Page 121 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

The following table provides an overview of distribution center network as of 31 December 2021.
DC Approximate
Business Unit
Group Size (sq.m.) Composition
Group 1 Central Department Store 86,000 Import warehouses, domestic warehouse
Robinson Department Store and cross docks
Supersports
B2S

Group 2 Central Marketing Group 12,000 Single facility
Group 3 Thai Watsadu 126,000 Single facility
Baan & Beyond / BNB Home
Group 4 Power Buy 75,000 3 distribution centers
OfficeMate
Group 5 Central Food Retail 80,000 Four dry distribution centers and three fresh
FamilyMart distribution centers
Group 6 Big C / GO! 40,000 11 distribution centers
Nguyen Kim
Lan Chi Mart
Group 7 Rinascente Department Store 35,000 Single facility

For most of Central Retail’s stores, cargo is delivered to the store every day depending on the sales volume. The
stores are received the products within 1-5 days from the date of purchase. Nevertheless, the faster delivery time is
generally set for the transportation and distribution systems in the Food Segment business units, expecting 24-hour
shipping and handling to deal with all high turnovers, bulk items, as well as fresh food products. In addition, Central
Retail has hired third party to manage the transportation and distribution at some distribution centers. This ensures
timely delivery of goods from each distribution center to Central Retail’s network of stores. Some suppliers will deliver
products directly to Central Retail’s stores. Central Retail is responsible for the distribution center management for
Central Department Store, Robinson Department Stores, Thai Watsadu, Power Buy, B2S, OfficeMate and CMG,
and the fresh food distribution center for Central Food Retail, while the distribution center for FamilyMart and the
distribution center of non-fresh food products for Central Food Retail are managed by third parties. All business
units outsource their distribution functions (except Thai Watsadu and CMG, which do so in some cases), allowing
greater flexibility to manage fluctuations in demand. In addition, engaging third parties gives Central Retail greater
flexibility to manage across the supply chain without tying up investment in underutilized vehicles.

(4) Inventory Management

Inventory management starts prior to the initial purchase order. Central Retail conducts thorough market research ahead
of making any orders, including the current economic conditions, marketing trends, and customer purchasing power
in order to evaluate and make sales forecast. Central Retail generally places small quantities of orders for appropriate
and flexible product management. Central Retail utilizes computer system to control the inventories management for
the entire stores network, which enables Central Retail to systematically store and track inventories and ensure that the
numbers shown in the financial statements are accurate and completeness. The daily report (separated by store), can
be accessed by each individual department according to the rights defined, such as senior management (for accounting
section), store management department (for store operations) and purchasing department, etc. In addition, there are
personnel at the stores responsible for monitoring the levels of inventories and slow-moving merchandise. Central Retail
has set clear driving sales policy in order to achieve sales target including organizing various promotional programs
to sell obsolete products and reduce the number of obsolete inventories from stores.

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