Subject SUPPLY CHAIN MANAGEMENT TABLE OF CONTENS I Company Overview 3 1 Introduce about the company 3 1 1 Stages of company development 3 1 2 Vision 5 1 3 Mission 5 1 4 Core values 5 2 The reason our team choose Trung Nguyen 6 2 1 Why did our group choose the coffee business in Vietnam? 6 2 2 Why did our group choose Trung Nguyen company? 6 2 3 Why did our group choose the G7 instant coffee product? 6 II Supply chain of the Trung Nguyen 10 1 Stages of Supply chain.
Company Overview
The reason our team choose Trung Nguyen
2.1 Why did our group choose the coffee business in Vietnam?
Coffee is a vital business commodity, with Vietnam's coffee industry gaining prominence in the global market Annually, this sector generates substantial revenue, providing employment and improving the livelihoods of hundreds of thousands of families, particularly in the Central Highlands These accomplishments underscore the coffee industry's significance in the national economy and its contribution to the country's industrialization and modernization efforts.
2.2 Why did our group choose Trung Nguyen company?
Trung Nguyen Coffee is a renowned Vietnamese brand that has gained international recognition, representing the pride of the nation's coffee industry While coffee cultivation has a long history in Vietnam, Trung Nguyen stands out as a leading brand, available in over 60 countries worldwide, showcasing the quality and reputation of Vietnamese coffee on the global stage.
According to B&Company Vietnam and Nikkei BP Consultancy, Trung Nguyen coffee group is one of the most popular brands in Vietnam, next to Vinamilk and Vietnam Airlines.
2.3 Why did our group choose the G7 instant coffee product?
Vietnam's instant coffee industry presents significant potential, as 70% of consumers outside major cities favor this convenient and competitively priced option In mid-2012, Trung Nguyen revealed market research from AC Nielsen, highlighting that G7 has emerged as the leading instant coffee brand in Vietnam, both in market share and consumer preference With ambitions to expand globally, G7 instant coffee is now exported to 60 countries, including key markets like the United States and China.
Trung Nguyen's products are divided into 5 groups
Roasted and ground coffee includes Mixed product groups (I, S, Brown, Premium Blend, Gourmet Blend, House Blend), Filtered (1,2,3,4,5), Creative (1,2, 3,4,5,8)
Includes G7 3in1, 2in1 (Ice Black), Dissolve Black, Strong Gu X2 (2in1 and 3in1), Cappuccino, Passiona and White Coffee - silver suu
❖ Trung Nguyen coffee beans: Espresso, ground beans.
Experience the delightful fusion of sweet, milky aroma and rich coffee flavor with Vietnamese milk coffee, enhanced by Brothers Sugar Condensed Cream This unique blend not only delivers an irresistible taste but also incorporates essential Vitamins B1 and B6, promoting overall health and wellness.
❖ Stage 2: Sorting and testing raw coffee
❖ Stage 5: Drying and drying green coffee
❖ Stage 6: Roasting and grinding green coffee
● Pre-stripping: Before reducing solutes, volatile compounds must be removed. Usually this is done by passing steam through the roasted and ground coffee.
Soluble coffee solids are produced using water as a solvent, enabling the extraction of dissolved substances This extraction can be achieved through three primary methods: filter reduction via percolation batteries, reduction using a counter-current system, and slurry extraction.
Percolation batteries utilize a network of pipes to brew coffee by passing hot water through the system This process effectively extracts dissolved substances from the coffee, which are then separated and discharged, resulting in a rich and flavorful beverage.
The counter-current system decanting method involves placing coffee in an inclined chute, where it is propelled upwards by two high-speed rotating screws Hot water is introduced at the top of the chute, which reduces the coffee solubles, allowing the solution to flow out from the bottom While effective, this method is costly and not ideal for small-scale production.
- Slurry extraction: Coffee and water are mixed together in a tank, then separated by a centrifugal pump This is also a very expensive method.
After extraction, we cannot dry it because the concentration of coffee solution is 20-22% at this time To facilitate the drying process, the extract must be concentrated to a concentration of 30-33%.
There are two drying methods:
Freeze drying is a coffee processing method that involves evaporating water to create a concentrated coffee solution, which is then cooled to -40°C to form ice crystals Through sublimation, the solid ice is transformed into vapor, leaving behind dry instant coffee beans While this method is time-consuming, it effectively preserves the rich flavor of the coffee better than the spray drying technique.
The spray drying method for producing instant coffee involves spraying a concentrated coffee solution into a chamber filled with hot air, where the circulation of air evaporates the water and leaves behind dry coffee powder This technique is simpler than freeze-drying but can lead to a loss of flavor if the temperature is too high Additionally, if decaffeination is required, it must occur prior to the roasting process.
Supply chain of the Trung Nguyen
Stages of Supply chain of the Trung Nguyen
G7 instant coffee is made from high-quality, pure Robusta coffee beans sourced from the pristine basalt soil of Buon Ma Thuot Consumers can purchase these coffee beans either from private businesses or through traders, ensuring a variety of options for coffee lovers.
Coffee beans from farmers, traders
Trung Nguyen has shifted its purchasing strategy to directly sourcing coffee from farmers, as relying on private businesses and purchasing agents has proven challenging due to defaults and inconsistencies in quality and quantity To ensure high standards, the company has invested in a 2,500-hectare UTZ-certified coffee farm in Dak Lak, collaborating with 1,500 local farmers This initiative not only secures a reliable supply of raw materials but also fosters strong relationships with coffee growers Farmers who engage in sustainable practices and hold certification can benefit from preferential pricing offered by Trung Nguyen.
Neuhaus Neotec Company - the world's leading manufacturer of coffee equipment in Hoykenkamp - Germany and FEA s.r.l - the leading Italian manufacturer of food processing equipment and instant coffee.
❖ Packaging suppliers: Phuong Nam Packaging Company Limited and Vinapackink.
Trung Nguyen currently has 5 factories engaged in producing G7 instant coffee
❖ Two coffee processing factories in Buon Ma Thuot, Dak Lak
❖ Trung Nguyen instant coffee factory (Di An - Binh Duong)
❖ Saigon Coffee Factory (My Phuoc - Binh Duong)
❖ Trung Nguyen Bac Giang Factory
Trung Nguyen Instant Coffee Factory, located in Di An, Binh Duong, along with Trung Nguyen Bac Giang Factory, focuses on the production of high-quality instant coffee Additionally, three other Trung Nguyen factories are equipped to handle both roasting and instant coffee manufacturing, ensuring a diverse range of coffee products.
The main product is coffee, Trung Nguyen uses both traditional and modern distribution methods to achieve the highest efficiency
Trung Nguyen has implemented a comprehensive traditional distribution system that ensures finished products reach various channels, including distributors, supermarkets like BigC, FiviMart, and Coopmart, as well as retailers, ultimately delivering to end consumers This extensive network guarantees that Trung Nguyen's products are consistently accessible to customers.
Trung Nguyen boasts an extensive network with 121 distributors, 7,000 sales points, and 59,000 retail stores across the nation and internationally Notable distributors include Blueway Joint Stock Company and Ngoc Ha Trading and Service Joint Stock Company.
❖ Modern distribution system: Chain of Trung Nguyen Legend Café and E-Coffee system
The E-Coffee system offers three cooperation packages tailored for different business needs: a 65 million VND package for existing coffee shops looking to transition to Trung Nguyen or for stores wishing to expand their coffee offerings, requiring a minimum area of 4m²; a 120 million VND start-up package for aspiring entrepreneurs entering the coffee industry, with shop sizes ranging from 8m² to 20m²; and a 'Prosperity' package priced at 175 million VND, providing comprehensive support from Trung Nguyen for larger establishments typically over 40m² Nearly 1,000 partners have already registered to join this initiative.
On December 21, 2019, the "Connect - Succeed with Trung Nguyen E-Coffee" program led to the signing of 200 contracts, boosting the total to over 500 within just four months of its official launch With 154 operational stores and an impressive expansion rate of 10 new stores per day, Trung Nguyen E-Coffee is attracting international interest from partners in China and Europe This momentum positions Trung Nguyen E-Coffee to become the world's leading coffee retail chain through its robust franchising strategy.
Trung Nguyen Legend Café is a prominent chain dedicated to offering premium coffee products while enhancing the coffee-drinking experience With a vision to create a unique and creative atmosphere for coffee enthusiasts, Trung Nguyen not only serves high-quality coffee but also fosters a deeper appreciation for its rich flavors Currently, the chain boasts 1,000 locations nationwide, making it a leading destination for coffee lovers.
Trung Nguyen coffee offers a diverse range of flavors and intensities to cater to various customer preferences With pricing options that accommodate different income levels, Trung Nguyen ensures accessibility for all coffee lovers For those seeking a distinctive coffee experience, visiting Trung Nguyen's coffee shop chains provides a unique opportunity to savor their signature brews.
Three flows
Trung Nguyen sources coffee beans from traders and farms, which are then processed in their factory to create instant coffee powder This powder is packaged for distribution to various retailers, allowing customers to purchase G7 instant coffee at supermarkets and grocery stores or enjoy it at Trung Nguyen cafes.
❖ Product low from Supplier to Manufacturer:
Trung Nguyen will order 3 months in advance and order the quantity for 1 year, for other materials the company usually orders 1.5 - 2 months in advance for the company's 2-3 months production needs.
Upon delivery, the company conducts a thorough inspection of the goods to ensure they meet quality standards and contractual agreements If any discrepancies are found, the company promptly informs the Supplier via email and adjusts the payment amount accordingly The company typically orders large quantities of raw materials from well-established suppliers known for their high-quality products, which are verified by reputable organizations As a result, instances of damaged goods are minimal In the event of damage during processing, the company will reach out to the supplier to arrange compensation in future orders.
Coffee beans from farmers, traders
Customer Reverse Product flow Product flow
Due to the high costs associated with returns and the limited quantity of damaged goods, there is no physical flow from the Manufacturer to the Supplier If Suppliers fail to deliver goods on time, provide subpar quality that impacts the final products, or unjustifiably raise prices, the Manufacturer may explore alternative Supplier options.
❖ Product low from manufacturer to distributor:
Once the manufacturer has completed production and packaging of the finished product, it is shipped to distributors Upon receipt, distributors conduct an external inspection to check for any defects or expired items, and they have the right to return any goods that do not meet quality standards.
❖ Product low from distributor to retailer:
Distributors will deliver products to retailers, including Trung Nguyen's franchised coffee shops, grocery stores, and supermarkets within their designated areas Retailers will acquire these goods at a price established in agreement with the distributor.
❖ Product low from retailers to customers:
● Coffee franchise shops to individual customers
At Trung Nguyen Legend Cafe and E-coffee stores, customers can savor coffee crafted to Trung Nguyen's high standards, while also exploring a selection of Trung Nguyen products showcased in-store to enhance their experience.
● Supermarkets to individual customers / institutional customers
Individual customers typically visit supermarkets to purchase the coffee they need or shop online through platforms like Shopee and Lazada In contrast, institutional customers tend to buy in bulk, placing their orders online for delivery directly to their agencies or organizations.
● Grocery stores to individual customers:
Individual customers can choose to buy Trung Nguyen coffee at grocery stores near their home to save time and travel costs.
The product low can go from customer to distributor and from distributor to manufacturer in many cases such as defective product, wrong delivery, shown by Trung Nguyen's return policy.
❖ Customers contact and agree to return and refund requests in the following cases:
● The customer has paid but did not receive the product, or did not receive all the ordered products, or received the product as a fake or imitation product;
● Product is defective or damaged during transit;
● Wrong product delivered to Buyer (e.g wrong size, wrong color, etc.);
● The product the customer receives is markedly different from the information provided in the product description;
● Returned products are not restricted products;
● The company has an agreement and agrees to the customer to return the goods.
● Customers can contact the company to return goods in the following ways:
● Cancel orders directly on Trung Nguyen Legend Café's website system
To cancel your order with Trung Nguyen Legend Café, please contact the hotline numbers to provide your order code, or you can also cancel your order through other channels such as their Fanpage or Zalo.
● Or proceed to cancel the order with delivery partners
● For orders that have not been received and sent a cancellation request
● For e-wallet payments, refunds will be made within 24 hours
● For payment methods by wire transfer, refunds will be made within 7 working days.
● For orders that do not receive goods, return shipping units
After the company receives the returned goods from the forwarder, customers will be contacted within 7 days for a refund The refund will be processed through the bank account or electronic wallet method specified by the customer at the time of the return.
● For COD orders, customers actively refuse to receive goods with the shipping unit.
Information flow in a transaction occurs in two directions: from seller to buyer and from buyer to seller The seller provides the buyer with essential details about the product, including its quality and price Conversely, the buyer communicates their needs to the seller, specifying the quantity and type of product required, along with any feedback regarding quality and pricing.
The communication between manufacturers and suppliers typically occurs through hotlines, emails, and faxes At Trung Nguyen company, the purchasing department engages directly with suppliers to receive price lists and determine order quantities based on production needs Subsequently, both parties negotiate the transportation schedule and methods.
Once processing is finalized, the processing plant communicates with the reverse distributor to facilitate product delivery, while the distributor updates the processing plant regarding any variations in shipments, quantities, and packing specifications.
❖ From Manufacturer to Institutional/Individual Customers and reverse: Manufacturers will advertise their products on e-commerce sites: Shopee, Lazada, …or on TV advertisements to easy access to its customers Facebook
Coffee beans from farmers, traders
Information flow ad maker, get feedback from customers From there, improve the product to match the tastes of users.
Distributors and retailers, including concessioned coffee shops, supermarkets, and grocery stores, engage in a streamlined supply chain process Retailers communicate their inventory needs to distributors when stocks are low In response, distributors assess their inventory levels, negotiate competitive pricing, and confirm delivery within 2-3 days, ensuring efficient restocking and customer satisfaction.
Trung Nguyen coffee shop offers genuine products and allows individual customers to register as members for exclusive deals By utilizing customer information and invoices, the shop gains insights into business trends and popular coffee selections, enabling them to develop effective business strategies.
Customers frequently inquire about product prices and names at grocery stores, seeking clarity from store owners In response, store owners address these questions and establish pricing for the items customers wish to purchase.
Coffee beans from farmers, traders
❖ From Manufacturer to Suppliers: Since the manufacturer will buy a large quantity of supply from the supplier, they will usually pay by bank transfer.
The competitive strategy and supply chain strategy
The competitive strategy
Trung Nguyen's competitive strategy focuses on differentiation and uniqueness, combining the finest coffee beans with advanced technology and their unique expertise to produce the exceptional G7 instant coffee This product boasts a remarkable quality rating of 89%, rivaling the world's top coffees from Switzerland While striving for global brand recognition, G7 coffee maintains its Vietnamese cultural identity, emphasizing "real coffee" and a commitment to serving the community.
The supply chain strategy
Supply Chain strategy: Trung Nguyen has used the responsiveness strategy This strategy is demonstrated through the following responsiveness:
Trung Nguyen instant coffee factory in Di An - Binh Duong has a designed instant coffee processing capacity of 3000 tons/year
The Trung Nguyen Bac Giang factory has a designed instant coffee processing capacity of 100 tons/day
Saigon Coffee Factory (My Phuoc - Binh Duong) has a designed instant coffee processing capacity of 1,500 tons/year
Two factories have workshops for processing instant coffee in Buon Ma Thuot, Dak Lak
With 121 distributors and a vast network of 7,000 points of sale, including 59,000 retail stores nationwide, Trung Nguyen Legend Café and E-coffee systems ensure exceptional availability and responsiveness The expansion of coffee stores across the country significantly enhances customer convenience.
Diversity Responsiveness: G7 instant coffee product line is very diverse, suitable for many male or female customers and suitable for each coffee taste such as
G7 3in1 Coffee: instant coffee, made from coffee beans in Buon Ma Thuot and using advanced German roasting technology.
G7 2in1 Coffee: instant black coffee, a product line for those who like to drink iced black coffee.
G7 instant black coffee: with 100% black coffee ingredients, convenient for users to make coffee.
Strong G7 Gu Coffee X2: with a taste twice as strong as instant coffee products of the same type, including 2 product forms, 2in1 and 3in1.
G7 Passiona 4in1 Coffee - Coffee for women: a product with low caffeine content and added collagen.
G7 Cappuccino Coffee offers a unique selection that includes G7 Cappuccino Hazelnut, G7 Cappuccino Coconut, and G7 Cappuccino Mocha, all enriched with delightful flavors of milk and cream What sets G7 coffee apart is its distinctive taste, making it easily recognizable and unlike any other brand available in the market.
Ability to meet different consumer needs through packaging
Box form has 18 packs/box, 21 packs/box In the form of bags, there are 50 packs/bags, 20 packs/bags
Some lines of 2-in-1 coffee, cappuccino, etc have a special packaging of 12 packs/box, 15 packs/box
For packing specifications, G7 3in1 coffee is packed in 24 boxes/carton G73in1 pack 50 packs packed 10 bags/carton, 20 packs packed 24 bags/carton.Cappuccino, Passiona packing 6 boxes/carton.
Six drivers that determine the performance of Trung Nguyen’s supply chain
Facilities
Trung Nguyen uniquely blends cutting-edge technology with the enigmatic traditions of the East Backed by leading global corporations and utilizing eco-friendly practices, Trung Nguyen has evolved from a modest coffee roasting facility into a robust corporation with a strong infrastructure.
Trung Nguyen currently has 2 factories specializing in the production of instant coffee and 3 factories designed for both roasting and instant coffee production.
❖ Coffee processing factory in Buon Ma Thuot, Dak Lak
Trung Nguyen Coffee Co., Ltd commenced construction of the largest coffee processing factory in the Central Highlands on October 21, 2003 This facility features two workshops dedicated to processing powdered and instant coffee, with a total investment exceeding VND 152 billion Notably, the instant coffee workshop, equipped with advanced European technology, represents an investment of over 120 billion VND.
❖ Trung Nguyen instant coffee factory (Di An - Binh Duong)
Trung Nguyen Coffee Company put into operation G7 Instant Coffee Factory at Tan Dong Hiep A Industrial Park, Binh Duong Province on November 2, 2005.
● Capacity of 3,000 tons of instant coffee/year
● Total investment capital is over 10 million USD.
● The factory's entire line of equipment and technology is manufactured and transferred directly from FEA s.r.l - an Italian company specializing in manufacturing food processing and instant coffee equipment
Investing in a state-of-the-art production plant is essential for Trung Nguyen to effectively compete with regional and global coffee brands This facility will increase export capacity and elevate the value of Vietnamese coffee on the international stage.
❖ Trung Nguyen coffee processing factory in Tan An 2 industrial cluster, City. Buon Ma Thuot (Dak Lak): started construction on June 9, 2009
● Capacity of 60,000 tons of green coffee and 30,000 tons of powdered coffee/year
● Total investment capital is 40 million USD.
● According to the design, along with a closed roasting and grinding line, packaging coffee products, the factory also installs an instant coffee production line.
Saigon Coffee Factory (My Phuoc - Binh Duong): The factory was acquired from
Vinamilk Dairy Joint Stock Company in 2010
● Processing capacity of 1,500 tons of instant coffee and 2,600 tons of roasted coffee per year
● Total investment capital is more than 17 million USD
The acquisition of the Saigon Coffee factory is set to enhance Trung Nguyen's production capabilities, potentially raising its annual output to 30,000 tons of finished coffee, according to Le Tuyen, the Marketing and Communications Director of Trung Nguyen.
❖ Trung Nguyen Bac Giang Factory: is the largest instant coffee factory in Asia, officially inaugurated at Quang Chau-Viet Yen Industrial Park, Bac Giang province on March 28, 2012.
● Design capacity more than 100 tons/day
● With a total investment capital of 2200 billion VND
● The first phase focuses on processing and packaging G7 instant coffee products. The second phase is to invest in a processing technology system to meet the growth of the export market.
On November 20, 2021, the factory officially integrated into the Trung Nguyen Legend Group's production and supply chain, delivering G7 instant energy coffee that meets the group's quality standards This facility caters to the Northern region and the lucrative Chinese market, responding to the growing demand for G7 products The expansion comes in light of challenges faced by the group's production chain due to the Covid-19 pandemic impacting operations in Binh Duong and Buon Ma Thuot.
Trung Nguyen Group Legend is enhancing its production capabilities by investing in new machinery and facilities at its Bac Giang factory This expansion is projected to boost production by 25-50% in 2022, leading to the creation of over 400 jobs for local workers.
Trung Nguyen stocks raw materials and finished products at the factory's warehouse.
Inventory
Trung Nguyen holds a prominent position in the coffee production industry, consistently meeting customer demand for its products To address the increasing market needs, the company adopts effective inventory production strategies, ensuring a substantial volume of products is ready before orders are placed This approach enables Trung Nguyen to maintain adequate inventory levels and respond swiftly to customer requirements.
Transportation
❖ Trucks are vehicles used by the company to transport raw materials to the manufacturing plant and finished products to distributors
❖ The company cooperates with shipping companies such as Mekong Logistics to transport finished products to its distributors.
Trung Nguyen partners with reputable delivery services, including Grab, GHN, GHTK, and ViettelPost, alongside its internal delivery team, to guarantee nationwide delivery of goods directly to customers.
Information
When designing supply chain processes, managers need to identify whether they fall under the push or pull phase, as different systems necessitate distinct information types Trung Nguyen employs a push strategy, utilizing market demand forecasting to formulate master production schedules and coordinate with suppliers regarding part types, quantities, and delivery timelines.
Trung Nguyen has enhanced its supply chain efficiency by implementing a Distribution Management System (DMS), which now connects with 120 distributors, streamlining processes by reducing paperwork and optimizing inventory and product cycles The DMS software provides essential information on orders, products, prices, promotions, and inventory levels, facilitating synchronized data management across the supply chain Additionally, with the rise of online shopping, Trung Nguyen launched the Coffee Hypermarket, an innovative online platform designed to enhance the consumer shopping experience Collaborating with Magenest, Trung Nguyen integrated the Magento system with ERP, SAP, HANA, and POS systems, ensuring seamless synchronization of inventory, customer data, and revenue across platforms As a result, Trung Nguyen has seen a significant increase in online sales revenue, with improved order processing speed, organized customer information, and flexible incentive programs.
Sourcing
Supplier selection plays a crucial role in shaping the competitive dynamics and negotiating power within an industry A limited number of large suppliers can create significant competitive pressure, which in turn impacts the production and operational activities of businesses in the sector.
Trung Nguyen has partnered with top suppliers for coffee production equipment, choosing Neuhaus Neotec, a leading manufacturer based in Hakenkamp, Germany, and FEA s.r.l, a premier Italian company specializing in food processing and instant coffee machinery.
Trung Nguyen is actively sourcing strategic raw materials by investing in and managing coffee farms owned by local farmers in Dak Lak This approach allows Trung Nguyen to maintain low prices and shipping costs, effectively eliminating competitive pressure from suppliers at this time.
Trung Nguyen has launched training courses aimed at equipping farmers with essential techniques, significantly enhancing the sustainable coffee cultivation area to 2,500 hectares with the involvement of 1,500 farmers This initiative is part of Trung Nguyen's strategic efforts to elevate the quality of raw materials for their unique coffee products By implementing UTZ standards in their sourcing areas, Trung Nguyen ensures product traceability, supports environmental protection, adheres to trade regulations and international labor conventions, and meets stringent global market standards.
In 2022, the average market price for coffee beans ranged from 40,600 VND/kg to 41,200 VND/kg Trung Nguyen has made significant investments in its coffee farm system, ensuring it purchases all green coffee products at a price that exceeds the market rate by over 400 VND/kg.
● Supply quality: The farms must ensure to participate in the training program and comply with UTZ standards, the equipment and machinery suppliers are all famous companies abroad.
Pricing
The pricing of G7 instant coffee is comparable to other brands, with Trung Nguyen maintaining stable prices to align customer perceived value with their costs The company actively monitors market fluctuations and consumer trends to adjust prices as needed, responding to market volatility and competitor movements For instance, during the economic downturn in 2012, rising coffee prices impacted demand, prompting Trung Nguyen to implement price stabilization, which resulted in G7 achieving the highest sales volume among competitors that year However, by 2013, Trung Nguyen had to raise prices to offset rising raw material costs.
G7 coffee offers a variety of options, including the 3 in 1 box with 21 packs at 48,000 VND, and the 2 in 1 coffee with 15 packs priced at 43,400 VND, with a bulk price of 972,000 VND for 24 boxes The 216g cappuccino coffee line is available for 50,000 VND, while Trung Nguyen's instant black coffee, featuring 15 packs of 2g, retails for 20,000 VND Additionally, G7's strong 3 in 1 coffee is priced at 44,600 VND for 12 packs of 15g, and Passiona Trung Nguyen's 4 in 1 coffee box, containing 14 packs of 16g, is available for 46,800 VND.
Distribution
Distribution system
Channel organization: Trung Nguyen's distribution channel is divided into 3 branches, all of which are vertically linked, each with its own distinct characteristics:
The traditional distribution system consists of three key levels that facilitate the delivery of products to consumers Initially, finished products are distributed to distributors, who then supply retailers, including grocery stores and supermarkets Finally, these retailers provide the products to the end consumer, ensuring a streamlined flow from production to purchase.
Trung Nguyen operates a franchise distribution system featuring over 1,000 franchised cafes both domestically and internationally Finished products are supplied to Trung Nguyen's franchise locations, including Trung Nguyen Legend coffee, before reaching the end customer.
Trung Nguyen employs a vertical distribution system, enabling direct distribution from manufacturers to supermarkets and retail stores, ultimately reaching customers without intermediary distributors This streamlined approach enhances efficiency and ensures that products are delivered directly to consumers.
Design for Distribution Networks
Retail storage with customer pickup
Customers can conveniently purchase Trung Nguyen products at various retailers, including supermarkets like BigC, FiviMart, and Co.opMart, as well as traditional markets and convenience stores Additionally, customers have the option to place orders through retailers' websites or by contacting us directly via phone.
Manufacturer or distributor storage with customer pickup
Trung Nguyen Legend Cafe and E-coffee stores stock goods Customers come directly to these stores to enjoy coffee.
Distributor storage with carrier delivery
Trung Nguyen ensures efficient stock management and delivery through its distribution management system (DMS), allowing nearby distributors like Blueway Joint Stock Company, Ngoc Ha Trading and Service Joint Stock Company, and Hoang Phuong Import-Export and Trading Co., Ltd to fulfill customer orders placed on the company's website or e-commerce platforms By partnering with reputable delivery services such as Grab, GHN, GHTK, and ViettelPost, along with its internal delivery team, Trung Nguyen guarantees prompt and reliable nationwide delivery of goods to customers.