FM Logistic awarded contract from Vietnamese technology company VinShop
Logistics provider FM Logistic has been awarded a contract from VinShop, one of Vietnam’s largest purchasing organisations, to provide warehousing and order fulfillment services. The services will support VinShop’s new online marketplaces VinShop and VinID. VinShop acts as an intermediary between Vietnam's myriad of small independent stores and large consumer goods companies.
Under the agreement, FM Logistic will use its warehouse and distribution centre at Băc Ninh, near Hanoi, to store and prepare goods for delivery to retail stores across northern Vietnam. Inaugurated in May 2020, the $30 million logistics centre will handle fast-moving consumer goods, such as ambient food, drinks, home and personal care products.
According to a 2020 Deloitte study (The Vietnam Consumer Survey. An accelerating momentum), Vietnam’s retail sector experienced a growth rate of 11 per cent between 2013 and 2018. Although e-commerce and organised retail are rising quickly, small independent stores continue to dominate the Vietnamese retail landscape. VinShop plans to help small stores become more competitive through better sourcing, technology and supply chain management.
“With the vision and promising goals to be the largest logistics network in Vietnam, VinShop focuses on investing resources on innovative technology, and developing data platforms, in order to manage and optimise logistics services and supply chains on a large scale. Therefore, a strategic partnership with FM Logistic will aggregate value to VinShop’s business by leveraging FM Logistics’ advanced resources and operating capabilities, along with ensuring an increase in the supply chain productivity and optimizing costs in the stages,” said Nguyen Tran Thi, VinShop’s Logistics director.
“The Vietnamese market holds tremendous potential for retailers but competition is fierce. In Vietnam as elsewhere, efficient logistics management is key to developing omnichannel strategies and delivering a consistent customer experience across retail channels. We are proud to help VinShop support the competitiveness of Vietnam’s traditional retail sector,” said Hamza Harti, FM Logistic’s country managing director for Vietnam.
FM Logistic’s revenue in Vietnam doubled in the fiscal year ended March 2020, helped by contract wins and the addition of storage space. Among its other retail customers in the country are Emart and My Kingdom.