Tan Hiep Phat Digitizes Purchasing Activities to Enhance Operational Capacity

The operation of SAP Ariba is one of the key projects in Tan Hiep Phat's digitization strategy from 2021 - 2026 to improve organizational capacity. This aims to develop technology, people, reach out to the world and achieve the revenue target of US$1 billion,” Tran Qui Thanh, founder of Tan Hiep Phat Group said when lauching SAP Ariba on April 7.

Tan Hiep Phat Digitizes Purchasing Activities to Enhance Operational Capacity
Tan Hiep Phat officially operated SAP Ariba from April 7, 2022.

After about 5 years of implementing e-bidding for public and transparent bidding, in 2019, Tan Hiep Phat continued to research solutions and applications to connect, improve transparency in purchasing activities. This includes prices and services of domestic and international suppliers.

Until January 2021, Tan Hiep Phat continued to improve and upgrade to SAP Ariba system for purchasing activities with the goal of improving operational capacity and always being a reliable partner.

All transactions and information exchanged between customers and suppliers will be done quickly, with maximum transparency to improve business efficiency.

SAP Ariba is the largest global B2B network enabling businesses to connect and collaborate with millions of suppliers. Thereby, cooperation activities are managed more carefully and effectively on a single and integrated platform.

Immediately after the project was put into operation, the pandemic suddenly broke out across the country, leading to social distancing on a large scale, making it difficult for businesses to maintain production activities.

Tan Hiep Phat was determined to face and find solutions to stabilize production, business activities and maintain project progress.

After 157 days of testing the system with more than 2,000 suppliers, Tan Hiep Phat officially put the SAP Ariba system into operation on April 7, 2022.

Tan Hiep Phat Digitizes Purchasing Activities to Enhance Operational Capacity
Deputy General Director Tran Uyen Phuong said about the project journey.

“The official operation of SAP Ariba system is a testament to what founder Tran Qui Thanh once said, “Tan Hiep Phat is what I created, but leading the group is a team of employees.” I am proud of Tan Hiep Phat team having created trust and pride for the founder as the next generation ready to open up opportunities for the group to become one of the leading companies in Asia,” Deputy General Director Tran Uyen Phuong said at the event.

The launch of SAP Ariba will help increase commercial activity globally through the Ariba Network, the world’s largest digital business network connecting more than 4.2 million businesses in 190 countries and regions.

Nguyen Hong Viet, managing director for SAP Vietnam said: “With 3 modules of SAP Ariba that Tan Hiep Phat Group put into operation: Sourcing, Contract, Supplier Lifecycle & Performance Manager, integrated with SAP ERP system, we trust the project will help the group achieve its goals of improving cost efficiency, compliance, transparency in the procurement process, and enhancing cooperation with suppliers.”

In 2021, despite the pandemic, the export rate of Tan Hiep Phat’s products still increased by 30% compared to 2020.

Tan Hiep Phat’s products are currently being exported to 20 countries and territories such as the US, Japan, Australia, Canada, the Netherlands, the RoK, and Singapore.

Since 2012, Tan Hiep Phat has been the first company in the beverage industry in Vietnam to choose SAP as a platform and promote digitization.

On January 6, 2021, Tan Hiep Phat continued to implement the project “Transforming purchasing management activities with SAP Ariba solution”. Tan Hiep Phap wishes to accelerate the digitization of the entire supply chain, improve organizational capacity, professionalize and always be a reliable partner.

Rosie Nguyen