Cost Management in the Distribution Network

Cost Management in the Distribution Network

On July 2, 2004, VCCI, in coordination with Metro Cash & Carry Vietnam Company, organised in Hanoi a seminar on "Cost management in the distribution network".  The seminar aimed to help enterprises understand the importance of cost management and that it can provide a comparative edge.

Vietnam has a low labour cost compared to other countries. It is an advantage in business. However, without an efficient management network, the advantage can not be fully exploited.

At the seminar, Ms Nguyen Thanh Thuy, a Metro Cash & Carry Vietnam's finance expert, presented the concept, method and process of  cost management.  It is an important factor in the existence and development of businesses. She also introduced the accounting structure of MCCVN which consists of three kinds of accounting: by unit, section or group.

While presenting methods and instruments on management, Mr. Tran Nguyen Anh Dung, Head of Control Unit, referred to the principles of management of commodities in storage and measuring indexes. He pointed out four basic principles: no shortage of commodities, free choice by customers, product quality and competitive prices. The enterprises must pay special attention to the delivery of commodities and orders to reduce storage costs and minimise the expenses by using software solutions and new technology.

For his part, Mr James Scott, Metro Director, said that to be successful, the enterprises must apply an efficient management of costs. He quoted the English saying: "Look after the pennies and the pounds will look after themselves". With better management of costs, enterprises will be more competitive and efficient.

• Nguyen Thoa