DISTRIBUTION STRATEGY OF SAI GON PURE WATER (SAPUWA) IN VIETNAM

Distribution operation plays an extremely important role, despite the fact that it’s  only a link in the overall business strategy, . Distribution dominates the profitability, working capital, and ability to meet customer requirements. Besides, it also ensures the commitments to service. Developing and completing the delivery system help our company to increase competitiveness as well as create a market position.

Among the business community in Vietnam, The Saigon Pure Water Company (SAPUWA) is one of the most highly appriciated companies for its trust and  influence on consumers, that is indicated throught the contracts to supply drinking water across the country.

The majority of our customers are:

- Foreign customers, and big companies, that require high quality product and services ;

- Foreign diplomats in VN;

- Airlines, supermarket, oil and gas firms, banks, hotels, hospitals, and domestic and international schools.

- Industrial zones, theme parks, entertainment sites, tourism organizations and important conferences etc…

What are the factors that lead to Sapuwa success in the fact of increasingly competition and higher customer’s requirements?

SET QUALITY OF PRODUCTS AS THE FOUNDATION FOR DEVELOPMENT

Saigon Pure Water Company (SAPUWA) was establised in Go Vap District, Vietnam in early 90s of last century, to replace imported products, to meet the needs of domestic food industry, and also to save foreign currency for country nation building, Being a product with direct impact on consumers’ health, food safety is a primary concern of SAPUWA.

Even in the early days of establishment, SAPUWA had determined to build a suitable quality management system for its products. Sapuwa has invested in automated technology lines, that are closed and sterilized by ozone (O3) and PET plastic packaging that can be used according to food regulation. Furthermore, there are no chemicals used in the manufacturing, and we also retain an appropriate ratio of natural soluble minerals essential to our bodies. Besides, SAPUWA has invested in a modern laboratory system with advanced equipments that are calibrated periodically to ensure absolute accuracy.

Thanks to these, each finished Sapuwa product satisfies chemical, physical, and microbiological indicators, as well as heavy metals, radioactive substances, pollution indicators ...etc as prescribed by VN, by the FDA standards, and world Health Organizations (WHO).

These helps SAPUWA gain the International Safe Quality Food Certification " SQF2000 / HACCP ISO 22000" issued by the United-States Institute of Safe Quality Food from 2002 to the present. The certificate is annually monitored and re-evaluated by SGS International organizations – Switzerland.

Having SQF2000 / HACCP ISO 22000 helps us to meets the demands of domestic and international markets as well as the requirements for food safety that are inspected by state agencies and  customers.

DISTRIBUTION STRATEGY OF SAPUWA

To maintain current market share and to develop new ones, SAPUWA has built distribution policies, as the ways of large corporations. With the advantage of the outstanding product quality, professional sales teams, thoroughly invested warehouses, and customer resources availability, SAPUWA has established a distribution system consisting of multiple distribution centers managed by the company and dealers that spread out over the districts and supermarkets in HCMC, Hanoi, Hue, Vung Tau,…etc. We have also equipped 40 trucks to ensure the products delivered to consumers most quickly, stably and effectively.

The distribution strategy of SAPUWA has been effective since it is based on the solid regulation foundation  and effective controlling tools.

For example, the driver are  formally trained, have appropriate driving licenses, are fluent terrain and must pass our examinations and tests before they are are assigned to escort and control delivery-goods vehicles. Moreover, only drivers with carefulness, honesty, rules and disciplines abiding are hired.

Typically, in SAPUWA, drivers’ responsibilities are not only goods delivery when on roads, but also maintenance, repairing, loading - unloading goods. They are responsible to preserve relevant legal documents including driving license, vehicle registration, insurance, and certificate of inspection to ensure good service.

When using vehicles, our drivers must strictly abide by the government regulations for traffic safety as well as the Company regulations on the management and using vehicles.

Drivers are absolutely not allowed to use cars with over-circulation registered, use alcohol while on duty, use narcotics and stimulants, and let other people without driver's license use cars, …ect.

Ending each trip, drivers must put vehicles in the parking lot and implement regulations ensuring the operational safety like cleaning, maintenaning in accordance with the regime, and declaring the cost of gasoline, oil, tolls on actual use and on schedule, …etc.

Besides, SAPUWA also regularly organizes professional training for delivery staffs to understand more about the Company’s products, and to increase knowledge about the Company as well as treatment method to customers… Those activities enable our staffs to answer customer questions, contributing to building up a good image of SAPUWA in the eyes of customers.

COST SAVINGS

With experience, expertise as well as modern facilities, SAPUWA has installed more than 40 remote CCTV systems, combined with other medias such as recording, positioning, petrol / oil tracking sensors, together with data transmission software in the daily transport management and distribution activities. Modern techologies have helped to accurately and fairly assess the capacity of each employee, to avoid negative, idling, slacker attitudes, that all creates a routine, a tradition of the company, and greatly improve the performance of the delivery staff.

Based on the basic regulations, professional training as well as effective controlling supported by computerized system, SAPUWA has issued and fully apply reward and disciplines policies to evaluate the efficiency of every driver.

If the use of petroleum is under the prescribed limits, there will be a reward with extra money equivalent to the amount that exceeds. If the use of petroleum is over, there will be fined for the amount of gasoline being exceeded.

The repair and replacement of spare parts is also scientifically managed, and approved in accordance with the rational use of time. If the replacement of spare parts earlier than the time prescribed, there shall be liable for compensation in full.

Those policies have helped drivers always keep car in good condition, and helped the rational and efficient distributions.

That is why SAPUWA owns a dynamic force of distribution with full of enthusiasm, honesty, with sense of savings, keeping the car well, and with peaceful relations, cheerful and polite working environment that make all customers feel absolute satisfaction when choosing SAPUWA.

ACHIEVEMENT

SAPUWA has succeeded in building a culture of customer care professionally and consistently throughout the Company; from the conversation and contacts with customers, to the attitude to them; from the service to flexible solution for every situation happened of the delivery team. That success has increased the prestige of SAPUWA and made the sustainable development of the company through the sale of products covering the whole country, and has made steady growth in sales of over 25% / year.

As technology has globalized, the price index has been established, only the enterprises with culture of traditional distribution like SAPUWA will hold the deciding and key factors in the competition.  That is the optimal way for business.

Như Vũ Sapuwa