Central Retail Vietnam revamps supply chain to cut empty shelves

Products must reach shelves consistently, on time, and at the right quality. 

Central Retail Vietnam is revamping its supply chain with a centralised distribution model to reduce stock-outs and improve on-shelf availability across its stores. 

“Customers in Vietnam expect a more modern retail experience—better freshness, higher availability, and greater convenience,” Mike Reid, chief supply chain officer at Central Retail Vietnam, a unit of Thailand's Central Retail Corp. Public Co. Ltd., told Retail Asia. 

He added that meeting these expectations requires products to reach shelves consistently, on time, and at the right quality. 
Under the old direct-to-store model, achieving this at scale was difficult. “It created fragmentation, variable service levels, and limited visibility,” Reid said in an emailed reply to questions. 

Suppliers delivered directly to stores, causing congestion, inconsistent delivery times, and heavy administrative workloads that pulled staff away from serving customers. 

The revamp consolidates supplier deliveries at distribution centres, where volumes are pooled, forecasting is improved, and store replenishment is orchestrated with precision. 

Stores now get scheduled, consolidated deliveries aligned with actual demand. Reid said the model has reduced backroom congestion, simplified replenishment, and cut stock-outs by about 20%. 

“Centralisation allows our stores to move from being mini logistics hubs to true retail execution centres focused on customer experience,” he added.

The company focuses on processes and people rather than advanced technology. “Before you digitise, you must standardise,” Reid said.

Staff training through the Supply Chain Academy covers problem-solving, transport planning, and demand forecasting, whilst process improvements include standardised replenishment cycles, inventory governance, and performance measurement.

Core system upgrades link the company’s enterprise resource planning with logistics partners’ warehouse systems, improving visibility across the supply chain.

Centralisation has also reshaped logistics partnerships. Central Retail reduced its network from more than 20 logistics providers to five core partners that can scale, invest alongside the company, and meet performance standards.

Vietnam’s retail environment adds complexity, with fragmented trucking, limited collaboration, and urban transport restrictions.

The company addresses these challenges by consolidating volume, optimising route planning, increasing drop density, and mitigating restricted access windows.

“The challenges in Vietnam are not barriers; they are opportunities for the next generation of supply chain leaders to push the industry toward higher standards of professionalism, better planning discipline, and stronger collaboration,” Reid said.