After more than a year of sticking and looking for opportunities in the emerging market, Myanmar, FPT IS got its first contract with the SAP A1 ERP enterprise resource management project for United Paints Group ( UPG) – The leading paint company in this Buddhism country. This is considered to be the ‘launch’ of a series of key projects of FPT IS deployed in Myanmar in the following years. Deploying SAP ERP for UPG: “Initial shooting” for FPT IS ‘s general launch in Myanmar.
Myanmar is emerging economy in Southeast Asia with attractive investment opportunities for foreign businesses. According to the International Monetary Fund (IMF) report, Myanmar could scale its economy fourfold to $200 billion by 2030.
After a series of reforms, Myanmar has also opened up to abundant investment in many fields. Where, Finance, Banking, Energy, Telecommunications and Information technology are considered as promising land for enterprises, both in terms of market potential and human resources.
Foreign companies and corporations such as Diebold and Hitachi are flocking to Myanmar to invest in and develop infrastructure for the financial sector, banks, and banks due to the great attractiveness of this new-opening market. Not stay beyond of this playground, during the past five years, Vietnamese enterprises and technology groups such as Hoang Anh Gia Lai, FPT, BIDV, VNPT, Viettel have been quickly presented here.
FPT officially opened its office in Myanmar in July 2013.However, it takes more than a year to hold on to, respect the culture of the host country and strengthen cooperation with local partners, FPT IS has picked up the first achievement in this Buddhist country. Early 2015, FPT IS launched a project to deploy SAP Business All-in-One (SAP A1 ERP) – the enterprise resource management solution project to United Paints Group (UPG). It is one of the largest private corporations in Myanmar with more than 600 employees, a factory invested in modern production lines with an area of 6 hectares; UPG’s business centers and agents cover Myanmar and are well-built.
The project is being implemented for headquarters, factories, five branches in Myanmar and one subsidiary in Singapore of UPG. The modules implemented by FPT IS include MM – Material Management, SD – Sales & Distribution, PP – Production Planning, FI – Financial Accounting, CO – Controlling, BI – Business Intelligence.
Previously, with limited IT infrastructure, the entire UPG system must use Microsoft Excel to manage so everything was very manual. As for production sector, UPG had software to manage the production specifications, though, they still re-enter data into Excel for tracking and storage. Therefore, the application of SAP A1 is such a “new wind”, giving UPG advanced management system, suitable for modern production infrastructure of the corporation.
However, ‘the first step is the hardest’, the barriers of language and technology infrastructure of UPG in particular and Myanmar, in general, have made FPT IS ERP project team encountered many difficulties.
According to Mr.Nguyen Thanh Ngoc – ERP FPT IS consultant, initially, UPG did not know about SAP A1. They even think that this software can run offline. But the biggest difficulty with the project team when deploying is the language barrier. Not every customer’s user knows English, sometimes the pronunciation can’t be understandable by both parties. Another difficulty is that in terms of technology infrastructure, Internet in Myanmar is very weak and requires the system to run offline without the Internet. Fortunately, after many persuading times, UPG has invested in infrastructure to improve the situation.
“In return, UPG very friendly, friendly and enthusiastically helped FPT team. Thus, after about six months of implementation, SAP A1 has been put into operation, enabling customers to view online reports more efficiently, shortening the editing time, retrieving data from Excel as before. In addition, the system also helps UPG control costs, operating costs; optimizing catalog sets, standardizing ISO processes to work internationally,” Mr. Ngoc said.
After more than a year using the SAP A1 solution, in July 2017, Myanmar’s leading paint group continues to trust and select FPT IS to sing the contract of upgrading its ERP system, deploy more Quality Management module (QM).
Quality management subsystems are an important part of the chemical industry. Previously, because UPG personnel are not enough, they can’t standardize the workflow among the quality control, production, R & D departments so can’t apply QM module. After nearly a year of operating SAP, UPG felt confident and had a better staffing to add QM module for optimizing the management system to improve product quality.
“I believe that ERP has a lot of potential in this Buddhist country, even bigger size than UPG’s. As Myanmar has just opened and reintegrated and a successful case study of UPG will be a catalyst to help domestic enterprises invest more in the future”. Mr. Ngoc expects.
It can be said that deploying SAP A1 for UPG is the ‘opening shot’ of FPT IS in Myanmar. After the UPG, FPT IS has implemented many key projects in the government sector such as Myanmar National Information Portal, Myanmar National Financial Switching System, Ooredoo Data Center Infrastructure and especially, the package of 11.3 million USD with the Ministry of Planning and Finance. This is the largest IT project ever in the Government of Myanmar and also the largest IT package sponsored by the World Bank for this country.
FPT Deputy General Director, FPT Myanmar Chairman, Mr. Duong Dung Trieu affirmed that FPT’s strategy in developing countries is to use the experience of successfully deploying IT projects in Vietnam. In fact, from that capacity and experience, FPT has successfully implemented many projects of tens of millions of dollars in Bangladesh, Myanmar, etc. Myanmar can be very difficult to access due to legal and technological infrastructure barriers, but it is also a potential market, opening up many opportunities for FPT IS in particular and foreign businesses in general.
FPT sets a target that by 2020, there will be a presence of member companies to bring all FPT solutions, products and services from Vietnam to implement here.
Binh An – FPT IS
According to “ERP & Enterprise – No. 26”