UNIVERSITY OF ECONOMICS

DA NANG UNIVERSITY
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TOPIC:
ANALYSIS OF LOGISTICS ACTIVITIES IN TRUNG NGUYEN LEGEND

Subject : Logistics

Class : MGT3007_49K25.1

Lecturer : Nguyen Ngan Ha

Members : 1. Tran Thị Le Thu

2. Vo Thi Ngoc Linh
3. Le Van Hieu
4. Nguyen Chanh Nghia
5. Nguyen Sy Nhan

Da Nang, 2025

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Table of Contents
ABSTRACT....................................................................................................................................1
INTRODUCTION..........................................................................................................................1
PART 1: THEORETICAL BACKGROUND..............................................................................2
1.1 Definition of Logistics...........................................................................................................2
1.2 Logistics Practices at Trung Nguyen Legend.....................................................................2
PART 2: OVERVIEW OF TRUNG NGUYEN LEGEND.........................................................3
2.1 Company Development History and Mission..............................................................3
a, Company Development History...........................................................................................3
b, History of formation:...........................................................................................................3
2.2 Vision - Mission - Core value...............................................................................................4
2.3 Main business products/services of the company and corresponding target markets
and customers..............................................................................................................................5
a, Coffee Products...................................................................................................................5
b, International Markets & Export.......................................................................................5
PART 3: ANALYSIS OF LOGISTICS ACTIVITIES AT TRUNG NGUYEN LEGEND.....6
3.1 Logistics activities at Trung Nguyen Legend.....................................................................6
3.1.1 Transportation management...........................................................................................6
3.1.2 Warehousing and inventory management.....................................................................7
3.1.3 Packaging management:.................................................................................................8
3.1.4 Information System.......................................................................................................10
3.1.5 Customer service..........................................................................................................11
3.2 Evaluation of Logistics Activities at Trung Nguyen Legend..........................................12
3.2.1 Achievements................................................................................................................12
3.2.2 Shortcomings................................................................................................................13
3.2.3 Recommendations........................................................................................................14
PART 4: CONCLUSION.............................................................................................................15

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ANALYSIS OF LOGISTICS ACTIVITIES IN TRUNG NGUYEN LEGEND

ABSTRACT
This report explores the logistics activities of Trung Nguyen Legend, one of
Vietnam's leading coffee brands with international success. Through analysis of their
supply chain operations, we evaluate the efficiency of key logistics functions, including
transportation management, warehousing, inventory control, packaging, information
systems, and customer service. Our research shows that Trung Nguyen Legend has
established an extensive logistics network, holding up their expansion to over 60 nations
while maintaining quality and standards as well as brand integrity. Major strengths
include the ability to source strategically from Vietnam's largest coffee-growing regions, a
vast network of franchises, and the successful implementation of multi-channel
distribution and logistics solutions that focus on the customer. However, threats exist in
transportation pricing, complex distribution systems, warehouse efficiency, and
international compliance. Solutions for logistics enhancements are offered in the report
via technology upgrades, partnerships, distribution outsourcing, and streamlining of
distribution channels. These changes will benefit not only Trung Nguyen Legend's
logistics efficiency but also its global expansion potential while maintaining the quality of
its speciality coffees.

Major strengths include the ability to source strategically from Vietnam's largest
coffee-growing regions, a vast network of franchises, and the successful implementation
of multi-channel distribution and logistics solutions that focus on the customer. However,
threats exist in transportation pricing, complex distribution systems, warehouse
efficiency, and international compliance. Solutions for logistics enhancements are offered
in the report via technology upgrades, partnerships, distribution outsourcing, and
streamlining of distribution channels. These changes will benefit not only Trung Nguyen
Legend's logistics efficiency but also its global expansion potential while maintaining the
quality of its speciality coffees.

INTRODUCTION
In the context of fierce competition in the market, the supply chain plays a key role
in helping businesses achieve their goals. It makes it easier for consumers to access
products and services, which is the foundation for optimizing costs and related activities.
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In particular, after the COVID-19 pandemic, the importance of resilience and flexibility in
logistics activities has been emphasized. Supply chain management activities have also
become very important in the activities of business managers. Therefore, investing in a
modern and efficient logistics system has become an inevitable task for Vietnamese
businesses.

And Trung Nguyen Legend is a typical example that shows the important role of
logistics in business development strategies. In addition to standing out as a leading
coffee brand not only in terms of product quality, Trung Nguyen is also highly
appreciated for its ability to build a tight supply chain, reasonable logistics system, and a
wide distribution network across 60 countries around the world, including the United
States, Canada, Russia, and many other important markets. This is a solid foundation to
help businesses maintain competitiveness, expand the market, and develop sustainably.

This report focuses on analyzing the main logistics activities of Trung Nguyen
Legend in order to comprehensively evaluate the logistics efficiency of the business.
Through the systematization of the theoretical basis, the introduction of the business
overview, and the in-depth analysis of the logistics activities being implemented, the
implementation team wishes to clarify the role and impact of logistics on the development
of the business, and at the same time point out the achievements achieved, limitations
that still exist and propose appropriate improvement directions.

PART 1: THEORETICAL BACKGROUND

1.1 Definition of Logistics
Logistics is defined as the flow of goods, information, and services from the start to
the finish point in today's marketplace. Therefore, logistics is crucial for an
international/local coffee company like Trung Nguyen Legend to uphold quality and
ensure that effective and timely distribution channels exist both domestically and
internationally. The logistics system leveraged by Trung Nguyen Legend includes the
total cost approach, supply chain integration, and lean logistics concepts.

1.2 Logistics Practices at Trung Nguyen Legend

For instance, at the procurement stage, Trung Nguyen Legend employs a strategic
sourcing model by sourcing coffee beans from preferred local sources—Vietnam's well-
renowned Buon Ma Thuot region, where it sources its quality Robusta beans and
internationally sourced in Ethiopia and Brazil. Trung Nguyen Legend also engages in
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some level of vertical integration as it works directly with coffee farmers and has its own
coffee plantations.

Regarding the logistics philosophy and concepts that would allow for scalability and
quality of service, technology-based logistics is applicable as supply chain management
software and real-time tracking facilitate supply chain visibility and inform management
decision-making based on applicable data, which is necessary for global logistics
operations.

Therefore, the logistics philosophy that supports scaling and quality of service
involves customer experience and cultural brand identity. Trung Nguyen Legend's
logistics process goes beyond providing what final products should be delivered to
delivering truly scheduled, formed coffee products that mean something to the heritage of
Vietnam. Therefore, this is customer-driven logistics based on value chain theory, where
logistics functions add value instead of just being a cost.

PART 2: OVERVIEW OF TRUNG NGUYEN LEGEND

2.1 Company Development History and Mission
a, Company Development History
Trung Nguyen Legend coffee is one of the most recognized coffee brands globally.
The brand was founded in 1996 by Dang Le Nguyen Vu. The coffee business from
Vietnam boasts the internationally found G7 instant coffee. The intent of the company
was not only to offer quality coffee but also to enhance the quality of the coffee culture in
Vietnam. Domestically, there are nearly a thousand locations, a step up from regular
coffee shops, and international expansion into China with flagship stores and thousands
more projected for the United States, South Korea, and beyond. G7 instant coffee and
other brand offerings, made with the Robusta beans found in Buon Ma Thuot, can be
found at Costco, Walmart, and other big-box retailers worldwide. Thus, Trung Nguyen
Legend coffee is more than just a coffee company; it's a philosophical investment in
coffee and culture. While they create standard coffees, they also create blends that infuse
coffee with other cultural experiences, making Ottoman coffee, Roman coffee, and even
Zen coffee, which is why Trung Nguyen Legend dominates the coffee culture as we know
it.

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b, History of formation:
1996: On June 16, 1996, Chairman Dang Le Nguyen Vu founded Trung Nguyen in Buon
Ma Thuot - the coffee capital of Vietnam, with the trust and tenacity of age, with the first
capital being a bicycle. Aspiring entrepreneurs who want to establish a well-known
coffee company and introduce Vietnamese coffee to the globe.

1998: The establishment of the first coffee shop in Ho Chi Minh City was the foundation
of the Trung Nguyen restaurant system in the provinces of Vietnam and countries around
the world.

2001: They succeeded in franchising in countries like Japan, Singapore. Announcement

of the tagline: "Inspire Creativity" with goods made from the finest coffee beans, cutting-
edge technology, unmatched local expertise, and the intense passions that have made
Vietnam famous worldwide. Customers nationwide were won over by Nguyen.

2003: The "G7 Instant Coffee Festival" at Thong Nhat Palace on November 23, 2003,
which drew thousands of attendees and left an impression with the blind test, gave rise to
the G7 instant coffee product.

2010: Trung Nguyen coffee products are exported to more than 60 countries all over the
world, notably the US, Canada, Germany, the UK, Russia, Japan, China, and ASEAN.

2012: Trung Nguyen Legend is Vietnam's favourite coffee, with the most coffee drinkers
in Vietnam. Vietnamese households, numbering 11 million to 17 million, purchase Trung
Nguyen coffee products.

2013: G7 commemorates its tenth anniversary, which marks three years of dominating the
market and enjoying the highest level of popularity.

2.2 Vision - Mission - Core value

Vision: A Great organization by serving the human community.
Mission: Building a unified human community according to a value system of mindful
living to bring true success and happiness.
Core value: “Absolute faith serving community supported by humanity in eco-finance”.
This reflects Trung Nguyen Legend’s dedication to operate with integrity, strong beliefs.
They prioritize the well-being of the community and fostering relationships. At the same
time, maintain a sustainable and robust financial model. Therefore, it represents a
comprehensive approach that integrates business success with social responsibility and
environmental awareness.
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2.3 Main business products/services of the company and corresponding target

markets and customers
a, Coffee Products
G7 Instant Coffee: The flagship instant coffee line from Trung Nguyen; high-quality
instant coffee with the ease of use for which instant coffee is known.

 Target Market: Mass coffee drinking markets worldwide who value an accessible
good cup of coffee at a low price point. Ideal for young professionals, travellers,
and office work situations.

Roasted & Ground Coffee: Speciality blends of Robusta, Arabica and exotic and
speciality beans sourced from Vietnam and the international marketplace.

 Target Market: Serious coffee drinkers, those who brew coffee at home, retailers,
and cafés looking for speciality inventory. Widely, the middle to upper-class coffee
consumer.

Weasel Coffee: A premium, exotic coffee offering.

 Target Market: High-end income coffee drinkers in a niche market, those who seek
high-end gifting options, and high-end options in Vietnam, as well as the
international marketplace.

Energy Coffee: Coffee products to create energy and clarity (based on their "coffee as
enlightenment" philosophy).

 Target Market: Professionals and entrepreneurs, students, and creatives who seek
output and focus.

b, International Markets & Export

Exports to over 100 countries: USA, China, South Korea, Japan, Europe (Poland,
Germany)… and ASEAN countries.

Target Customers: Retail chain purchasers, boutique coffee shop owners, and consumers
overseas for an exotic coffee experience or an upscale coffee experience.

Retail & distribution: The company runs coffee shops in Shanghai and San Jose, CA, and
plans to expand to Australia and Canada. Products are available on such global e-
commerce platforms as Amazon and Walmart.
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Product adaptation: Trung Nguyen Legends utilizes its "Three Coffee Civilizations"
strategy, combining Ottoman, Roman, and Zen coffee cultures to offer an otherworldly
experience for globally minded and culturally savvy customers.

PART 3: ANALYSIS OF LOGISTICS ACTIVITIES AT TRUNG NGUYEN

LEGEND
3.1 Logistics activities at Trung Nguyen Legend
3.1.1 Transportation management
Transportation management is an important part of the logistics chain, helping to
ensure that goods are transported efficiently from the place of production to the point of
consumption. First, transportation management is an important part of logistics, helping
goods to be transported quickly and smoothly from the place of production to the place of
consumption. First of all, Trung Nguyen Legend must consider production output,
warehouse locations and sales points nationwide to make a transportation plan. After
being manufactured in Buon Ma Thuot or Bac Giang, the product is delivered to
distribution centers in the Northern, Central and Southern regions. From here, the goods
are distributed to dealers, supermarkets, retail channels and E-Coffee franchise stores.
Based on the actual output and consumption demand in each region, the frequency of
delivery transportation will be calculated in accordance with the delivery schedule every
day in the city and several times per week in the provinces. In order to deliver goods
quickly and efficiently, ensuring the reputation of the business, the company uses a
combination of internal fleet (box trucks, refrigerated trucks if needed) and reputable
logistics partners such as ViettelPost, Fast Delivery, or Sotrans to ensure the efficiency of
domestic transportation.

For the international market, Trung Nguyen Legend chooses the right mode of
transportation for each type of order: using the sea to export goods in large quantities and
saving costs, while air is prioritized for small orders, which need to be delivered quickly.
In addition, to ensure that goods arrive at the right place, at the right time at the most
reasonable cost, Trung Nguyen Legend uses a transportation management system (TMS)
to plan optimal transportation routes, reduce transportation time and costs, thereby
analyzing transportation performance, and make timely decisions such as changing
routes, adjusting delivery frequencies in advance of unexpected situations. In addition to
the TMS system, Trung Nguyen Legend also integrates with ERP software to closely
connect production, inventory and transportation as well as update synchronous data
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between accounting, sales, logistics and supply chain management departments. In
addition, for intercity trips, the Company can use major national highways and use traffic
maps to update road conditions in real time. Trung Nguyen Legend has used a GPS
tracking system to monitor the journey with the aim of ensuring a transparent and timely
delivery process, providing quick support if the order has problems during transportation.
In addition to ensuring internal finance and resources, Trung Nguyen Legend pays great
attention to cost control in the process of managing transportation activities. Costs such as
fuel, vehicle depreciation, driver salary, tolls, cargo insurance, and storage costs in case of
waiting for delivery are closely monitored. In addition, the company often compares and
evaluates in-house and outsourced fleets. This analysis helps Trung Nguyen choose the
right form of transportation for each route, volume of goods and cost targets. The
company can change its transportation strategy to maintain the most competitive and
efficient advantage.

3.1.2 Warehousing and inventory management

Warehousing: The warehouse is built with walls and floors that are hard and flat enough
to be used as a warehouse. The room temperature is suitable, the area is large enough to
ensure the warehouse is airy and clean. The shelves for storing goods are 10cm away
from the warehouse wall. Use clean sacks to store coffee; do not use plastic bags to store
coffee, and do not store coffee in bags that are too full. For dried (or dried) coffee, store it
in clean sacks, wooden crates, pots or in a well-ventilated warehouse; do not let it get
damp.

Inventory Management:

- Inventory
For Trung Nguyen Group, inventory includes Finished products: G7 instant coffee
products, Sang Tao coffee. Semi-finished products: packaging, labels, paper boxes,
roasted and ground coffee beans. Raw materials: coffee beans, condensed milk,
other additives. Maintenance inventory: Parts, tools, equipment for maintenance
and replacement during operation

- Inventory Management System

 Seasonal inventory management: To avoid the situation of too little
inventory to deliver to the buyer, which reduces revenue, while inventory
costs do not decrease. In addition, if there is too much inventory, it will

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cause congestion in the production process; when the amount of coffee in
the warehouse increases, it will take more time to clear this amount of
goods, which increases the possibility of loss and damage to coffee during
storage while the tax and insurance of this amount of goods remain
unchanged, which will greatly affect the revenue and profit of the business.

 Warehouse management and information flow: After being purchased,

coffee beans also need to be strictly preserved, such as the warehouse must
be moisture-proof, well-insulated, clean and disinfected, etc. As for roasted
and ground coffee, it must be stored in a sealed box at 20-25 degrees
Celsius, preventing light and air from affecting the quality of the coffee, etc.
In addition, to achieve maximum efficiency, Trung Nguyen also applies the
ERP system to have an accurate production schedule and coordinate well
with distributors so that it can have a suitable inventory management plan.

 Set out regulations when providing products to distributors: For distributors

with small demand, Trung Nguyen requires payment in advance and then
delivery of goods to ensure inventory costs. For supermarkets and stores
with large consumption, Trung Nguyen allows taking goods in advance and
paying late from 45-60 days. This regulation is different from the above
regulation in that payment can be delayed within the prescribed time,
because when delivering goods in large quantities, Trung Nguyen helps
reduce inventory costs, so there is no need to collect money immediately to
ensure inventory costs.

 Strategic triangle: This strategy is to open 2 more shops next to each one
that develops to manage and maintain control, design, and coffee quality in
the shops, thereby helping to reduce inventory management costs while
capital is still difficult.

3.1.3 Packaging management:

In the process of moving from Trung Nguyen to
Trung Nguyen Legend, the brand has invested in
production technology and packaging design to
affirm the brand's position in domestic and foreign

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markets. In the packaging process, Trung Nguyen Legend has used modern factories to
establish a closed production and distribution chain to process and package instant coffee,
coffee beans and roasted coffee. Specifically, Trung Nguyen Legend has started to build
the Trung Nguyen Legend Energy Coffee Factory with a total investment of VND 2,000
billion. The goal of the factory is to adopt a circular production model, optimize
production resources and not generate waste that harms the environment. In parallel with
improving product quality, Trung Nguyen's new packaging is designed with luxurious
black-and-white tones combined with images of world-famous figures and inspiring
messages about the desire to succeed. The application of modern printing techniques,
Trung Nguyen Legend's product boxes have become extremely eye-catching and highly
aesthetic, attracting the attention of many customers. Showing a distinct brand imprint
compared to other products on the market.

Trung Nguyen Legend Capsule Packaging: Trung Nguyen Legend Capsule Capsule
Packaging features bio-packaging, made from biodegradable materials in the soil
environment in just 18 weeks, demonstrating the brand's commitment to product quality
and environmental protection.

Trung Nguyen's New Energy Coffee Packaging: Trung Nguyen's New Energy
Coffee's packaging attracts the attention of customers with its innovative design and use
of bright tones that show dynamism and youthfulness. The packaging material also
protects the coffee from light and moisture, and retains the full flavour. In addition, the
packaging is also ergonomically designed, easy to open and store. In addition, the visual
and logo elements of Trung Nguyen's New Energy Coffee also help to easily identify the
brand and convey the message of energy and creativity.

Trung Nguyen Instant Coffee Packaging: G7 (Instant Coffee) is Trung Nguyen's

most popular product line, popular not only because of the taste and quality of the coffee
but also because of its diverse and eye-catching packaging design. Packaging is made
from composite materials to help ensure food safety and hygiene and protect products
from environmental impacts. Besides, G7 maintains the unique identity of G7 in the
hearts of consumers with the traditional red and black colours.

Trung Nguyen Phin Coffee Packaging: Packaging is designed to reflect the

traditional Vietnamese phin brewing method, emphasizing cultural authenticity.
Packaging uses durable, food-safe materials that protect coffee freshness from light, air,
and moisture.
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3.1.4 Information System

Customer information management system: Coffee Hypermarket space

Trung Nguyen has erected a unique energy coffee space, especially on the online
platform, called Coffee Hypermarket. This is where coffee suckers can find quality coffee
products; search for outfit and brewing tools exploration effective business secrets.

To bring a stylish online shopping experience to consumers as well as effectively

manage the Coffee Hypermarket data system, Trung Nguyen Group has chosen to
cooperate with Magenest in the process of structuring and developing the coffee
ecosystem on its online coffee space. Trung Nguyen has erected its website with
Magento, the world's number one open-source e-commerce platform, which has been
supporting the development of big brands such as Nike or Coca-Cola. In addition, the old
system interface doesn't give the stylish experience for druggies, making it delicate to
expand the client base and operate new business models. Likewise, Trung Nguyen wants
to manage all business data from stores on the same Magento system; at the same time,
make an order processing process with effective and smooth collaboration between client
care, shipping and bond conditioning.

Internal Information Management System: Managed SAP Application

Preliminarily, Trung Nguyen Legend's information system operated on the platform

of on-premise data storehouse software SAP ERP to manage the fields of product, force
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chain, distribution, deals and finance. Still, this system gradually failed to meet the need
for flexible and fast information operation, so the group had to find a way to switch to a
more flexible pall model. And Trung Nguyen chose IBM's Managed SAP operations.
Managed SAP manages the entire vacancy, performance and security of the business,
allowing the Group to access new requests, meet business requirements and adapt to
constantly changing request conditions fluently. As a result, functional process
performance has been significantly improved. SAP operations are now running 30 times
faster than ahead, and vacancy reports are also exported much more quickly. In addition,
costs have also been significantly reduced because there's no need to buy and maintain
tackle. It's estimated that over a five- time period of use, the operation can reduce the total
cost of power by 43%.

3.1.5 Customer service

Before the sales process:
For guests copying the company's products, Trung Nguyen prioritizes PR over
heavy advertising. Their totem and watchword reflect public pride, leaving a strong
impression on both Vietnamese and transnational guests. The packaging of Trung
Nguyen's coffee products generally features black and white or red and black colour
schemes, with clear information and constituents displayed on the packaging. All Trung
Nguyen Legend coffee packaging abandons the traditional red-black colour scheme and
the familiar image of a coffee mug, transitioning entirely to black and white,
incorporating images of world-famed numbers along with inspiring dispatches about the
aspiration for success. On the other hand, G7 packaging maintains its distinctive red-black
characteristics, with a sanguine- brown earthy tone, a hallmark of the Central Highlands
region with thick coffee colonies. ultramodern printing ways are also applied to produce
luxurious product boxes that stand out significantly compared to former products and
brands, as well as challengers, when displayed on shelves, especially attracting guests.

For guests having coffee at Trung Nguyen coffee shop chains in Trung Nguyen
coffee shops, you will not find standees or roof cards on tables to avoid disturbing guests.
The only form of advertising in the shops is Wi- Fi Marketing on the AWING platform. It
can be said that Trung Nguyen Legend is the perfect place for brands looking to reach a
decorative client base for their products and services. With its minimalist and elegant
design, Trung Nguyen is nearly an ideal place for meeting mates and discussing business
matters. This is apparent in client biographies at the shop. According to AWING( 2021),

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over 50% of guests at Trung Nguyen are individuals aged 25- 45, situating them as
professionals, office workers, business people, high-position directors, entrepreneurs, and
business possessors. This is easily the" golden" age group, able to spend, and a significant
consumer group in society, especially for decoration products.

During the sales process:

Trung Nguyen always aims to give the most accessible shopping experience for
guests. Guests can directly buy Trung Nguyen coffee products at Trung Nguyen E-Coffee
retail stores, G7 Mart, through authorized dealers, supermarkets, or via hotlines and
online websites. Also, for systematized guests or those making large purchases, they will
profit from the company's reduction rates and other long-term client incentives. At Trung
Nguyen's ultra-expensive coffee shops, guests can partake in different coffee
immolations, including fresh, instant, machine-brewed, and capsule variants. The
establishments are equipped with coffee-related outfits and offer homemade grinders for a
bespoke experience. Also, they house a selection of curated books, blending coffee and
literature in an elegant setting. Likewise, Trung Nguyen has established a coffee village in
Dak Lak, furnishing excursionists with an opportunity to explore and savour coffee in a
natural and inviting terrain (Trung Nguyen Legend, 2015). This unique model showcases
Trung Nguyen's commitment to creating a fresh image in the hearts of its guests. The
company constantly strives to meet the requirements of its guests in innovative ways.
Trung Nguyen provides flexible payment styles, allowing guests to pay in cash directly,
through electronic wallets, or banking apps. Also, Trung Nguyen has partnered with
delivery apps similar to Grab, ShopeeFood, Gojek, and Loship, optimizing the client
experience anytime, anywhere.

Post-sale:
Trung Nguyen provides strict and effective exchange and refund programs, offering
a devoted hotline to address client and mate inquiries instantly. Each product comes with
instructions on storage and shelf life to ensure the product.

3.2 Evaluation of Logistics Activities at Trung Nguyen Legend

3.2.1 Achievements
Currently, the Trung Nguyen Legend is present in all retail supermarkets nationwide
and many retail outlets everywhere. Trung Nguyen Legend has built a system of more than
1000 convenience stores and G7 Mart distribution centers across the country. Distribution

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centers simultaneously carry out the distribution and operation of loading goods, from
picking up goods from warehouses to transporting them to retail outlets, agents, and Trung
Nguyen stores, without having to search for or sign contracts with loading operators,
helping to save a large amount of costs for conversion operations. The system includes
many distributors from small to large, ensuring that the download process is not slow and
operates efficiently. Diverse conversion forms are applied to suit domestic or foreign
conversion. Various forms of transportation, suitable for domestic or international
transportation, apply multi-modal transportation forms such as COFC or RoadRailer to
optimize costs and transit time.

The company's distribution logistics consist of a B2B and B2C network. Nationally,
the company franchises its operation with over 800 coffee shops and Trung Nguyen E-
Coffee chains; internationally, it collaborates with top-of-the-line retailers from Amazon to
Costco and Walmart. This is a clear multi-channel distribution network through which they
can accommodate various customers. It appears that they also use third-party logistics
(3PL) through their partners for international shipping and last-mile delivery.

After more than 2 years of opening a representative office in Shanghai, Trung Nguyen
Legend has invested in developing a professional distribution network with 20 importers
and over 100 distributors. Trung Nguyen Legend energy coffee products are sold at over
29,000 points of sale, including supermarkets, large hypermarkets like Walmart and
Carrefour, mini-supermarket chains, convenience stores, and booths at large wholesale
markets in China.

In inventory, processing, and warehousing, the company utilizes various technologies

intermixed with herbal processing. For instance, the Bac Giang Instant Coffee Factory
operates under lean production and just-in-time (JIT) inventory processing for cost
reductions that facilitate waste reduction and flavor preservation compliant with domestic
quality standards and international certifications

3.2.2 Shortcomings
Trung Nguyen Legend Group spends too much on transportation, leading to large
depreciation costs, increasing financial burden, whereas this is not really necessary
compared to core business activities. In 2017, the total original value of Trung Nguyen's
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means of transport reached 464 billion VND, becoming the second largest asset after
production machinery and equipment (607 billion VND), which is easy to waste and
affect business efficiency.

The distribution system is cumbersome and costly to maintain. By applying a large

distribution network, the pressure is put on the transportation when it has to fulfil the
customer demand for both traditional and modern distribution channels. Trung Nguyen's
distribution channel focuses mainly on the cities and economic centers, especially where
we can see Trung Nguyen products at the supermarkets and coffee shops. However, the
company is missing the retailers from smaller or less modern residential areas. Therefore,
Trung Nguyen fails to attract a large number of distributors from markets and small
grocery stores.

Transportation depends largely on the distributors, each of which can have many
different forms, routes, and transportation times. If management is not strict, it can easily
lead to cases of exploitation or difficulty in handling risky cases. Although road transport
plays a major role in the country, some areas are deteriorating, there's no North-South
expressway, highway expansion is limited, and traffic congestion is frequent.

Trung Nguyen is lagging behind its inherent successes. Due to the use of an
incomplete franchise model, Trung Nguyen's Franchise system has gone beyond control,
unable to ensure unity and create its own style, which once achieved the advantage of a
leading brand. Legal barriers and international standards, such as strict regulations on
food safety, labelling and the environment, are the challenges companies have to deal
with when expanding into international markets. Compliance with these standards
requires significant time and costs, affecting business progress and efficiency.

The warehouse and inventory management activities of the enterprise still have
many shortcomings. With the characteristics of the F&B industry, ensuring inventory
quality during the inventory process is always a key issue. This requires a highly accurate
inventory system, which requires new scientific technologies in preservation.

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3.2.3 Recommendations
To minimize inventory costs and optimize logistics and distribution operations,
Trung Nguyen Legend needs to develop close strategic relationships with distributors to
bring products directly to consumers, reduce intermediary costs, organize reasonable
transportation and distribution to ensure that the quality of goods is not changed or
damaged.

Enterprises need to promote the application of technology and automation in the

production and consumption process, and at the same time, regularly improve and closely
monitor warehousing and shipping to reduce costs reasonably while maintaining product
quality as expected by customers.

Outsourcing transportation is an efficient method that Trung Nguyen could consider

instead of investing too much in the transportation system to increase flexibility and
efficiency in distribution. The distribution system should meet the demand of
synchronization between franchise stores, with clear commitments to partners to ensure
that image, quality and product are consistent. Production expansion and recruitment also
need to be carefully considered, maintaining relationships with current and past partners,
and expanding the supplier network in the four key coffee regions of Vietnam to increase
the initiative in raw materials.

In addition, Trung Nguyen should focus on building a brand to support distributors

in creating customer sources, committing to bringing them the highest benefits through
positioning high-quality products, the fastest access in terms of geography and cost. In the
long term, Trung Nguyen needs to continue to develop the global franchise system and
promote exports, ensuring international standards such as BRC to expand the market and
enhance brand reputation on a global scale.

PART 4: CONCLUSION
Trung Nguyen Legend is not only a popular household name in Vietnamese coffee
but also a cultural icon with a global vision. From the initial steps with the aim of
propagating Vietnamese coffee around the world, the company has built a robust business
ecosystem, connected to the philosophy of life, innovation and commitment to serving
society.

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In logistics, Trung Nguyen Legend exemplifies its first-class and highly efficient
supply chain management capacity. From warehousing, transportation and packaging to
customer service and information management, the company employs superior
technology such as ERP, TMS and e-commerce to ensure optimized operations. Not only
can this enhance customers' experience, but also simplify ensuring competitiveness in
international markets.

But in the era of globalization and digital revolution, Trung Nguyen Legend need to
upgrade the logistics system further, invest in more technology and green development.
This will be a solid foundation for the brand to develop further, dominate the coffee
market and continue bringing Vietnamese cultural values to the world.

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 Logistics
REFERENCES

I. Vietnamese Documents

1. Nguyễn Dũng. Trung Nguyên Legend xây nhà máy cà phê lớn nhất Đông Nam Á
tại Buôn Ma Thuột, Vietnam Investment Review, 2024, https://vir.com.vn/trung-
nguyen-legend-breaks-ground-on-southeast-asias-largest-coffee-factory-in-buon-
ma-thuot-124215.html

2. Nguyễn Hồng. Trung Nguyên mở rộng chuỗi cà phê tại Mỹ và Trung Quốc,
Vietnam Investment Review, 2023, https://vir.com.vn/trung-nguyen-legend-
expands-coffee-shop-chain-in-us-and-china-112868.html

3. Nguyễn Lê. Trung Nguyên Legend khai trương cửa hàng toàn cầu đầu tiên tại
Trung Quốc, VnExpress, 9/2022, https://e.vnexpress.net/news/companies/trung-
nguyen-legend-launches-first-global-store-in-china-4514069.html

4. Trung Nguyên Legend. Nhà máy Trung Nguyên tại Bắc Giang chính thức đi vào
hoạt động, 2024, https://trungnguyenlegend.com/trung-nguyen-factory-in-bac-
giang-province-has-been-officially-gone-into-production/?lang=en

5. Trung Nguyên Legend. Thông điệp Chủ tịch – Tầm nhìn – Sứ mệnh – Giá trị cốt
lõi, 2023, https://www.trungnguyen.is/pages/chairman-message-vision-mission-
core-values

6. Trường Đại học Kinh tế Tài chính TP. HCM. Trung Nguyên Legend – Case Study,
2022, https://www.studocu.vn/vn/document/truong-dai-hoc-kinh-te-tai-chinh-
thanh-pho-ho-chi-minh/marketing-can-ban/trung-nguyen-legend-case-study/
24389952

II. Documents in English

7. Asia Food Beverages. Trung Nguyen Legend launches G7 Gold instant coffee,
2024, https://asiafoodbeverages.com/trung-nguyen-legend-launches-g7-gold-
instant-coffee/

8. Global Coffee Report. Trung Nguyen Legend continues expansion in US and

China, 2024, https://www.gcrmag.com/trung-nguyen-legend-continues-expansion-
in-us-and-china/
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 Logistics
9. International Business Times. Trung Nguyen Legend expands cafe system in US,
China, soon Australia, Canada, 2024, https://www.ibtimes.co.uk/trung-nguyen-
legend-expands-cafe-system-us-china-soon-australia-canada-1725781

10. Saigon Times. Trung Nguyen Legend expands cafe chains in U.S., China, 9/2023,
https://english.thesaigontimes.vn/trung-nguyen-legend-expands-cafe-chains-in-u-s-
china/

11. Trung Nguyen Legend US. Official website, 2024, https://trungnguyenlegend.us/

12. Wikipedia. Trung Nguyên, 2024, https://en.wikipedia.org/wiki/Trung_Nguy

%C3%AAn

13. World Coffee Portal. Trung Nguyen E-Coffee targets rapid Vietnam expansion,
9/2024, https://www.worldcoffeeportal.com/Latest/News/2024/September/Trung-
Nguyen-E-Coffee-targets-rapid-Vietnam-expans

14. [Unknown author]. Trung Nguyen Coffee – Supply Chain Case, CourseHero, 2023,
https://www.coursehero.com/file/223471727/LSCM11-Trung-Nguyen-coffeepdf/

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