Supply chain management topic how to sketch oh my pet’s brand image in 2024 2026 in vietnam

Bach Hoa Xanh is said to be the most diverse goods supply chain, the fresh products at the store are considered superior to current competitors in the same industry, along with the servi

HO CHI MINH CITY UNIVERSITY

OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY

FACULTY OF BUSINESS ADMINISTRATION

SUPPLY CHAIN MANAGEMENT

Major: Marketing

TOPIC: How to sketch Oh My Pet’s brand image

in 2024-2026 in Vietnam

Member:

Nguyễn Thi Huynh Anh — 20DH481975

Vũ Nguyễn Phương Anh — 20DH481979 Nguyen Huynh Ngoc Bich — 20DH481985 Course: K26

Introduction

In 2015, the Bach Hoa Xanh (GG) chain of stores began to be introduced into the test market with products specializing in fresh goods and necessities Bach Hoa Xanh is said to be the most diverse goods supply chain, the fresh products at the store are considered superior to current competitors in the same industry, along with the service attitude of the staff at the store In today's context, designing an efficient transportation network is very important it

is important to react quickly to changes in store structure Innovation in transportation processes, use of route optimization technology and real-time data integration are key factors that help reduce costs and optimize overall performance In this essay, the team will research the supply chain of Bach Hoa Xanh and recommend a transportation network design that would work best for above recommended distribution network design

1 Overview current business situation of Bach Hoa Xanh

The fourth quarter 2022 financial report of Mobile World Investment Company (MWG) shows that the group's new business segments are still a burden with losses of up to trillions

of dong each year Most significantly, Bach Hoa Xanh Joint Stock Company continuously suffered losses in the period 2016-2022 with a total loss in 7 years since its establishment of nearly 7,200 billion VND The loss in 2022 alone is the largest with more than 2,744 billion VND

According to the announcement of Mobile World Group (MWG) at the 2023 shareholders’ meeting, the Bach Hoa Xanh store chain under this group has closed more than 500 stores out of a total of 2,200 stores in the market, but the question is: "Bach Hoa Xanh is closing stores "on schedule"? ”

It is known that is in the phase of comprehensive restructuring, repositioning and strengthening its operating platform MWG will temporarily stop opening new BHX, focusing on changing the area, layout, and arrangement of stores According to the plan in the third quarter of 2022, all BHX stores will operate in a new arrangement At the same time, MWG will also review and thoroughly handle inefficient stores, complete inventory handling and reduce the number of product codes being sold at the store

1.1 Bach Hoa Xanh’s supply chain strategy

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Figure 1 - MWG supply chain Bach Hoa Xanh's product portfolio mainly focuses on fresh products, food, beverages and fast-moving consumer goods MWG has expanded Bach Hoa Xanh's product portfolio to include utensils and kitchen utensils

The following are some components of Bach Hoa Xanh (GG) supply chain strategy that consider responsiveness and efficiency factors;

1.1.1 Partners and suppliers

To have good profits, Bach Hoa Xanh will get products from manufacturers, not through any channels With green vegetables, instead of selling ready-made bags, stores let customers buy in arbitrary quantities Marine fish will be imported directly from the sea, not through Binh Dien market like current chains As for fruit, the company will not go through import companies but import from the growing area Thanks to that, the product price will be cheaper and more competitive than any other system Fresh meat and live fish are outstanding strengths compared to current competitors in the same industry

EX: 4KFARM is invested by Bach Hoa Xanh

IENFarm

MÔ HÌNH HỢP TÁC LIÊN KÉT CỦA 4KFarm

Figure 2 - 4KEARM supply chain process to Bach Hoa Xanh

Food at the store all has clear origin and origin, ensuring quality as well as food hygiene and safety In particular, the 4-zero safe vegetable farm (4KFarm) model "no pesticides, no preservatives, no growth substances, no genetically modified varieties" is invested by BHX

to provide safe vegetables to people consumption in some provinces In addition, vegetables are also provided by reputable production facilities from Da Lat, Long An, Can Tho, Tien Giang, Hau Giang

According to 4KFarm representative - Mr Cao Nhat Anh Tu, this project is a model combining home-grown vegetable gardens and modern technology The company has a team

of experts to transfer technology to farmers and commits to purchasing the output, then delivering it to consumers through Bach Hoa Xanh (BHX) 4KFarm does not purchase products from uncooperative third parties, but only from the project's farmer partners 1.1.2 Transportation and warehousing strategy

Bach Hoa Xanh has built a modern, synchronous and flexible warehouse and transportation system Bach Hoa Xanh uses compact, fuel-efficient transportation vehicles and adapts to

urban terrain Bach Hoa Xanh also applies information technology to manage and track goods, orders and shipping routes

1.2 Evaluate Bach Hoa Xanh's competition objectives

Bach Hoa Xanh's supply chain strategy is consistent with Bach Hoa Xanh's competitive goal, which is to become a mini supermarket chain specializing in selling fresh food and necessities at low prices, high quality and convenience This strategy helps Bach Hoa Xanh take advantage of potential markets, meet consumer needs and psychology, and create an advantage over competitors in the same industry

1.2.1 Reason of success

The reason for the success of Bach Hoa Xanh's supply chain strategy is that Bach Hoa Xanh has carefully researched the market, customers and competitors, to come up with appropriate and effective solutions Bach Hoa Xanh has also mvested in technology, human resources and processes to improve operational efficiency and product and service quality Bach Hoa Xanh has also flexibly adapted to changes in the business environment and customer needs

In terms of revenue, Bach Hoa Xanh has had positive growth in 2023, reaching about 30,700 billion VND, equivalent to 1.28 billion USD This is the result of Bach Hoa Xanh focusing

on improving the quality and output of fresh products, diversifying products, expanding store network, applying promotions and direct marketing

Strategically, Bach Hoa Xanh has taken quite reasonable steps to improve operational efficiency and product and service quality, such as cutting intermediary partners

Bach Hoa Xanh also brings in a huge source of revenue thanks to its supply management strategies and logistics activities With the criterion of providing fresh meat, fish and green vegetables Bach Hoa Xanh is always looking for the best supply sources and that is proven through the financial situation of Bach Hoa Xanh in the pre-epidemic situation At that time, Bach Hoa Xanh was one of the trusted supermarkets and the choice of many people Especially, during the pandemic, Bach Hoa Xanh has a door-to-door delivery program The attraction of this program is the fast delivery at the promised time, right product and night location Those things have brought Bach Hoa Xanh a large number of loyal customers

Besides, Bach Hoa Xanh has not invested in a modern logistics warehouse system like Vinmart in receiving, storing, and distributing to the store system, commensurate with the current investment in more than 2,000 stores

2 Manufacturer Storage with Direct Shipping

2.1 Distribution network model:

With plans to dominate the traditional market share, Bach Hoa Xanh can apply the Manufacturer Storage with Direct Shipping distribution network

This distribution network will allow Bach Hoa Xanh to store goods at manufacturers and ship directly from manufacturers to customers This helps reduce storage and transportation costs while minimizing customer waiting time This distribution network also helps Bach Hoa Xanh optimize inventory management and minimize inventory risks

The Manufacturer Storage with Direct Shipping distribution network was chosen because it helps Bach Hoa Xanh optimize costs and shipping times while minimizing inventory risks It also helps Bach Hoa Xanh optimize inventory management and minimize storage costs With this distribution network, Bach Hoa Xanh can provide customers with fast and efficient shipping services

Manufacturer

Cc > Customers

Ferrari

m5 " Information Flow

Figure 3 - Manufacturer Storage with Direct Shipping

° Manufactures

Build strong partnerships with trusted manufacturers to ensure stable supply and product quality Sign a contract directly with them to minimize intermediary steps and reduce related costs Establish strict quality control procedures and continue to monitor production operations to ensure that products meet customer standards and expectations Optimize delivery schedules by using transportation information systems and applying advanced delivery solutions

¢ Retailer

Build a Manufacturer's Warehouse to ensure the safety and effective preservation of inventory from the manufacturing process Organize a direct delivery model from the production warehouse to the store without going through a centralized distribution center, helping to optimize the shipping process Apply a modern inventory management system to track inventory levels accurately and effectively Use an automated order management system to reduce errors and optimize the ordering process At the same time, build promotional programs and special offers for loyal customers, creating a positive shopping experience and encouraging customer engagement By integrating technology and taking advantage of advances in business processes, Bach Hoa Xanh can respond quickly and flexibly to changes in customer demand and market dynamics

« Customers

Enhance your customers’ shopping experience not only by providing quality products but also by reducing shipping costs Apply a live shipping and order tracking system to optimize the shopping process, creating a memorable shopping experience

Develop easy-to-use mobile applications and websites, providing detailed product information to facilitate searching and purchasing At the same time, train customer service staff to become a reliable source of information, creating quick communication channels to solve all customer problems

Work closely with reputable manufacturers and implement strict quality control to ensure that products meet the highest standards This means building customer trust and providing a unique and trustworthy shopping experience

2.2 Reasons for Choosing the "Manufacturer Storage with Direct Shipping" Model

« Reduce Shipping Costs

Implement a direct delivery strategy - from manufacturers directly to stores without unnecessary intermediaries Not only does this improve overall process efficiency, it also results in a significant reduction in transportation costs, expanding operational opportunities and resulting in more significant cost savings This not only makes the supply chain more efficient but also paves the way for flexibility and convenience in process management

¢ Process Acceleration

Removing unnecessary distribution centers is key to speeding up the process from production to final product delivery to customers This not only saves time but also optimizes every step in the supply chain, providing a faster and more efficient shopping experience for customers

¢ Ensuring Stable Supply

Cooperating with a variety of manufacturers not only ensures supply diversification but also optimizes distribution, minimizing negative impacts when there are sudden disruptions in the supply chain This is not only a protection strategy but also an important step to ensure the flexibility and stability of business operations 1n the face of any fluctuations

¢ Optimize Inventory Management

Take advantage of advanced forecasting and inventory management systems, track new trends but also accurately forecast demand This helps minimize unnecessary mventory, creating a more flexible and efficient business environment

¢ Better Shopping Experience

Shipping directly from the manufacturer not only reduces delivery times but also creates a faster and more seamless shopping experience for customers Increasing convenience but also highlighting the ultimate shopping experience, puts the customer at the center of every delivery process

3 Recommend a transportation network design that would work best for above- recommended distribution network design

Adapting to change is not only a strategy but also a critical component of long-term success

in the dynamic food retail sector The necessity to reevaluate and enhance the Green Foods chain's distribution system is underscored by its recent restructuring, which included a reduction in the number of locations and a change in leadership In this context, the design of

an efficient transportation network has significance, as it has a direct bearing on cost- effectiveness and operational performance In addition to overcoming the difficulties brought on by the reorganization, Bach Hoa Xanh hopes to strengthen its position in the highly competitive food market by optimizing its transportation network The Green Foods chain can serve as a roadmap to recover and strengthen when examining the intricate details

of this transition

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Figure 4 - All Shipments via Central DC model