Project report course enterise resource planning topic application of erp in the construction materials business model

cà Sen H HH Ho 126 Completing a refund in purchasing On OdO0...0..ccccccccceeectttet ct eeees 127 Application of ERP in the contruction mertirials business model | 6... ch nh Ho 196 Step

VIETNAM NATIONAL UNIVERSITY, HO CHI MINH CITY UNIVERSITY OF INFORMATION TECHNOLOGY FACULTY OF INFORMATION SYSTEMS

PROJECT REPORT COURSE: ENTERISE RESOURCE PLANNING

TOPIC:

APPLICATION OF ERP IN THE CONSTRUCTION

MATERIALS BUSINESS MODEL

TEACHER GUIDANCE MSc Huynh Duc Huy CLASS: [S336.N22 TMCL STUDENT GROUP:

Ho Chi Minh City, June 2023

VIETNAM NATIONAL UNIVERSITY, HO CHI MINH CITY UNIVERSITY OF INFORMATION TECHNOLOGY FACULTY OF INFORMATION SYSTEMS

PROJECT REPORT COURSE: ENTERISE RESOURCE PLANNING

TOPIC:

APPLICATION OF ERP IN THE CONSTRUCTION

MATERIALS BUSINESS MODEL

TEACHER GUIDANCE MSc Huynh Duc Huy CLASS: IS336.N22.TMCL STUDENT GROUP:

Nguyen Thi Minh Anh 21520577

Nguyen Dang Hoang Ha 21520801

Ho Chi Minh City, June 2023

THANKS

In the first place, our group would like to express our sincere gratitude to the esteemed professors of the Faculty of Information Systems, University of Information Technology for providing us with the fundamental knowledge that served as the foundation for the execution of this topic

Especially, we would like to express our gratitude and appreciation to our supervisor, MSc Huynh Duc Huy, who has guided us throughout this project His dedicated guidance, thorough feedback, and valuable insights have greatly contributed

to our successful completion of the report We are grateful for his support and mentorship

During the project implementation, our team applied the foundational knowledge

we had accumulated and combined it with learning and researching from our professors, peers, as well as various reference materials With these resources, we maximized what we had gathered to deliver the best possible project report However, due to our limited expertise and lack of practical experience, the report may still have some shortcomings We sincerely appreciate any feedback and further guidance from our esteemed professors to enhance our knowledge This will enable us to utilize it as a foundation for future projects and for our ongoing academic and _ professional development

Once again, we would like to extend our sincere and heartfelt gratitude to our professors, peers, and friends

Ho Chi Minh City, June 2023 Student Group Nguyen Thi Minh Anh

Le Bao Chau Dao Gia Hai Nguyen Dang Hoang Ha

Bui Dinh Trieu

FEEDBACK OF TEACHER

DOCUMENT MANAGEMENT DOCUMENT MANAGEMENNT

Creation date: 01/05/2023 Time: 01/05/2023 7:00 AM

CHANGE HISTORY CHANGE HISTORY

Content Nguyen Thi Minh Anh 01/05/2023 - Creating report

- Formatting the report Nguyen Dang Hoang Ha04/05/2023 - Introducing the topic

Creating the scope document Writng the project objectives

- Introducing the platform Nguyen Dang Hoang Ha I2/15/2023 - Drawing BPMN diagram

Nguyen Dang Hoang Ha 13/15/2023 - Editing BPMN diagram

Nguyen Dang Hoang Ha 22/05/2023 - Inventory import/ Export

import/export process

Le Bao Chau 25/05/2023 - Editing sales process

- Editing purchases process

Nguyen Thi Minh Anh 26/05/2023 - Writing thanks

Nguyen Dang Hoang Ha26/05//2023 - Writing the stakeholders an

TABLE OF CONTENT

LI, ABBREVIATIONS AND TERMINOLOGIES 2e 1

1.3 LIVT OF IMAGES, DLA(GRAÌMS nen 3 ' Nv2,/ i0 0610 h 9

1.5.1 PUSIHCSS IHÍOPHIQÍÍOH Ặ Ăn HH ky ọ 1.5.2 COIDQHV IHẨFO(HCÍÍOH S SH HH HH rưn 10 1.5.3 OrgdqHi4qflOHAQÏ SÍTHCÍHFC SH Hư 10

` : he ee 11 1.6 Projecf sCoD€ (H(Ủ 0ÌjCCÍÏVS, ST HH ngư 13

FT TH,, / 13 L.6.2 ProjeCÍ 0jCCÍIVS Ăn ng kg vi 14 1.7 Relevant stdkeholders qndl Key DGFSOHHCÏ Ă SH nhe 14 Chapter 2: GENERAL, THEORY -Ú S HH HH HH 17

21 Tmtroductfion 0ƒ EẨP HH KH ngư 17

QL Definition Of ERPP HH HH ke 17 2.1.2 Outstanding features 0ƒ ERP SWSÍGI Ă SH 18 2.1.3 Sofhudre modHles 0ƒ the ERÑP SVSÍGH ĂQ Hs se, 18 2.14 Advantages of ERP for DHSIHCSSGS ĂẶẶ HH 19

2.1.5 Disadvantfdges 0ƒ ERP soÏMA(F€ ST net 20 2.2 Deloyment platform introducfioH - Ỉ00 co Hy 22 2.21 Generdlinfroducfon dbouf QỈ00 ĂẶ Ăn 22 2.2.2 Advantage Of ClÌ00 HH kg 23 2.2.3 Disavanfdge 0ƒ CÌ00 Ăn HH KH 24 2.2.4 Qdloo's poDHÍÏAF HIO(ÏHÍGS, Ú SG SH HH 25 2.3 Describe the problem oƒ qpplping ERP to q topic or CdsestHdp 27 Chapter 3: SYSTEM BUSTINESS PROCSSES LH HH 29

3.3.2.2 Dadad librdrV sD€CIfÍCGIÌOH HH HH HH ke 73

"¬./ nh 105

3.3.3.1 Hlustration of the purchase process on the ()dOO SVSIGIH 105

- Ố 112

h0 e 127

7H.) Ổn he 128

3.4.2 SpCCÚfÏC (ÌGSCFIDÏOH Ăn HH tre 128 3.4.2.1 SpeClfiCatiOH OƒPFOC€SS SÍ€JD HH TH ng ng, 128 3.4.2.2 — Dadd lihrdrV sD€CIfÍCGIỈOH SH HH HH nh kr 131 "./ nh .Ầ 133

3.4.3.1 Hiustration 0ƒ the import process on the ()d0O SWSIGM 133

2 0 135

“ >¬".-.'.nh 135

"` 41 h.ee.e 13ó E 2ZnNM LB 13ó 3.5.2.2 Dadad librdrV sD€CIfÍCGIỈOH HH HH HH nh kr 138 "¬./ h e 141

3.5.3.1 Hiustration oƒ the export process on the ()dOO SVSIGIH 141

3.6 Warehouse tranfer DFOC€SS SH HH HH kg 143 KT `nNH.).ỔÌnh 143

` 41 h ee 143

3.6.2.1 Specification Of Process StCPS cesccccesescceseescceesesesneceeeeseaseaeeeeseeaeees 144 3.6.2.2 Dadad librdrV sD€CIfÍCGIỈOH HH HH HH nh ky 14ó

"./ , nh 160 3.6.3.1 Hlustration of the purchase process on the ()dlOO SVSIGIH 1ó0 3.7 Warehouse Inventory AHdif PTOCGSS So HH re 1ó5 2N ) h 1ó5 ~ 4<5 h.ee 1ó5

2 ~ZNWM LB 1ó5 3.7.2.2 — Dadad librdrV sD€CIfÍCGIỈOH HH HH HH kkr 1ó8

" hee 172 3.7.3.1 Hlustration of the Warehouse Inventory Audit process on the Odoo system 172

3.8 CHSÍOHICF CF DFOCCSS HH HH ng re 174

` 41 h.e.e 174 3.8.2.1 SpeclfiCatiOH OƒPFOC€SS SÍ€JD Q SH th HH gen 174 3.9.2.2 — Dadad librdrV sD€CIfÍCGIỈOH HH HH HH nh kr 177

" / n 179 3.8.3.1 Hlustration of the customer care process on the Odoo system 179 3.9 The process of handling customer debt on ÍÏHNG àà cà se S« 182

3.9.2 Specific deSCrIPUION 0 ccccccccecccssessecstecesecesecsseceseseseseasesasesesesessesssesesaes 182

3.9.2.2 Dadad librdrV sD€CIfÍCGIỈOH SH HH HH nh kr 184

"./ , h 185 3.9.3.1 Hlustration of The process of handling customer debt on time on the

3.10 — Handing lafe cHstomer (lebf pFOCGSSIHđ Ă.ĂĂe.eeie 192

3.102 SpẴ€CUfiC (ÍGSCFIDẨÏOH SH HT HH nu He 192 3.10.2.1 Specification OƒPTOCGSS SÍ€JÁ SH HH nh He 192 3.10.2.2 Dadd liPrdTV SD€CIfÏCQÍÏON ào HẠ HH KH re 194

Ÿ 1.3 TÍÍHSÍTHOH SH TH HH nọ 19ó 3.10.3.1 Hlustration of the process of handling late customer debtson the Odoo system 196

3.HI — Process 0ƒ handling supplier debt eĂĂeeee 200 7/nnNẽ' in ố 200

75 YN,, 41 n e 201

PT nh Lb7 ẽ ố 201 3.11.2.2 Dadd liPrdTV SD€CIfÍCQÍỈON HẠ HH KH ke 202

"7 "S./ , ne.ỐẦỐẦ 215 3.11.3.1 Hlustration of the Process of handling supplier debt process on the

Chapter 4: CONCLUSION, DEVELOPMENT GUIDELINES 221

2 e 221

ÂM ae e 221

““' , a e 222 COMEIRMATION OF MEMBERS ĐÁ HH HH HH re, 224

Table I 1: Abbrevations and terminologies

Application of ERP in the contruction mertirials business model | 1

Application of ERP in the contruction mertirials business model | 2

4: BPMN import PrOCeSS ccccccccccccecccccecceceeeeeeeceeeeeeueeeeeueeteeuteeeeneteenies 128

3275/0018 ae 143 7: BPMN warehouse inventory QHỈI DFOCCÑS ào Sàn nhe 165 S: BPMN CuSÍOM€T CŒF€ DFOCÔ§ à Quy 174 9: BPMN the process of handling customer debt on tỈH© 182 10: BPMN handling late customer debt proceSSing cccccccccccccceeee 192 11: BPMN process of handling supplier đ€bI cà co ninh re 200

Application of ERP in the contruction mertirials business model | 3

7: Step 4 sales DpFOC€SS OH (QÌO à Ặ 2à SH KH HT HH kh 47 Š: Step 5 saÏ@s pFOC€SS OH (O0 à 2à SH HH TH HH 48 9: Step 6 saÏ@š pFOC€SS OH (O0 à 2à SH TH HH kh 48 10: Step 7 sales process O (QOO à Su Sàn HH Tnhh 49 11: Step 8 sales process O17 (QOO à.à Su St SH HH nh kg hà 30 T2: Siep 9 sales prOC6SS OH (Q0 à Su Sàn HH nh kh hà 30 13: The result after successfully confirming the DAVIHGHI à cà 37 14: Cancel quotation OH (QOO à ST ST xn ST KH HH HH Hxo 32

16: Change quotation information On (Q00 ằ cà Son ninh he 34 T7: Step 1 cancel the order on (ÀOO ch» HH ho 35 18: Step 2 cancel the order on (ẦOO cành nho 36

Application of ERP in the contruction mertirials business model | 4

37 PrOdlMCF (QÍŒ cành Hà TH Hà HH HH HH HH 87 39: /eHdOF (ÍQÍŒ à ch HH HH Hà HH HH kh 91 39: Producft VdFiqHfS (ÍQŒ ch nh Hà nà nh Hà Hà ng Hà Han 100 40: Supplier price ÏiSf đQÍŒL à c ST nh HH HT TH HH KH khe T01 41: Product qfriDUf© dQÍÁ SH HH nhàn kh Ho dẻ 102

43: Unit CaldlOg (ÍQÍQ cà TS HT HH HH kh 105 44: Step 1 purchasing process O1 OdO0 cccccccccccetcete ttt e tenet ttntet tetas 106 45: Step 2 purchasing process 0H (Q0 à cà TS vn nh nh 107

Application of ERP in the contruction mertirials business model | 5

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Siep 3 putchasiHg pFOCẴ€SS OH (QOO Su Sàn nh nho 108 Step 4 putchasiHg pFOCẴ€SS OH (QOO à Su Sàn nho 108

Sfep 6 pu†chaSiHg pFOC€SS OH (QOO Su Sàn SH kho 110 Sfep 7 putchaSiHg pFOCẴ€SS OH (QOO à Su Sàn kho 110 Step 8 putchaSiHg pFOCẴ€SS OH (QOO à à Su Sàn nho Ill Completing the purChasing DAVHHÍL à ào ánh nh nh HH Ha Ill Completing the pufChasiHÐØ DFOCC§S ác nh HH Ha 12

Step I cancellation of the purchasing invoice on Qđ00 113

Step 2 cancellation of the purchasing invoice on Qđ00 113

Step 3 cancellation of the purchasing invoice on Qđ00 114

Complete cancellation of purchasing invoices on (2doo 115

Step I cancellation of the purchasing order on (2đ00 116

Step 2 cancellation of the purchasing order on (2đ00 117 Completing an Odoo purchase order caHCellqtiOH cà cà cà 118 Step Ì returns in purCchasing OH (O0 à cà SH nh He ho 119 Step 2 returns in purchasing On OdOO 0.cccccccccccceceteteet i ttetee te tne tees 119 Step 3 returns in purchasing On OdOO cccccccccccccceteteetttteeee tn tne tees 120 Step 4 returns in purchasing On OdOO 0 cccccccccccccccccte test ttt eee ee tne tees 120 Step 5 returns in purchasing On OdOO cccccccccccccte cette te eee en tne tees 121 Completing returns in Od00 purchaSes c.cccccccceccccttt tee tettteeee 122 Step 1 refund in purchasing OH (JđÌ00 à à Sàn HH ho 123 Step 2 refund in purchasing On OdO0 c.ccccccccccccecccecee tees e eet HH ho 124 Step 3 refund in purchasing OH (lđÌ00 à Sàn HH ho 125 Step 4 refund in purchasing OH (lđÌ00 à ào ST Sàn HH ho 126 Siep 5 refundl in purchasing OH (đÌ00 à cà Sen H HH Ho 126 Completing a refund in purchasing On OdO0 0 ccccccccceeectttet ct eeees 127

Application of ERP in the contruction mertirials business model | 6

Dafa module CTredf€ H€WI ÍHVGHÍOTY à Ăn HH HH ra 153 New pÌqce CF€GflOH (ÌQÍŒ St ST HH kh 157

Step I of the Odoo shipping DFOCÔÂS à à uc Tnhh HH na 161 Step 2 of the Odoo shipping DFOCÔÂS à cà Tnhh na 161 Step 3 of the Odoo shipping DFOCÔÂS à cà cành HH na 162 Step 4 of the Odoo shipping ProCess ccccccccccccccccccctetteteceteteetteeneees 163 Completing the shiDDiHg process 0H (Q00 à àcằ cành ne« 164 THV€HIOFV AdjJHSIHHGHI CÔ Ghi 171 Sfep ] warehoiuse inspectioH process 0H (Qđ00 à.ằằằ Sàn 172 Sfep 2 warehoiuuse inspectioH process 0H (Qđ00 à.ằằằ cành: 173 Step 3 warehouse inventory pFOCESS OH (QđO ààcẶ Shin re 173 Step 1 customer Cdr€ pFOCGSS OH (QOO à cà cà ninh ro 180 Step 2 customer Cdr€ pFOCGSS OH (QOO à cà ST nhe ro lãi Step 1 of Odoo on time customer debt sett[GIH€Hf pFOC€SS 186 Step 2 of Odoo on time customer debt sett[GIH€Hf pFOC€SS 186 Step 3 of Odoo on time customer debt sett[GIH€Hf pFOC€SS 187 J//2 822/200 00h nh 188 Step 3 of Odoo on time customer debt sett[GIH€Hf pFOC€SS 189

Application of ERP in the contruction mertirials business model | 7

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Step 3 of Odoo on time customer debt settlemeHf pFOC€SS 190

Complete the process of on time customer debt settlement 19]

Cstoimer FOlÏOW-MPD r€pOFT (ÌQŒ ch nh Ho 196 Step I of the process of handling late customer debt on Odoo 197

Step 2 of the process of handling late customer debt on Odoo 197

Step 3 of Odoo debt settlement DFOCÔSS án nh HH Hài 198 Step 4 of Odoo debt settlCIH€H DFOCÔSS án nh nh HH Hà 199 Step 5 of the process of handling late customer debts on Odoo 199

Completing the process of handling late customer debt on Odoo 200

Vendor blÏlÏingÐ (QfŒ àà cà Tnhh HH HH Ho 206 Vendor refund đQf@ cành HH HH ky 210 SHpplier bilHiHg dQ{Œ ác Sàn nh HH HH HH Ha Ha 213 Recorded entry dÌQÍŒ ST KH HT kh ko 215 Step | process of handling sunplier debt on (2đoo 216

Step 2 process of handling supnplier debt on (2đoo 217

Step 3 process of handling supplier debt on (2đoo 218

Step 4 process of handling supplier debt on (2đoo 218

Complete the process of handling supplier debt on Odoo + 219 Step 1 check the supplier on (Q00 à cà nh nho 220 Step 2 check the provider 0H (Qđ00 ààà cà Sinh Ho 220

Application of ERP in the contruction mertirials business model | 8

1.4 REFERENCE

1 https://www.yellowpages.vn/tgcls/20037310/danh-s | Document about

3 https://xaydungso vn/tu-van/bang-gia-xi-mang-xay- | Document about

products

6 https://www.youtube.com/@sapproductsandservices | Sale, purchase,

inventory process

Table 1 2: Reference 1.5 Project overview

L351 Business information

Name: CONG TY CO PHAN VLXD GS

Head office: Ho Nai Ward, Bien Hoa city, Dong Nai province, Viet Nam

Application of ERP in the contruction mertirials business model | 9

Director: Nguyen Thi Minh Anh

in the home province and the southern region

Figure 1 1: Product catalog 1.5.3 Organizational structure

Application of ERP in the contruction mertirials business model | 10

Kế toán [| Mua hang ff Ban hang |

` z 7S ~á Ñ Nhên sự | / % a 7% anise măng —

Í_ Nhên viên bốc xếp

Figure 1, 2: Organizational structure

1.5.4 Master data

More than 550 products

'Bê tổng tươi mác 400 wv Bê tông tươi mác 150 wv Ban aeeey tủ Các loại gạch nhẹ ACC wv

Gis: 1485,000,00 6 Gk 1.188000.006 => Sees Bw: Hiện £6: 0,00 Don vị Hiện có: 000 Đơn vị fatsesd Hiện có: 0,00 Đơn vị Cấp mang AMP catGe xash SFTP 0786 - Ýÿ “Cấp mạng Senico cat6e xanh SFTP 6664 TÔ “Cấp mạng TEASUNG catSe FTP Oưkdoor Ýÿ Cép mang VCOM catSe FIP Outdoor Y7

Giá: 495000 đ Giá %%0000 đ Giá: 5.%00.00 đ Gik: $500,003

Hiện có: 0,09 Đơn vị Hiện có: 000 Đơn vị Hien có:0,00 Đơn vị Hiện có: 0,90 Đơn vị

„2 Cấp mạng catSe HIKVISION DS-ILNSE- ý 'Cấp mạng catSe trắng UTP 0520 wv Cấp mang catSe xanh UTP 0520 wa Cấp mạng cat6e trắng UTP 568B w

ai = Gik 2200004 Gk: 2200004 Gik: 3350,004

Hiện có: 000 Đơn vị Hiện có: (000 Đơn vị Hién 06: 0.00 Bon vi Hiện có: 0.00 Đơn vị

Cap mạng cat6e ving UTP 0907 Hiện có: 0,00 Đơn vị pea wv “Cấp mạng cat6e xanh UTP 0907 Hiện có: 000 Đơn vị ee gi Ỷ 'Hện có:0,00 Đơn vị Cit Xây Tô ei ử z “Cát bể tổng foal Hiện có: 0,00 Đơn vị wv

Cát bé tông loại 2 x Cat san lip wv Com me hop : 12.500.000 /m3 ử Diy din Cadivi 10 w

“Giá: 35200000 đ' 'Gi 198080/00 đ GGá: 13.75000000 đ 8 Giá: 448 840,00 đ

Hiện có: 0/00 Đơm vị Hiện có: G00 Đơn vị kóện có: 0,00 Đơn vị Hiện có: 0,00 Đơn vị

Dây điện Caởivi 125 wz Diy điện Cađivi L5 # Diy diga Cadivi 10 xi Dây điện Cadivi 20 w

Giá: 51909000 đ Giá 671.550/00 đ Giá: 4.029 300.60 6 B Gik: 849.990,00 5

Hiện có: 0,09 Đơn vị Hiện có: 000 Đơn vị Hiện có:0/00 Đơn vị "Hiện có: 0,00 Đơn vị

Figure 1 3: Products

There are 1000 customers

Application of ERP in the contruction mertirials business model | 11

Amega Building Material - Céng Ty TNHH

Amega Building Materal

ameoa company Som:

= ©

Anh Quốc - Công Ty TNHH Thương Mại

Xây Dựng Anh Quốc

© Bùi Thị Thu

©

U5 Thi Thủy Trang,

ni Mier Vit Maen

©

° Bùi Thị Thanh Tuyên

© Bùi Thị Thanh Tâm

© Bùi Thị Thu Tháo

Ba Trăm Sáu Mươi Độ - Công Ty TNHH Tu

Yấn Kiến Trúc Xây Dựng & Thương Mai

Ba Trăm Sáu Mươi Độ

°

Bử Thị Thanh Tỉnh Chi Minds Vee Nan

° Bus Thj Thay Linh

O

Bử Thị Thủy Hàng, Thành phố Hồ Chí the, Việt Nam

1.6 Project scope and objectives

1.6.1 Project scope

SERVICE SCOPE OF THE PROJECT

scope

1 | Management of sales and distribution of building | Yes

materials

2 | Management of construction material purchasing Yes

3 | Management accounting and financial analysis Yes

4 | Warehouse management and logistics activities Yes

5 | Tracking the lead management process and close | Yes

opportunities (CRM)

Understand the generation and interactions between components in the system, and the business significance of each component

Improve the ability to organize, manage, supervise and implement projects as well as soft skills such as teamwork, presentation, communication, information search and report writing skills

1.7 Relevant stakeholders and key personnel

Application of ERP in the contruction mertirials business model | 14

matters

- Dividing work

- Managing sales department

Dao Gia | Accounting - - Position: Head of | Email:

Department

- Deploying and managing the company's financial and accounting modules

Le Bao | Logistics - Position: Head of | Email:

- Operating and

operations

Nguyen | Purchasing Position: Head of | Email:

Application of ERP in the contruction mertirials business model | 15

Ha - Managing and

purchasing activities of the company

Table I 4: Relevant stakeholders and key personnel

Application of ERP in the contruction mertirials business model | 16

Chapter 2: GENERAL THEORY

21 Introduction of ERP

21.1 Definition of ERP

ERP stands for Enterprise Resource Planning, which is a comprehensive business management software It is also known by various other names, such as Enterprise Resource Planning software, Enterprise Resource Management software, or simply ERP It is a software solution that has been around for quite some time and aims to

support company management

The main function of ERP is to integrate all departments and functions of a company into a single computer system for easier tracking, while also being flexible enough to meet various other needs In other words, you can think of ERP as a massive software that can work with finance, human resources, manufacturing, supply chain management, and many other aspects together

The term ERP first appeared in 1990 when Gartner used it to expand on MRP (Manufacturing Resource Planning), which was also a management software focused

on manufacturing goods In the mid-1990s, ERP started to be applied to almost every part of a business, not just production Government agencies and non-governmental organizations also began adopting ERP By the year 2000, the term "ERP II” emerged, referrmg to ERP software that could be accessed and used through a web interface ERP II allowed not only companies but also customers and suppliers in the supply chain to view information In other words, this new generation of ERP supported collaboration between companies, not just internally

Initially, ERP software systems focused on automating their functions without requiring too much manpower to control the system These systems operated independently while being tightly interconnected After a while, at the beginning of the

Application of ERP in the contruction mertirials business model | 17

year 2000, ERP evolved to include functionalities aimed at optimizing resources and facilitating efficient handling of transactions with customers and partners

ERP software is considered an enterprise application, designed for use by larger businesses and often requiring specialized teams to customize and analyze data, as well

as manage upgrades and deployments On the other hand, ERP applications for small businesses are small and medium-sized enterprise (SME) ERP software solutions, typically customized for specific industries or verticals These solutions cater to the management needs of smaller businesses

2.1.2 Outstanding features of ERP system

The outstanding feature of the ERP system in the enterprise is the unified management system, which can expand and develop different functions in the future without affecting the existing program structure

ERP is a unified management system, from production and business to optimizing work efficiency This helps to link all members of the enterprise with functional departments to form an orderly production and business process

ERP will help businesses eliminate individual computer systems in parts of an enterprise and then replace them with a unified program that divides into different software modules and creates a relationship ERP software is very flexible in installing modules according to business requirements

The important technical features required of ERP software are: allows multi- culrency management, multi-company management, multi-branch management, multi- language interface, allows copy in/out (@mport/ export) to/from EXCEL, capable of analyzing Drill-Down

2.1.3 Software modules of the ERP system

Application of ERP in the contruction mertirials business model | 18

Currently, ERP is focusing on developing many modules to go along with the growing needs of enterprises However, whether it is copyrighted software or developed on an open source basis, a basic ERP system is usually developed with 6 main interoperable modules including:

® CRM - Customer Relationship Management

e Human Resource Management

e¢ SCM - Supply Chain Management - Asset management Financials Management (FAM)

e Asset and equipment management (EAM - Enterprise Asset Management)

® Production resource planning & management (MRP — Manufacturing Resource Planning)

In addition, the ERP system has many other expansion modules such as: Inventory Management (Stock Management), Production Management, Sales Management, Purchasing Management, Management Transportation, Project Management

2.1.4, Advantages of ERP for businesses

¢ First, ERP helps businesses to forecast and calculate possibilities that may arise during production/business operations Specifically, ERP will help the factory to calculate the ability to supply raw materials for each order, progress, capacity and supply capacity, Helps the company always ensure materials and not inventory is too large

¢ The ERP system also helps in planning the content for the things that need to be done in the production and business process such as price policy, discount, forms of purchase and sale, this is a measure to help businesses can limit errors in the processing of transactions

Application of ERP in the contruction mertirials business model | 19

¢ ERP is also a bridge to help departments in the company operate in a more cohesive, flexible way, processes are implemented more quickly

¢ ERP 1s based on a computer system, so all business activities will be performed automatically, in a timely manner, saving time

¢ Supporting businesses to better manage their finances, especially cash flow

21.5, Disadvantages of ERP software

Disadvantages of ERP software in terms of large implementation costs:

° The cost of investing in an ERP system is quite expensive And usually counted according to the number of users used Therefore, not all businesses have financial potential strong enough to apply ERP in their business

° Besides, the ERP system comes with many other services such as updates and other related party software This causes costs to be team quite a lot

° Medium and large enterprises have complex operational processes, so they need ERP software with specialized and specialized

Application of ERP in the contruction mertirials business model | 20

functions for each specific industry/field This requires a number of users that can reach several hundred or several thousand with high levels of access, so paying the small business way is not optimal Instead, these businesses often deploy complete and proprietary software from the start They only need to pay once for the installation and deployment, then take the recurring software maintenance fee

° However, the cost of implementing ERP software for medium and large enterprises is very high, averaging about 20,000 USD and there 1s software up to millions of USD, excluding maintenance fees

Disadvantages of ERP software in terms of slow implementation time:

° The implementation of ERP goes deep into each part of the enterprise and requires coordination between departments to ensure the operation of the ERP system is unified and centralized Besides, businesses also need to optimize and re-plan their resources accordingly Those are the factors that can make things work

° The process of applying ERP system can take a long time, usually about 1-2 years Not to mention businesses also need to optimize and re-plan their resources accordingly And of course, this planning process is not easy either

High complexity:

° ERP will certainly have a higher complexity than conventional management methods like excel because ERP has more functions and operations In order to use ERP, it is necessary to have basic computer skills while not all employees are trained in informatics In addition, employees of enterprises with old and traditional management methods are mainly skilled in office informatics thanks to their experience working and learning from each

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other Therefore, in order to use ERP, businesses will have to spend more on employee training costs

° ERP solution providers must meet the requirements of various groups with very different needs, processes, and objectives As a result, most ERP solutions excel in one area, such as finance, and are weaker in other modules Another issue is that businesses always desire technological advancements to stay relevant in the Industry 4.0 era ERP solutions face a disadvantage in this regard, as making even a small feature change would require the business to temporarily halt operations and engage in the cumbersome process of reprogramming the entire ERP system

° ERP can't work when businesses deploy to work remotely:

° Recently, the phrase "remote work” is no longer strange to businesses, even many leaders have thought about restructuring or expanding a part of their staff remote work The reason is not only due to the impact of the Covid-19 pandemic, but also because the leadership is aware that: There will

be many other risks in the operation process

° One thing is clear that, when personnel do not come to the office

to work, the ERP system will be "on bed” and cannot be used remotely As a result, all the work that was dependent on this cumbersome and expensive system came to a halt Employees are not able to take the initiative, businesses also fall into operational disruption

2.2 Deloyment platform introduction - Odoo

2.2.1 General introduction about Odoo

Fabien Pinckaers, founder and CEO of Odoo S.A, developed TinyERP in 2005 Three years later, TinyERP's name was changed to OpenERP to gain recognition and join a large company OpenERP was renamed Odoo and added CRM, Website and E- Commerce applications to the system in 2014 The company continued to grow and in

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2015 Odoo was on the list of one of the developers Europe's fastest magazine Inc Odoo app is capable of doing all corporate automation, meeting most needs and integrated business processes

Odoo is an open-source business administration software using the Python programming language Odoo/OpenERP offers a wide range of options with over 1000 modules ready to download and use Most modules can be obtained for free Several modules are included in the Odoo software, such as Sales, Manufacturing, Purchasing, Warehouse, HRD, Accounting, Websites and E-Commerce

On Odoo's application store, there are more than 20,000 modules developed by the community, including free and paid, businesses can easily search and install more modules suitable for their management business needs in Odoo ERP system

Odoo/OpenERP is a modern and regularly updated development platform Using Odoo business management software, you will be updated with new appropriate modules, leading functions in administration and sales

2.2.2, Advantage of Odoo

° ERP solutions for all departments of the business: Odoo software was developed with the focus on being able to meet all the needs of businesses, so basic modules such as inventory management, CRM, sales order, POS, HR, timekeeping, salary, leave application are default modules that all Odoo versions have available

° Huge application store: Odoo's application store has more than 10,000 apps, ready to meet all the needs of all businesses in almost all different industries and fields

° Reasonable cost for diverse businesses: Odoo is an ERP software with very reasonable deployment and maintenance costs because the cost has been optimized for small and medium businesses and can be adjusted according to the needs of the business Users do not have to pay the full package, but will pay a monthly fee, depending on the number of users

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° Flexible customization: With more than 10,000 applications to choose from, businesses can create a clear plan with the nght amount of capital to invest in Odoo ERP In addition, Odoo is Open-source software that is easy to customize or write additional software for businesses A typical example is the sales module that has been redeveloped by Magenest in accordance with Vietnamese accounting standards

° Good UI/UX support: Unlike previous generation ERP software, the applications arranged in the system are quite confusing and difficult to use Odoo has been designed to be simplified, making it easy for users to grasp and manipulate the

system

° The ability to grow with the business: Customization is not only for small and medium businesses, but also can expand for businesses in the future Not only ensuring ERP features when businesses expand their business in old markets/industries, Odoo is always ready for customization if businesses want to expand their business in new or new areas Global

° The latest technologies: Odoo is always improved through each version, capable of integrating with the latest tools and improvements on the market

2.2.3 Disavantage of Odoo

Difficulty in setting up Odoo ERP:

¢ This can be a hindrance to the business as it takes both time and effort and most importantly money for your business personnel, just to deal with the installation problem

e This can be frustrating for your business as it takes both time and effort and most importantly money for your business personnel, just to deal with the installation problem

Cons of customization and integration:

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¢ Because Odoo allows software customization and integration with third parties, many businesses will want to design their own software to use However, not all businesses can afford to customize Odoo Allowing customization is both

an advantage and a disadvantage Odoo

Lack of support from Odoo:

e With a user base of more than 7 million, Odoo will not be able to support all issues Many businesses still do not know how to handle issues related to system integration, customization and operation

¢ Moreover, if you want to build a team that only supports Odoo, it is very expensive because the cost of Odoo courses is very expensive

2.2.4, Odoo’s popular modules

° Customer & Partner Relationship Management (CRM) Module

¢ Project Management Module

° Sales Management Module

° Production Resource Planning & Management Module (MRP)

° Purchase Management Module

¢ —_ Recruiting Process Module

° Point Of Sales Module

° Timesheets

° Quotation Builder module

® —_ Business website building module (Website Builder)

e Accounting & Finance module

° Electronic Invoice & Payment (Billing) module

° Generic Payroll system

° Module of Human Resource Management

° Warehouse module

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Issues Tracker module

Asset Management Module (Assets Management)

Todo List

Calendar Module

Social Network Module

Live chat module

Leave Management Module

Knowledge Module

Labor contract management module

Mass Mailing module

Marketing module

Application Programming Interface (API)

Human resource evaluation module (Appraisal)

And many other modules

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Figure 2 1: Odoo’s popular modules

2.3 Describe the problem of applying ERP to a topic or Casestudy TCI factory successfully deployed the Eastern Sun ERP system

Established in 2006, Tri Cuong Industrial Company Limited (hereinafter referred

to as TCI) TCI is proud to be one of the pioneering enterprises in the field of precision mechanical processing and manufacturing integrated automation machines in Vietnam Since the beginning of 2017, TCI has cooperated with Eastern Sun to bring the Eastern Sun ERP digital transformation system into corporate governance After 5 years of applying Eastern Sun ERP digital transformation solution, TCI factory can now operate in an automated way up to 90%

Now TCI and Eastern Sun have become reliable partners With the efforts of both sides in the successful development and application of the digital transformation

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