SABECO ANNOUNCES COMPLETION OF WAREHOUSE MASTER PLAN PROJECT – PHASE 1, A STEP FORWARD IN SABECO SUPPLY CHAIN 4.0

Ho Chi Minh City, August 24, 2023, Saigon Beer Trading Company Limited (SATRACO) - a member company of Saigon Beer - Alcohol - Beverage Corporation (SABECO), has officially inaugurated a new Distribution Center in Ho Chi Minh city (HCM DC), marking the first milestone of the Warehouse Master Plan Project 2022 – 2024.

The Warehouse Master Plan Project is one of the four key projects in the SABECO Supply Chain 4.0 strategic plan during 2021 – 2024. This will contribute to improving the competitiveness of SABECO’s supply chain, increase the efficiency of distribution centers to support the market’s supply system in the best way, thereby, increasing the overall competitive advantage of SABECO.

After 6 months of implementation, the Warehouse Master Plan Project has completed its phase 1 and successfully opened the first distribution center in Ho Chi Minh city. With a total area of 31.000m2 and storage capacity up to 30.000 pallets, the center will be operated with the support from Distributor Management System (WMS) and Transport Management System (TMS) to ensure optimal storage and preservation of goods. At the same time, this will ensure the stability and continuity of supplies to meet the market demand in a timely manner.

As shared by Mr. Dang Tan Phong - SATRACO Director of Special ProjectsThe Ho Chi Minh DC project is a very new venture for SABECO. This project is confined not only to a Company but is spread across 03 units: Brewery, SATRACO Company, Trading Company. It takes merely 2 months between the project's approval and start of implementation. During that period, we had to redesign the entire Operating procedure and retrain all in-charged employees of the 03 units. The Project started in August and is fully implemented after 6 months, far ahead of the original schedule.

The success of this project marked significant step of the Supply Chain 4.0 project that has been deployed since 2020 in order to automate the transportation management process, order processing, etc. to better control goods and reduce delivery time, while optimizing costs and improving operational efficiency. Up to now, SATRACO has applied TMS and WMS systems in nearly 70 warehouses and 26 factories.

Mr. Nguyen Hoang Giang- SATRACO General Director shared: “Supply Chain is one of the 6 pillars in the second phase of SABECO’s transformation strategy. To raise Supply Chain capacity, we have implemented the Warehouse Master Plan Project for the period 2022-2024. The Project will help to optimize supply chain exploitation capacity and facilitate market penetration. We will continue invest strongly in Supply Chain and strengthen capability of management team to improve SABECO Supply Chain’ competitiveness in the future”.

Long-term vision of phase 2 transformation

Since 2022, SABECO has been enhancing its competitiveness and profitability through the launch of Phase 2 of its transformation, focusing on six key pillars of Sales, Brand/Marketing, Production, Supply Chain, People and Unlock, supported by SABECO 4.0 and governance initiatives.

To date, SABECO has recorded remarkable achievements with breakthrough results in business activities associated with sustainable development focusing on ESG initiatives (Environment, Society and Governance) to attain the mutual goals of the corporation and of Vietnam’s national strategies.

In May 2023, SABECO signed a cooperation agreement with Singapore Power Group (SP) to have rooftop solar power systems installed at 9 breweries of SABECO, bringing the total number to 17 breweries adopting solar energy in the whole system by the end of 2023. Upon completion, the project is estimated to efficiently provide almost 23% of electricity consumption at the breweries, amounting to an electricity saving of 25 million kWh, which is equivalent to a reduction of 18,000 tons of emitted CO2 annually.

In addition, the corporation has reduced the amount of water used per liter of beer produced from 5 liters (in 2018) to below 3 liters (in 2022); applying the CIP wastewater treatment system and using sustainable packaging (down gauged our cans, light weighted our carton boxes and bottles) and reusing beer glasses and cans, etc. to minimize waste released into the environment.

ABOUT SABECO

With 148 years of brewing history, Saigon Beer – Alcohol – Beverage Corporation (“SABECO”) has established itself as one of Vietnam’s leading companies.

SABECO includes 26 breweries and 11 trading subsidiaries and has a distribution network consisting of hundreds of thousands of retailers nationwide. SABECO is proud to offer a brand portfolio that consists of some of the most well-loved beer brands in Vietnam, including Bia Lac Viet, Bia Saigon Chill, Bia 333, Bia Saigon Special, Bia Saigon Export, Bia Saigon Lager and Bia Saigon Gold.

Our flagship brands Bia Saigon and Bia 333 have been consistently recognized for their outstanding quality by prestigious local and international organizations, including consecutive “National Brand” awards in Vietnam. Most recently, it has received 8 gold and silver medals from the Beverage Testing Institute (BTI) in the United States, Asia Beer Championship 2022, the gold medal at the International Brewing Awards 2019 (IBAs), the Gold, Silver and Bronze Prize at the International Beer Cup 2019 (IBC) and Gold, Silver Medal at Australia International Brewing Award 2020 (AIBA), Gold and Silver Medal at Monde Selection Award 2021.

With a commitment to investing in business development along with sustainable development, SABECO always strives to create positive changes to enhance the position of the Vietnamese brand, while promoting positive development for the community and Vietnam. Accordingly, our sustainable development strategy focuses on four pillars: Consumption, Conservation, Country, and Culture.

For more information on SABECO, please visit:  www.sabeco.com.vn

For press information, please contact: Dinh Nguyen Thi Huong, Head of Corporate Communication, Saigon Beer-Alcohol-Beverage Corporation (SABECO) – huongdnt@sabeco.com.vn

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