Mr. Vuong Quan Ngoc (FPT Digital) stated during DxTalks that when digital transformation is implemented, there is a lot of room for the development of supply chain enterprises.
DxTalks S2EP03 covers the topic “Digital Transformation in Supply Chain Management”. Guests speakers of the episode were Mr. Doan Huu Hau – Deputy Director of Information Technology Center of Vietnam Post; Mr. Tran Viet Dung – Consultant of SAP Vietnam, Mr. Vuong Quan Ngoc, Consulting Director of FPT Digital and host, Mr. Pham Ho Chung – Consulting Manager at FPT Digital.
Mr. Tran Viet Dung kicked off the discussion by examining the current state of digital transformation in Logistics enterprises in general, and production and supply enterprises in the world’s current supply chain management in particular.
According to him, the Covid-19 pandemic has caused havoc on the global economy, and even the most modern supply chains are facing unprecedented challenges. The supply chain has evolved from a back-office function to a critical differentiator that determines a company’s success.
Businesses all over the world have been focusing on four goals, each with its own set of digital transformation priorities: The first goal is to be quick to detect, predict, and respond to unexpected interruptions or events. The second goal is to increase productivity by using intelligent technologies such as AI, Machine Learning, Robotics, or IoT to automate production and other business processes, also known as Industry 4.0. The third goal is to strengthen relationships with business partners in order to collaborate more effectively. The fourth goal is sustainability, which entails maximizing reuse, minimizing material waste, lowering carbon emissions, and safeguarding employees’ health and safety.
Mr. Doan Huu Hau then shared his experience with digital transformation at Vietnam Post, which is now one of Vietnam’s largest enterprises in the logistics industry. “Vietnam Post has always believed that digital transformation is a holistic transformation, beginning with thinking and ending with action, with customers as the focus and customer experience as the top priority.” In this digital age, he believes that improving service quality, making it easier for customers to access and use services, and providing enthusiastic customer care support are critical.
Mr. Vuong Quan Ngoc, who has worked as a digital transformation consultant for many businesses, believes that businesses must consider this transformation as a roadmap that will gradually increase comprehensive efficiency. According to him, many businesses focus on digitization with many specific activities such as warehouse management, delivery, or customer experience points, but there is a lack of focus specific target and orientation in business model as well as production. According to Mr. Ngoc, for supply chain businesses, digital transformation must implement the most important part of the business strategy, which is customer-centricity and the promotion of inter-departmental connectivity.
“Digital transformation and doing it correctly will bring a lot of benefits to businesses operating in supply chain management,” Mr. Ngoc emphasized.
In the second half of the discussion, Mr. Doan Huu Hau shared three important aspects that businesses today must consider when developing and implementing solutions. It is necessary to change the perception of the entire team; businesses must improve and optimize the process of providing products and services, thereby improving the customer experience. Mr. Hau believes that being able to quickly select an appropriate, compact solution to capture the market while also being able to expand and develop it in the long term is a requirement.
Meanwhile, Mr. Tran Viet Dung elaborated on what SAP does in the supply chain field for businesses all over the world to ensure four priorities (agility, increased labor productivity, improved connectivity, and sustainability).
Before wrapping up the seminar, Mr. Vuong Quan Ngoc discussed the quick-win solution (immediate benefits) that businesses initially recognized and achieved when implementing digital transformation. “In my opinion, the most important quick-win solution is to move repetitive human-to-machine actions in the performance of their task operations, which means they will have more time to focus on administration and operation.”
Mr. Ngoc stated that in the past, Vietnam has frequently lagged behind other countries in the application of information technology. However, in recent years, Vietnam has enthusiastically embraced new technologies. In some cutting-edge technologies, such as Blockchain, Vietnam is even competing with other countries. Businesses can take advantage of this opportunity to accelerate their digital transformation. Mr. Ngoc agrees with Mr. Chung that, in addition to selecting a quick, short-term solution, it is also necessary to establish an overall architecture, including technology and people, so that businesses can successfully transform digitally and boost competitiveness in the Industrial 4.0 era.
Watch DxTalks S2 EP03: “Digital transformation in supply chain management” here.