Page 26 - [STUDY CASE_GROCERY WARS] Report

1 Low-cost Leadership

Masan could use information systems to achieve the lowest
operational costs and the lowest prices. As we can see in the case of
Walmart, Walmart’s continuous replenishment system sends orders
for new merchandise directly to suppliers as soon as consumers pay
for their purchases at the cash register. Because the system

replenishes inventory with lightning speed, Walmart does not need to
spend much money on maintaining large inventories of goods in its
own warehouses.

Nowadays, inventory management software often utilizes barcodes,
radio-frequency identification (RFID), and/or wireless tracking
technology. Inventory tracking is the most well-understood and widely
used RFID application in retail. Accurate product-location information

can lower the cost and complexity of managing inventory, speed
picking, and packing and delivery and can boost customer
satisfaction. Therefore, tracking should be the starting point for many

retailers, with the important benefit of unit-level tagging that lays the
foundation for other use cases.

2 Product differentiation

Reddi mobile network

As the grocery business increasingly migrates online, retailers are
seeing a growing need to use the data they collect through their
digital channels to improve their ability to satisfy customers who have
grown accustomed to personalized shopping experiences.

Data sources from offline and online customer files are also a valuable
"gold mine" for businesses that understand the power of data

analytics.

Masan Group leader said: "Masan currently processes more than 1
million transactions per day and this number will increase 5-10 times

by 2025. This massive transaction volume will provide us with a source
of valuable data to understand consumers and serve them better".

23