Why logistics companies are considered the backbone of WinCommerce

Supra, a subsidiary of Masan, takes on the logistics sector as part of the group's restructuring to digitize and operate one of the largest retail networks in the country.

With 3,500 WinMart and WinMart+ stores and supermarkets covering 63 provinces and cities, logistics is considered an important link in Masan's retail ecosystem. Every month, WinCommerce - the owner of this retail chain, supplies goods to 30 million customers, connecting with a large network of domestic and international manufacturers.

The flow of huge volumes of goods between suppliers, stores, end consumers... requires a transportation and supply process that ensures depth and breadth. In the context of increasingly fierce retail competition, the factors of transportation speed and quality of goods become more important, determined by logistics capacity.

In 2022, WinCommerce established Supra - a logistics subsidiary to digitize the group's logistics platform, improving the efficiency of supplying goods from manufacturers to consumers.

The launch of Supra is a stepping stone for WinCommmerce's plan to continue expanding its chain of points of sale. At last year's supplier conference, Masan's board of directors said that in 2023, the company plans to open more than 1,500 new points of sale, bringing the scale of the entire 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 trips from warehouses to points of sale with fast time, optimal routes, and at the same time reducing transportation costs. The system applies artificial intelligence to solve inventory or shortages at points of sale.

Supra currently operates 7 distribution centers (DCs) for dry goods and 9 distribution centers for fresh goods of Masan, operating nationwide.

Inside Masan's distribution center coordinated by the Supra system. Photo: Masan — Inside Masan's distribution center coordinated by the Supra system. Photo: *Masan*

Masan representative said that by the end of 2022, Supra is handling 45% of WinCommerce's dry goods, while the previous rate was under 30%, helping to reduce 13% of logistics costs for each product when standardized. The system also helps ensure coverage at existing stores and supermarkets, fully meeting customers' shopping needs.

In addition, Supra helps control product quality in the centralized warehouse system, helping to ensure consistent and consistent product quality across the entire WinCommerce store and supermarket system.

"For suppliers, especially small retailers, Supra's digital platform helps deliver goods to WinCommerce's network of 3,500 stores and supermarkets at optimal costs. As a result, consumers have access to more diverse and abundant goods with better quality," said a WinCommerce representative.

The proportion of dry goods delivered through The Supra centralized warehouse in the first quarter was approximately 60%. WinCommerce and Supra aim to increase this proportion to 80% in 2023.

Mr. Danny Le - General Director of Masan Group shared: "With the new supply system, by 2025, Masan's retail chain expects to save 66% of logistics costs, reduce 99 million transactions and improve EBITDA by 2-3%. The stock availability rate is always 96% or higher, inventory is less than 20 days, and delivery time is reduced to less than 2 days".

Supply chain digitization is considered a key strategy of WinCommerce in 2023, especially in the context of modern consumption and preference for convenience and technology application. The retail chain representative said that by 2025, WinCommmerce aims to connect 30 - 50 million Vietnamese consumers through 8,000 supermarkets - stores, increasing the number of customers served per day from 600,000 to 2 million.

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