Vietnam-headquartered IT services group FPT has kicked off a major digital transformation project for Vietnamese construction materials manufacturer Kim Tin Group.
The agreement for the project, which was officially signed on 4 June, is considered to mark the beginning of one of the biggest deals and one of the most thorough projects of its kind in digital transformation within the Vietnamese commercial market, according to FPT.
FPT said that within seven months it would deliver solutions for the digital transformation, including enterprise management offerings from SAP, along with sales and operations planning (S&OP) software from the vendor, and factory smart management. It will also bring its manufacturing execution system (MES) solution into the company’s management and production process.
Specifically, the project revolves around the implementation of SAP S/4HANA, SAP's integrated business planning (IBP) and S&OP solutions, as well as solutions made by FPT for sales, delivery, digitisation, procurement and more.
It is hoped that these solutions together will underpin the evolution of Kim Tin’s business, including in the areas of business plan, budgets, supply chain, factories, purchasing, delivery and more.
The solutions will be implemented at each of the 10 subsidiaries under which Kim Tin Group’s production of welding materials, industrial wood plank and processed wood takes place.
“This is the first time ever that SAP S/4HANA, S&OP, FPT MES systems are executing at this scale, at the same time,” said FPT CEO Nguyen Van Khoa. “This is a fair investment to the scope, potential and growth objectives of Kim Tin.
“FPT is honoured to be a partner to Kim Tin on this strategic path. We believe with our capability and experience in digital transformation, solution and execution supply (such as ERP, MES) for enterprises in Vietnam, together with Kim Tin Group, [we can] achieve further objectives in the future after this project.
“Alongside it, FPT will not only be a companion but also an ally – a close connection to Kim Tin, to share [the] values and management strategy that we have learned in the past 30 years. We would share value and are ready to support Kim Tin to raise market share and approach global market,” he added.
According to FPT, the main objectives for the project are to synchronise operation, optimise the overall supply chain, make financial management more transparent and digitise work processes to push productivity and support quick decision making for Kim Tin’s board of directors.
“Kim Tin Group is determined to transform and apply technology in every activity, including management, production, sales and marketing, together creating a resonant power for the whole group,” said Nguyen Tien Hai, chairman of Kim Tin Group.
“We expect this investment and companionship with FPT Corporation will quickly help our group to finish and operate the SAP S/4HANA and S&OP system, smart production management MES, then digitise operation methods, and increase customer experience.
“This will bring Kim Tin to the group of top enterprises in the market and return value to the community."
In May, FPT inked a deal to underpin the digital transformation of Vietnam Electricity Southern Power Corporation (EVNSPC), a subsidiary of Vietnam Electricity (EVN).
That partnership contract agreement sees FPT help EVNSPC realise the goal of transforming itself into a digital corporation by 2025. In this role, FPT will digitally transform the company's electrical distribution and operational governing processes, helping to improve both the quality and efficiency of the processes of managing and commercially distributing power.
The win, along with the more recent Kim Tin deal, fall in line with the IT provider's recent push to focus on digital transformation.
Earlier this year, FPT flagged its intention to build out its digital business ecosystem with the launch of its new digital transformation consulting subsidiary FPT Digital.