Lean Management Model in Retail Business: The Case of Supermarkets in Hanoi

http://repository.vnu.edu.vn/handle/VNU_123/55865

Vietnam has recently become an attractive and active destination for both foreign and domestic supermarket businesses. 

The foreign retailers play an important role in shaping the modern retail market in Vietnam and earning major market shares.

This raises the question for our domestic retailers as how to gain more customers and operate more effectively.

Several methods can help to achieve that aim, among which the Lean management method, focusing on eliminating wastes in operations to best utilize the resources, improve the competitiveness and enhance the capability to serve customers, has proved its success on a global scale.

This paper aims at applying the Lean management philosophy and mindset to detect and resolve the typical wastes that are found in Vietnamese supermarket chains, which prevent their development and effectiveness.

From practical observations at some supermarkets in Hanoi, quick customer survey results, and the information provided by some managers in retail business, we conclude that (1) unclear business philosophy, (2) lack of understanding of the Lean philosophy and (3) underestimation of human capability are the three main causes for the waste and ineffectiveness in operations.

Finally, a model for the application of Lean management in domestic supermarket chains is proposed with lessons learned from a foreign retailer in Vietnam.

Title:	Lean Management Model in Retail Business: The Case of Supermarkets in Hanoi
Authors:	Nguyễn, Đăng Minh Nguyễn, Phương Anh
Keywords:	Lean management, supermarket(s), Vietnamese enterprise(s).
Issue Date:	2015
Publisher:	H. : ĐHQGHN
Series/Report no.:	Vol. 31;No. 2 (2015)
Abstract:	Vietnam has recently become an attractive and active destination for both foreign and domestic supermarket businesses. The foreign retailers play an important role in shaping the modern retail market in Vietnam and earning major market shares. This raises the question for our domestic retailers as how to gain more customers and operate more effectively. Several methods can help to achieve that aim, among which the Lean management method, focusing on eliminating wastes in operations to best utilize the resources, improve the competitiveness and enhance the capability to serve customers, has proved its success on a global scale. This paper aims at applying the Lean management philosophy and mindset to detect and resolve the typical wastes that are found in Vietnamese supermarket chains, which prevent their development and effectiveness. From practical observations at some supermarkets inHanoi, quick customer survey results, and the information provided by some managers in retail business, we conclude that (1) unclear business philosophy, (2) lack of understanding of the Lean philosophy and (3) underestimation of human capability are the three main causes for the waste and ineffectiveness in operations. Finally, a model for the application of Lean management in domestic supermarket chains is proposed with lessons learned from a foreign retailer in Vietnam.
Description:	p. 1-14
URI:	http://repository.vnu.edu.vn/handle/VNU_123/55865
ISSN:	2588-1108
Appears in Collections:	Economics and Business