Gemadept Corporation

BACKGROUND

Introduce your business and what you do there.

I’m the Supply Chain Associate Director for a wholesaler located in Vietnam.

OPPORTUNITY / CHALLENGE

What challenge were you trying to address with Gemadept Corporation?

We were working with a large international logistics company, but when they increased the prices, we wanted to maintain the current cost. Gemadept is now our established partner for warehousing services.

SOLUTION

What was the scope of their involvement?

Gemadept is our destination agent here in Vietnam. When our shipments arrive, they’re cleared by customs and received by Gemadept. Then, they deliver it to their warehouses; they use ambient warehouses, rather than temperature-controlled solutions. Afterward, Gemadept delivers our property to us. 

Our goods and shipments are stored in two warehouses currently, one in the South and one in the North of the country.

Outside of warehousing, Gemadept’s team also provides us with logistics, including the handling and shipping of our goods to other countries. They load and receive products from overseas and from local suppliers.

What is the team composition?

I’m in contact with roughly five people from their company at the management level. At the warehouse level, Gemadept has a team of 70–80.

How did you come to work with Gemadept Corporation?

We did the tender with lots of companies, including our current vendor. A well-known logistics company in Vietnam, Gemadept won the tender.

They have extremely large warehouses and around 900 trucks and ships — excellent infrastructure all around.

How much have you invested with them?

We pay them around $348,000 per month. For the period that we've been with them, we've spent an estimated $10 million dollars on the project.

What is the status of the engagement?

We began working together in January 2019, and we are still working together.

RESULTS & FEEDBACK

What evidence can you share that demonstrates the impact of the engagement?

It's painful for me to say, but I'm not happy with the service. When I joined the team, I noted that Gemadept’s charges were unreasonable, so when COVID hit, I knew I needed to review the minimum order quantity, and it did not support us and this has increased the cost.

The other area of disappointment is that they have no experience in handling challenges. Gemadept’s top management has very limited services providers, which has cost us around 1 billion VND (approximately $44,000 USD) already.

There is something positive aspect to the interaction, however. When Gemadept’s team took over the business, they ramped up to our complicated operation very quickly, performing in a limited amount of time. That part was a success.

To be fair, Gemadept can handle normal operations, but the amount they cost us is not allowing us to grow.

How did Gemadept Corporations perform from a product management standpoint?

Delivery timelines for a normal situation are adhered to. During this difficult COVID situation, they have not demonstrated any flexibility. There are increased delays, and we don’t have a tracking system, which requires us to follow up manually.

What did you find most impressive about them?

What I find impressive with them is the price, because it's the reason we had to leave our previous vendor.

Are there any areas they could improve?

They need to set up their operation to align with our business. Flexibility is a necessity when it comes to delivery.

Any advice for potential customers?

I will advise people not to use their services because the most important aspects are service level and the cost. When the service level is not good and the cost mindset of the vendor is not supporting your growth, then they’re not the right partner to work with.

Just be open with them and communicate what you want.