KẾ HOẠCH ỨNG DỤNG CÔNG NGHỆ THÔNG TIN tại CÔNG TY cổ PHẦN NAM dược e

KẾ HOẠCH ỨNG DỤNG CÔNG NGHỆ THÔNG TIN TẠI CÔNG TY CỔ PHẦN
NAM DƯỢC
PLANNING APPLICATIONS INFORMATION TECHNOLOGY IN
NAM DUOC COMPANY
I.

REALITY OF INFORMATION TECHNOLOGY IN NAM DUOC

1. History of Formation:

Nam Duoc Joint Stock Company was incorporated on 1 st January 2004. In
September, 2006, the Company completes construction of pharmaceutical
manufacturing plant under such standards as GMP - WHO, GSP, GLP. Its Charter
Capital is VND 56,800,000,000 (Fifty six billion, eight hundred million dong).
The Company is specialized on purchasing, sales, consignment of pharmaceutical
products, cosmetics, foods, medical instruments; Consultancy, training and
transfer of technology in pharmaceutical and cosmetic fields; growing, purchasing,
processing and trading of medicine.
2. Analysis of Reality
a. Reality of awareness: In spite of active updating and application to take full
advantages of development of technology information, the Company’s
leadership has not released overall and consistent strategies on application
and exploitation of information technology to the Company. Plans on
applications are only limited to solutions.
b. Reality of infrastructure: Nam Duoc Company has recently facilitated the
works of entire officers and staff with computers, including personal
computers and laptops; 100% of management officers are offered with
laptops. 100% of computers are connected to internet via ADSL or Dcom –

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3G. However, Nam Duoc Company has not owned a server to save
database which is controlled by servers or rented hosts of external partners.
c. Reality of software application: about 50% of computers are equipped with
Window XP copyrighted operating system; In addition, 100% of computers
are installed with BKAV antivirus or Kapersky. The other software
applications are provided sufficiently to meet requirements and to improve
performance and their work.
d. E- information portals and website of the Company: Nam Duoc Company
is currently one of the companies with the largest website in pharmaceutical
industry. The websites, in addition to purpose of brand advertisement of the
Company, are information connection channel between the Company and
consumers and daily consulting place for consumers. There are tens of
thousands of accessing turns into Nam Duoc’s websites.
• www.namduoc.vn

•

•

e. Reality of the human resource: At present, Nam Duoc Company has only
one website administrator who is in charge of information technology
affairs meanwhile other websites are controlled by Brand Managers. The
website administrator assists departments in monitoring, management,
maintenance of computers and internet connection.
f. Reality of e-commerce application: Nam Duoc Company has been
reconstructing its proper website system to apply e-commerce and online
sales. However, its activities are in shortage of strategic vision, not

implemented drastically and associated with the overall marketing
strategies.
g. Reality of application of ERP software system to management work: at
present, Nam Duoc is coordinating with FAST Software Company to
construct accounting software management
system between the Holding company and
subsidiaries. It is expected to officially put the
system into operation on 1st January 2013. In
addition, the Company is negotiating to
continually construct sales administration system.
3. Evaluation of weaknesses and strengths of SWOT model- based products
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Strengths
Equipping computers and other key facilities to The

Weaknesses
leadership does not

have

all officers and staff. In particular, 100% of comprehensive visions to the system
management staff are provided with laptop for so decisions and visions are limited.
working.

Future using level of computers has

Application of copyrighted software to common not
software

been

considered

so

their

configuration may be out-of-date as

Construction of websites of the Company and the synchronous application of new
prestigious

and

aesthetic

brands,

meeting software.

demands on information of clients

Specialized and advanced software

Young personnel who have basic knowledge and has not been applied.
quick approach to information technology

E-commerce software has not been
applied.

Opportunities

Challenges

The State is approaching and issuing so many The finance invested in the plan on
information technology application assistance information technology application
programs to companies. Nam Duoc is developing in 5 years is quite high meanwhile it
a large strategy to implement a synchronous is easily asynchronous if being
strategy.

equipped from time to time.

4. Analysis and making comparison with 3 competitors in the industry
Criteria

Companies
Nam Duoc

Traphaco

Thai

Hau Giang

Duong
Infrastructure

5

7

6

8

Software installation

7

5

5

7

9

5

6

8

internet-marketing Applications

8

7

4

7

IT Personnel qualification

6

7

8

6

E-commerce application

5

5

7

6

Construction

of

Information

Portals

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ERP software construction

5

4

6

8

5. Analysis of experience and lessons from other domestic and foreign
companies.
a. Vietnam is making the best efforts to become the regional center for
assembling electronic, telecommunication equipment and computers,
production of several types of accessories, parts, and design of new
equipment. Information technology industry become key economic industry
with the average growth rate of 20 -25%/ year with the total revenue of
about USD 6 -7 billion in 2010. Personal computers, mobile phones, and
Vietnam brand software is controlling the domestic market shares, and the
export value is over USD 1 billion (Source: Vietnam Telecommunication

and Information Technology Development Strategies by 2010 and
orientation to 2020).
b. Reality shows that the companies with strong development of information
technology application in corporate management and control promptly
gain success, effectiveness and firm developments. The most typical lesson
that is deserved to be review is from Vinamilk Company: it has faced with
so many difficulties in connection to study to acquire technology; change
in procedures of the Company to be in line with software procedure and to
avoid risks in accounting works at the same time during its development
process. The clear decentralization facilitates its accounting and financial
work much more than it used to. The Company controls inventories,
distribution, corporate operation, relations with clients, production better
and reduces risks significantly; there is more smooth coordination between
sales and distribution; monitoring functions are implemented on basis of
real time. Information technology qualification of personnel in Vinamilk
Company is improved significantly in comparison with it in the past.
Information technology infrastructure is consolidated, synchronous,
standardized, and promoted.
6. Solutions to information technology application in the industry

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a. Pharmaceutical companies are basically late in application of information
technology.
b. Some companies start to construct good online information system. So
many companies establish their websites without proper care from time to
time to become dead information channels to which there is unavailable

viewer and innovated information.
c. E-commerce application in the industry is simple and insufficient. Some
companies establish online sales pages. However due to bad infrastructure,
online sales procedure is not good enough. Online transaction quantity and
direct delivery are little so effectiveness is not high as it was expected.
d. Application of software and construction of database to manage and
decentralize are not good enough. Most of companies have not owned
client database management software. Some advanced companies own
software of client care, personnel management, supply, inventories, etc.
II.

INFORMATION TECHNOLOGY APPLICATION STRATEGIES IN
NAM DUOC COMPANY
1. E-commerce

and

information

technology application strategies
• ERP software integrates general functions of
an organization into the unique system. In
stead of parallel and independent use of
accounting

software,

personnel-

salary

software, production management software,
etc, Nam Duoc targets to construct an ERP
system consisting of all in 1 unique software
in which functions are connected to each
others.
• ERP helps increase productivity, sufficient and timely concentration and sharing
information of the Company. In addition, the information is protected absolutely.
ERP enables to re-organize operations of the Company under professional
procedures.

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It is possible to summarize ERP’s advantages as follows:
• An entirely integrated information system
• Sufficient management sub-systems with varied functions, meeting different
requirements on production, business, professions, and scope.
• Working under the standard and modern management procedure of leading
companies in the world.
ERP owns overall and diversified management functions, meeting comprehensive
demands on corporate management in all departments, which are designed into modules
in organic relations to form a closed procedure with automatic median steps.
Accounting – financial management: consists of financial – planning modulus,
General Ledger, Cash Management, Accounts Receivables; Accounts Payables, Fixed
Asset Management, cost accounting, civil construction accounting and account reports,
financial management reports, and other reports under provisions issued by the Ministry
of Finance such as balance sheet, income statement, VAT and cash flow statements.

Other sub-systems

Other resources

Reviewsing
Revising

General Ledeger

Recognizing

Analysis and Processing

Accounting transactions are integrated with other management sub-systems such
as inventory management, purchasing management of goods – materials, production and
sales management. Accordingly, as professional transactions happen, responding
accounting entries such as increase, reduction of inventories (from inventory
management sub-system), account receivables (from sales management sub-system),
Accounts Payables (from purchasing management sub-system), cost accounting (from
production management sub-system), are created automatically and recorded into the

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accounting subsidiary ledgers. The integration system permits minimizing time to entry
data with exact arising accounting figures.
The specialized staff shall close the general ledger at end-term to complete

accounting work of the period. The sub-system supplies reports as required by the State
or management reports as required by the corporate management demands.
- PO – Purchasing Order: ERP supplies the Information management procedure
from sales to payment, including such functions as management of purchasing requests,
management of orders, bills, payment documents and accounting records for purchasing
and payment.
The procedure permit comprehensive purchasing management from initial request for
order until receipt of shipping and payment. The procedure is implemented via subsystems of purchasing, inventories, accounts payables, general ledger. The procedure
permits managing
such information as
Material demands

Purchasing Order

Source

Requests for Quotation

Supplier

Quotation

Payment
Order s

Receipt of goods

+ Purchasing orders: thanks to integration of the system, purchasing orders can
be created automatically from the production management sub-system (As the system
calculates materials and goods insufficiently to support production and sales out to the

market). The users enable to create purchasing orders manually from arising purchasing
orders of goods and materials.
+ Order / Contract Management: the function helps save information in
connection to purchasing orders or contracts with sufficient information related to
purchasing profession such as suppliers, date of purchasing, date of shipping, effective
date, goods, quantity, unit price, payment terms, etc.

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+ Goods receipt monitoring: the system has functions on receipt of goods and
making comparison among orders on basis of available orders. In addition, it is possible
to control returns of sold goods (in case of redundant receipt or dissatisfactory purchased
goods, etc).
+Bill management: the system allows creating bills automatically on basis of the
purchasing orders or manual entry of accountants into the system. The functions are
implemented with accounts receivables sub-system.
+Payment: it belongs to accounts receivables sub-system and functions filing
documents related to payment against sales.
+ Book keeping operations: the book keeping operations are related to
purchasing procedure that automatically creates such transactions as inventories, returns
of sold goods, entry of bills, and payment. The entries are saved into the subsidiary ledger
and updated into the general ledger as required by the General Accountant.
- Order Management: manages the information in connection to sales contracts
or order, clients information, shipping to clients, comparison with orders and accounts
receivables. The sales management sub-system permits entry and processing of orders,
tax on revenue/ Value Added Tax, shipping plan, transportation, direct purchasing and
sales (rather than via warehouses), suspending orders, credit tests, policies on price and

discount, returned goods, etc.
Sales management

Entry of orders

Shipping

Storage of goods

Goods export

Delivery

Automatic creation of
bills

Accounts
Receivables

Money receipt
Bills

Banking record
comparison

+ Procedure: monitors comprehensively since receipt of orders until shipping to
clients, issue of bills, money receipt and book keeping operations.

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+Sales: controls orders or Contracts. The sub-system allows the Company to file
all contracts, orders. The information of the orders consists of information on sold goods,
quantity, unit price, date of delivery, payment terms, clients, designed address for
shipping, etc. In addition, order management function permits the Company to disclose
policies on sales such as discount, devaluation, transportation management, etc.
+ Shipping: the function helps monitoring information related to shipping to
clients. The output information of the process is export goods from the warehouse and
clients’ receipt.
+ Creation of bills and payment: the system permits creating bills automatically
or manually to monitor debts of clients on basis of the information in the Contract/ Order.
In addition, the system functions payment (receipt of cash) as clients pay against goods.
The transactions are implemented with Accounts Receivables sub-system.
+ Book keeping operations: the book keeping operations arising from sales
procedure such as export, bills and payment are accounted automatically and saved into
the subsidiary ledger. Then, they are updated into the general ledger as required by the
General Accountant
- Customer Relation Management: CRM allows comprehensive client
management in entire process from potential clients, sales opportunities, sales
transactions to warranty service, client care after sales. CRM consists of sub-systems:
management of client documents, management of sales opportunities, management of
calendar and activities, management of client services.
- INV – Inventory: this ERP-based corporate management solution supplies
inventory management sub-system to meet demands on complicated inventory
management with so many physical inventories, varied types of goods and materials.
+ Inventory organization: the function allows to report inventory. ERP permits to
report inventory organization in varied plants, stockpile of materials, warehouse of
finished products, etc. The function helps share information related to inventories in

varied inventories to concerned people.
- MFG - Manufacturing: PP – Production Plan, MRP – Material Resource
Planning, Bills of material, Costing, management of production, value and quantity in
progress (WIP – Work in Process).
Production Management Integration Modulus
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Capacity evaluation

Production Capacity

Orders
Material ratings and
manufacturing phases

Material demand
planning

Sales
management
Quality Control

Manufacturing
phase management

Sales management

Costing

Management of warehouse, materials and
goods

Management procedure from demands on production to sales is illustrated in the
following diagram:
Material ratings
Manufacturing Order

Purschasing
Anticipation
(Plan)

Inventory
Demand
generalization

Manufacturing
Plan

Sales
Information

Material Demand planning
Material purchasing
request

Manufacturing
Order

Finished products/ semifinished products
Delivery

Major functions of the Production Management Sub-system in ERP-based Corporate
Administration Solutions meet requirements on production management of the Company
as follows:
•

MDS: Master Demand Schedule

•

MPS : Master Production Schedule:

•

MRP – Material Resource Planning

•

BOM - Bills of material, Routing:

•

WIP- Work in Process:

•

Costing

•

Integration with other sub-systems

•

Automatically accounting

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- Personnel and Salary Management: manage information on the officers,
personnel such as curriculum vitae, general information, working affairs. Salary
calculation under varied methods such as on basis of time, productivity, etc automatically
shifting salary cost to other sub-systems.
The sub-systems are integrated to each other under the following diagram:

Salary

Personnel

Purchasing
Accounts
Payables

GENERAL LEDGER

Cash

Inventory

Manufacturing

Accounts receivables
Fixed assets

Other business

Sales

Integration Map of ERP based – sub-systems
GENERALIZED TABLE OF SUB-SYSTEMS, MAIN FUNCTIONS OF ERP
Stt
I

Main Modulus

Functions

Accounting –

Accounting – Financial Management

Financial

General Accounting

Management

Capital accounting (Cash, deposits, loans)
Accounts Receivables
Accounts Payables
Cost
Work in progress
Tax
Financial statements

II

Purchasing and

Purchasing Order

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Supply

Orders/ Contracts

Management

Monitoring shipping/ bills/ payment
Supplier management

III

Sales and

Quotation

Distribution

Order/ Contract

Management

Monitoring shipping/ bills/ payment
Credit level/ Discount
Clients

IV

Customer Relation Accounts
Management

Opportunities
Calendar & Activities
Customer service

V

Inventory and

Inventory plan

Goods Management

Goods, materials, accessories
Inventory import/ export/ shifting
Inventory management

VI

Production

Ratings/ structure of products

Management

Production planning
Planning material demands
Production order
Production progress monitoring

VII

Personnel

and Personnel files

Salary Management

Timekeeping

Proposal on

Software
Salary calculation
Learning
improvement
configuration
requests
2. Action Plan and specific targets

Data
change

1- Basic periods in implementation of ERP based- solutions:
Monitoring &
Assistance

Official use

Test
reproduction

Management information systems in Nam Duoc company

Training users

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3. Expected budget:
WORK ITEM

EXPENSE

Servers in the Company and its member

VND 8 ,000 ,000 ,000

Hardware

companies
Software
1

Financial – Accounting management

VND 5 ,000 ,000 ,000

2

Distribution and sales management

VND 5 ,000 ,000 ,000

3

Supply management

VND 500 ,000 ,000

4

Customer relation management

VND 500 ,000 ,000

5

Warehouse,

6

management
Personnel management

VND 500 ,000 ,000

7

Customer relation management

VND 500 ,000 ,000

8

Manufacturing management

VND 500 ,000 ,000

materials

and

goods

VND 500 ,000 ,000

Personnel recruitment of an IT Company

VND 4 ,000 ,000 ,000

Gross expense

VND 16.000.000.000

4. Personnel:
• Regular personnel in the Company: 12
• Seasonal personnel: 20
5. Time:
Period

Work

Time

Period 1:

Writing plan and calculation of feasibility

5 months

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Period 2
Period 3
Period 4
Period 5
Total

Outsourcing software design
Purchasing hardware and trial application
of software
Implementation application
Correction and improvement

18 months
6 months
6 months
12 months
47 months

6. Solutions to selection of suppliers:
ERP market is currently varied and companies face with difficulties to select ERP
products. Any ERP suppliers warrant their best quality which is proved by their
application in A Company, B Company, use of modern tools, etc. In addition, costing
method of each supplier is varied. Foreign ERP suppliers argue that their products are
satisfactory to international standards and tested for years in the world meanwhile the
domestic ones persuade companies with “softer” price, easy use, interface in Vietnamese
language, which is suitable to context and conditions in Vietnam

Should preparation be implemented carefully in term of evaluation criteria and
evaluators, companies shall be confused to attractive advertisements of ERP products.
Some companies are hurried to sign the Contract on Purchasing ERP products with
partners regardless name, valid time of the solutions, name and years of formation and
development of the supplier, information on ERP via newspaper and books.
Companies are advised to have a thorough grasp of requirements on management,
business features to point out specific evaluation criteria that are classified and arranged
in priority order to make comparison among suppliers to chose the most suitable
products.
Some useful criteria for companies before selection:
- Functions: features and functions of the products, satisfaction to the specific company,
adaptation capacity to meet new requirement, compatibility to the existing system.
- Management capacity of the system: reviewing general management capacity of the
system via accessing, entry of data, processing and outputs.
- Assistance function consists of assistance in training, friendly interface, easy use,
assistant language, detailed and sufficient guidance diagram; reporting assistance under
external requirements.
- Capacity of the suppliers: is shown via their experience in implementation of the
projects, assistance capacity to the companies, costing methods, etc.
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+ Implementation experience: it is advised to pay more attention to the suppliers’
experience in implemented projects in both aspects: quantity and quality.
+ As learning about the suppliers, it is advised to learn about history of development,
assistance in case of any incidents, training course, as well as updating and new version
of the applications.
+ It is necessary to review trial version of varied solutions and exchange with the

suppliers the present and future requests.
+ Costing method: each supplier has own costing method. So it is advised to clarify
costing method of the targeted suppliers and making comparison with total expense of
ERP based project
+ In addition, it is advised to learn experience and issues faced by some companies in
application of ERP, consult objective comments of the companies which used and is
using ERP to help reduce risks and expense:
Hereinafter are selections to be reviewed:
Some of the top ERP sellers are as follows:
Microsoft
The ERP products of Microsoft are sold under the following four tags:
• Microsoft ERP Navision Software
• Great Plains
• Solomon
• Axapta
Microsoft is a giant when it comes to the IT market. However they don't occupy a
comfortable position in the ERP market. They do continue to be among the list of top
ERP sellers. They don't cater only to larger companies. Infact their services are ideally
suited to the requirements of small and medium enterprises.
They attract a large user base because they manufacture the products from the view point
of a vendor who is supposed to know the practical difficulties than any manufacturer or
end user because he sees the whole process of installation and deployment rather carries
it for the companies.
Microsoft has been constantly restructuring its products and upgrading the versions so as
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to make it compatible in the market. In other words the company adopts a very liberal

policy in dealing the needs of the customers. The company has even allowed its sellers to
recommend and sell the services of third party companies for functions that are not
offered by Microsoft for e.g. supply chain management. Microsoft needs to bring more
innovative features and add functions so as to make their products user friendly and
enable them to attract great demand in the market as well. This has to be followed by
ERP software companies in general and Microsoft in particular.
Oracle ERP
Oracle is another top player in the ERP market that has always made the competitors to
go down the spine with numerous strategies and background work. Oracle has become
the subject matter of United Nations development program's initiatives for mass
campaigning. Oracle's take over of Peoplesoft's ERP related products and the subsequent
merger of Microsoft and SAP has thrown lot of speculations in the market and it has been
widely guessed that the customer will benefit from the services.
The combination of Oracle and People soft has helped customers in using the best
features of these two products which would not have otherwise been possible but for this
common platform. In addition Oracle has also tied up with sun Microsoft systems in
consolidating system servers sharing other applications and platforms and thereby
realizes unimaginable benefits to the user.
SAP ERP
SAP ERP is a software program that is aimed at providing solutions to the users in
overcoming their technical and managerial problems with regards to data handling and
transformation. This software has become the favorite choice of corporates as it renders
valuable services to companies by redefining the way business should be done.
The characteristics of MYSAP ERP software are as follows:
• Transparent and flexible application
• A comprehensive solution
• Helps to achieve good governance
• Helps to manage Operations and manpower
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Some of the advantages of MYSAP ERP are as follows:
• Facilitates quicker and better decisions
• Overall business transformation
• Reduction in Costs and Risks
• Following Modern Practices
• Specialty
7.
• Strategic Plan of JSC year period 2011 - 2015.
• Handbook of information and communication technology for businesses by
VNCI & VCCI released.
• Website: ERP softwave, Enterprise Resource Planning,ERP Vendors, ERP
• Systems,ERP Guide: />Website ERP Việt Nam />------The end -------V

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