In the context of increasingly fierce competition, the application of ERP at Vinamilk has helped the company save time, maximize productivity and boost revenue. Let's learn more about the story of Vinamilk ERP in the article below.

Vinamilk's current situation before applying ERP

Difficult materials management

In the early stages, Vinamilk tracked incoming and outgoing goods completely manually on Excel files. However, doing it this way took a lot of time to input data and made the data update slower than real time. The delay from this management stage led to an increase in Vinamilk's inventory. This required Vinamilk to spend more raw materials and labor in the production process. Recently, Vinamilk's profits have been seriously affected due to the manual implementation of the management system, leading to delays in inventory management.

Accounting does not accurately reflect reality

In the accounting and finance part, manual accounting is very difficult. The amount of paperwork and procedures that need to be processed is huge, leading to the risk of staff making mistakes and missing important data. Accounting is an important business function, so errors need to be resolved immediately to avoid loss of common resources.

Discrete manufacturing operations

In a business, operating processes are created through interaction and coordination between departments. With a large organizational structure, Vinamilk needs to closely link all processes together. However, in the early stages, the connection from production to completion, supply, sales and communication of the business has not yet achieved the highest stability and efficiency.

Data transmission is interrupted, making it difficult to share information.

Each department in Vinamilk uses its own business software, but they are not intelligently synchronized, leading to the inability to share and link data within the company. Therefore, when transferring information, the person in charge must manually save the file or print a hard copy, which is time-consuming and labor-intensive, as well as reducing labor productivity and increasing the risk of data loss. 

CONTACT EDUTO FOR CONSULTATION ON THE BEST BUSINESS MANAGEMENT SOFTWARE SERVICES

Changes of Vinamilk after applying ERP system

Since 2007, Vinamilk has deployed ERP to deal with challenges in human resource planning. The current status of Vinamilk's ERP implementation reflects that ERP is a platform for continuous work management and connection between departments and divisions in the company. After only 8 months of use, Vinamilk has achieved many positive changes and stable production and business, helping the company improve its competitive advantage. This success also helped Vinamilk be honored in the list of 200 companies with the best revenue in Asia - Pacific in 2019.

Improve work efficiency

Vinamilk's ERP system helps managers accurately evaluate the work efficiency of each employee. Every time an employee updates a new work status, the manager will automatically receive a notification, ensuring continuous information capture. Furthermore, ERP also analyzes the collected data to propose plans and directions to solve difficulties for the business. Ineffective positions will be eliminated and replaced with new, streamlined and less risky processes.

Fast and accurate payment process

Vinamilk's ERP model has an automatic payment feature according to the business's settings, which is one of the outstanding features. Payments to suppliers or partners will be automatically made by the system when the deadline comes. In addition, transactions between sellers and buyers also become simple and fast thanks to direct connection with the bank. Customers can complete the shopping process immediately by simply scanning the code or operating on the application.

General report

Vinamilk products have an impact on consumers' health, so quality management from raw materials, processing, packaging, and transportation is always a top priority. The ERP system helps managers and leaders grasp the whole picture of work at all times and make the most accurate decisions to optimize the work process.

Lean Business Processes

Vinamilk is currently supplying about 200 different product lines for domestic and international markets, each product line has its own pricing policy and discount incentives, creating significant pressure on control and statistics over time. Therefore, automating and simplifying operations using the ERP system is considered a superior solution to help Vinamilk overcome difficulties and significantly increase productivity and revenue.

See more: AI Application Trends in ERP System: Smart Business Management System

Lessons learned for businesses that want to implement ERP effectively like Vinamilk

1. Linking departments in the business

Vinamilk’s ERP system is designed to integrate different departments and functions within an organization. It is important to involve representatives from each department in the implementation process. This helps ensure that the system addresses the specific needs and workflows of each department and promotes collaboration between departments.

2. Safe and scientific information control

Data security and information control should be a high priority during ERP implementation. Implement strong security measures to protect sensitive business data and ensure compliance with relevant regulations. Establish appropriate access controls, encryption protocols, and regular data backups to protect critical information. 

3. Focus on the goal 

Clearly define your business goals and the objectives of your ERP implementation. Whether it is improving operational efficiency, enhancing customer service, or increasing profitability, align the implementation process with these goals. This helps maintain focus and ensures that the system is configured and customized to deliver the desired results. 

4. Building standardized IT infrastructure

Before implementing an ERP system, it is essential to assess and upgrade your IT infrastructure. Ensure that your hardware, software, and network infrastructure can support the requirements of the ERP system. Standardize your IT environment by implementing consistent hardware and software configurations to minimize compatibility issues and facilitate smoother integration. 

5. Choose the right implementation unit

Choosing the right implementation vendor is critical to a successful ERP implementation. Businesses can choose between on-premises, cloud-based, or hybrid deployments. Consider factors such as budget, scalability, security requirements, and IT capabilities when deciding on a deployment model. Evaluate different vendors and their services to find the solution that best fits your business needs. 

EDUTO - Reliable ERP implementation unit

In Vietnam, EDUTO is one of the units providing ERP business management software solutions, specially designed for small and medium enterprises. If you want to develop your business, take your organization to a new level, improve production efficiency and productivity, ERP is the perfect answer for you.

CONTACT EDUTO FOR CONSULTATION ON THE BEST BUSINESS MANAGEMENT SOFTWARE SERVICES

‍