Loc Troi Group JSC begins ERP implementation

Loc Troi Group will implement the SAP S/4HANA Enterprise Resource Planning (ERP) to improve operations

The first phase of the project will implement at Loc Troi Group the modules of Sales and Operations Planning, Purchasing, Inventory, Sales and Distribution, QR code, Production Planning, Quality Management, Financial Accounting, and Controlling. This will be done by January 1, 2021 in LTG’s Agricultural Supplies Division and Functional Units. The second phase of the roll-out includes Plant Maintenance, Funds Management, Analytics, and Group Reporting Consolidation to all of Loc Troi and affiliated companies.

With the vision of becoming a regional leader in agricultural services with a sustainable agricultural value chain, Loc Troi Group has the mission to realise farmers' wishes, elevating their position and quality of life, as well as helping create rural areas worth living in. LTG has identified that ERP implementation is one of the important projects furthering the group’s objective of digitalisation and comprehensive restructuring. The completed reform initiatives include refining operation processes and building individual KPIs in line with the 2020-2024 strategy. The company also plans to operate their business plan on a single, cohesive, and effective ERP platform.

Implementing ERP will help Loc Troi establish a uniform management system, standardise all processes according to international best practices, improve planning capacity, and track all business activities automatically from procurement, warehousing, manufacturing, quality control, sales, and accounting to financial control while ensuring transparent information at all stages. These improvements are expected to help the management team make timely decisions, increase the company’s efficiency, as well as increase its competitiveness in the market in line with international standards and find opportunities to maximise the potential of agriculture and farmers’ creativity. With the implementation, Loc Troi hopes to sustain their company’s leading position in agricultural services in Vietnam and the Southeast Asia region.

Huynh Van Thon, Loc Troi’s chairman of the board cum general director, said, “SAP S/4HANA is a comprehensive system and we are well aware of the challenges in the two implementation stages. I care a lot about change management. The objective is for all staff members to understand the benefits of ERP and quickly adapt to the new way of working and the new culture of the group. Loc Troi has so much potential which needs to be materialised to improve the efficiency of the group, improve the lives of all employees, and bring benefits to all stakeholders. This is part of Loc Troi’s vision and ERP will help us build a platform to realise that.”

SAP S/4HANA, the solution trusted by LTG, is the most modern product built on the digital ERP core by SAP, whose client base contains nearly 440,000 corporates and governments in more than 180 countries. Citek Technology will play a critical role not only in implementing the platform but also in technical support and training LTG users.

Josephin Galla, managing director of SAP Vietnam, said, “The collaboration between Loc Troi Group and SAP is anticipated to support the Vietnamese people. Both LTG and SAP have customer success and happiness as their highest priority. SAP is positive that LTG will optimise their “farm to table” supply chain with the support of our technology, SAP S/4HANA – the world-leading ERP solution. In order to drive innovation and support a sustainable supply chain for our customers, back offices must be in order and work seamlessly – a fact that was recognised and emphasised by LTG. Food safety, social distancing, and many other challenges will require customers to re-think their digital strategy and LTG is leading the way to a truly digital enterprise. LTG will spearhead the route to Digital Vietnam.”

Nguyen Cong Tan, managing director of Citek said, “Citek has summarised and provided the methodology CSVision based on our achievements in consulting for the enterprises to implement ERP successfully in their operations with a simple roadmap, high feasibility, and high productivity. We advise not only digital transformation and connecting all business processes in ONE system but also helping them to standardise the organisation structure, optimise and simplify management activities. LTG would definitely be our next success story based on the best experience from SAP S/4HANA solutions. Citek commits that the SAP project also provides technology assistance and capacity building towards strengthening management and helping LTG to be an intelligent agricultural enterprise for sustainable development.”