Last updated: Thursday, February 21, 2019


Suzuyo and Dragon Logistics to Cooperate in Vendor Managed Inventory Service

Posted: Thursday, January 18, 2018

Suzuyo Joint Stock Company and Dragon Logistics Co,. Ltd. will collaborate to develop Vendor Managed Inventory (VMI) service in Vietnam.

The Suzuyo Group from Japan has a history of over 200 years and DragonLogi has more than 20 years of experience in the general distribution industry in Vietnam, and this cooperation is expected to contribute to the development of the manufactoring industry.

Suzuyo will buy chemical products, auxiliary materials, ... from domestic and foreign suppliers, then collect and transport them by containers. After storing and managing them in the DragonLogi’s warehouse located in Vietnam, the service will allocate the necessary amount when the customer's plant needs. VMI service has benefits such as improving cash flow by reducing inventory, improving productivity by securing sufficient amount of workspace, and improving work efficiency by warehouse outsourcing.

In Vietnam, there are more than 1,600 Japanese invested enterprises, doubling in the last 10 years and ranking second in ASEAN, just after Thailand. The manufacturing industry accounts for half of the enterprises, and is expected to grow further in the future thanks to Vietnam's economic growth. However, the manufacturing sector is experiencing problems, and one of them is the lack of workspace due to expansion of production. To ensure the workspace, it is necessary to minimize the chemicals, materials stored in the factory. However, the export processing enterprises are expanding with the Japanese system, which can not put their inventories into the common warehouse. It can be said that reducing inventory is extremely difficult.

Therefore, Suzuyo has established an inventory management system in place of the Japanese outsourcing businesses. Customers can secure their workspace by reducing inventory and improving productivity.

At the beginning of this project, Mr. Kumazawa, Suzuyo's head of sales, commented:
"We want to solve the problems of our customers, such as complicated inventory management and exporting process, by collaboration between Suzuyo Group and Dragon Logistics with more than 20 years of experience in Vietnam”.

Nam Pham

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