According to retailasia.com, Central Retail Vietnam has overhauled its supply chain to reduce stock-outs by about 20% through a centralized distribution model aimed at improving on-shelf availability across its store network.
A Shift from Fragmentation to Precision
Previously operating under a direct-to-store delivery model, Central Retail Vietnam faced persistent operational challenges: supplier deliveries caused backroom congestion, inconsistent arrival times, and excessive administrative burdens that diverted staff from customer-facing duties. As Mike Reid, chief supply chain officer at Central Retail Vietnam—a unit of Thailand’s Central Retail Corp. Public Co. Ltd.—explained, this approach created “fragmentation, variable service levels, and limited visibility.”
“Customers in Vietnam expect a more modern retail experience—better freshness, higher availability, and greater convenience.” — Mike Reid, chief supply chain officer, Central Retail Vietnam
The new centralized model consolidates inbound supplier shipments at dedicated distribution centres. There, volumes are pooled, demand forecasting is enhanced, and store replenishment is scheduled and demand-aligned. This transition has reduced backroom congestion, simplified restocking workflows, and enabled stores to evolve from ‘mini logistics hubs’ into ‘true retail execution centres focused on customer experience.’
People, Process, and Partnership Over Tech-First Hype
Unlike many peers pursuing rapid digitization, Central Retail Vietnam prioritizes standardization before automation. Reid emphasized: “Before you digitise, you must standardise.” To embed discipline, the company launched its Supply Chain Academy, delivering staff training in problem-solving, transport planning, and demand forecasting. Process enhancements include standardized replenishment cycles, formal inventory governance frameworks, and consistent performance measurement.
Core system upgrades now integrate the enterprise resource planning (ERP) platform with logistics partners’ warehouse management systems—boosting end-to-end supply chain visibility.
Strategic Logistics Consolidation
Central Retail Vietnam also restructured its third-party logistics network. It reduced its roster from more than 20 providers to just five core partners. These partners were selected for scalability, willingness to co-invest, and proven ability to meet stringent performance benchmarks.
Vietnam’s unique logistical landscape—including fragmented trucking, low industry-wide collaboration, and urban transport restrictions (e.g., narrow streets, time-limited delivery windows)—required tailored solutions. The company responded by consolidating shipment volumes, optimizing route planning, increasing drop density per trip, and proactively adjusting schedules to align with restricted access windows.
“The challenges in Vietnam are not barriers; they are opportunities for the next generation of supply chain leaders to push the industry toward higher standards of professionalism, better planning discipline, and stronger collaboration.” — Mike Reid, chief supply chain officer, Central Retail Vietnam
For global supply chain professionals, this case underscores how foundational process rigor—combined with disciplined partner management and localized operational adaptation—can yield measurable improvements in availability and efficiency, even without heavy reliance on AI or robotics. In emerging markets where infrastructure constraints persist, centralization, standardization, and human capability development remain high-leverage levers.
Source: retailasia.com
Compiled from international media by the SCI.AI editorial team.
