Revolutionizing Pharmaceutical Production: FPT IS's Technological Solution for Management Challenges and Production Enhancement

The pharmaceutical industry has undergone significant market shifts in recent years, accompanied by evolving development strategies and scaling among industry players. While the impact of the COVID-19 pandemic appears transient, this context has spurred a compelling impetus for transformative change, mainly through technological advancements. The narrative surrounding GONSA pharmaceutical company and its collaboration with partner FPT IS offers comprehensive insights and perspectives on digital transformation within the industry.

The success or failure of the digitalization strategy hinges on the preparation process

According to IQVIA Organization's projections, Vietnam's pharmaceutical industry is poised to attain a compound annual growth rate (CAGR) in revenue of approximately 8% during 2019-2023. In the long term, Vietnam is positioned as one of the "Emerging Pharmaceutical" markets—a group of countries with relatively low pharmaceutical penetration rates but high growth potential. With substantial developmental prospects, the pharmaceutical industry in Vietnam is presented with significant opportunities for comprehensive transformation, potentially solidifying it as one of the country's economic pillars.

Nevertheless, domestic pharmaceutical enterprises are contending with competitive pressure from foreign direct investment (FDI) enterprises in Vietnam. This requires the domestic sector to enhance production capacity and distribute high-quality products to remain competitive.

Upon their established collaboration, GONSA pharmaceutical company and FPT IS have orchestrated the GONSA DX Day event under the theme "Digital Transformation in Business Operations." This event delved into various challenges spanning operations, production, customer experience, employee experience, technology, and security. Its objective was to support industry businesses like GONSA in leveraging technological advancements to address specific issues and foster sustainable competitive advantages. The event garnered significant attention and participation from pharmaceutical business leaders in Ho Chi Minh City.

Addressing the attendees, Mr. Le Vi Hien, Chairman and CEO of GONSA, remarked, "The market is continuously evolving toward technology, with customers' reliance on technology also on the rise. This necessitates enterprises to formulate tailored digital transformation strategies to enhance their capability to meet customer demands. Hence, GONSA DX Day is a crucial event for the company's operations team, offering an opportunity to explore new technological solutions. This readiness prepares them to implement phase 2 of GONSA's digital transformation strategy, building upon the successes achieved in the previous phase 1 implementation".

Mr. Nguyen Hoang Minh, CEO of FPT IS

Mr. Nguyen Hoang Minh, CEO of FPT IS, conveyed, "We aspire to foster practical dialogue and collaborate with GONSA and other businesses to identify suitable technological solutions for addressing supply chain management challenges within the pharmaceutical industry. Vietnam's pharmaceutical sector presents ample opportunities for growth and development. FPT IS is dedicated to contributing expertise and resources, collaborating closely with GONSA and other businesses to navigate the challenges ahead and unlock numerous achievements. Together, we aim to establish a network of highly competitive enterprises, pooling our strengths to elevate Vietnam's pharmaceutical industry globally".

As a company specializing in the trade of Pharmaceuticals, Vaccines, Biological Products, Medical Supplies, Functional Foods, and Cosmetics, GONSA has established a solid foothold in the industry. However, the company has strategically outlined a digitalization strategy to drive breakthroughs. Since 2021, GONSA has endeavored to transition its business model to "Specializing in pharmaceutical services." In this transformative journey, technology is a central strategy to expedite the achievement of GONSA's objectives.

In 2023, GONSA successfully converted up to 6 software operating systems, including WMS, ERP, OCS, TMS, Data Warehouse, and Middleware. This ambitious and revolutionary step marks a significant milestone as very few businesses pursue such comprehensive transformations simultaneously.

"Preparation is the crucial keyword that ultimately determines the success of the entire transformation process," affirmed Mr. Hien. Leaders must communicate the strategy with employees, fostering consensus and organizational unity. Adequate resources and finances must be prepared for implementation while partnering with a knowledgeable technology unit with extensive experience is essential. Clear goals and milestones should be established, and projects should be organized with the right personnel in appropriate roles. Additionally, timely incentive and reward policies should be developed. Data standardization is also critical. Finally, internal communication should be prioritized throughout the process.

"On this journey, we have placed our trust in FPT IS, one of our strategic partners. They are well-equipped to address the specific technological challenges of the pharmaceutical industry due to the profound expertise they have gained through ERP implementation projects for industry leaders," said the Chairman of GONSA. Accordingly, FPT IS has deployed the SAP S/4 HANA management system and akaBot process automation system. The SAP S/4HANA system facilitates seamless management of the pharmaceutical distribution and pharmaceutical service sectors while streamlining the business's information flow. It enhances industrial efficiency and optimizes business processes. Moreover, the akaBot automation solution is a valuable asset for GONSA, aiding in various stages such as processing input invoices, exporting orders, approving orders, and issuing accounting invoices.

Mr. Le Vi Hien, Chairman and CEO of GONSA, said, "The market is continuously evolving toward technology, with customers' reliance on technology also on the rise. This necessitates businesses to formulate digital transformation strategies."

GONSA's digital transformation roadmap represented the culmination of the efforts of 250 personnel, involving 2000 working hours from the project team and integrating 175 process flows. Prior to the conversion, GONSA faced challenges such as overlapping customer data and unsynchronized data between departments, resulting in prolonged reporting times and unstable service quality. However, with the digitization of the management system, GONSA has now streamlined its operations, metaphorically "opening the highway" to improved efficiency and service delivery. "Our report production time is now measured in minutes. Leaders can visually monitor the business's health. Repetitive tasks have been significantly reduced, leading to a notable increase in work productivity."

These firsthand experiences have been deemed by leaders of select pharmaceutical and partner companies engaged in the program as invaluable insights akin to "golden secrets," aiding them in assessing the efficacy of their current business strategies.

GONSA's next objective was to address interconnected management challenges. How could GONSA replicate digitalization across its operations from production to business functions to enhance productivity, optimize costs, and improve overall business efficiency? These were critical issues that GONSA, FPT IS, and their partners openly deliberated upon during the collaborative process and at the event.

A comprehensive ecosystem aids the pharmaceutical industry in resolving management challenges and elevating production standards

Given its intricate nature, from the standpoint of a technology entity such as FPT IS, the integration of technology in the pharmaceutical sector necessitates precision and alignment with each enterprise's operational framework. Simultaneously, it must adhere to stringent standards in compliance with domestic and international health regulations. From their initial stages of digitalization implementation in critical operations, pharmaceutical enterprises aspire to interconnect and master these systems to enhance their business and production capabilities genuinely.

Drawing upon extensive experience spanning over 20 years in the healthcare sector, specifically in Vietnam's pharmaceutical industry, FPT IS has crafted a tailored digital transformation framework to address the industry's evolving trends and needs. "We adopt a holistic approach, considering the broader landscape of the healthcare sector, aligning with national strategies such as the Pharmaceutical industry's vision for 2045 and the digital transformation plan 2020 – 2025, with a vision for 2030. By integrating practical experience gained from implementing digital transformations for industry leaders like Boston Pharma, GONSA, and BidiPhar, we meticulously delve into each specific challenge facing businesses," said Mr. Phan Thanh Son, Director of Business Development at FPT IS.

"We adopt a holistic approach to the healthcare sector to address businesses' overarching digital transformation roadmap," said Mr. Phan Thanh Son, Director of Business Development at FPT IS.

FPT IS experts showcased the "Made by FPT" solutions ecosystem tailored specifically for pharmaceutical businesses during the event. This ecosystem addresses four key problem areas: optimizing customer experience, enhancing employee experience, ensuring operational excellence, and facilitating comprehensive connectivity through technology. This comprehensive suite of solutions helps seamlessly address management challenges across the entire production, business, and distribution processes.

The initial phase of the pharmaceutical value chain involves product research and manufacturing processes. Given the complexity and scale of operations within a factory, which may include hundreds or even thousands of machines, managing parameters, data, and operational timelines becomes a time-consuming task. This directly impacts production efficiency and progress. In response to this challenge, FPT IS offers a suite of solutions aimed at fostering an efficient operating model, addressing two key issues: enhancing coordination between factories and production departments through the akaMES (Manufacturing Execution System) and facilitating comprehensive, transparent procurement processes from purchase to payment via the Suppliers portal with the e-Procurement FPT.SRM Supply Management Solution. These solutions enable businesses to monitor implementation progress and effectively address any gaps in the pharmaceutical production process.

In addressing the challenge of enhancing customer experience, businesses are adapting to the rapidly changing consumer trend, shifting from traditional channels to online platforms. A key strategy is adopting a multi-channel interaction approach, enabling simultaneous online and offline access to reach consumers effectively. With a focus on customer-centric strategies, FPT CX Suite Solution offers a revenue growth platform for businesses, providing a multi-touch interaction platform model with end-users. Leveraging detailed information such as purchase history, preferences, and consumption habits, pharmaceutical companies can segment customers and deploy tailored marketing strategies and incentives. This approach is instrumental in fostering customer retention and building brand loyalty.

Understanding and designing a business program is crucial, but ensuring prompt and adequate distribution of medicines is equally essential. The challenge lies in minimizing the stock-out ratio (products being out of stock at the store) without inflating inventory levels (which impact cash flow and incur additional costs such as interest). FPT's team of experts has researched and introduced the Usee solution, which coordinates goods to regional warehouses and optimizes goods replenishment. This solution harnesses machine learning models to forecast the supply and demand of goods by region, consequently minimizing the impact of supply chain disruptions. It fosters more robust relationships between partners and enhances trust and willingness to cooperate.

GONSA's digital transformation roadmap represented the culmination of the efforts of 250 personnel, involving 2000 working hours from the project team and integrating 175 process flows.

As businesses mature and operational processes become more complex across departments and divisions, leaders must address internal management and digitalization challenges. Finding solutions to expedite the submission process for management approval and enhance labor productivity is imperative. The FPT SPro GIPS solution integrates various departments onto a platform to digitize process flows, reducing redundant tasks. Additionally, the FPT.iHRP 4.0 Human Resources Management solution for the pharmaceutical industry optimizes HR activities, synchronizes employee information, and digitizes the entire process from onboarding to offboarding. This enhances employee experience on a digital platform while enabling leaders to promptly monitor each department's personnel status.

Finally, with the simultaneous operation of systems spanning internal management, production, and distribution, businesses require a stable infrastructure to ensure uninterrupted operations and uphold customer experience. Traditional methods, such as renting or purchasing physical servers, may not suffice to meet these demands. Accordingly, FPT suggests that pharmaceutical enterprises adopt FPT Cloud infrastructure. Leveraging cloud technology offers numerous advantages, including rapid scalability, optimized deployment time, and favorable conditions for IT teams to alleviate the burden of managing server infrastructure while ensuring absolute security.

Building upon the centralized ERP management system implemented by FPT IS, the adoption of the Made by FPT/Made by FPT IS ecosystem is anticipated to provide solutions that contribute to GONSA's digital transformation objectives. Specifically, it aims to assist pharmaceutical enterprises in achieving comprehensive digital transformation, fostering sustainable green transformation, and aligning with Vietnam's pharmaceutical industry's strategic framework and standards toward the Pharma 4.0 model.

FPT IS has more than 20 years of digital transformation experience in the healthcare industry, focusing on the pharmaceutical sector. Its technological prowess is evidenced by a successful track record of implementing technology projects in over 300 hospitals and 6 Departments of Health nationwide. FPT IS serves as a pivotal technology partner in the pharmaceutical realm, boasting a comprehensive understanding of the industry's specific challenges in implementing ERP management systems for industry leaders such as Boston Pharma, Bidiphar, and GONSA. Drawing from best practices in ERP implementation and leveraging the diverse and specialized Made by FPT IS ecosystem tailored for the pharmaceutical industry, FPT IS endeavors to support the business community in harnessing the power of technology. This involves addressing the entire spectrum of management challenges, enhancing production capabilities, and increasing business competitiveness.