Report of group project implementation of automation in warehouse management

29 Appendix C: Detailed Achievements and Future Plans for Viettel Post’s NOC System G111 111111 1111111611111 KE KT K18 KH 11K E11 KT 19K KT KĐT k KH TK KH k EU 3 Appendix D: Advanced A

Grade: K62 Lecturer: PhD Nguyen Thi Thu Ha

Ho Chi Minh City, June, 2024

GROUP MEMBERS

No Team members Student ID

1 Tran Le Phuong Nhi 2313535018

2 Tran Diep Hoang Anh 2312535003

3 Pham Yen Uyen 2313535024

4 Pham Bao Ngan 2313535015

5 Nguyen Thanh Truc 2312535026

6 Nguyen Minh Tri 2311535005

7 Nguyen Thao Quyen 2313535020

10 Nguyen Thi Kieu Trinh 2313535023

TABLE OF CONTENTS

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4.2 Methodology

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PART 2 THEORETICAL FRAMEWORK RELATED TO WAREHOUSE

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1 Warehousing in SCM -Q c HH nn HH TT kg TK kh 4

2 Automation in Warehousing .- 0000200021111 1 11T 1n TH g2 1k ven 4

HP A9 -.- né c-ijÕÖl1B na ah 2.2 ClASSIFICATION « «2.2 a aaa gác 4

3 Automated Sorting technology in VWarehousing -.- c cài 5 3.1 Autonomous goods sorting robofS - cà nh vn ren 5 3.2 Large — scale sorting sysfems Q2 2S HH SH HH ven 3.3 Conveyor belt sorfing sysfems c cTc c HT n TH Tnhh hy

PART 3 CASE STUDY OF VIETTEL POST L TQ Q ST SH He 8

1 Introduction about Viettel PoSÍ QQ TS nh TH KH kh 8 1.1 Overview

1.2 Main business areas

2 Before the Application ccc ccccceeeeceetsetsseeeseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees tensa ees 8

“ Net icon ai a 2.2 _ Internal resources for developmenS . à c HH Hs key 9 2.3 Comparison with other shipping companies Sàn ree 10

3 Application of automation in Warehouse Management System 12

1 Current Performance EvaluafiOn: - nn SH TH HH HT H* Tnhh Hy 15 1.1 Technological Àspect: Q2 TH TK 15 1.2 Financial ASp€CI: QQQQQQn nn nọ TT 15

CN hon so ch ắ a 17 2.1 Cross Belt Sorter as a growing market - a technology with many future 0) (0S) 6-0) ee 1 2.2 Leadership challenges in the development directions of the company 18

PART 5 RECOMMENDATION 000 cc cccccceceeceeeecceeeeeeeee tence aeeeeeeeeeeeneseeeseetenenaees 20

1 Orientation of Viettel POSI: LH nn HH TT TH KT HE Kr* 20

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Appendix A: Detailed Analysis of VWarehouse Management Systems 28 Appendix B: Development of automatic sorting conveyor belt using PLC 29 Appendix C: Detailed Achievements and Future Plans for Viettel Post’s NOC System

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Appendix D: Advanced Automation and Operational Efficiency in Viettel Post's Smart Sorting Complex .ccccccccceccceeccceeeceeeeeecee eases eeeececeeaeeeeeeeecccceeeseeeeecsaceneeseeeeeeeas 31 Appendix E: Viettel Post's Strategic Goals and Achievements (2023-2028): A Comprehensive OVErviW 0.0.0 cccceccccececceeeeceeceeeeeeece cece aeeeeeesesccaeeeeeeeeeseseaeeeeereetenanees 32 Appendix F: Choice of Implementation and Evaluation of Advanced Warehouse Management Technologies: Key Components and Viettel Post's Strategy (ShipHero,

Appendix G: Reflection of Foreign’s Influence on Financial Performance of Top s00) 0-1 0 ố ốằ -aðẼ 36 Appendix H: About our †eam 000000000211 n H1 TH HH TH ng ng net 39

LIST OF ABBREVIATIONS

No | Abbreviation Expansion

1 SCM Supply Chain Management

2 WMS Warehouse Management System

3 MIS Management Information System

4 G2P Goods - to - person

5 R2G Robot - to - grid

6 AGV Automated Guided Vehicles

7 AMR Autonomous Mobile Robots

8 AGC Autonomous Guided Cars

9 0 Input/Output

10 ISO International Organization for Standardization

11 FMCG Fast — moving consumer good

12 F&B Food and Beverage

13 COD Cash on delivery

14 NOC Network Operations Center

15 VTP Viettel Post

LIST OF TABLES

Table 1.Comparison of some wellknown shipping companies in Vietnam

LIST OF FIGURES

Figure 1 Swisslogˆs AutoSfor€ c2 202201 211 nnn teres tenet enn eeeeneae dD Figure 2 Dematic`s Multishuttle cà cà 22 ee ten een nee nee tan teres

Figure 3 Smart Carrie L2 22 c1 222 C11 nà cày si váy cv Ð

Figure 4 Symbotic’s MatrIx ÑOV€FS cà cà ee cae ten tera es setae eer eee ed Figure 5 Amazon’s Kiva 0.0 cocci cee cee ce cee cee ee cee cer nes betes tenets teste teeter aes nen sD Figure 6 Business performance results of Viettel Post, VNPost and Giao Hang Tiet Kiem

II —) 0ï: 0 02072 ha ăă.ă ố.ốố 17 Figure 7 Global Crossbelt Sorters Market Size, 2031 (USD Million) - 18 Figure 8 PLC based Automatic Sorting Conveyor Belt System 0 eects 29 Figure 9 Advanced Automation and Operational Efficiency in Viettel Post's Smart Sorting

0200 na -.(4Á 1 3 Figure 10 Post-tax profit of logistics companies in Vietnam c2 sài 37 Figure 11 Giaohangtietkiem's revenue from 2017 to 2019 -.ẶS SH se 37 Figure 12 Giaohangtietkiem’s profit increased 34 times over 5 years 3é Figure 13 Giao Hang Tiet Kiem’s revenue from 2017 to 2022 cceeccecttcttteeeeee tees 38 Figure 14 Our team’s preparation before working on the repOFf -. +++-+ <+<x xxx 39 Figure 15 Our team’s preparation after completing the r€pOFt . -++S+< << sxxs 39

ACKNOWLEDGEMENT

Our team of authors wishes to express sincere appreciation to the Principles of Logistics and Supply Chain Management Course Lecturer, PhD Nguyen Thi Thu Ha, for her invaluable guidance and support Her attentive teaching and the subject of this researc have greatly enriched our small research group with valuable knowledge and experience preparing us for our future academic and scientific pursuits This report acknowledgement

is a tribute to all the people who made our academic journey worthwhile

We also extend our profound gratitude to the authors of the working papers, the researchers whose findings we referenced, and the various online sources that hav significantly contributed to the development of this report Their exceptional work and shared insights have played a crucial role in enhancing the quality and depth of our researct

It is our hope that this research will continue to explore various aspects and serve as

a solid foundation for future studies, building upon the contributions of all those involved

PART 1 INTRODUCTION

1 Rationale

In recent years, the rapid growth of e-commerce and demand for fast and reliable delivery services have placed enormous pressure on logistics companies around the worlc Therefore, traditional manual sorting processes are increasingly becoming a bottleneck impeding the operational efficiency of companies This has led to a growing interest in warehouse automation technology Technology can potentially revolutionize businesses from streamlining operations processes to cost and human resource efficiency In the context of Vietnam, the adoption of advanced technologies will bring many promises for promoting the development of regional logistics and transportation hubs Simultaneously,

it strengthens the foundation for Vietnamese logistics industries and creates opportunities

to expand activities abroad

However, automation sorting systems in warehousing present many challenges since

it is a confusing and complicated model Developing and optimizing this technology requires careful consideration and robust research Therefore, the author chose the t opi

“Implementation of automation in warehouse management,” to explore more about the warehousing automation system and give suggestions that businesses can improve | addition, the research also takes Viettel Post as a case study because it is one of the leadi companies in technological improvements, especially in the warehouse automation field

2 The crucial role of warehousing management for companies:

Warehousing is the backbone of any logistics business Managing a warehouse effectively is an essential attribute of every successful business, regardless of size ol industry It plays an imperative role in a supply chain, from getting raw materials into the warehouse to delivering finished goods to customers By establishing a well-designed warehouse system, organizations can improve their inventory levels to mitigate stockouts This improvement will also facilitate pricing and cash flow by providing products to customers without the burden of excess stock Additionally, simplifying the order fulfillment process will allow any business to shorten the lead time and improve customer satisfaction Therefore, there is no doubt that in today's fast-paced and challenging busines

environment, organizations can create long-term competitive advantages by building value

in the warehouse management process

3 Literature review

3 1 Domestic research

During our research, we reviewed additional domestic studies and found that other researchers addressing this problem have highlighted the significance of warehouse automation in the Industry 4.0 revolution They proposed strategies for advancing warehouse automation and presented their opinions on this subject

Research by Nguyen Thu Huong (2022) has shown that using IT systems such as Warehouse Management Systems (WMS) and Transportation Management System: (TMS) improves the transportation and storage processes in the warehouse Additionally, authors Bui Quang Vuong, Dang Xuan Kien, and Pham Tam Thanh (2017) in their research paper have given some solutions to upgrade the automatic robot model in warehouses which enhances the flexibility of the warehousing process and meets the requirements o production practices

3 2 Foreign research

Foreign research articles provide more diverse technological solutions for improving automated warehouses, highlight the gap between theory and practice, and serve as practical guide and industrial example for some researchers to compare the automate: management system with the traditional manual system (Atieh et al., 2016)

According to K Azadeh (Kaveh), M.B.M de Koster (René), and D Roy (Debjit) (2017), the importance of automation systems in warehouse management is emphasize due to their ability to optimize performance and solve various problems such as land use, labor, and time efficiency Therefore, the author proposes several innovative technologies and provides a comprehensive overview of these advances

Although warehouse automation is considered the optimal choice for businesses in the current context, some challenges remain Implementing automated warehouse systen requires high costs, highly specialized staff, and needs to be retrained in working processe: Furthermore, implementing these automation systems often requires new machinery anc

modifications to warehouse layouts and processes, making procurement difficult (Kamali,

2019)

In addition to reviewing the research of diverse automatic sorting systems, this paper will provide a perspective on applying self-propelled goods sorting robots (AGV robots), large goods sorting systems (Wheel Sorter Matrix), and conveyor sorting systems (Cross belt Sorter) at Viettel Post which helps them to officially enter the smart logistics era, bringing breakthroughs in operational efficiency and service quality

4 Research methods

4 1 Research Approach

To complete the report with practicality and objectivity, the research team accesses the topic and related data from a comparative and analytical perspective to come up with the most valuable and detailed reviews and analyses

4 2 Methodology

Our report applied the qualitative approach In terms of data collecting, the team used secondary sources of data and information including the company website, as well a relevant studies and reports from official websites After collecting related data and information, the team synthesized and analyzed the information obtained to point out key aspects and reflections with appropriate comments on the application of automation in Viettel Post

5 Report structure

This paper includes 6 parts:

Part 1: Introduction - Include the rationale, the importance of the system for the business, reviews of relevant studies, research methods, and the report structure Part 2: Theories related to the topic

Part 3: Actual situation in the business before and after applying the automation in warehousing operation

Part 4: System evaluation with comparisons and extensions

Part 5: Recommendation

Part 6: Conclusion

PART 2 THEORETICAL FRAMEWORK RELATED TO

WAREHOUSE MANAGEMENT

1 Warehousing in SCM

Warehouse is the place where inventory is on the move, itis a main part of managing supply chains as it can provide integration between all the operations in the supply chain, involved in achieving optimum and continuous operation of the production and distribution processes (Hamdy et al., 2021) Moreover, a Warehouse Management System (WMS) is used to enhance decision-making in warehousing by integrating multiple software systems capable of monitoring, managing, and controlling all aspects of warehouse operations (Bastani & Mohammadi, 2016) Additionally, implementing a WMS will likely lead to increased accuracy, lower labor costs if the system requires fewer resources than thos saved on the warehouse floor, and improved customer service through reduced cycle times.(Ramaa.A et al., September 2012) Nowadays, this system handles numerou: complex tasks, including ensuring agility, flexibility, and responsiveness The company has intelligent inventory management that will reduce warehousing costs and boost customer satisfaction, thus, improving supply chain performance For example, wireless barcodes with management information systems (MIS) may reduce costs, enhance flexibility, minimize inventory, and cut delivery times, improving customer satisfaction.(Syed Imran Zaman, 2023)

2 2 Classification

Warehouse automation is mostly of two types: process automation and physical automation (Dhaliwal, 2020) Process automation, or system automation, involves using

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barcoding and wireless barcode scanners to input and track item data Physical automatio encompasses various mechanized technologies and robotic systems employed to streamlil operations This report will mainly focus on investigating the automated sorting systems, which belong to the physical automation in warehousing

3 Automated Sorting technology in Warehousing

There are many different types of sorting systems in the world, which can be organized into 2 main types: large systems and small systems Sorting can be manuall: done or automated, or it can be a mixture of both (Fluke, 2014) And this report will mainly focus on investigating the general concept of some automated sorting systems in the following paragraphs namely autonomous goods sorting robots, large-scale sorting systems, and conveyor belt sorting systems

3 1 Autonomous goods sorting robots

- Robotic G2P system: G2P is a commonly used method in which goods are automatically picked from storage and brought to human pickers who complete order picking and possibly packing tasks at fixed positions (Huang et al., 2015) Some of the companies that provide G2P-based solutions include Swisslog’s AutoStore, Dematic’s Multishuttle, Smart Carrier, Matrix Rovers from Symbotic, and Kiva owned by Amazon, which facilitate agile and precise order fulfillment for smaller-order quantities based on e-

- Robotic R2G system: R2G is an innovative picking technique where a robot travels

to the location of stored goods and retrieves the correct quantity of items needed to assemb mixed boxes for e-commerce orders

+ Automated Guided Vehicles (AGVs): AGV systems are used to automatically transport, sort, and unload goods from one place to another in an industrial environment (Zhou et al., 2016) An AGV is a type of mobile robot that navigates by following a path marked on the floor or by using vision or laser technology (Pankaj et al., 2022) Its functionality makes AGVs highly effective for transporting materials within manufacturing facilities or warehouses

+ Autonomous Mobile Robots (AMRs): AMRs are the latest and advanced version of AGVs They are much more sophisticated and efficient with faster, smarter, and easier-to-set-up features AMR has little or no human intervention for its movement and it

is designed in such a way to follow a predefined path be it in an indoor or outdoor environment.(Hosseini et al., 2020)

+ Autonomous Guided Cars (AGCs): AGCs, also called SmartCart, are a flexible version of AGV, which is based on following the magnetic tape AGC is the most cost-effective solution, and it is in demand these days, especially by small- and mid-sized manufacturers in various industries where the material handling is at a smaller scale

(Dhaliwal, 2020)

3 2 Large — scale sorting systems

A large-scale sorting system utilizes a series of rotating wheels or discs positioned and arranged in a matrix formation As goods enter the system, sensors detect the intende destination and control the wheels to rotate accordingly, guiding the items into the correct chute or lane These wheels can rotate in various directions to redirect items based on pre programmed instructions, ensuring they reach their designated destination Therefore, thi: system is particularly suitable for sorting systems with relatively uniform sizes and shapes

to manage the flow of goods efficiently (Viettel Post, n.d.-c)Furthermore, the configured guideline of the large-scale program as mentioned before also requires searching ani sorting large quantities of data spread across the network Sorting forms the kernel of man: data processing tasks in the data center exercises computing, I/O, and storage resource and is a key bottleneck for many large-scale systems (Rasmussen, Ailamaki, & Boicea,

2011) to meet the need to store large amounts of information to operate effectively and ha: high precision speed

3 3 Conveyor belt sorting systems

Aconveyor belt consists of two or more pulleys, with a continuous loop of material that rotates over them One or both of the pulleys are powered, moving the belt and materia

on the belt forward There are two main industrial classes of belt conveyors; those in genera material handling such as those moving boxes along inside a factory and bulk material handling such as those used to transport industrial and agricultural materials, such as grair coal, ores, etc (Dabade, 2015) To handle general material, the process consists of lookin:

at the items distributed on the conveyor, localizing any single item, classifying it on the basis of features that make it acceptable or not, and, if applicable, gripping it to perform the necessary separation Fundamental issues here are therefore sensing, i.e., detecting a classifying the items, and gripping, i.e., realizing the required separation most efficiently Hence, the conveyor belt sorting systems enhance productivity, improve accuracy in sorting, and reduce operational costs by minimizing the need for manual sorting Moreover, for sorting bulk materials, for example, the sorting of coated fuel particles is really important due to its large number, and the coated fuel particles with substandard sphericitie: are easily crushed or damaged in the subsequent processes such as pressing and operat

As a result, the conveyor belt sorting system is applied for the separation of coated fuel particles with large feeding rates in order to meet the accuracy and efficiency requirements

of the sorting systems In addition, the intelligent conveyor belt also has the ability to sort objects of different sizes This helps to avoid size malfunctioning in production machines

PART 3 CASE STUDY OF VIETTEL POST

1 Introduction about Viettel Post

1 1 Overview

Viettel Post was established as the Press Distribution Center on Ju ly 1, 1997, witr the initial mission of serving military agencies within the Ministry of Defense In 2009, Viettel Post officially started operations as a Joint Stock Company (JSC) after successfully implementing its privatization plan through an Initial Public Offering (IPO) Viettel Post Joint Stock Corporation is a subsidiary of the Viettel Group, operating in the courier service sector with the second-largest market share in Vietnam Viettel has a comprehensive network consisting of 85 branches in all 63 provinces and cities nationwide, with postal offices and service points extending to remote areas and distant islands

In the coming years, Viettel Post's strategy will continue to focus on developing a diverse range of services, bringing services closer to customers both domestically anc internationally, while always affirming its role as a company that fulfills its Corporate Social Responsibility (CSR) For Viettel Post, this means pursuing sustainable development (Viettel Post, n.d.-a)

1 2 Main business areas

Viettel Post specializes in providing domestic and international express delivery with different services such as:

- Courier services: Express delivery (VCN), Urgent delivery service (VHT), Economy delivery service (VTK), International delivery

- Logistics services: Full truckload transportation, consolidated freight, freight forwarding, warehousing services, customs declaration

- Trade Services: Airline tickets, office supplies, telecommunications services, store management, and telecom retail points (Viettel Post, n.d.-b)

2 Before the application

2 1 Changes to adopt

Nowadays, alongside telecommunications, postal services have emerged as a ke’ business area, significantly contributing to Viettel Post's revenue growth According to the

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Viettel Post Financial Report for the third quarter of 2023, the Postal Services sector, encompassing parcel delivery and logistics, experienced an impressive 39% revenue increase compared to the same period last year, and an 11.5% rise compared to the previo quarter This strong performance enabled Viettel Post to achieve its highest pre-tax revenui growth of the year As a major player in Vietnam's logistics and package delivery market, Viettel Post depends extensively on warehousing to manage its operations, which involve processing, storing, and dispatching large volumes of goods to customers (Nguyen, 2024 Before June 2023, all Viettel Post's processing centers used semi-automated sorting systems However, the technologies in use were not able to handle specific types of goods such as round parcels and letters, which account for nearly 40% of the total volume being processed by Viettel Post Meanwhile, manual sorting during peak hours (around 35,000 parcels per hour) frequently faced overload issues, which directly impacted delivery times and the accuracy of the sorting process (Viettel Family, 2024)

2 2 Internal resources for developments

Currently, the company has a professional team of over 26,000 experienced employees in managing telecommunications goods It collaborates with 163 transportation partners, operating more than 5,000 trucks across Vietnam’s routes, and has a network of over 74,000 vehicles from Mygo partners, ready to handle packaging, transportation, and delivery of your products to customers every day of the week

Viettel Post’s warehouse network is the largest in Vietnam, covering all 63 provinces and 689 districts, with a total area of up to 400,000 square meters and ongoing expansior The warehouses are strategically located on major roads — free from load restrictions, buill

to ISO standards, and designed flexibly to accommodate various types of goods, including FMCG, F&B, furniture, electronics, raw materials, and auto parts This ensures that customers can store goods safely in Viettel Post’s warehouses, regardless of volume (Valoma, 2024)

Thanks to this extensive warehouse network, Viettel Post offers comprehensive e- fulfillment services in addition to its express delivery operations The company processes

an average of 750,000 orders daily, reflecting a 30% increase from the same quarter las year Viettel Post has also seen a rise in new users, particularly in the latter half of 2022,

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with a 50% increase from May 2022 Furthermore, average monthly revenue from new clients grew by approximately 5 to 10% from the previous month (Viettel Post, 2023) These notable achievements are partly due to Viettel Post’s ongoing investment in and application of advanced technologies in warehouse operations With the strategic goal of becoming the leading technology-driven logistics enterprise in Vietnam by 2025, Viettel Post is making further investments in smart warehouses to optimize logistics service costs and gain a competitive edge over both domestic and international competitors Consequently, many stages of warehouse operations are being gradually automated throuc the use of cutting-edge technologies (Nguyen, 2024)

2 3 Comparison with other shipping companies

In Vietnam, some express delivery companies in Vietnam such as Giaohangtietkiem, Giaohangnhanh, and NhatTin Logistics, race to promote, making the profit margin in the delivery sector only approximately 3%, and almost all companies lose money Although they do not have network strength, they have technological advantages and financial support from investors, willing to suffer losses for several years to gain market share Due

to the lack of a nationwide network, they have to cooperate with traditional companies to fulfill inter-city orders or in rural areas, making the prices of these orders higher, and reducing the competitiveness of goods expense (SaleKit, 2024)

Here is a simple comparison of some well-known shipping companies in Vietnam: (Viettel Post: Intra-province: 2-3 days, Nearby region: 3-4 days, Inter-region: 3-4 days)

Company Strengths (compare with VP)} Weaknesses (compared with V

Longer delivery times compare

VNPost- EMS | low rates of lost or damaged | days)

goods Requires customers to visit pos

offices for delivery issues

Extremely fast delivery times | High shipping fees and high (Intra-province: 1 day, Intra- | COD charges with longer refun

; region: 1-2 days, Inter-region: | times than Viettel Post

Giao Hang Nhanh 9.3 gays)

Less effective warehousing and Responsive website and app | handling processes compared t

Viettel Post

Insurance and compensation

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policies for lost or damaged goods

Competitive and affordable Poor handling and storage of

Kiem Dedicated tracking software fo

better order management

No home pickup services Broad regional coverage acros

Ninja Van Southeast Asia Difficulties in tracking shipment

Longer delivery time (Inter- region: 4-5 days)

Table 1.Comparison of some wellknown shipping companies in Vietnam

It becomes even more difficult when customer groups that account for a large proportion of the delivery industry such as Lazada, Shopee, and TikTok also build their shipping systems, causing delivery businesses to lose a huge amount of orders So, it | not strange that some delivery businesses have recently been forced to take different route including very large businesses that have had to open other lines of business Finally, ther:

is a large contingent of small private delivery businesses providing simple, flexible services with location and time advantages within narrow supply gaps This group of businesses is relatively knowledgeable about technology but lacks experience, is thinly staffed, and often lacks investment capital They often choose delivery services in big cities and find ways to reduce prices to increase sales

Internationally, leading the way are large international express delivery corporations, with advantages in finance, technology, goods sources, and brands such é DHL (Germany), TNT (Netherlands), FedEx, and UPS (USA) These names entered Vietnam in the form of cooperation with domestic businesses as early as 1994 Thanks tc their strong potential, they quickly dominated the international express delivery service segment, a part of the domestic market, and determined Vietnam's shipping market

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roadmap E-commerce and delivery corporations from China (Alibaba, Tence nt, J&T, ZTO, SF, Ninjavan ) promote price competition to penetrate the Vietnamese market Even though they came later, they quickly expanded the market with franchise models, indirect investments, reduced shipping prices below cost, and even applied 0 VND shipping fees tc gain market share The emergence of several mid-range companies such as Kerr Singapore and Sagawa (Japan), Korean express delivery companies with the advantage being specialized in Europe, the US, or in a certain area such as Asia or Southeast Asie creating competitive advantages that are difficult to imitate

3 Application of automation in Warehouse Management System

In early 2023, Viettel Post sent a group of engineers to study abroad and contact engineers of Cainiao (Alibaba), Yuanda Express, Libiao - logistics businesses that are applying leading technology worldwide Combining previous research and field surveys, the group concluded that autonomous robots (Automated Guided Vehicles - AGV) are the only solution to solve the problem of circular row selection and letter selection This is a technology used by many large logistics units in the world such as China Post, and Amazon , showing effectiveness in improving time and accuracy up to 99.99% In particular, with a working time equivalent to 3 shifts/day, the qualifications of each machine

is only 1/15 of the cost the Post Office must pay for 3 workers in 3 years (equivalent to equipment wear period) 200 AGV robots were immediately recruited Operational Control Center 5 (TTKT5) was selected to test this model when it met all 3 factors: designed and built from scratch by only Viettel Post; beneficial location; the scale is not too large for testing To integrate into the new environment, these personnel need to be integrated inte the software of Viettel Post's system core This task is assigned to a team of mentors wht are able to master the technology and key solutions for robot AGVs to work in Vietnam Viettel Post is leading the application of AGV robot technology, opening a new chapter for the domestic logistics industry To implement this project, Viettel Post recruited leading experts and engineers in the field of mechatronics and automation So they created a Viette Post's AGV robot project team, consisting of 11 members, tasked with researching and developing solutions to integrate software technology and control systems at two large centers in Hanoi and City Can Tho This group quickly mastered AGV robot technology, from understanding the structure and operation to integrating with Viettel Post's existing

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technology systems They have succeeded in programming and configuring the system s: that 200 robots can work effectively in a space of 1,500 m2, with the ability to process up

to 6,000 parcels per hour, 6 times more than the manual method The robot is also capabl

of remembering 800 goods classification points, 80 times more than human capabilities

(CaféBiz n.d.)

On December 12, 2023, Viettel Post officially put into operation 200 AGV robots at the TTKT5 center, setting an important milestone in the field of technology This was done after just 10 days of receiving the robot, much faster than the at least 5 weeks that international companies usually need At the same time, Viettel Post designed and built TTKTS5 itself, helping to reduce technology investment costs by up to 45% effectively (Viettel Family, 2024)

On January 17, 2024, Viettel Post Joint Stock Corporation (Viettel Post) opened Vietnam's first smart sorting technology complex, affirming Viettel's strategy and commitment to becoming a business The logistics system includes warehouse managemel software, an app/web system, a delivery technology solution chain with weight monitoring, smart lock, etc The whole system was developed by a technical team of 100% Vietnamese engineers and experts within over six months whereas it may take some larg: enterprises approximately two years to complete and imple ment the system of similar scale The smart sorting technology system inaugurated by Viettel Post, which has the highest level of automation in Vietnam, is located in a 32,000-square-meter warehouse in Quang Minh (Me Linh, Hanoi) The facility utilizes 200 Automated Guided Vehicles (AGVs) for sorting, a large-scale sorting system (Wheel Sorter Matrix), and a conveyor- based sorting system (Cross-belt Sorter) Viettel Post is the first logistics company in Vietnam to implement AGV technology, raising the automation level in its sorting processes to 99%

AGV Robot is an automated, self-driving robot designed to sort and handle 100% of lightweight, thin items, goods with specific shapes, and round rolls, making it ideal for products sold on e-commerce platforms This advanced robot technology is applied by many major logistics companies worldwide Indeed, the robot and AGV system are categorized into three groups based on their functions and load capacities Specifically, the sorting robots at the Quang Minh Center can handle items weighing up to 10 kg The AGV

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system used for storing and retrieving items in the smart warehouse can support a maximur load of 500 kg In addition, the autonomous vehicles designed for container handling can manage loads between 20-25 tons and are capable of operating at various seaports Besid: the Wheel Sorter Matrix is designed to handle the sorting of large loads and packages Thi Cross-belt Sorter, on the other hand, is a high-capacity conveyor sorting system with active control, ideal for sorting COD items and standard packages

Managing and overseeing the complex's operations is controlled by the Viettel Post NOC (Network Operations Center) which provides the real-time tracking of each order This system is a comprehensive solution designed to enhance the company's operation: efficiency and data management It incorporates smart monitoring features such as Digital Twin technology and Al cameras, which manage the status of all equipment and cargo activities Moreover, The NOC system helps Viettel Post's operations team reduce daily reporting time through 360-degree data slicing The time required for daily report compilation by postal staff has decreased to 15-30 minutes, compared to 1-2 hours previously Data retrieval now takes 1-2 minutes instead of 20-30 minutes as it did with manual processing due to the need to aggregate data from multiple sources The syste! extracts multidimensional information and brings numbers to life by connecting data from various subsystems, including business, finance, and customer service This provides use with a comprehensive and logical view of operations, enabling quick and accurate decision- making Besides, Viettel Post's NOC system helps management identify "weak points" in each service stage, enabling prompt decisions that reduce operational time, enhance servi quality, and prevent irregular incidents Real-time issue alerts also ensure that errors are detected and addressed immediately Before the implementation of the NOC system, Viette Post's operations team struggled with handling large volumes of raw data daily, which led

to inefficiencies and issues with accuracy The NOC system was thus developed out of necessity to centralize the management and monitoring of all functional subsystems al Viettel Post, including business operations, finance, labor management, and custome) service (Viettel Post, 2023)

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The company also utilizes the Cross Belt conveyor system, which reduces sorting time, labor, and costs, cutting order processing time by about 4 hours and lowering the erro! rate from 8% to just 0.1-0.2%, on par with global leading technologies Furthermore, Viettel Post has implemented the Wheel Sorter Matrix, an advanced automated sorting system that increases sorting efficiency, reduces errors, and enables higher package volumes ultimately leading to faster deliveries and cost savings This positions Viettel Post to meet the growing demands of the e-commerce market and enhance its service quality (CaféF

2023b)

1 2 Financial Aspect:

Viettel Post’s Financial Report for 2024 provides clues about the system’s performance In the first quarter, even though profit increased by 58,46 billion VND and seemingly implies a substantial growth rate, one quick review of last year reveals a different side Compared to the first quarter of 2023, the number decreased by around 22,82%, | noteworthy decline in profit This paints a rather bleak picture of business shrinkage and a dip in growth rate, especially considering previous expectations that Viettel Post’s new technology implementation would bring about more profit and growth than the recent years

(DNSE, 2024)

However, fair analysis can not be condoned without considering that 2024 is a tough year for many businesses in the Vietnam Postal field As E-commerce markets are on ¢ rapid rise, the number of suppliers who are ready to jump into the field also blooms

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