Digital transformation at Tan Hiep Phat: Change is a must for survival

Tan Hiep Phat embraces digital transformation to survive the turbulence caused by the pandemic

Tan Hiep Phat has celebrated its 27th anniversary in the midst of the COVID-19 pandemic. The company has strived to overcome the tough period to become the only Vietnamese company in the Top 3 most prestigious beverage groups in Vietnam.

Speaking at a seminar on maintaining business operations in the new normal held by AWS on October 27, Pham Nguyen Ngoc Tuan, chief information officer of Tan Hiep Phat Group said, “When Ho Chi Minh City and Binh Duong were under social distancing measures in line with Directive No.16/CT-TTg, our employees could not come to work as usual. The group’s leaders have quickly changed the operation models to comply with the regulations. Also, Tan Hiep Phat realises the pandemic is a chance to boost digital transformation.”

The group has adjusted its policies and operation processes at its factory in virus-hit Binh Duong to comply with the three-on-spot regulations such as how the purchasing department works with suppliers, how raw materials arrive at the factory as well as how distributors and retailers can pick up goods at Tan Hiep Phat.

The group only had two weeks to revamp its operations, taking much of it online with virtual meetings and e-signatures.

To maintain operation, Tan Hiep Phat places priority on discipline. The group is aware of external factors that can affect the three-on-spot conditions and has requested all delivery partners to ensure compliance with its pandemic prevention regulations. The factory is divided into green, red, and yellow zones while workers in each zone wear colour bracelets for identification. The camera system also monitors and detects violators of the 2m social distancing rule. The group also takes measures to ensure the safety of its workers in the zones.

“Tan Hiep Phat has overcome 105 days of the three-on-spot production with over 1,000 employees. This is a great achievement of the group thanks to the team's spirit to overcome difficulties each day,” Tuan said.

Tan Hiep Phat has overcome 105 days of three-on-spot production with determination and displince

The silver lining

Tan Hiep Phat has launched several initiatives and applied technology solutions to maintain operation and business, such as developing a virtual office on an online meeting platform so that the team could feel like they are working at a real office. The virtual office will make interactions easier and more convenient.

The virtual office can accommodate over 1,000 people at the same time, along with 50 departments and small meeting rooms. Thus, every employee can work online efficiently. The group has organised livestream activities on its internal system, fun quizzes, online training, skills competition, as well as music performances to celebrate its 27th anniversary. Despite limited resources, employees were very creative in recording, making video clips, and preparing musical performances in line with the 5K measures.

“COVID-19 is an opportunity for Tan Hiep Phat to accelerate automation. We realise that change is a must to ensure survival. Our team has worked tirelessly day and night to implement digital transformation, creating experience and value to customers during the pandemic. We aim to create favourable conditions for everyone to overcome the challenging period. After 105 days of three-on-spot production, Tan Hiep Phat will continue to prepare for the future,” he added.

Humanity in the focus of digital transformation

During digital transformation, Tan Hiep Phat faces many challenges when integrating its existing system with the new one. However, at Tan Hiep Phat, technology is just the foundation, people are the focus to bring the best experiences to customers. In its transformation, Tan Hiep Phat supports each employee to become a technology ambassador, spreading, changing, and creating value for customers.

According to Tuan, the company has outlined its vision as well as culture of coordination and interaction between departments to define the starting point for digital transformation process. To facilitate the goal, it has laid a digital transformation foundation for the entire business before choosing the right technology. Thus, the group can meet its growth requirements in the next 5-10 years to avoid waste and the need to reinvest to change technology later.

In the context of transitioning to the new normal, Tuan said Tan Hiep Phat has entered production with an open and cautious attitude and a spirit to face whatever the pandemic may have to throw at them. The company strictly maintains the 5K measures as well as uses IT to support its whole operations. Meanwhile, digital transformation is vital for Tan Hiep Phat adapt to the needs of customers, especially during the COVID-19 pandemic.