Economy rapid development, along with it's tendency to convert numbers to meet demand management, operational efficiency has driven enterprises to apply ERP system in recent years. Added to that, the instability of the market economy, the current makes the business much difficulty “of declining revenues, but operating costs back on the increase”. This is also a factor to help the ERP software is increasing more widely applicable. The same Lac Viet Computing learn the business application ERP success bring the effectiveness of the increase in competitive strength, operational efficiency, cost savings. Along with that is the lesson learned for the business are intending or preparing to adopt ERP system for business.
1. The numbers on the status of use of ERP in Vietnam
The rapid growth of the ERP market with more than 60% of large enterprises in Vietnam have deployed or are planning to deploy ERP.
According to the survey from the Institute for Information Business under VCCI, in 2006, the proportion of businesses using ERP system at 1.1%. This rate increases to 7% in 2008 and 17% in 2014. To date, this figure is 60% of businesses use ERP system.
However, the small and medium enterprises (SMEs) in Vietnam is still facing many difficulties in the deployment. There are at 81.87 which% the business SMEs do not use or not wishing to use the services in information technology, including ERP, due to the high cost, lack of resources.
To ensure the application of technology with the lowest cost, an ERP system has been developed called Cloud ERP, ERP is based on the cloud platform with more than 64.5% of the ERP project new select model Cloud ERP by the flexibility, scalability, cost optimization at the lowest level to help business save cost management – operation .
The school ERP software in Vietnam is led by the water solution such as SAP, Oracle, Microsoft Dynamics. However, the ERP solution in water as SureERP, MISA AMIS, Fast Business are also gradually dominate the market due to the ability to customize the same high costs in accordance with Vietnamese enterprises.
2. ERP application in business benefits superior how?
ERP (Enterprise Resource Planning) is a management solution for comprehensive enterprise, integrating the process core business such as finance, manufacturing, sales, hr, logistics into a single system.
When the application properly, ERP can bring many outstanding benefits, help businesses optimize the operation performance enhancement.
- The optimal time to help reduce operating costs
- Improve the quality of service, customer experience
- Increase competitive strength
- Minimize the risks
2.1 optimal time to help reduce operating costs
ERP helps to merge the business processes discrete into a single platform, eliminating the duplication of operations, reducing the errors due to input manually. According to a study from Panorama Consulting Solutionsthe business application, ERP can save time carrying out the process up to 23% while reducing 30% of the error due to input manually.
The automation process, manage resources effectively help reduce operating costs overall of the business. For example, the business has implemented ERP often report the cost reduction of 10-20% in activities such as warehouse management, production, and personnel.
2.2 Improve the quality of service, customer experience
Through the integration synchronize the information related to customer ERP system helps to improve service customer care efficiency. Business can handle orders quickly, track the status, product management, relationships with customers in a more effective way.
2.3 increase in competitive strength
With ERP, the information is constantly updated in real time, help leaders can make decisions quickly and accurately. This is especially important in the business environment changing rapidly, timely decisions can help your business win competitive advantage.
Besides, the optimization of resources and how transparent management also helps business increase competitive advantage when the operation is always through.
2.4 minimizing the risks
The ERP system is integrated with industry standards, policies, regulations, laws related help your business easily comply with. Combine automation features reports, monitoring the process, helps to minimize legal risk, avoiding the penalty of not desired.
- According to the report by Deloitte, more than 70% of business ERP implementation has markedly improved the ability to manage finances, cash flow, with the rate of return on investment (ROI) reached approximately 2-4 years
- Panorama Consulting also pointed out that 95% of businesses said that ERP has helped them to improve one or more business processes.
3. 3 Enterprise application ERP most successful
3.1 ERP System of Vinamilk
Vinamilk, one of the leading enterprises in the dairy industry in Vietnam has implemented the ERP system SAP to manage the entire supply chain from production to distribution.
The ERP implementation at Vinamilk not only help optimize manufacturing operations but also improve process management and financial accounting. Specifically, after applying ERP system, Vinamilk has enhanced effective inventory management, minimize material waste, improve the ability to forecast market demand. This has contributed to help the business maintain its leading position in the dairy industry, with revenue growth significantly over the years.
Effective yield:
- Vinamilk has to save cost and management up to 15%. Speed up order processing up to 30%.
- The ERP system has helped Vinamilk track, strict control of resources, thereby improving the production performance – reduce operating costs.
3.2 erp System's let's
World Mobile, one of the retailers phones, electronic devices, the largest in Vietnam, has deployed ERP system Oracle to manage the entire supply chain of its sale. The application of ERP has helped The Mobile World to manage millions of products across stores, process optimization, retail, and improve customer experience.
Effective yield:
- Speed up order processing, reduce errors in the process of inventory management, help them serve their customers more quickly.
- The ERP system also helps businesses track sales, profits in real time, from which optimization strategy business, adjust the products according to the market demand.
Results: After implementing ERP, the sales of Mobile World growing steadily over the years, with revenue growth up to 20% per year.
3.3 Petrolimex
Petrolimex group petrol top in Vietnam, has application to the ERP system SAP to manage the entire supply chain and distribution of petrol across the country. ERP systems help Petrolimex strictly control the import operations, distribution, retail, petroleum, from which minimize risk, optimize costs.
Effective yield:
- Process optimization, import and distribution of gasoline, help minimise waste to maximise profitability.
- The ERP system also helps corporations to comply with the rules on safety, the environment, ensure the business operations are done according to international standards.
Results: After implementing ERP, Petrolimex has reduced 10% of the operating costs. Strengthen the ability to control the risks in the business operations.
3.4 Vingroup
Vingroup conglomerate, multi-sector, the largest in Vietnam, has deployed ERP system to manage the entire array of its business, from real estate, commercial to industrial production. ERP systems help Vingroup integrated business activities, his complex into a single platform, from which improve management efficiency and cost optimization.
Effective yield:
- ERP helps Vingroup effective management of real estate projects, reduce risks in the construction process and cost optimization projects.
- The system also helps Vingroup process optimization, industrial production, especially in the automotive sector and mobile phones.
Results: After implementing ERP, Vingroup has been reduced by 20% of the cost of project management to strengthen competitiveness in the market.
4. Experience drawn to businesses that want to adopt ERP in time to
Through the business application ERP success is indicated in section 3, one can see the deployment of the ERP system is essential to business sustainability in the economic context, as it is now. However, the implementations need to follow step by step 1, there are the details, obviously. Business leaders need to have deep understanding and a firm grasp on the application ERP software how to bring the efficiency, success with the most optimal cost.
Here are the 5 elements need to plan for ERP implementation success:
- Clearly define where's needs, goals want to achieve when ERP application to choose the appropriate solution. Understanding the business processes need to be improved, long-term goals, how it will help minimize the risk of failure when implementing ERP. For example, Vinamilk has clearly identified needs, optimize production processes, distribution, before choosing the ERP system SAP to avoid the costs incurred are not necessary, ensure the system works efficiently right from when deployed.
- Thorough reviews to choose the supplier ERP solution credits – professional, should be based on the criteria of experience, the ability to support, ability to customize, clear pricing policy transparent to ensure the ERP system is implemented properly, minimizes the technical problems arising later.
- Attention should be given training to use the system for employees to ensure the system after deployment is operating in the most efficient way. For example, Petrolimex has spent time training employees before implementing the ERP system SAP, help them get familiar with the new system and reduce errors in the process of use.
- Patience, flexible adjustment during deployment by applying a system – comprehensive is often a complex process in a long time. The adjustment plan to be flexible in responding to the problem that arises is necessary to ensure the application system successfully according to plan. The most important thing in a plan that is backup plan when your plan is not properly perform as stated plans. So making plans to adjust the room is incredibly necessary.
- Finally monitoring and evaluating the effectiveness of the system after deployment to ensure the original objectives set out have been met or not. The periodic reviews also help detect potential problems to adjust the system to improve efficiency. As Vinamilk has made the assessment after deployment to ensure the ERP system operate efficiently and in accordance with the change in the operation of their business.
With list the business application ERP success the experience is drawn Lac Viet deployed in the article will help businesses get more comprehensive perspective on the application of ERP in future efficiency with optimal costs.
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