Ho Chi Minh City, 5 October 2022 – Third-party logistics provider FM Logistic has been awarded a contract from gro24/7, one of the largest B2B e-commerce platforms in Vietnam, to provide warehousing and Urban Logistics services.
FM Logistic will handle warehousing operations for gro24/7 from its multi-client urban distribution centre in Di An, Binh Duong, close to Ho Chi Minh City, and help gro24/7 fulfill and deliver orders by SME retailer. From Di An, the products will be delivered to 60% of Ho Chi Minh City’s districts as well as to the entire South-East region.
Collaboration to supercharge B2B operations
“gro24/7 is one of the most utilised B2B e-commerce platforms by grocery store owners in the country. After a relatively short time in operation, we reached the milestone of serving 20,000 retailers in Ho Chi Minh City. We are trusted by more than 23 major FMCG manufacturers and distributors, representing 70 famous brands with hundreds of products. To support operations on this scale, we needed a strong logistics partnership like FM Logistic Vietnam who will help make our supply chain faster and more cost-effective. We are thrilled by their value-added services and have chosen them as a strategic partner after one month of operation for their contribution tothe development of gro24/7.” said the company’s CEO, Son Pham.
“A fast and flawless supply chain is critical for brands to strengthen their identity while reinforcing customer-facing operations. We are confident that our cooperation will take gro24/7 several steps toward its ambition of sustainable supply chain operations. The end-to-end digital suite of FM Logistic featuring WMS, last mile management system and API integrations will ensure a high level of operational efficiency while driving down environmental impact across the entire logistics operations of gro24/7,” said Hamza Harti, Managing Director for FM Logistic Vietnam.
Urban logistics in Asia: A transforming urban landscape on the back of changing consumers’ needs
With clear trends of accelerating urbanisation and the rise of e-commerce (both B2B and B2C), Asian cities are increasingly experiencing issues related to the delivery of goods in urban areas. The rising number of urban vehicles is leading to increased congestion, air pollution and noise, which negatively impact traffic safety, quality of life and urban economic competitiveness. These consequences put pressure on brands, manufacturers and distributors to find innovative ways to get their products delivered to consumers with a minimal footprint and environmental impact. Logistics providers have therefore a major part to play in building and optimising long-term and sustainable urban logistics models for clients.
According to the latest published whitepaper from FM Logistic “Urban logistics challenges: Ho Chi Minh City”, Vietnam retail landscape is 88% unorganised, with small independent mom and pop stores making up about 40% of the market, presenting a massive opportunity to digitise and drive efficiencies in the value chain.
“By combining infrastructure, technology and collaborations, value creation within urban logistics can be augmented, specifically in the hopes of defining sustainable economic models. Outsourcing supply chains to a specialist such as FM Logistic can help consumer goods companies respond quicker to these urban logistics challenges and increase operational efficiency,” saidFM Logistic Asia Managing Director Stephane Descarpentries.
FM Logistic held an event to disseminate some of the key insights of its urban logistics industry whitepaper, highlighting the predominant trends shaping omnichannel and urban logistics across Vietnam on October 4. Taking place in Ho Chi Minh City, the event featured FM Logistic experts discussing the success factors to redefining urban logistic flows, followed by a casual networking opportunity.
Most grocery store owners, either new or operating business for years, have been facing plenty of obstacles in product sourcing such as impossibility to get goods directly from manufactures, price instability, lack of customer care and quality delivery services. Given such challenges, gro24/7 is established with “Authentic Product, Superior Service” as narrator, to better the experience of store owners. As a B2B e-commerce platforms specialized for retail business which in small and medium size, gro24/7 not only provides quality products directly from Top-tier FMCG Manufactures namely Unilever, Heineken, Suntory PepsiCo, Nestle, Kinh Đô Mondelez but also offers excellent customer services to our beloved retailers.
We began operations in Vietnam in April 2021 with 5 people and reached the 20,000-retailer milestone in Ho Chi Minh City after 1 year. Our goal is to serve the medium & small retailer to better their business because they deserve it.
For more information, visit us at www.vn.gro247.com
About FM Logistic Vietnam
FM Logistic Vietnam is a 100% owned subsidiary of FM Logistic Group with regional headquarters in Singapore. FM Logistic Vietnam covers an area of more than 60.000 sqm with 350 employees operating on 7 platforms. With a nationwide network of local transport partners and fully digitized operations (WMS, TMS, OMS, BI solutions), FM Logistic Vietnam aims to become the leading third-party logistic (3PL) in Vietnam and focus on the main priorities of building sustainable & competitive domestic supply chain solutions for Retail operators, FMCG brands and Industrial customers in North & South Vietnam. Currently, FM Logistic Vietnam has 3 warehouse locations, including FM Logistic VSIP Bac Ninh Owned grade A urban DC, FM Logistic Urban Distribution Center in Di An, Binh Duong Opened on March 15th, 2022 and FM Logistic VSIP 2 Binh Duong Owned Multi-Client Facility (MCF) set to be opened in December 2022.
For more information, visit us at www.fmlogistic.vn
Created in France in 1967, FM Logistic is an independent, family-owned company that provides omnichannel supply chain solutions to companies in the FMCG, retail, beauty & cosmetics, industrial manufacturing, and healthcare industries. Its services include warehousing, omnichannel fulfilment, co-packing, domestic and international transport, as well as supply chain control tower services. It is active in more than 14 countries across Europe, Asia, and Latin America. FM Logistic posted revenues of €1.38 billion for the fiscal year ended March 2021. It has 27,200 FTE employees.
For more information, visit us at www.fmlogistic.com, Twitter @FMLogistic, and on LinkedIn at https://www.linkedin.com/company/fm-logistic/mycompany/