ỨNG DỤNG CÔNG NGHỆ THÔNG TIN và THƯƠNG mại điện tử TRONG CÔNG TY cổ PHẦN tập đoàn PHÚ THÁI e

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.
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 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:
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

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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
1. Consumer Goods
• Fast Moving Consumer Goods (FMCG)
- Personal Care Products
- Food
- Drink
• Fashion
• Home Appliance
• Sports
2. Health and Beauty Care
• Cosmetics
• Functional Foods
• OTC
• Medicines
3. Industry
• Industrial Equipment
4. Others
• Building Materials
• Veterinary Medicines
• Livestock Feed
Performance model of Phu Thai Company:
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Board of Mnagement
Board of Control

General Director
Assistant

Internal control
Managing Director

Support

Marketing

Traditional
products
New
products

New
products

Business

Production

Region 1

Binh Duong

Region 2

Kien Giang

Region 3

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

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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
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

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: />
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)
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 Mail Google Apps
 Accounting software, inventory management, sales management
 Customer Management Software
 Statistical Analysis Software
 Timekeeping Software
2. 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

3

1

2

4

Operation network

2

1

4

3

Computer system

3

1

4

3

E-marketing

1

3

2

4

efficiency

3

IT HR

4

1

3

2

6

Competitive ability

1

2

3

4

7

Online order

2

1

4

3

1

2

3

4

5

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8

Website completion

3

1

4

2

9

Website content

2

1

3

4

Links to social

3

2

4

1

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

6

10

8

Links to social

Yes

Yes

Yes

Yes

10

network
Note: 1 – lower; 4- higher

Other comparison about IT investment:
Sai Gon CO.OP
Factors

Investment ability

Phu Thai

network fb,
Youtube

3. 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
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

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,
do 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.
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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).

4.

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
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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 ...

5. 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
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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.

6. 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
1

Function
Sale

Some outstanding applications

and Tracking, sales forecasting, sales planning nodes, situation

marketing

analysis and customer sales and marketing

2

Production

Planning to monitor and schedule of work.

3

Logistics

Planning and monitoring purchase and sale of supplies,
monitoring, and distribution of materials in the warehouse.

4

Finance

Financial analysis, cost analysis. monitoring plan for capital
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needs., calculating income
5

HR

Planning, human resource needs, analyze the results work,

mobilization

Managing the wage increase.

Devide system into management activities
No
1

Management

Some outstanding applications

Commercial management

Handling orders, invoices and bills, answering
questions about the current state of....

2

Operational Management

Prepare, monitor adjustment plan for short periods;
formation of budgets, resource allocation.

3

Technical Management

To target; establish, monitor and adjust plans for
each period, short-, medium-, and long time,
operating budgets allocate resources, finance, ...

4

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 3 / 6Gbit / s

- RAM: 4GB DDR3 (2x2GB) - 1333MHz Bus
- Main: H67 Chipset
- Case: Orient W1
- Power: 500W - true power - 80Plus certified
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- 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

1

10,000,000 10,000,000

Desktop

6

6,000,000

36,000,000

model

1

0

0

Divider

1

1,500,000

1,500,000

Line

30m

15,000/m

450,000

Wi-Fi

1

2,000,000

2,000,000

Information Management Software 1

20,000,000 20,000,000

Hire Network Management officer

1

2,000,000

2,000,000

Hire data collection officer

2

1,000,000

2,000,000

Total

Remark

~ 74,000,000
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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.

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Group Assigment

Management Information System

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