purchasing department of the parent company SABECO will be responsible
for ensuring the quantity and quality of imported raw materials. This helps to take advantage of the scale of
the supply chain, negotiate better prices, and minimise costs. In addition, the company established
subsidiary transportation companies across major regions across the country such as Saigon Beer Trading
Joint Stock Company North Central, Saigon Beer Trading Joint Stock Company Central, Saigon Beer Trading
Joint Stock Company Eastern... to ensure that raw materials after import will be provided to smaller
production branches across the country. This helps the company take full advantage of the capacity and
scale of the internal supply chain, helping to minimize time, costs, consistency and continuity of the
production process. In addition, domestic raw materials for the packaging can-making process have also
been guaranteed in quality and quantity by subsidiaries and affiliated companies in the supply chain. This
allows SABECO to focus on eliminating waste throughout the supply chain. Proactive production based on
actual demand (just-in-time) helps limit excess inventory, avoid the risk of internal supply chain disruption
and reduce waste risks. In addition, SABECO has fully utilized the supply chain to transport goods to
domestic and foreign consumption points by using subsidiaries and affiliates. Goods can be transported by a
variety of modes of transport (road, sea, air) to increase flexibility and minimize risks in case of incidents or
disruptions in one mode. Finally, SABECO has partnered with San Miguel Yamamura Phu Tho Packaging Co.,
Ltd., Crown Saigon Joint Venture Company Limited, Malaya Glass - Vietnam Co., Ltd. to ensure the final stage
for waste and used packaging treatment. This helps SABECO achieve its goal of completing its supply chain,
helping the company achieve its sustainable development goals and ensuring environmental protection and
business ethics issues. Thereby, helping the company to improve its position and competitiveness in the
domestic and international markets.
(Sabeco, 2024)
5. Evaluate Considerations and Challenges That Organisations Must Overcome to Achieve Ethical and
Sustainable Practices in Procurement and Supply
* Minimise the risk of corruption
Sabeco not only has to comply with Vietnamese law but also has to meet the requirements of strict
international regulations such as the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act. As a
large beer production company, Sabeco has an "Audit Committee" of the corporation. In order to comply
with and prevent fraud from suppliers and internal operations. The Audit Committee reviews and evaluates
transactions based on the principles of independent, reasonable transactions, according to normal
commercial terms and for the best interests of the Corporation. In addition, the Audit Committee monitors
the effectiveness of SABECO's internal control activities to prevent fraud and ensure compliance with the
Corporation's charter, internal regulations and current laws.
- Sabeco's Audit Committee has developed a number of strategies to minimise corruption risks in
procurement activities in international markets:
+ Establish a transparent and clear procurement process, including regular inspection and evaluation
of domestic and foreign suppliers. For example: all information related to the supplier, information about
the product to be purchased (quantity, raw materials, or machinery and equipment), quotation requests
(including VAT, delivery time). Sabeco conducts periodic assessments of suppliers to determine their level of
compliance with ethical standards and transparency. This includes checking financial capacity, compliance
with local laws, and factors related to protecting workers' rights. Suppliers who do not meet requirements or
have non-transparent behaviour will be removed from the supply chain.
+ Train employees on the code of ethics and provide knowledge of anti-corruption legal regulations in
international markets. Organise regular training courses for employees, especially those directly involved in
procurement activities. Employees must be familiar with the code of ethics, international laws and anti-
corruption measures.
+ Use technology to monitor and manage purchasing transactions, helping to minimise human
intervention in purchasing decisions. Sabeco applies blockchain technology to enhance transparency.
Blockchain allows for the recording of transactions in the supply chain in an irreversible manner, ensuring
that all information about the purchasing and production process is clear and tracked from start to finish.
Apply automated monitoring tools to track purchasing activities in real time such as Track & Trace system,
Warehouse Management System (WMS), Transport Management System (TMS).
+ Cooperate with international organisations or independent monitoring organisations to ensure
transparency in the supply chain and minimise corruption risks. Sabeco cooperates with international
organisations such as Transparency International to assess and ensure that its operations comply with
ethical and anti-corruption standards. Sabeco also aims to achieve international certifications for sustainable
and transparent supply chain management, such as ISO 37001 on anti-bribery management systems.
(Sabeco, 2023)
* Ensure fair labour practices in the supply chain
Sabeco ensures that suppliers comply with international fair labor standards such as the International Labor
Organization (ILO) Convention against child labor, forced labor, and ensure safe working conditions for
workers. Sabeco must regularly conduct annual audits of its supply chain and suppliers to ensure that they
do not violate labor regulations.
To maintain its reputation, Sabeco ensures that its suppliers comply with fair labor regulations and do not
use child or forced labor. Finding suppliers who are committed to fair labor standards can increase costs and
cause delays in the supply chain, but failing to do so damages the company’s reputation and
competitiveness.
Sabeco works with labor NGOs to monitor and ensure that its suppliers comply with fair labor standards. The
normal workweek shall not exceed 48 hours, and the total of regular and overtime hours shall not exceed 60
hours per week. Suppliers shall provide workers with at least 24 consecutive hours of rest in any seven-day
period.
Sabeco built supplier selection criteria based on fair labor compliance. This includes requiring suppliers to
provide a written commitment that they will comply with labor regulations, as well as take responsibility for
violations.
- Sabeco prioritises cooperation with suppliers certified by international organisations on fair labor, such
as SA8000 (Social Responsibility Standard) or WRAP (Worldwide Responsible Accredited Production).
Suppliers must ensure safe and healthy working conditions for workers. This includes providing adequate
personal protective equipment and maintaining hygiene and health standards in the workplace.
- Overtime wages are usually paid higher than regular working hours. Workers are paid at least 150% of
their wages for overtime on weekdays, 200% on weekends, and 300% on holidays. Night work wages are
usually paid in addition to daytime hours, with night workers being paid an additional 20%.
- Suppliers must allow employees to take holidays and vacations according to the regulations of the host
countries: 12 working days for work under normal conditions. 14 working days for underage workers,
disabled workers, or workers doing heavy or hazardous work. Holidays are according to the holidays in other
countries such as Lunar New Year in Vietnam.
(Sabeco, 2024)
* Implement sustainable sourcing strategies
Sabeco needs to ensure that raw materials, packaging and other elements in the production process are
purchased from sustainable sources. Sabeco accepts higher costs to find sustainable sources.
All modern machinery and production technology at SABECO's 26 factories are imported from leading
European specialised equipment manufacturers such as Krones AG, KHS. These companies use renewable
materials or have certifications for sustainable resource management. The choice of packaging suppliers
uses paper from forests certified by the FSC (Forest Stewardship Council). Sabeco requires suppliers to
comply with international standards such as ISO 14001 (environmental management) and other certification
programs to ensure they maintain environmentally friendly production practices. Choosing sustainable
sourcing may come with higher initial costs, as renewable materials and environmentally friendly production
processes are often more expensive than conventional methods. But compliance with sustainability
standards brings long-term value to Sabeco. The company will build a strong brand reputation, attract more
environmentally conscious customers, and maintain long-term relationships with international partners.
(Sabeco, 2022)
In some regions, finding suppliers with a commitment to environmental sustainability can be difficult. These
suppliers may be less developed or smaller in scale, resulting in limited supply. Sabeco will need to invest
time and resources in evaluating and finding suitable suppliers. Instead of immediately eliminating suppliers
who do not meet standards, Sabeco can develop partnership and support programs to help them transition
to more sustainable processes. This will not only help maintain supplier relationships, but also help Sabeco
create a fully sustainable supply chain.
(Sabeco, 2024)
6. Assess the Impact of Globalisation on Procurement and Supply Chain Management in a Range of
Organisations
Globalisation has had profound impacts on supply chain management.
- Challenges:
+ Product origin: Consumers often have difficulty determining the origin of products, whether they are
produced fairly and sustainably. SABECO has affirmed that with its beer lines such as Saigon and 333 Beer, it
is still the leading Vietnamese brand in the Vietnamese beer market and is on the way to conquering
demanding markets such as Germany, the US, Japan, the Netherlands, etc.
+ Environmental Impact: Globalisation promotes large-scale production of goods, leading to greater
consumption of natural resources. This can lead to resource depletion and environmental degradation.
Globalisation also increases international shipping, leading to higher carbon emissions from ships, planes,
and trucks. This contributes to climate change and air pollution. SABECO products can impact the
environment, from resource use to waste. However, SABECO packaging is made of reusable glass. In
addition, SABECO has invested in facilities to treat waste during beer production. Sabeco has an ISO
14001:2015 environmental management system certification.
(Sabeco, 2024)
+ Supply chain disruption: Globalisation has increased the complexity of the supply chain, while
creating more risks that lead to disruption. Geographical dispersion, political instability, changes in trade
policies, tariffs, and safety regulations can create obstacles in the movement of goods between countries.
The above issues can cause disruptions to Sabeco's supply chain
Assess the strategies and challenges that the organisation faces in adapting to these global impacts.
- In general, businesses need to be aware of the overall negative and positive impacts of globalisation.
From there, SABECO prevents risks and takes timely measures in business through enhancing supply chain
optimization and digital transformation, good governance, enhancing effective implementation of internal
controls, training, guidance and support for employees.
+ Optimising the supply chain: Globalisation forces Sabeco to optimise its supply chain to meet
customer needs quickly and effectively. Sabeco invests heavily in technology and warehouse management
systems. They use advanced technologies to monitor the flow of goods and manage warehouses, helping to
ensure that goods are delivered on time and to the right place.
+ Digital transformation and technology: Globalisation promotes the development of technology in
supply chain management, from management software to the use of AI and big data to predict demand and
optimise processes. SABECO has a wide supply chain and complex network with a system of 26 factories, 10
member trading companies and a network of more than 200,000 points of sale across the country. Digital
transformation helps SABECO improve the service quality of the warehouse system, control inventory well at
any time, and reduce operating costs. The challenge of digital transformation and technology is the high
initial investment cost and the time required to train employees. Dependence on technology also creates
risks when encountering technical problems.
+ Market expansion: Globalisation helps Sabeco easily access international markets, thereby increasing
opportunities for purchasing raw materials and selling products. In addition, it also accesses new companies
in the world, which creates opportunities for Sabeco to participate in the global supply chain. The challenge
of market expansion is that Sabeco has to deal with differences in culture, language, local laws and
regulations. Understanding and meeting the needs of customers in different countries can be very difficult.
- Implement sustainable sourcing strategies:
+ Local sourcing: SABECO actively seeks and uses local suppliers to minimise environmental impacts
from transportation and support local communities.
+ Selecting sustainable products: SABECO prioritises products with sustainability certification or
environmental friendliness in the process of selecting suppliers and stakeholders.
+ Technological innovation: SABECO invests in new technology and more efficient brewing processes to
minimise waste and environmental impact. SABECO said that the closed production process, using "magic
eye" technology, is strictly inspected and monitored, so it is very difficult for defective products to "slip" into
the market. This ensures product consistency from quality to packaging, which is also a competitive
advantage and export to the international market.
(Sabeco, 2022)
7. Critically Evaluate the Importance of Ethical and Sustainable Practices in Procurement and Supply for a
Range of Organisations
7.1 Analyse the ethical and sustainability challenges Sabeco faces in its procurement and supply chain
Sabeco, with its extensive supply chain and operations in multiple markets, must ensure that it fully complies
with labour regulations. This includes protecting workers’ rights, prohibiting child labour, forced labour, and
ensuring safe and fair working conditions. In 2024, Sabeco was named for the first time in the list of
“Outstanding Enterprises for Workers”. In particular, Sabeco was one of nine enterprises awarded a
certificate of merit by the Ministry of Labor, War Invalids and Social Affairs for its efforts in caring for the
lives and improving the competitiveness of workers.
With nearly 13,000 direct employees across the system, Sabeco has strived to achieve the criteria set by
Vietnam on labour, reflecting the situation of using and treating employees in the following aspects: income,
training, working environment, social welfare and physical and mental development activities. Sabeco has
implemented a performance-based salary structure for the entire system, while re-evaluating the
competitiveness of the salary scale and welfare regimes for employees. The unit also issued new human
resources policies to ensure a healthy and safe working environment. Human resource development training
activities are prioritised with a total of 2,957 training hours in 2022.
(Hoai Phuong, 2022)
Sabeco has applied effective energy and resource management strategies, including recycling, waste
reduction and renewable energy use. Sabeco has used green and renewable energy such as using BIOMASS
biomass fuel using fuel from plants (rice husk, sawdust, cashew shells and leaves). Investing in solar energy
at factories. 100% of wastewater is treated before being discharged into the environment. All factories
ensure that wastewater meets the quality standards of QCVN 40:2011 (type A or type B) before being
discharged into the environment or discharged into the wastewater collection system of the industrial park.
Upgrading the wastewater treatment system to meet type A water standards at Saigon - Quang Ngai Beer
Factory.
Sabeco needs to integrate CSR into its business strategy by promoting community projects and supporting
environmental initiatives. Sponsoring educational programs, protecting the environment or supporting local
communities not only helps build the company's image but also creates sustainable value for society.
SABECO cooperated with the Corporation's Trade Union to call for voluntary contributions from employees
across the system to support colleagues to overcome the losses caused by Typhoon Yagi and contributed a
total of more than 7.9 billion VND. SABECO raised a scholarship fund to support children of employees in the
SABECO system who are facing difficulties. In 2022, Bia Saigon is a diamond sponsor for the 31st SEA Games,
and also accompanies the national football teams. SABECO, through its leading brand Bia Saigon, has
donated 230 million VND to encourage and reward 23 outstanding sports figures.
(Sabeco, 2021)
* Discuss how these challenges may be similar or different to Habeco
Some similarities between Habeco and Sabeco are in labor standards. Like Sabeco, Habeco must ensure
appropriate labor standards in its supply chain, especially in the context of increasing demands for workers'
rights. Ensuring appropriate labor standards is important for both companies to maintain their reputation
and avoid legal issues or reputational risks. With its operations mainly in the North and some other regions
in Vietnam, Habeco has met the labor standards criteria according to Vietnam. Habeco's focus on local
suppliers makes it easier for Habeco to monitor and control labor standards.
The similarities in environmental impacts that both Sabeco and Habeco face are the same. Both must reduce
the impact of beverage production, especially in the use of water, energy and waste management. Habeco
and Sabeco have gradually transformed their technology to protect the environment. Habeco has also
replaced everything from the brewery, boiler to the water treatment system, yeast culture, fermentation
with automatic outdoor tanks, filtration, cooling and wastewater treatment systems. In addition, Habeco has
implemented environmental management according to ISO 14001:2004 standards certified by TUV NORD of
the Federal Republic of Germany.
Besides some similarities, there are also differences between Habeco and Sabeco, which are different
approaches to CSR activities. With a market mainly in the North, Habeco can focus on specific CSR activities
serving the local community, such as supporting education, developing infrastructure, and protecting the
environment in the areas where they operate. In contrast, with a large and international market, Sabeco
needs larger-scale and more diverse CSR programs. Sabeco needs to comply with more stringent regulations
from international organisations, which requires a strong commitment to labour rights, the environment,
and anti-corruption. Each country may have its own regulations on environmental protection, labour rights,
and social responsibility.
(Habeco, 2024)
7.2 Evaluate Sabeco strategic decision-making is influenced by these ethical and sustainability
considerations (Minh)
Sabeco will prioritise suppliers who are committed to fair labour practices and strictly control labour
standards and raw material sources to build a reputable and responsible brand image. Building a reputation
for sustainability and ethics will help Sabeco attract more customers, especially the younger generation who
tend to consume "clean" and socially responsible products. To enhance the company's reputation, Sabeco
conducts communication campaigns to publicise its commitment to labour and environmental standards,
thereby strengthening consumer trust. These efforts include publishing an annual sustainability report and
working with independent organisations to certify the company's ethical and environmental standards.
With a team that is well-trained, experienced in the industry and has grown from all levels of the company.
Sabeco always ensures that all activities in the supply chain comply with labor and environmental
regulations, especially when expanding to international markets. This includes compliance with labor,
environmental protection and anti-corruption laws in different markets. To ensure compliance, Sabeco has
implemented strict inspection and monitoring processes, built a dedicated risk management and compliance
team, and regularly trained employees on international standards and local regulations. This helps Sabeco
avoid legal risks and unnecessary costs.
In the current context, not only are more and more consumers interested in environmentally friendly
products, but more than 190 countries are also participating in environmental protection. Therefore, by
investing in modern technologies that help reduce water and energy consumption in the production process,
Sabeco has the opportunity to create a competitive advantage through product and service differentiation.
In addition, expanding sustainable products helps Sabeco penetrate markets such as Europe or Japan, where
there are high requirements for quality and sustainability. Sabeco can also develop innovative products,
aiming at green consumption needs, helping the company differentiate itself from other competitors in the
market.
* Compare and contrast Sabeco's approach with Habeco's approach. The potential benefits and limitations
of each approach
Sabeco is pursuing international environmental and sustainable development standards to access a large
and diverse market, both domestically and internationally. Habeco mainly focuses on the Northern Vietnam
market and uses local raw materials. The short-term benefits for Sabeco are not yet available, but in the long
term, Sabeco will build better relationships with local communities, thereby creating support and trust from
the people. This will help Sabeco attract investment capital from funds and organisations with
environmental criteria and can help improve efficiency, reduce waste and save costs. The potential benefits
for Habeco are: Focusing on local sourcing and the domestic market helps Habeco save costs, keeping
product prices competitive. But it is limited in its ability to expand into international markets, especially in
markets that require high sustainability standards.
Sabeco has established a diversified supply chain, with a large scale of operations, Sabeco has optimised its
national and international supply chain, expanded its network of sustainable raw material suppliers, and
established strict inspection and assessment processes to ensure compliance with labour and environmental
standards. Habeco, on the other hand, only builds close relationships with local suppliers. Cooperating
mainly with local suppliers makes it easier for Habeco to control the quality of raw materials and ensure
compliance with labour standards. With a narrower scope of operations and a focus on domestic partners,
Habeco can easily control quality and sustainability factors in the supply chain. On the contrary, Sabeco, to
ensure a sustainable and transparent supply chain on a large scale, especially with international partners,
requires a complex management and monitoring system.
Sabeco, with its holistic approach and investment in international standards, has the potential to expand
internationally and enhance its brand equity, but faces high costs of losing short-term profits and complexity
in supply chain management. Meanwhile, Habeco, with its domestic focus strategy, has the advantage of low
costs, tight control over its supply chain, and the ability to produce competitively priced products
domestically, but is limited in its competitiveness and ability to attract environmentally conscious customers
in international markets.
8. Make Valid Recommendations for Effective Ethical Procurement and Supply Chain Management (D1)
To enhance ethical and sustainable management practices in the supply chain and procurement, Sabeco can
consider the following recommendations proposed by the author and his team:
Strategy for developing and implementing a detailed code of conduct, specifically Sabeco needs to define
and clearly define ethical and sustainable standards applicable to all suppliers, partners and employees
involved in the supply chain, and Sabeco needs to understand and cover issues including child labour,
working conditions, environmental protection, anti-corruption, and other social issues. In addition, Sabeco
should widely disseminate and organise training sessions to ensure that all parties understand and comply
with this code.
Strategy for strengthening monitoring and evaluation, Sabeco needs a more effective monitoring system.
Sabeco should build a strict monitoring system to detect and resolve problems arising in the supply chain. By
applying advanced technology systems such as Statistical Process Control (SPC), Total Quality Management,
Total Quality, Total Quality Management – (TQM), Manufacturing Quality Assurance (MQM) and Total
Productive Maintenance (TPM) to help strengthen the tightness and easy control of quality and processes in
the supply chain, Sabeco also needs to regularly evaluate the effectiveness of ethical and sustainable
management activities, which helps ensure sustainable development and enhance brand reputation and
helps Sabeco easily identify and resolve problems promptly, and easily detect risks. Through the assessment
process, Sabeco can detect early potential issues related to ethics and sustainability in the supply chain, such
as labour violations, environmental pollution, and corruption. Thanks to that, Sabeco can take timely
remedial measures, minimise damage and avoid legal risks.
* Justify recommendations with robust arguments and evidence
In the above section, the author and his team have made recommendations to enhance ethical and
sustainable management practices in the supply chain and procurement for Sabeco and now we will look at
its feasibility and success.
Strategy for developing and implementing a detailed code of conduct
Developing and implementing a detailed code of conduct has become an important standard for large
corporations around the world. This not only demonstrates the enterprise's commitment to business ethics
but also helps protect reputation, minimize risks and build sustainable relationships with stakeholders.
Thanks to that, the author and his team reviewed and consulted many large corporations around the world
such as Technology corporations such as Google, Microsoft, Apple all have detailed codes of conduct,
including regulations on data protection, anti-discrimination, and compliance with the law. Automobile
corporations such as Toyota, Volkswagen, Ford all have clear codes of conduct, to ensure product quality,
labor safety and compliance with environmental regulations.
Financial corporations such as JPMorgan Chase, Citigroup, HSBC all have strict codes of conduct, focusing on
issues such as anti-money laundering, anti-terrorist financing and customer information protection. These
are all large and successful corporations in their fields, so SABECO can rest assured to apply them to help the
group's operations run more smoothly.
(Bollre, 2024)
* Strengthening monitoring and evaluation strategy
Strengthening monitoring and evaluation is an indispensable part of the risk management and sustainability
strategy of large corporations. Recognizing this importance, many leading enterprises have implemented
effective monitoring and evaluation measures. Understanding this, the author and his team recommended
and created a strengthening monitoring and evaluation strategy for Sabeco.
Large corporations have applied the strengthening monitoring and evaluation strategy such as Technology
industries such as Google, Microsoft, Amazon all have very strict monitoring and evaluation systems,
especially in the field of data security and legal compliance. In addition, Consumer Goods Industries such as
Unilever, Nestle, Coca-Cola focus on monitoring the supply chain, ensuring that their products are produced
sustainably and comply with quality standards. As well as the Strategy for developing and implementing a
detailed code of conduct, the Strategy for strengthening monitoring and evaluation has also been pioneered
by large corporations in the world and achieved success, so it is reasonable that SABECO should apply it and
will achieve success.
Applying these strategies can contribute to helping SABECO achieve the target of net revenue of VND 34,397
billion and profit of VND 4,580 billion, respectively increasing by 13% and 8% compared to 2023. The three
key areas including: Optimizing commercial activities, Supply chain efficiency and ESG continue to be the
pillars to help the company achieve the expected goals.
(Sabeco, 2024)
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