Recently, Mobile World Investment Joint Stock Company held an investor meeting to summarize the first quarter of 2022. During the meeting, Chairman Nguyen Duc Tai shared how Bach Hoa Xanh manages the delivery segment and his view on the Vietnamese logistics industry.
According to mr. Tai you need reliability and a fast delivery time when purchasing online. If a housewife runs out of cooking oil and orders it online, she cannot wait 3 days for delivery. † We realize that this industry is very different from buying a dress, a pair of shoes. Those things can wait 3 days, when it is convenient to deliver, but the things we do, people don’t accept them. delivery conditions are not so said the chairman of Mobile World.
Mobile World is currently building another online business model, which is online with high accuracy and promises to do anything. If the customer says that the goods can only be received from 10 a.m. to 12 noon, the goods will be delivered at that time.
Not only that, the boss of Mobile World also wants to build a peer-to-peer delivery service, i.e. 1 delivery 1. For example, if a customer needs 1 kg of meat very urgently, within 60 minutes, a delivery person will pick up the goods directly deliver to customer’s home, ie 1-1 delivery to ensure speed.
Bach Hoa Xanh Delivery Team
In response to a question about the difference between Bach Hoa Xanh delivery service, Mr. Tai said, the difference lies in the fact that the company does not use third-party delivery services. According to him, the third-party delivery service only works to hold goods and pick up orders and then deliver them, using the model of sequential delivery, without any obligation to deliver.
Meanwhile, The Gioi Di Dong has its own subsidiary to manage the deliveries for Bach Hoa Xanh. In Ho Chi Minh City, there are 10 online delivery warehouses. When a customer places an order, the person at a nearby warehouse immediately gets up to take the order. If the customer wishes to collect the goods from 10 a.m. to 12 noon the following morning, the preparation of the order has been completed and completed before that time.
Then there is a team that goes to the warehouse to collect the goods, and that team is part of the company, not a third party. That team takes 10 orders to deliver 1 round and surely in 2 hours they will complete the delivery of those 10 orders. 10 warehouses spread over more than 20 districts, each warehouse serves only 2 districts and will reach the required speed.
With this model, Mr. Tai is confident that in the future the peer-to-peer delivery policy will also be very simple with the model he is building.
Speaking of the logistics industry, Mr. Nguyen Duc Tai said, “Logistics is a dream”. Mr. Tai’s dream is to have someone do good logistics so that his company can rent and only focus on buying and selling, because that is the power of retail.
†We’ve tried it a few times, and we don’t know if we’ll have to try again in the future, because there’s rage in it. Logistics is logistics, from managing goods to transporting goods from the point of receipt to the point of super. In Vietnam, it’s good to say, but no one did it right, I hope someone can do it fairly methodically.
I know they depend on third parties abroad. We have also traveled to Japan and Europe to talk to our business partners in the sector and they indeed use third party services. The supplier only delivers to the warehouse, which is managed by a third party. That third party receives delivery orders to the stores and they arrange the collection, delivery and timeliness themselves.
It’s a dream that I hope someone can do in Vietnam, but so far I feel like no one has been able to make it come true. We had only done a few transport-related services, and after a few months of being obsolete, we gave up. We said to someone in the business, ‘You’ve been in the business for ten years, but why do I have to work 2-3 years to get ahead of you?’ That’s what’s happening in Vietnam †
In that context, The Gioi Di Dong doesn’t know who to outsource to, if the company isn’t too specialized in logistics, but the things it makes are deeper and more certain than other companies in the industry. † I don’t understand why the market is still like this after so many decades, said Mr. Tai.
Mr Tai confirmed: † Logistics in Vietnam is extremely underdeveloped, extremely inefficient, very bad † † This is a great opportunity for foreign companies that are strong in logistics. † Whoever has the power to build a logistics company to the destination in Vietnam will surely win. The Gioi Di Dong focuses on retail, so he doesn’t spend any time on that † said chairman of the Gioi Di Dong.
Source: CafeF
