Working Paper 2025.1.1.

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- Vol. 1, No. 1

PHÂN TÍCH VÀ ĐÁNH GIÁ HỆ THỐNG PHÂN PHỐI TẠI

WINCOMMERCE – MASAN
Phạm Thu Trà1, Nguyễn Thị Khánh Hằng, Vũ Thị Kiều Trinh
Sinh viên K61 Logistics và Quản lý Chuỗi cung ứng - Viện Kinh tế & Kinh doanh quốc tế
Trường Đại học Ngoại thương, Hà Nội, Việt Nam

Nguyễn Thị Yến

Giảng viên Viện Kinh tế & Kinh doanh quốc tế
Trường Đại học Ngoại thương, Hà Nội, Việt Nam
Tóm tắt
WinCommerce được tập đoàn Masan mua lại vào tháng 12 năm 2019 với mục đích mở rộng
lĩnh vực hàng tiêu dùng và tích hợp hoạt động bán lẻ vào hệ sinh thái của mình. Chuỗi cửa hàng
này cải thiện được lợi nhuận gộp nhờ tiết kiệm được chi phí vận hành và logistics nhờ một hệ
thống phân phối hiệu quả. Mục tiêu của bài viết này là nghiên cứu hệ thống phân phối hàng hóa
tới các chuỗi cửa hàng Winmart thuộc Masan Group, đưa ra đánh giá về thành công cùng đề
xuất cho những thách thức và chuỗi bán lẻ này đang đối mặt. Bằng phương pháp nghiên cứu
định tính, nhóm nghiên cứu đã thu thập thông tin về chuỗi phân phối của WinCommerce qua
các báo cáo hoạt động của chuỗi này cùng tập đoàn Masan và báo cáo đánh giá từ các cơ quan
chức năng. Thông qua việc phân tích dữ liệu thu thập được, bài viết chỉ ra rằng hệ thống phân
phối của WinCommerce đã tối ưu hóa quy trình phân phối và cải thiện hiệu quả cung ứng hàng
hóa cho các cửa hàng WinMart. Tuy nhiên chuỗi bán lẻ này cũng đối mặt với áp lực ngày càng
lớn trong việc giảm chi phí vận hành nhằm đảm bảo chiến lược về giá để thu hút người tiêu
dùng. Bài viết đề xuất WinCommerce tận dụng lợi thế về hệ sinh thái của tập đoàn Masan để
tối ưu hóa hoạt động logistics và duy trì lợi thế cạnh tranh.
Từ khóa: Masan Group, Wincommerce, hệ thống phân phối

ANALYSIS AND EVALUATION OF THE DISTRIBUTION SYSTEM AT

WINCOMMERCE - MASAN

1
Tác giả liên hệ, Email: k61.2212530049@ftu.edu.vn

FTU Working Paper Series, Vol. 1 No. 1 (03/2025) | 1

Abstract
WinCommerce, formerly known as VinCommerce, was acquired by Masan Group in December
2019 with the goal of expanding its consumer goods sector and integrating retail operations into
its ecosystem. This chain has been able to improve gross profit by reducing logistics costs
through an efficient distribution system. The objective of this article is to study the distribution
system of goods to WinCommerce system, providing an evaluation of successes and proposing
solutions for the challenges faced by this retail chain. Using qualitative research methods, the
research team collected information about WinCommerce's distribution network through
operational reports of the chain, reports from Masan Group, and evaluations from relevant
authorities. Through analyzing the collected data, the article reveals that WinCommerce's
distribution system has optimized distribution processes and improved the service level of
WinMart stores. However, the retail chain is facing increased pressure to reduce operational
costs to maintain competitive pricing strategies. The article suggests that WinCommerce should
leverage the advantages of Masan Group's ecosystem to optimize logistics operations and
sustain its competitive edge.
Keywords: Masan Group, Wincommerce, Distribution system.
1. Introduction
According to the Ministry of Industry and Trade, Vietnam's total retail sales of goods and
consumer service revenue at current prices in October 2024 were estimated at VND 545.7
trillion, up 7.1% compared to the same period last year, indicating strong growth prospects for
the country's retail market.
In the northern region, WinCommerce has become one of the standout retail businesses,
acquiring a significant market share with extensive coverage. The company aims to enhance
accessibility for consumers and adapt to changing shopping behaviors. WinCommerce has been
effectively implementing this strategy through an optimized distribution system that minimizes
costs while increasing its ability to meet customer demands.
This study applies principles of distribution systems to analyze and evaluate the distribution
network of WinCommerce. It highlights the company's successes as well as the challenges it is
currently facing. Based on these findings, the article aims to propose valuable recommendations
to enhance distribution operations at WinCommerce.

2. Overview of Masan Group and Wincommerce

2.1. Masan Group
2.1.1. History and development
Masan Group, established in Vietnam, has evolved significantly since its inception. Masan
Group’s first predecessor company was established in 1996, selling Asian foodstuff and other
consumer goods in Eastern Europe. Over the years, Masan has transformed into one of
Vietnam's largest conglomerates. Below is a timeline highlighting key milestones in Masan's
development.

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Table 2-1. Timeline of key milestones in Masan Group’s development

Year Event

Establishment of a small instant noodle factory in Russia, the predecessor

1990
of Masan Group.

Establishment of Minh Viet Industrial and Import-Export Joint Stock

2000-2002
Company, specializing in trading in the food sector.

Shifted focus from export to domestic markets, launching major brands

2002-2007
like Chinsu (2002), Nam Ngu, and Tam Thai Tu (2007).

The company was restructured and formally named Masan Group

2008
Corporation.

Aggressive horizontal expansion into the beverage sector and launch of

2011-2020
branded meat products like MeatDeli and 3F Viet.

Merger agreement with Vingroup to form WinCommerce, enhancing

2019-2021
Masan's position in retail.

Establishment of CrownX in 06/2020, integrating retail and consumer

2020-2021
goods.

Masan's mission is "Connecting all needs" - aiming to become the

2022 - Present leading modern consumer retail company that can satisfy up to 80% of
the spending needs in Vietnam.

Source: Synthesized by the authors

2.1.2. Areas of business
The company directly owns 3 subsidiaries, 76 indirect subsidiaries, 1 direct associate, and
3 indirect associates. Masan Group's core operations are structured around four main entities:
• The CrownX: Comprising two primary divisions:
o Food and Beverage (Masan Consumer Holdings - MCH): Branded food and beverage
products (Seasonings - Chinsu, Nam Ngu, Tam Thai Tu; Convenience Foods - Omachi,
Kokomi; Coffee - Vinacafe, Wakeup; Non-alcoholic Drinks - Vinh Hao, Quang Hanh, Wakeup
247; Beer - White Lion Ruby,..)
o Retail Chain ("Wincommerce"): including Winmart supermarket chain and Winmart+
convenience store chain with over 3,700 stores nationwide. Wincommerce also owns the high-
tech agricultural production system WinEco.

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 • Meat (Masan Meatlife - "MML"): includes MeatDeli pork products and 3F Viet
chicken
• High-tech Materials (Masan Hightech Materials - "MHT"): Engaged in mining and
processing minerals like tungsten ore, bismuth, fluorspar, and copper.
• Banking and Finance (Techcombank - "TCB"): One of the largest joint-stock
commercial banks in Vietnam in terms of operating income, total assets, credit, deposits,
customer base, and transaction office network. The bank's strategy focuses on the consumer
ecosystem.
In addition, the company also owns other renowned brands such as Phuc Long Heritage
(one of the most popular tea and coffee brands) and Reddi (one of the leading retail retail
networks), to realize its "Point of Life" strategy of serving up to 80% of consumer spending
needs in a single destination.
2.2. WinCommerce
2.2.1. Background
WinCommerce, originally known as VinCommerce, was established in 2014 as the retail
division of Vingroup, one of Vietnam's largest private enterprises. However, under Vingroup,
the VinMart and VinMart+ chains failed to make profits since their focus was mainly on growth
and expansion.
In December 2019, Masan Group acquired a controlling stake in VinCommerce and
rebranded it as WinCommerce, reflecting Masan's strategic initiative to expand its footprint in
the consumer goods sector and integrate retail operations into its ecosystem.
Since the merger, Masan implemented drastic changes in the WinCommerce system
through three key strategies: closing inefficient stores, improving the product portfolio and
amending pricing policies.
In Q2 2020, Masan completed the acquisition of an additional 12.6% stake in The CrownX
- an integrated consumer-retail platform that consolidates Masan Consumer Holdings and
WinCommerce - for a total cash value of US$862 million. This investment aimed to establish
the "Point of Life" offline-to-online ecosystem, designed to cater more effectively to diverse
consumer needs.
According to VRI, by the end of September 2024, WinCommerce operated 3,733 stores,
with a net increase of 60 stores since the second quarter.
WinCommerce’s “good price” strategy, in collaboration with trusted suppliers, ensures
competitive pricing across its network. By sourcing products from Masan Consumer and
distributing them through WinCommerce, the chain maintains prices that align with or beat
market levels. To further enhance profitability, WinCommerce optimizes logistics through AI
and machine learning within its supply chain management system - Supra, reducing logistics
costs by up to 11% (Masan Group, 2023).

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2.2.2. Sales channels
Wincommer features a diverse range of store formats designed to cater to various
consumer needs across urban and rural areas. This move reflects WinCommerce's strategy to
enhance accessibility for consumers and adapt to changing shopping behaviors.
The company operates two main store formats:
• WinMart: WinMart is a chain of supermarkets with a spacious layout ranging from
3,000 to 15,000 square meters. These stores are typically located within shopping centers,
providing a wide selection of products that include groceries, household items, and more. The
larger size allows WinMart to offer an extensive range of goods, enhancing the shopping
experience for customers seeking variety and convenience.
• WinMart+: WinMart+ serves as a chain of convenience stores with a smaller footprint,
typically ranging from 150 to 300 square meters. These stores are strategically placed in densely
populated residential areas, making them easily accessible for quick shopping trips. WinMart+
focuses on providing essential products and everyday items, catering to the needs of consumers
looking for convenience and speed in their shopping experience.

Figure 2-1. WinCommerce’s store format

Source: Masan Annual Report 2023
Beyond its physical stores, WinCommerce is actively expanding its online sales channels.
Masan has joined hands with Alibaba in an investment deal, thereby bringing WinMart to
customers on the Lazada e-commerce platform, which has the third-largest market share in
Vietnam.
Customers can place orders through multiple platforms, either via the WinMart.vn website
or the Lazada e-commerce platform

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 This multi-channel approach not only enhances accessibility for consumers but also adapts
to changing shopping behaviors in the digital age, providing convenient shopping experiences
and quick delivery services.

3. Current distribution system at Wincommerce

3.1. Components of Wincommerce’s distribution system
3.1.1. Supra - Wincommerce’s exclusive logistics company
At the beginning of 2022, Masan established The Supra - a subsidiary specializing in
technology-driven logistics, marking its official entry into domestic logistics services. Initially
focused on supporting the Masan Group ecosystem in general and WinCommerce specifically,
Supra is dedicated to efficiently delivering goods from producers to consumers, thereby
reducing costs for every stakeholder as much as possible
As of 2023, Supra has established a distribution network of 16 warehouses spreading across
three regions, seven of which are for dry goods while the other nine cold-storage ones are for
fresh products, and are reportedly responsible for distributing about 50% of WinCommerce's
total goods volume in 2023. Depending on the size and location of the warehouses, the dry
goods ones manage approximately 454 tons of products per day, totaling 11,805 tons per month.
The cold storage warehouses, meanwhile, handle around 275 tons of goods daily, amounting to
8,250 tons per month. This nationwide distribution network, in addition, is set to expand further
in the near future, enhancing reach and operational capacity even more.
3.1.2. Warehousing infrastructure
At Wincommerce, the storage and handling of goods are managed with precision to ensure
efficiency and customer satisfaction. Across its operations, Supra now manages a total
warehouse space of 75,000 m² for both dry and cold storage, strategically distributed to support
its extensive retail network. These large warehouses store all product models, categorized and
arranged systematically, functioning as a cross-dock center before distributing to retail stores
and supermarkets. They are strategically located in central areas to facilitate efficient
transportation and distribution of products to sales channels quickly and effectively.
For dry warehouses, a significant portion of the inventory consists of FMCG goods with
relatively short shelf lives, making quality assurance a top priority. Besides, similar to other
standard warehouses, the WinMart warehouse system is also divided into four distinct areas:
receiving, staging, storage, and shipping, organized to streamline operations and optimize the
flow of goods within the warehouse.
Regarding the cold-storage facilities, the layout and inventory management approach
largely mirror those applied in dry warehouses at WinCommerce, with the primary difference
being the focus on temperature control for product preservation.
Every warehouse would include essential elements such as its designation (e.g., cold
storage), designated areas, temperature parameters, and guidelines to ensure food safety,
hygiene, and occupational safety. Inside, there are clearly defined sections with tabs, shelving
units for goods, and detailed inventory information, including stock notes for each product

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listing quantities and item details. Certain sensitive areas, especially those housing high-value
items, are managed with stringent controls. Access to these warehouses is restricted to
authorized personnel, and all goods entering or leaving are closely monitored to ensure security
and proper handling.
In addition to these central warehouses, each Winmart supermarket or WinMart+store is
also equipped with an in-store storage area, typically located behind or adjacent to the retail
space. These on-site facilities are designed to optimize available space and safeguard goods
until needed for restocking or order preparation.
3.1.3. Extensive retail network
Present in 62 provinces, WinCommerce is currently operating a system of minimarts and
supermarkets with nearly 3,700 retail locations across the country. In 2023, WinCommerce
developed new store models tailored to different customer segments in various regions, marking
its return to the original strategy of expanding its retail network. Specifically, the WiN store
model targets urban consumers, while the WinMart+ Rural store model is designed to serve
customers in rural areas. By the end of 2024, WinCommerce plans to expand its network to a
total of approximately 4,000 stores nationwide, meaning a new retail outlet will be opened
every day.
The average size for a Winmart supermarket, depending on the location, would range from
1,000 to 2,000 m² while its minimarts would generally be around 100 m² large. With such a
large scale and expansive area, the supermarkets can display a wide range of products including
food, household items, clothing, and cosmetics, meeting the shopping needs of consumers,
especially households. In comparison, with a more “convenience-store-like” kind of retail
model, Winmart+ outlets focus on high-turnover essentials, such as groceries, beverages,
snacks, and daily-use items. Their supplies thus are more streamlined, with a smaller SKU range
and frequent but smaller deliveries to maintain stock without exceeding limited storage
capacity. Additionally, benefiting from the infrastructure previously established by Vingroup,
WinMart and WinMart+ stores are strategically located in prime, easily accessible areas. These
include densely populated residential neighborhoods and major commercial hubs such as Times
City, Royal City, Vincom Center Nguyễn Chí Thanh, and Vincom Bà Triệu, etc.
3.2. Products managed under the system
With more than 3,600 supermarkets and minimarts under the WinMart/WinMart+/WIN
brands, WinCommerce is currently the leading domestic retailer in terms of store scale,
operations, and development, acting as a bridge to bring “premium fresh goods”, especially
Vietnamese products, to Vietnamese consumers. In 2023, Masan statistics show that the entire
retail system purchased and consumed more than 83,000 tons of agricultural products, including
45,000 tons of vegetables and fruits and 38,000 tons of other fruits sourced from local suppliers.
Through its robust infrastructure and advanced logistics systems developed by The Supra,
WinCommerce ensures the efficient distribution and quality control of products across various
categories, particularly focusing on fresh, high-quality goods that meet the demands of modern
consumers:

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 • Fresh produce and agricultural products: sourced from trusted businesses like
WinEco, Vinafood and other small contracted local suppliers.
• Dairy products: provided by leading local dairy brands such as Vinamilk, TH
TrueMilk and other international brands like Anchor or Abbott.
• Fresh meat and seafood: sourced from both local producers and trusted suppliers
including Masan MEATLife with the popular MEATDeli brand, Vissan, CP Vietnam and FPT
food.
• Packaged and processed foods: supplied by big F&B names such as Masan Consumer,
Nestlé Vietnam or Coca-Cola.
• Personal care and household products: mainly rely on international FMCG brands
such as Unilever, Procter & Gamble for personal care products and Samsung, LG or Panasonic
for household appliances from kitchen gadgets to home electronics.
One important point to note is that WinMart/WinMart+/WIN supermarkets and minimarts
are able to leverage the strength of the Masan Group by offering strategic, high-quality
Vietnamese-branded products that are sourced directly from within the group itself. Notable
offerings include the European technology-based MEATDeli clean meat, WinEco clean
agricultural products certified to Japanese standards, CHIN-SU fish sauce and soy sauce, and
Omachi instant noodles. These products not only highlight the value of local sourcing but also
reflect Masan's ability to control production processes and ensure superior quality. Furthermore,
WinMart/WinMart+ focuses on developing its own private-label brands including WinMart
Good (dry foods), WinMart Cook (processed foods), WinMart Home (household goods),
WinMart Care (personal care), offering products at prices 10-20% lower than similar items in
the market. This in-house sourcing approach allows WinCommerce to maintain greater control
over product quality, pricing, and supply chain management, providing a competitive advantage
in a fluctuating market like Vietnam at present.
3.3. Key operational processes
3.3.1. Operations at central warehouses

Figure 3-1. Operational process at central warehouses of WinCommerce

Source: Synthesized by the authors

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 Unloading and inspecting of goods: The process of receiving goods at Supra warehouses
follows a systematic approach, beginning with the inspection of transportation conditions. Staff
verify preservation standards such as temperature control, packaging integrity, and
accompanying documentation. Sampling rates of 10–15% are often applied to ensure quality
control for the entire batch. Only shipments meeting these criteria are unloaded, with forklifts
and pallet jacks used for larger orders. Once unloaded, staff verify the shipment's quantity and
quality against documentation like product origin certificates, food safety certifications, and
shelf-life requirements.
Sorting and temporary storage: Once properly inspected, goods are sorted and stored in
designated warehouse areas based on their type and preservation needs. Temperature-sensitive
products are stored in specialized facilities: frozen storage (-23°C to -18°C) for items like meat
and seafood, cold storage (0°C to 4°C) for perishable goods such as dairy and fresh produce,
and cool storage (10°C to 15°C) for items like bananas and leafy greens. Dry warehouses
maintain temperatures between 22°C and 30°C for non-perishable items like packaged foods
and cleaning products. (VTV, 2023)
Picking and packing: As goods arriving at warehouses are meant to be distributed within
1-2 days, the picking and packing procedures for shipments to retail locations may be conducted
shortly afterwards. Here, goods are picked and packed simply in accordance with order details,
ensuring the correct quantity, quality, and specifications. Also, Supra implements the FIFO
(First In, First Out) method to prioritize the dispatch of older stock, particularly for products
with shorter shelf lives like FMCGs and agricultural goods.
Transporting orders: Once goods are prepared for shipment, the transport team is
notified, and trucks are dispatched to collect and deliver the orders. Compliance with transport
standards is verified before loading, and shipping documents such as warehouse exit slips are
issued. Supra's logistics system handles delivery to WinMart and WinMart+ stores, leveraging
the strategic locations of these outlets for efficient distribution. By monitoring stock levels,
replenishing inventory at optimal times, and streamlining logistics operations, Supra ensures
timely delivery of goods in the right quantity and quality, meeting store and customer needs
efficiently.
Supra is currently leveraging AI (Artificial Intelligence) and ML (Machine Learning)
technology in various inbound and outbound processes of its operations, including order
placement, goods receiving, sorting in the warehouse to ensure consistency in both the quality
and quantity of goods transported to the whole retail system.
To be specific, Supra currently utilizes common technologies like barcoding for its stored
goods and notably, Warehouse Management Systems (WMS) in the name of a self-developed
and tailored fulfilment platform called Supra Fulfillment Technology (SFT) to streamline its
operations. SFT enables comprehensive tracking and control of goods during receipt, storage,
and dispatch, as well as inventory management and transportation. Additionally, Supra utilizes
Digital Picking Systems or Pick-to-Light systems to enhance the speed and accuracy of order
picking, thereby improving service levels.

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3.3.2. Distribution to physical retail stores and supermarkets
At WinCommerce, the distribution system is strategically designed to ensure the seamless
flow of goods from centralized distribution centers to its extensive network of WinMart
supermarkets and WinMart+ convenience stores.
• Distribution network design
WinCommerce’s distribution network can be said to bear closest resemblance to the "Retail
Storage with Customer Pickup" model (Chopra, 2016) but with a unique emphasis on
centralized inventory management.

Figure 3-2. Distribution network design at WinCommerce

Source: Synthesized by the authors
The majority of the inventory is stored in regional or central distribution centers (DCs),
with only minimal stock allocated to the temporary storage areas of stores or supermarkets. This
centralized approach allows WinCommerce to maintain greater control over inventory levels,
ensuring efficient distribution to its extensive network of over 3,600 WinMart supermarkets
and WinMart+ stores.
For agricultural products and fast-moving consumer goods (FMCGs), which have
consistent and predictable demand, WinCommerce employs a local storage model. These
products are stored right at the point of sale, enabling rapid replenishment of shelves and
ensuring stock availability for customers. On the other hand, slowing-moving items are
delivered directly and in adequate amounts from the central warehouse to the stores for shelving
and customer pickup. This dual-pronged strategy helps optimize inventory placement across
the network while catering to a broad product portfolio.
Another key component of this network is the dedicated and exclusive truck fleet managed
by Supra, WinCommerce’s logistics arm. The ownership of a private fleet provides the system
with full control over the transportation operations, offering flexibility in scheduling and
routing to address varying demand patterns throughout the country.

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 • Transportation network design
When it comes to transportation networks, WinCommerce’s design model aligns closely
with the "Shipping via Distribution Centers using Milk Runs" framework (Chopra, 2016).
Similar to the essence of this model, the company employs cross-docking at its distribution
centers to consolidate deliveries from multiple suppliers, sorting the goods according to the
orders of a certain number of nearby retail locations, and efficiently distributing goods to them.
Given that individual shipments to a single WinMart+ store typically do not fill an entire
truck, the utilization of milk runs—a system where a single vehicle makes multiple stops to
deliver smaller replenishment batches to closely situated multiple stores, combined with
temporary storage and cross-docking, would significantly reduce transportation costs by
optimizing load efficiency and delivery routes. Yet, WinCommerce introduces a unique
adaptation to this model as while fast-moving and easily perishable goods are delivered daily
to its retail network, a small number of slow-moving goods are still maintained at the central
warehouses and only delivered when receiving specific orders from outlets, minimizing the
need for large storage capacities at the retail stores.
For deliveries destined for WinMart supermarkets, which operate on a much larger scale
and often place orders that exceed a single truckload, Supra adopts a flexible approach by
utilizing direct shipping from the distribution centers. This method bypasses the need for milk
runs, ensuring that larger shipments are delivered efficiently and directly to their destination
while reducing handling times and maintaining cost-effectiveness for bulk deliveries.

Figure 3-3. Transportation network design at WinCommerce

Source: Synthesized by the authors
Nevertheless, the implementation of cross-docking alongside milk runs would generally
necessitate a high level of coordination, as well as precise routing and scheduling, to ensure

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timely and efficient deliveries while maintaining cost efficiency. In practice, to support this
process, the company has implemented Supra Transportation Technology (STT), an advanced
and highly comprehensive system designed for planning and optimizing logistics operations.
This advanced platform streamlines various aspects of transport management, including
documentation and record-keeping, fleet management, and the automation of operational
workflows. With this implementation, Supra can therefore guarantee precise scheduling, route
optimization, and real-time order tracking, ensuring efficient coordination and enhanced
visibility across the entire delivery network.
3.3.3. In-store operations at Winmart and Winmart+

Figure 3-4. Operational process at WinMart/WinMart+ stores

Source: Synthesized by the authors
Receiving, inspecting and organization of goods: Each Winmart supermarket or
WinMart+ store has its own temporary storage area or warehouse for short-term storage, with
inventory volumes depending on the retail type and store size. When goods are delivered, store
staff check the delivery invoice to verify the quantity, quality, and alignment with the
warehouse receipt in the inventory management system. Any discrepancies in quantity, quality,
or specifications are reported to document the excess or shortage for later resolution with the
central warehouses. Once inspected, products are separated, packaged, and labeled, yet each
kind of goods may follow a different set of procedures depending on its characteristics and
specifications.
Shelf replenishment and display: At Winmart, goods for shelf display are managed by
staff assigned to specific product categories. They calculate required quantities, retrieve items
from the warehouse, and ensure inventory updates in real-time. Products are arranged on
shelves based on their type, using specialized equipment. Fresh produce is displayed in
refrigerated cabinets, ready-to-eat meals in heated containers, and perishable items like meat
and fish are kept on ice or in freezers. Heavy items are placed on wooden pallets, while lighter
items are manually arranged.
Inventory management and waste disposal: Unsold or expired goods are handled based
on their type and shelf life. Short-shelf-life items are displayed immediately to encourage quick

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sales and minimize waste, with unsold items discounted or returned to suppliers at the end of
the day. For items with a longer shelf life, recalls are conducted five days before expiration,
with suppliers accepting returns or offering discounts. Perishable goods like fresh vegetables
and meat are disposed of by incineration. Waste, primarily consisting of household and fresh
food waste, is managed by contractors and cleaning services, who work alongside supermarket
staff to collect and process waste 1-2 times daily.
In terms of technology applications, Masan has implemented smart point-of-sale (POS)
systems across most of its retail stores and supermarkets which serve as intelligent front-line
tools that accurately track inventory levels in real time and automate stock replenishment based
on sales data and current supply conditions.
Winmart places significant emphasis on store layout by developing planograms that details
the specific positioning and organization of products displayed. In the Winmart’s planogram,
products are clearly categorized by specific sectors such as food, household goods, cosmetics,
etc. Applying planograms in retail settings offers several key benefits which enhance shopping
experience, increasing inventory management efficiency.

4. Evaluation and recommendations

4.1. Evaluation
4.1.1. Successes
Customer access and responsiveness: The Point-of-Life system which integrates nearly
3,700 stores and supermarkets from the WinCommerce chain and Supra logistics system has
created nationwide logistics platforms and improved customer access and returnability. With
WinCommerce's network of retail stores strategically located in residential complexes and near
neighborhoods, the system significantly reduces delivery time and distance, ensuring even
faster and more convenient shopping experiences for customers.
The system was proven effective as Masan announced that WinCommerce (the operator of
the WinMart/WinMart+/WiN retail chain) achieved revenue of VND 7.844 trillion in Q2 2024,
with post-tax profits recorded from June. The 9.7% growth in June was attributed to an increase
in customer foot traffic to stores (Masan Group, 2023).
Inventory control: By utilizing a distribution system based on modified retail storage with
customer pickup, WinCommerce network maintains only a minimal stock at its physical stores.
Goods are replenished with frequent deliveries and the quantity supplied is determined based
on demand forecast service from past purchasing data. The centralization of goods in
distribution centers allows for efficient allocation of inventory across areas with varying
demand. This system enables synchronized management of inventory levels and turnover across
the entire chain.
To handle the large volume of goods, Supra has implemented technology in warehouse and
transportation management, in which they utilize online and offline warehouse management
technology to oversee the goods flow through distribution centers (DCs) across all chains. As

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a result, the system has great visibility of inbound and outbound flow of goods to support
supplier ordering and on-time delivery to physical stores.
Optimized logistics costs: As Wincommerce operates mainly as retail stores with
customer pick up, the company does not face high last mile delivery costs which usually
accounts for a large amount of transportation costs.
Meanwhile, Supra, also acts as the carrier to distribute the flow of goods to the
WinCommerce retail chain, has chosen the transport network that is Shipment via Distribution
Centers using Milk Runs. By leveraging this design, they have been able to utilize the
economies of scale when the amount of goods delivered to a central warehouse or distribution
center are large enough to reduce inbound transportation cost. At the same time, this model
helps reduce outbound cost as one truck can deliver to many retail outlets in one delivery.
This model is especially effective in urban areas where WinCommerce retail stores are
situated near others.
A unique feature of the distribution system employed by WinCommerce is its integration
with numerous companies within the Masan ecosystem in which many are the direct supplier
to WinCommerce. As a result, this unified system, combined with advanced planning and
optimization technologies for automation of scheduling systems, route planning and
transportation management has helped the entire chain eliminate unnecessary costs and enhance
overall efficiency. According to Masan’s annual report, Supra has been able to handle 50% of
WCM’s volumes in 2023 whilst delivering a reduction in logistics cost per unit by 11% YoY.
4.1.2. Challenges of WinCommerce distribution system
Changing consumer behavior: The Vietnamese retail market is highly competitive with
major players such as Bach Hoa Xanh, Co-op Mart,... and the Vietnamese customers are price
- sensitive. As a result, competition among the leading retailers often centers around customer
access and competitive pricing.
In the household appliances product segment, consumers are increasingly shifting towards
online sales channels due to their greater variety and lower prices compared to items displayed
in physical retail stores. Gradually, this product is no longer the primary choice for customers
when visiting WinCommerce's retail chain.
Products sold through the WinCommerce chain are now in intense competition with new
competitors like Fuji Mart, which is penetrating the market with much lower pricing strategies.
Compared to online shopping platforms, WinCommerce is lagging behind in its ability to meet
diverse consumer needs at competitive prices. This increases the pressure on WinCommerce to
increase their coverage to maintain their advantage of being most accessible to customers while
the distribution system is required to deliver goods as soon as possible to satisfy customer
demand.
Low product variety: WinCommerce's retail with customer pickup model, especially in
smaller formats like Winmart+ or Winmart+ Rural, faces a significant challenge with its limited
product variety due to restricted physical space. This issue becomes more pronounced when
compared to online shopping, which has become increasingly popular with a wider range of

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choices. The lack of diversity in products can make it difficult to attract and retain customers,
potentially limiting the competitiveness of the WinCommerce retail chain
Increasing inventory keeping cost: Similar to traditional retail models, a significant
portion of WinCommerce's operational costs is allocated to preserving goods and facilities at
its retail stores. This cost tends to increase as WinCommerce's strategy in the near future focuses
on expanding and establishing more retail outlets to enhance customer coverage. Additionally,
daily restocking to minimize the use of storage at retail outlets increases the costs associated
with goods handling activities.
Increasing logistics cost as the number of retail stores increases: The daily restocking
of goods often require more frequent deliveries in a day or need more trucks to deliver goods
on time to serve customers, especially when chains like WinMart or WinMart+ are expanding
in number. This leads to increased fuel consumption, vehicle wear-and-tear, and higher labor
costs associated with delivery operations.
Furthermore, expanding into rural areas with WinMart Rural adds to more spending on
transportation costs to keep the frequent delivery to retail stores. Vehicles must travel longer
distances, resulting in higher fuel expenses and potential delays when destinations are widely
dispersed.
Lastly, as WinCommerce are trying to expand to online platforms which offer to deliver
goods directly to consumers, they will soon face the significant expense of last-mile delivery,
which typically constitutes the largest proportion of a chain's logistics costs.
4.2. Recommendations
4.2.1. Leveraging Masan Ecosystem
One of WinCommerce’s key strengths is its position as a part within the Masan ecosystem.
The Masan Group - a conglomerate which started as a consumer goods manufacturing
company—WinCommerce functions as the final outlet in Masan’s supply chain which
distributes the final product directly to consumers.
To overcome challenges of competition and shifting consumer trends, WinCommerce
needs to focus on offering competitive pricing compared to its rivals. Leveraging the Masan
ecosystem, where many companies act as direct suppliers to WinCommerce, can facilitate
attractive pricing policies to draw in customers. In return, suppliers can gain access to
WinCommerce's extensive customer database, enabling them to enhance R&D efforts, improve
products, and diversify their offerings.
In addition, utilizing the vertical integration within the Masan ecosystem can optimize
procurement, and logistics costs, allowing competitive pricing without compromising margins.
4.2.2. Improving distribution system
As the number of retail stores in the WinCommerce chain increases, the number of vehicles
and deliveries made also increases, leading to higher delivery costs, especially in populous
cities. Therefore, the first recommendation is to improve store inventory management through
real-time inventory tracking and demand forecasting by conducting analysis on data obtained
with technologies already applied in stores such as barcoding and POS systems.

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 Supra is reportedly responsible for distributing about 50% of WinCommerce's total goods
volume in 2023 and is showing positive results in reducing the logistics cost. Another
recommendation for WinCommerce is to further integrate this unit into its operation to achieve
a unified logistics system which can take advantage of economies of scale through the larger
amount of goods processed while providing visibility to improve demand forecasting and
replenishment planning.

5. Conclusion
WinCommerce has successfully combined modern retail operations with strategic logistics
management, establishing itself as a leader in Vietnam’s competitive market. With a vast
network of nearly 3,700 stores and Supra's advanced technology-driven logistics solutions, the
company has significantly improved efficiency and reduced costs.
However, the company faces ongoing challenges from changing consumer behaviors and
increasing operational costs as it expands. To maintain its competitive edge, WinCommerce
must continue leveraging the Masan ecosystem's advantages while further optimizing its
distribution network. By focusing on technological integration and strategic expansion,
WinCommerce is well-positioned to strengthen its market leadership in Vietnam's retail sector
while ensuring sustainable growth in its distribution operations.

6. References
Chopra, S. & Meindl, P. (2016), Supply Chain Management: Strategy, Planning and
Operation, 6th Edition, Pearson Education, New York, NY.
Masan Group (2023), “Annual report 2023”, Available at: https://masangroup-cms-
production.s3-ap-southeast-1.amazonaws.com.pdf [Accessed 23 Nov 2024].
Masan Group (2023), “Cải tiến trong Logistics tạo ra cơ hội kinh doanh tại Việt Nam”,
Aug 25, Available at: https://www.masangroup.com/vi/news/invest-in-vietnam/logistics-
creates-vietnam-business-opportunities.html. [Accessed 21 Nov 2024].
Ministry of Industry and Trade Viet Nam (2024), “Báo cáo tình hình sản xuất công nghiệp
và hoạt động thương mại tháng 10 năm 2024.”, Nov 11, Available at: https://moit.gov.vn/thong-
ke/bao-cao-tong-hop/bao-cao-tinh-hinh-san-xuat-cong-nghiep-va-hoat-dong-thuong-mai-
thang-10-nam-2024.html [Accessed 23 Nov 2024].
Quang Hà (2023), “Giải mã động cơ tăng trưởng ứng dụng nền tảng tiêu dùng -công nghệ
của Masan.”, Báo Kinh tế đô thị, Nov 27, Available at: https://kinhtedothi.vn/giai-ma-dong-co-
tang-truong-ung-dung-nen-tang-tieu-dung-cong-nghe-cua-masan.html [Accessed 21 Nov.
2024].
Vietnam Chamber of Commerce and Industry (2024), “WinCommerce đã có lãi ròng sau
thuế dương trong quý 3 năm 2024.”, Oct 31, Available at: https://vcci.com.vn/tin-
tuc/wincommerce-da-co-lai-rong-sau-thue-duong-trong-quy-3-nam-2024 [Accessed 23 Nov.
2025].

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 Vietnam Investment Review (2024), “WinCommerce posts net profit in the third quarter.”,
Oct 31, Available at: https://vir.com.vn/wincommerce-posts-net-profit-in-third-quarter-
116839.html [Accessed 23 Nov 2024].
VTV (2023), “Việt Nam thức giấc - 11/10/2023”, October 11, Available at:
https://vtv.vn/video/viet-nam-thuc-giac-11-10-2023-644534.html [Accessed 23 Nov. 2025].

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