Digital Transformation in logistics opens new perspective for Vietnamese businesses

This seminar was part of a series of digital business development programmes organised by the Ho Chi Minh City Industrial Zones Business Association together with the DTS Digital Transformation Alliance and Smartlog Supply Chain Solutions Company.

It aims to equip the necessary knowledge and skills to help leaders and officers and employees of manufacturing enterprises orient plan and implement the roadmap for digital transformation of enterprises.

Speaking at the conference, Dao Xuan Duc, standing vice chairman of the association shared, “The rapid development of technology is leading to a new industrial revolution. This revolution is challenging and creating opportunities for enterprises to transform the traditional method of production. This is also an opportunity for all businesses to explore, seize opportunities and affirm their position in the domestic and foreign markets.”

Nguyen Hoang Giang, general director of SATRACO, at the conference

Nguyen Hoang Giang, general director of Saigon Beer Trading Company Limited (SATRACO), a company fully owned by SABECO in charge of its entire logistics system, affirmed the logistics industry's transformation is a long and difficult journey that any business that wants to develop must overcome.

To start this journey, businesses need to prepare carefully in terms of human resources, capacity, team thinking, budget, and communication strategy. Detailed data preparation will help the process is most efficient and appropriate for every enterprise, Giang said.

SABECO has officially launched digital transformation in 2020 to improve the way of working through optimisation, standardisation, and automation of processes, including the supply chain, warehouse operation, sales, and business intelligence systems.

“In the pre-digital era, SABECO's logistics and distribution system was like a matrix of hundreds of vehicle trips running on many routes in a day, hundreds of thousands of distribution points, warehouse systems, and daily inventory. To get these numbers, we had to wait for the subordinates to check them manually. Information is very slow, sometimes it took up to two days to get data. And the consequences of this slowness are poor service, low productivity, and incorrect business plans,” said Giang.

SABECO's Board of Directors determined it was necessary to carry out digital transformation immediately. Only digital transformation can improve business efficiency, improve service, and product quality, and finally, strengthen SABECO's brand in the market.

In addition, digital transformation helps SABECO improve the service quality of the warehouse system, control inventory well at any time, and reduce operating costs.

“Clearly, digital transformation helps us build a complete data system. We use this system to analyse and make the most effective business decisions and directions,” he said.

Nearly five years since the beginning of the digital transformation process, SABECO has achieved encouraging results. However, Giang said that the digital transformation journey is not over yet. “We will continue this journey to suit the needs of businesses and customers in the near future. This is a never-ending process,” he said.

SABECO applies transport and warehouse management systems since 2020 to effectively manage the production and distribution of its beer

The role of digital transformation in logistics activities is increasingly concerned by governments and businesses.

According to the National Digital Transformation Programme to 2025 approved by the prime minister, logistics is one of eight industries that need to be prioritised for digital transformation.

Up to now, players in this field have been implementing the digital transformation process to enhance competitiveness as well as improve effective supply chain management.

SABECO has a wide supply chain and complex network with a system of 26 factories, 10 member trading companies, and a network of more than 200,000 points of sale spread across the country.

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