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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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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Region 2

Kien Giang

Region 3

Supply chain

Logistic
plan
Material

Dac Lak…

Finanace/ac
count

HR

Accounting
finance

Administratio
n

Accounting
managemen
t



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






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


4

Operation network

2

1

4

3

Computer system

3

1

4

3

E-marketing

1

3

2


Online order

2

1

4

3

1

2

3

4

5

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8

Website completion

3


CMC

Distribution

Commercial

Company

Manufacturi

Limited

ng Co., Ltd.

Strong

Low

Strong

Strong

Server

Yes

Yes

No


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:

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

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

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


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

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


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