Supra, a subsidiary of Masan , handles the logistics segment as part of the group's restructuring to digitize and operate one of the country's largest retail networks.
With 3,500 stores, WinMart and WinMart+ supermarkets covering all 63 provinces and cities, logistics is considered a crucial link in Masan's retail ecosystem. Each month, WinCommerce – the owner of this retail chain – supplies goods to 30 million customers, connecting with a vast network of domestic and international manufacturers.
The massive flow of goods between suppliers, stores, and end consumers demands a comprehensive and efficient transportation and supply chain. In the increasingly competitive retail environment, the speed of delivery and the quality of goods become even more crucial, determined by logistics capabilities.
In 2022, WinCommerce established Supra, a logistics subsidiary, to digitize the group's logistics platform and improve the efficiency of goods delivery from manufacturers to consumers.
The launch of Supra is a stepping stone for WinCommerce's plan to further expand its retail chain. At last year's supplier conference, Masan's leadership stated that in 2023, the company plans to open more than 1,500 new retail outlets, bringing the total scale of the chain to 5,000 supermarkets and stores in 63 provinces and cities, serving 100 million Vietnamese consumers.
To operate this large-scale ecosystem, WinCommece's distribution centers operate on a centralized model, supported by modern technology. Accordingly, thanks to machine learning technology, Supra has built a system capable of calculating, placing orders, and coordinating deliveries from warehouses to points of sale quickly, with optimal routes, while reducing transportation costs. The system applies artificial intelligence to address inventory issues or shortages at points of sale.
Currently, Supra operates 7 distribution centers (DCs) for dry goods and 9 distribution centers for fresh produce for Masan, operating nationwide.
Inside Masan's distribution center, goods are coordinated by the Supra system. Photo: Masan
According to Masan representatives, by the end of 2022, Supra was handling 45% of WinCommerce's dry goods, compared to less than 30% previously, resulting in a 13% reduction in logistics costs per product through standardization. The system also helps ensure product coverage in existing stores and supermarkets, fully meeting customer shopping needs.
In addition, Supra helps control product quality at the centralized warehouse system, ensuring consistent and uniform product quality throughout the entire WinCommerce store and supermarket network.
"For suppliers, especially smaller retailers, Supra's digital platform helps distribute goods to WinCommerce's network of 3,500 stores and supermarkets at optimal cost. As a result, consumers have access to a wider variety of goods with better quality," a WinCommerce representative said.
The proportion of dry goods shipped through The Supra's centralized warehouse in Q1 was approximately 60%. WinCommerce and Supra aim to increase this proportion to 80% in 2023.
Mr. Danny Le, CEO of Masan Group, shared: "With the new supply system, by 2025, Masan's retail chain expects to save 66% on logistics costs, reduce 99 million transactions, and improve EBITDA by 2-3%. The stock availability rate will always be 96% or higher, inventory will be less than 20 days, and delivery time will be reduced to less than 2 days."
Digitalizing the supply chain is considered a key strategy for WinCommerce in 2023, especially in the context of modern consumption and a preference for convenience and technology. Representatives of the retail chain stated that by 2025, WinCommerce aims to connect 30-50 million Vietnamese consumers through 8,000 supermarkets and stores, increasing the number of customers served daily from 600,000 to 2 million.
Phong Van
Source link
Comment (0)