C-Talk Vietnam – Innovating Technology Solutions for Resource Optimization and Supply Chain Revitalization

On June 27, 2024, FPT akaBot, in collaboration with FPT.AI, successfully organized C-Talk, a high-level event focusing on digital transformation strategies for business leaders. The event featured speakers, experts, and over 40 guests, including leaders and senior managers from the retail, manufacturing, e-commerce, and logistics industries.

Under the theme "Optimizing Resources, Rebuilding the Supply Chain in the Digital Age," the C-Talk Supply Chain Vietnam event centered on practical business insights into technology deployment in logistics and supply chain management. Discussions focused on achieving accurate inventory ratios, optimizing delivery routes, and enhancing warehouse management efficiency. During discussions involving senior leaders from Tiki and Daikin Vietnam, along with representatives from solution providers like FPT and Ship60, the event analyzed and thoroughly evaluated the strategies for deploying technology platforms, automation, and AI applications for effective customer communication and issue resolution.

Enhancing productivity in Logistics and supply chain activities – An inevitable trend in Retail, Manufacturing, and E-commerce Industries

From 2023 to 2034, the global supply chain has faced mounting pressures, resulting in rising costs across logistics activities. According to Mr. Nguyen Tan Hung, Southern Regional AI Business Director at FPT Smart Cloud, geopolitical shifts like the COVID-19 pandemic, the Russia-Ukraine conflict, and the US-China technology rivalry have led to resource scarcity and increased costs of raw materials. Those have subsequently driven up selling prices while dampening consumer purchasing power. Moreover, customer behavior is evolving, with 75% of users preferring omnichannel shopping and 76% seeking personalized shopping experiences. In response, leveraging new technologies such as AI and RPA has become imperative for businesses to enhance resilience and competitiveness.

Echoing this sentiment, Mr. Nguyen Chi Tho, Senior Director of TikiNOW Smart Logistics, highlighted the challenges facing businesses in the supply chain: "Logistics operations in the Vietnamese market are currently highly fragmented. Businesses often deal with numerous units and focal points – from production and factory-to-warehouse transportation to distribution management, inventory control, and quality assurance for end users." According to a study by Gartner, logistics costs can comprise up to 80% of total supply chain management costs. This underscores the pressing need for supply chain managers to optimize logistics and transportation processes across their enterprises.

To optimize the supply chain, leaders and managers typically prioritize two key areas: Firstly, reducing costs by leveraging automation and technology to streamline operations, save human resources, and reduce processing times. This approach aims to minimize inefficiencies, such as errors in invoicing and payment processes. Secondly, enhancing resource optimization through rigorous ERP systems involves eliminating redundant logistics processes and upgrading tools and systems capable of accurate business supply forecasting.

In his opening speech at the C-Talk Supply Chain event, Mr. Duong Viet Tung, Operations Director of FPT akaBot, remarked: "Vietnamese businesses in the supply chain are undergoing significant transformation amidst digital advancements. Key priorities include cost optimization, resource efficiency, and enhancing flexibility and competitiveness". According to the Vietnam Digital Transformation Report 2023, 80% of logistics industry businesses have adopted transportation management and tracking systems (TMS), 70% utilize electronic trading platforms (e-marketplaces), and approximately 60% leverage big data for supply chain analysis. In the retail and manufacturing sectors, over 50% of businesses have implemented production management systems (ERP) and are integrating automation robots and AI into logistics and inventory management processes.

Growth-hack strategy: Enhancing Logistics and supply chains through incremental improvements

Facing challenges and seizing opportunities, representatives from manufacturing, retail, and e-commerce businesses at the event shared practical stories of applying digitalization and technology in their supply chains.

Vietnamese e-commerce platform Tiki, leveraging its robust warehousing systems and transportation solutions through TikiNOW Smart Logistics, has prioritized substantial investments in technology infrastructure. According to Mr. Nguyen Chi Tho, technology integration is crucial across every facet of the supply chain. It spans Operations Management (including warehouse management systems and transportation platforms), Production Processes, Finance & Accounting (utilizing SAP S/4HANA, inventory management platforms, and control & payment software), and Analytics & Data (incorporating large-scale Big Data centers for real-time supply chain management and advanced analytics to forecast future demand).

Selecting the appropriate technology for each stage of transformation and operational link is critical for business leaders aiming to optimize resource utilization. Robotic Process Automation (RPA) emerges as a foundational technology often adopted in early digital transformation phases to automate manual tasks in inventory management. RPA solutions can significantly enhance accuracy levels up to 99.9% while reducing human resource requirements by as much as 70%.

In the realm of accounting and finance management, a crucial segment within the supply chain, eliminating errors and minimizing risks in handling electronic invoices contributes to cost savings. Ms. Vu Thi Thu Thuy, Deputy Director of Financial Accounting at Daikin Vietnam, emphasized that "cost reduction isn't merely about cutting expenses indiscriminately but rather about optimizing and understanding cost types and influential factors to streamline regulations while ensuring business efficiency." Daikin Vietnam partnered with FPT akaBot to deploy core RPA technology combined with AI and OCR to systematize operations and reduce workload. This integration automates the processing of over 40,000 invoices annually, resulting in 75% time savings and slashing costs by 99.9% by mitigating risks and errors in invoicing.

Alongside virtual robots, integrating AI capabilities will propel businesses toward intelligent automation. "By 2027, 95% of global retailers will invest in GenAI to enhance product data and customer support," commented Mr. Nguyen Tan Hung. FPT.AI representative anticipated that one of the most promising applications of GenAI in supply chain management is automating over 50% of customer service tasks. It includes analyzing information during phone interactions to facilitate swift actions and enhance customer support efficiency. He also discussed Computer Vision's applicability in processing warehouse documents and managing the quality of goods.

The speakers summarized their experience in implementing logistics and supply chain technologies with a "step-by-step but continuous improvement" approach. "In the past, akaBot focused on the Fast-to-Mass method, initially deploying automation for simple, high-volume, and repetitive processes. Later on, we recognized the importance of creating a collaborative environment between employees and virtual robots, establishing a digital workforce for businesses", said Mr. Duong Viet Tung, Operations Director of FPT akaBot. He emphasized that businesses should not only focus on effectively deploying technology but also invest in training courses and staff development to fully leverage the capabilities of robots and AI.

Launched for the first time in 2023 in Vietnam and Malaysia, the C-Talk event series serves as a premier gathering for leaders and experts in technology, banking, and digital transformation to delve into profound discussions. The event highlights successful digitalization stories and explores the application of technology solutions and the latest trends in digital transformation. Attendees, comprising 100% managers, department heads, division directors, and senior business leaders, possess extensive expertise and insights for optimizing digital transformation processes and business automation.

FPT IS, a subsidiary of FPT Corporation, was founded in 1994 and has established itself as a prominent system integrator and provider of digital transformation solutions in Vietnam and the region. Recognized for its technological capabilities by global customers and partners, FPT IS has successfully designed and implemented numerous comprehensive IT projects, services, and solutions. These initiatives have been pivotal in transforming critical sectors of Vietnam, including finance, banking, real estate, insurance, retail, and public administration, creating value for tens of millions of people.

akaBot, an RPA solution under FPT IS, has garnered widespread acclaim. Serving over 3,900 customers across 21 countries, akaBot has automated over 10,000 processes. It has received notable recognition in international assessments, notably featured in the Gartner® Peer Insights™ "Voice of Customer: RPA Automation" report for two consecutive years. akaBot was also listed among Major Contenders in the prestigious Everest Group RPA PEAK Matrix 2023 rankings.

FPT Smart Cloud, a subsidiary of FPT Corporation, is a leading technology firm in the region known for pioneering solutions in Artificial Intelligence (AI), Cloud Computing, and Data. With a diverse product ecosystem, including FPT.AI, FPT Cloud, and FPT CFS, FPT Smart Cloud supports over 3,000 businesses and tens of millions of users across 15 countries globally. The company focuses on driving digital transformation and enhancing business performance. Additionally, FPT Smart Cloud plays a pivotal role in fostering and promoting creative startups, contributing to the development of digital talent in Vietnam through initiatives such as startup acceleration programs and the FPT Smart Cloud Young Talent initiative.