Procurement

Stategy
RETAILING INDUSTRY IN 2022

BY YOUTH FLAME TEAM

 3 MAIN PROCUREMENT STRATEGY

1. Re-evaluate merchandise, and inventory management

2. Suppliers Management
3. Cooperation in purchasing seasonal agricultural
products meeting Global Gap standards
Over view of
#1 Retail market
#2 Winmart
#3 Strategy of Winmart
Retail market in recent times
The effect of covid-19 on retail market
Top 4 difficulties of retail businesses in
the period of covid-19
Outlook for retail market in 2022
 WIN M A RT & WIN M A RT +

Established in 2014
Belonging to Massan Group since 2020

MISSON "Shop with peace of mind everyday"

Become the leading retail system in Vietnam,

VISION leading in providing consumer products and
service quality in Vietnamese life.
 Competitive Advantages

The number of supermarkets and retail stores is the

largest, more than 132 WinMart supermarkets and nearly
3000 WinMart+ stores across Vietnam
Owning 15 food safety testing stations nationwide, the
analysis results are recognized in the international market
Backed by Vietnam's leading consumer goods
manufacturer: Masan
General Strategy

Expanding store Omnichannel Cooperation to

network (Available on promote domestic
M&A strategy Lazada) agricultural
(10,000 stores by products
2025)

1
STRATEGY

Re-evaluate merchandise,
inventory
 Current situation

Challenge
Decline in purchasing power and revenue
Lack of investment from shareholders
Broken supply chain.

Opportunity
Market share of modern trade channel increase
due to the travel restriction of Covid-19
Category management - Kraljic matrix

Identify needs from both internal and external customers

All good and services purchased can be classified into 4 types
Category management - Kraljic matrix

For strategic items:

Strengthen with strategic suppliers to
make a long-term supply plan.
For strategic items:
Negotiate with supplier for large and
continuous supply with acceptable price

For bottleneck items

Using multiple suppliers approach and
keep extra stock
For non-critical items:
Develop an automatic purchase systems
Category management - ABC Classification

Use ABC classification

for top 5 sale
merchandise
categories

Fresh and dry food

Fruit
Drink
Confectionery
Chemical, detergent
Category management - ABC Classification
Specific strategies for each kind of products
Inventory management
Product characteristic
Type: mainly perishable goods
Shelf life: low
Demand pattern: high,
increasing trend and high
fluctuation rate.
Inventory KPI
Inventory policy
Multi-product with continuous (Q,r)
review model
Keep safety stock to increase
service level
Using VMI to connect with strategic
supplier
Strategy 2: Winmart 's
suppliers Management
#1 Winmart has more than 100 suppliers
Products of Masan consumer
#2 Winmart online sales
Online shopping trends
#3 Green supply chain of Winmart

3-Green:
Green Vinmart
Green customers
Green suppliers
 WINMART &
WINMART+

Strategy 3
Cooperation in purchasing seasonal agricultural products
meeting Global Gap standards
The basis of strategy
formation

Successfully cooperated with Cooperatives

and Suppliers in Bac Giang to purchase and
consume about 2000 tons of Luc Ngan
lychee during the Covid epidemic.
 Strategy
Cooperate with Cooperatives, Suppliers in the Central
Highlands to purchase agricultural products that meet
Global Gap standards

Developing online sales, continuing to cooperate with

Lazada e-commerce platform

WINMART &
WINMART+
 Supplier Identification

Sourcing strategy
Agricultural products Development of long-term relationship
=> Strategic items Collaboration and innovation
Natural scarcity

Existing supplier New supplier

Familiarity and track record (quality, Identify potential suppliers (Agricultural
price, system, delivery) products of the Central Highlands)
List of preferred suppliers Evaluate and qualify
 Negotiation Strategy

EOQ formula (predicting order quantity)

Q=EOQ units
D=Demand in units (typically on an annual basis)
S=Order cost (per purchase order)
H=Holding costs (per unit, per year)​

Understading needs of Cooperatives and Suppliers

Understanding what we have and highligt the benefits
brought to suppliers
RISK
Increase
MANAGEMENT Inventory Cost
Short term loss -
> Backup money
-> Invest in ERP
Although our strategies sound brilliant,
there is still some major drawbacks.

Demand <
Problem with competitors Increase Supply
-> Consider increase influence. management -> Use local
In the worst case, consider Cost fruits as basic
divide the market -> Invest in ERP ingredients for
drinks,...
RISK MANAGEMENT

Re-evaluate merchandise

Supplier management

Cooperation in purchasing seasonal agricultural

products meeting Global Gap standards
Quang Hieu Ha Dieu Linh Le The Kien

Tot Dang
-Leader-
Youth Flame Team
Thank you for your attention
YOUTH
FLAMES