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APPLICATION OF INFORMATION TECHNOLOGY AND E-COMMERCE IN PHU THAI GROUP JSC INTRODUCTION History of Phu Thai Group Established in 1993, Phu Thai Group has grown in size and reputation to become the leading distribution and retail Group in Vietnam Phu Thai Group currently employees 3,000 staffs in about 30 units, including, Member Company, Distribution Centers and Logistics Warehouses With its professional staff and management structure, Phu Thai Group has realized remarkable growth at impressive average yearly rates of up to 40% To keep the position of the leading Distribution, Logistics and Retail Group in Vietnam, Phu Thai has applied ERPs, ISO 9001:2000 with the cooperation of high level experts in country and oversea After 18 years in operation we have certified a numbers of awards from the Prime Minister, the Ministry of Finance, the Ministry of Commerce and Industry, the Hanoi People Committee, the State Union, Viet Nam General Federation of Labor, the Hanoi Young Business Association, the Small and Medium Enterprise Association… Vision To become the Leading Distribution and Retail Group in Vietnam Mission Phu Thai Group is dedicated to maintaining its position as the leading distribution and retail group in Viet Nam, while respecting the interests and trust of its partners, customers, shareholders and employees and contributing to the overall integration and development of the economy Philosophy Strives to continuously improve and develop its expertise through on-going innovation 1|Page Strives to provide its employees with a professional, dynamic, efficient, friendly and open working environment where they can develop, grow and thrive and by working collaboratively to deliver outstanding business performance Committed to a long-term cooperation with partners and customers by providing the branded and quality products and services based on mutually beneficial relations Committed to obeying the law in business and making a positive contribution in the development of the national economy Head Office Address: 18Floor, 44B Ly Thuong Kiet, Hoan Kiem, Ha Noi, Vietnam Tel: (84 4) 3565 9099 Fax: (84 4) 3565 9088 Email: info@phuthaigroup.com Website: www.phuthaigroup.com BUSINESS ACTIVITIES Distribution: Providing branded and quality products of in and outbound producers to consumers Retail: Develop the Supermarket Chain, Convenient Stores and specialized shops in the whole of Vietnam Logistics: Building nationwide logistics network included warehousing, forwarding and other logistics services to support its distribution system Industry: Distributing industrial equipment Real Estate: Infrastructure investment in real estate and commercial real estate (supermarkets, warehouses and distribution centers ) DISTRIBUTION NETWORK 2|Page Nationwide distribution network, including approximately 200.000 agents at all levels (Sub_DC, Wholesalers, Retailers, Specialized Shops, Supermarkets and thousands of direct customers such as: restaurants, hotels, enterprises, consumers…) Phu Thai has good relationship with nearby 100 partners in and outbound Phu Thai employee network is all over the country for fast accurate information on market to have best business plan Distribution Network Categories Consumer Goods • Fast Moving Consumer Goods (FMCG) - Personal Care Products - Food - Drink • Fashion • Home Appliance • Sports Health and Beauty Care • Cosmetics • Functional Foods • OTC • Medicines Industry • Industrial Equipment Others • Building Materials • Veterinary Medicines • Livestock Feed Performance model of Phu Thai Company: 3|Page Board of Mnagement Board of Control General Director Assistant Internal control Managing Director Support Marketing Traditional products New products New products Business Production Region Binh Duong Region Kien Giang Region Supply chain Logistic plan Material Dac Lak… Finanace/ac count HR Accounting finance Administratio n Accounting managemen t Recuitment Finance Social care Purchase Techinique ERP-IT R&D The world is looking forward to a new century Due to the impact of science – technology, the world is preparing to enter a higher stage of development in the history of its development This is stage of the knowledge-based economy, the stage of formation and development of the information society This is a huge issue presented in 05 major cases: The first problem: The strong development of science - technology in the late twentieth century and the advent of a new civilization, "revolutionized science and modern technology " started from 1950 after Great world War II are characterized by a very strong development, science and technology associated with technology (previously called techniques) Science connecting with techniques and becomes one The second problem: the formation and development of high-tech industries Another technology is particularly well developed and called as information technology (the fourth pillar) In the history of science - engineering from previously to current time, there is no field of science or any scientific invention or technology invention that has a tremendous impact as information technology 4|Page High technology is a technology based on the latest scientific achievements with the highest knowledge content and levels of science With the current features of powerful scientific development, the technology is the coherence of scientific production It is short three scientific processes: basic research, applied research and make a research and development The scientific field directly produces such high technology The third problem: the knowledge economy has features in such: the economy based knowledge means that the knowledge is the decisive factor Special role of education and science is in knowledge based economy The agricultural activities are also reduced significantly as one of the main characteristics of the knowledge economy The fourth problem: the problem of social organization in the knowledge economy The fifth issue: the impact of high technology, information technology is at the global scale The trend of globalization of the world economy and international trade lead to trends of international products The information technology is currently growing at a very fast speed: extremely rapid development and cost reduction are two characteristics of information technology that need our attention It is a condition for the developing countries can go straight to the latest, most advantage technologies Recognizing the important role of information technology in business operations and business, Phu Thai Company has been developing information technology systems that are strong enough to meet demand in the new period The information technology facility of Phu Thai Company is including: Currently the application of information technology in enterprises has some efforts and achieved very positive results presenting in the following aspects: Provide adequate networked computers for staff working as office managers, professional rooms, the branches All the branch offices and sale branches are installed with high-speed internet connection At company headquarters this line can be used for more than 50 consecutive work computers at the same time Furthermore, the company also installs Wi-Fi wireless networking Has developed software in term of management expertise as accounting, human resource management software, sale management software and debt recovery business bureau 5|Page The company has also developed websites to promote corporate image, e-mail address for the service of electronic trading and management Company web site is located at: http://phuthaigroup.com/ In terms of information technology personnel: Trained and retrained staff so that they have IT knowledge to meet the information requirements for each position as well as each department There is a team of dedicated IT staff There are two software engineers specialized IT, 05 staffs with intermediate network administration and information technology systems) The staffs of the professional departments all have skills proficiently to utilize computer A number of specialized staff to use the software have been trained and guided to use separated software The software applied: Windows Server 2003 Enterprise Windows SharePoint Service Symantec Endpoint Protection ISA Server (Internet Security and Acceleration Server) 6|Page Mail Google Apps Accounting software, inventory management, sales management Customer Management Software Statistical Analysis Software Timekeeping Software Comparison with competitors in the industry: Similarities: The competitors basically used the same management software, internal and same design Differences: The below analysis will show some differences in the application of information technology in the Phu Thai company and the competitors as the product distribution Currently the largest distribution company Competitors No Factors Sai Gon International CMC CO.OP Distribution Commercial Company Manufacturing Limited Co., Ltd Phu Thai IT understand Operation network Computer system E-marketing efficiency IT HR Competitive ability Online order 3 7|Page Website completion Website content Links to social International CMC Distribution Commercial Company Manufacturi Limited ng Co., Ltd Strong Low Strong Strong Server Yes Yes No No Website Yes Yes Yes Yes Online order Yes No No Yes Content 10 10 Links to social Yes Yes Yes Yes 10 network Note: – lower; 4- higher Other comparison about IT investment: Sai Gon CO.OP Factors Investment ability Phu Thai network fb, Youtube SWOT Analysis Strength: Have good and early wareness of the importance of information technology to the investment so that the company has invested equipment and trained personnel from the early 2000s Infrastructure system of information technology is strong The purchase, sale and exchange with customers is done by electronic mail systems The staff, departments of other functions have ability to apply IT at high level The company has been equipped with computer technology assets, the specialized software 8|Page The application of electronic information has helped warehouse management, finance, tax, HR rapidly in accuracy Weaknesses Company leaders are not aware of the importance of information technology so the problem occurred such as: Do not have a strategic vision for a planned development of information technology in short -term and long -term The organization does not have a position of CIO The procurement plan is not active, only when there is demand for new buyers, not have time for selection, patchwork, no tender Slowly update software as accounting, human resource management, and the website has some innovation but not yet completed Therefore, it did not promote any effect on the other hand continued to restructure the company to meet governance requirements slow thus also influence the development of management software in the company The software applications are not all used effectively such as customer management software and human resource management software Opportunity The quick development of information technology helps the world become smaller, particularly wireless technologies Information technology is day by day showing the dominance of the application in the management and administration of business operations It allows instant updates and information connectivity in enterprises; supports for testing, monitoring and analysis processes financial information of the business as well as market movements are fast and accurate The designing software was born from the concern in the management of the corporate governance process and detailed survey of business process management and service -specific deployment of direct experience in various businesses So it meets the requirements of the management of manufacturing enterprises, business 9|Page Thread Lack of a strategic vision for information technology: This will constrain the strategy implementation of companies Normally, the company has not mentioned about the development of information technology in his developing strategies Lack of understanding: The lack of understanding of information technology leads to inadequate investment in ERP (Enterprise Resource Planning: Enterprise Resource Management) The link between MRP / DRP is hardly ( MRP Manufacturing Resource Planning DRP - Distribution Requirements 20Planning) leads to high commodity exists but does not meet the diverse needs of customers The competition with the top enterprises: As an industry, there is fierce competition, as discussed above, the application of information technology is not in time, backward opponents cannot lead to equal or development more than competitors Inadequate Investment in human resources: the position of information technology managers (Chief Information Officer - CIO) referred in Vietnam in recent years when their role is increasingly influential in business So it is necessary to search and train this position and operating management team , website design Protection of data and network security: another inevitable challenge for business is how to protect data from any member, and external risks The hackers want to steal it The natural disaster such as floods, fires, earthquakes, hurricanes can destroy system The dissatisfied workers wish to have it removed (after selling it to competitors) Analysis experience and lession learned from other domestic and international enterprise Information Technology is not only developed day by day in Vietnam but also other countries in the world The enterprises in both domestic and international investors to thrive on information technology to reduce costs and increase profits for their business Besides, information technology has created a revolution in commerce and completely transformed the notion of the traditional trade The sale and purchase of 10 | P a g e goods is not necessarily met new purchases that can be separated by thousands of Km card transaction is the sale of goods by mail order It is showed that: The domestic and foreign business apply internet sooner, it will be a breakthrough to enlighten a new form of business for the enterprise The application of information technology to help businesses managing multinational corporations or the big corporations with no need to manage every day inspection companies around the world that just sit in office in one place can meet and examine closely the whole armor of affiliated companies around the world with information technology systems Information technology is the key to effective management E-Commerce helps save costs: thanks to information technology, the transactions between partners apart halfway around the world can be done easily and quickly Thanks to e-commerce and internet network that purchases goods more convenient due to the promotion of the product images are uploaded to the model continuously updated so that customers can buy their products immediately forward want with the fastest time From the experience of businesses recognize the importance of IT and e-commerce, Phu Thai company has been investing in the development of human resources as well as material resources in information technology for businesses to reduce costs lowest fees in the business management , trading , product promotion The application of IT solutions Supply chain management Software - SCM SCM Software helps the business enterprises in coordination of business activities with suppliers to supply input is fast and effective way SCM software usually has two basic functions: to plan and implement the plan Almost companies provide SCM with two software functions with different level of details SCM planning software helps companies make forecasts based on the information of the members of the supply chain Software implementation of SCM plans to help companies carry out tasks such 11 | P a g e as inventory management and distribution Currently there are two companies that provide software in the world's largest SCM i2 Technologies Enterprise Resource Planning Software (ERP): Many B2B website must be able to connect to the internal information system of the enterprise; this is done through Enterprise Resource Planning Software (ERP) ERP software is system modules which are integrated into a system to manage all activities of the business, accounting, purchasing management, production, marketing, planning, project management, and cash management functions The ERP software vendors today primarily consist of Baan, Oracle, People Soff (currently under Oracle) and SAP Delivery Management System - DMS: DMS system is a software application that supports governance in sales, assets, inventory for businesses operating in the field of trade and services With professional management features and easy to use with many outstanding benefits that this software brings, DMS software has been highly appreciated by the market The action plan of IT applications To build a model of information management in enterprises, we need to plan to build the best model for the company In the immediate future we need to shape the type of management of this system Currently there are two types of distribution system which is divided according to function under the authority and operational management For each type, we have different applications (see table below) Divide the system based on function of department TT Function Sale Some outstanding applications and Tracking, sales forecasting, sales planning nodes, situation marketing analysis and customer sales and marketing Production Planning to monitor and schedule of work Logistics Planning and monitoring purchase and sale of supplies, monitoring, and distribution of materials in the warehouse Finance Financial analysis, cost analysis monitoring plan for capital 12 | P a g e needs., calculating income HR Planning, human resource needs, analyze the results work, mobilization Managing the wage increase Devide system into management activities No Management Some outstanding applications Commercial management Handling orders, invoices and bills, answering questions about the current state of Operational Management Prepare, monitor adjustment plan for short periods; formation of budgets, resource allocation Technical Management To target; establish, monitor and adjust plans for each period, short-, medium-, and long time, operating budgets allocate resources, finance, Strategic Management Set targets and plan adjustment policies for internal and external agencies Specific plans: Regarding material resources: As proposed solutions that companies need to add the number of computers to serve the needs of the company with 150 computers (mostly complement the trading system, and the software order specialized quality management,) is expected to be high speed PC - G7542 - i7 Sandy Bridge CPU - CPU: Core i7-2600 - 3.4GHz (3.8 GHz max) - Quad-Core 8MB 4/8 - SK 1155, (GPU 850Mhz-max 1.35GHz) - HDD: 500 GB Serial ATA / 6Gbit / s - RAM: 4GB DDR3 (2x2GB) - 1333MHz Bus - Main: H67 Chipset - Case: Orient W1 - Power: 500W - true power - 80Plus certified 13 | P a g e - VGA Card: Gigabyte Ati Radeon 6670-1GDDR5 17in LCD Monitor The plan for the installation and construction management information system of the Phu Thai: Work schedules Name of works Time for Remark implementation Prepare programs to install enterprise 2014 information systems Collect data and information 2014 Procurement of necessary equipment 2014 Installation of the equipment and Internet 2014 connections Install information systems management 2014 Operation 2014 Maintenance Cost calculation Equipment Quantity Unit price In cash Host 10,000,000 10,000,000 Desktop 6,000,000 36,000,000 model 0 Divider 1,500,000 1,500,000 Line 30m 15,000/m 450,000 Wi-Fi 2,000,000 2,000,000 Information Management Software 20,000,000 20,000,000 Hire Network Management officer 2,000,000 2,000,000 Hire data collection officer 1,000,000 2,000,000 Total Remark ~ 74,000,000 14 | P a g e Conclusion: Through the above analysis we can see that to exist and development, the company has no way other than to technological innovation in trading and selling products Therefore, the company will invest significantly in information techinology and e-commerce, powerful application of information technology and all the fields of human resources, finance, manufacturing, logistics, customer relationship goods steps toward successful deployment of efficient resource management system with ERP in 2014 15 | P a g e Group Assigment Management Information System 16 | P a g e ... wireless networking Has developed software in term of management expertise as accounting, human resource management software, sale management software and debt recovery business bureau 5|Page... scientific development, the technology is the coherence of scientific production It is short three scientific processes: basic research, applied research and make a research and development The... any effect on the other hand continued to restructure the company to meet governance requirements slow thus also influence the development of management software in the company The software applications