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 fulfil and deliver orders. From Di An, the products will be delivered to 60 per cent of Ho Chi Minh City’s districts as well as to the entire southeastern region.
By grocery store owners in the country, gro24/7 is one of the most utilised B2B e-commerce platforms. After a relatively short time in operation, the company 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 which 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 to the development of gro24/7,” said Son Pham, CEO of gro24/7.
Hamza Harti, managing director for FM Logistic Vietnam said, “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.”
With trends of accelerating urbanisation and the rise of e-commerce, 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's retail landscape is 88 per cent unorganised, with small independent mom-and-pop stores making up about 40 per cent of the market, presenting a massive opportunity to digitalise 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 quickly to these urban logistics challenges and increase operational efficiency,” said Stephane Descarpentries, managing director of FM Logistic Asia.
On October 4, FM Logistics 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. Taking place in Ho Chi Minh City, the event featured FM Logistic experts discussing the success factors of redefining urban logistics flows, followed by a casual networking opportunity.
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