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Founded in 2010, TH Milk is the top producer visible to all authorized staff, distributors, and milk to enjoy the benefits of a cloud infra-
of fresh milk and dairy products in Vietnam. salespersons. Furthermore, the system has a structure, it is also highly secure and was spe-
It is one of the top 15 enterprises in the coun- user-friendly and customizable web-based cially designed to meet the data security
try, with over 2,000 employees and approxi- interface that minimized necessary training, requirements of TH Milk. Through the use of
mately $200 million in revenue. Its products thus making the deployment cheap, quick, a private cloud, TH Milk avoided security
are sold through more than 130,000 stores and easy. The system also offers an open issues, which are a main challenge in cloud-
nationwide via 180 distributors as well as its application program interface (API) that based ERP systems. In addition, there was
own chain of retail outlets, TH True Mart. includes a set of routines enabling TH Milk to very little customization required, and TH
When the company was founded, its pro- implement the new system with greater ease Milk was aware of its scalability requirements
cesses and distribution practices were all and to integrate it with its existing system. and thus signed an appropriate licensing deal,
manual. For example, every morning, 1,000 Finally, its licensing terms allow for an unlim- circumventing the rigidity and licensing
mobile salespersons of TH Milk would gather ited number of users, thus enabling scalability issues of cloud-based ERP implementations.
at their respective distributor’s office to obtain and keeping pace with the growth of TH Milk The ERP system has completely trans-
sales plans. They would then make their way and its expanding distribution network. formed the business practices at TH Milk.
to various outlets or stores carrying hard copy One of the key ERP modules imple- Salespersons can now retrieve updated and
forms that were used to record sales orders. mented by TH Milk was the Financial Man- complete product and promotion information
Towards the end of the day, teams would agement Suite, a web-based accounting from the TH Milk system through the AiM
return to manually transfer the data written on software that is fully integrated with other (All-in Mobile) app loaded on their tablets
the forms to a database at each distributor’s modules such as Customer Management, and integrated with the ERP system. The
office. The data from all 180 offices would Distribution Management, Manufacturing system made workflow more efficient; once
then be consolidated. With this system, there Management, and Project Accounting. orders are confirmed by customers, salesper-
was no real-time market visibility, knowledge Though web-based, the suite has industrial- sons can immediately update the system
about competitors’ brands, or new products in strength security controls that ensure not just through the mobile app, after which the
the market. Sales and sales practices could the availability but also the safety of the sen- orders are consolidated on the server and
not be monitored either. sitive financial information at TH Milk. The processed immediately instead of sales
To address these issues and streamline its suite comes with built-in automation and orders being consolidated at the end of the
distribution and sales processes, TH Milk ini- workflow that have helped TH Milk to close day. Market intelligence has also become
tially implemented a sales and distribution their financial accounts faster and prepare more widespread, because salespersons can
management software from Zed-Sales, adopt- financial statements accurately. update everyone on competitors’ promotions
ing a decentralized architecture in which data TH Milk has also implemented the Acu- and new products. The system also provides
were stored in each distributor’s system and matica Distribution Management Suite, which visibility about inventory at each distribu-
subsequently transferred to TH Milk. This did comprises Inventory, Sales Order, Purchase tor’s warehouse and when to replenish stock.
not allow 360-degrees visibility, and security Order, and Requisition Management applica- This has resulted in better production and
and data integrity were also compromised. tions. The Distribution Management module logistics along with lower costs. In the same
Furthermore, even after more than a year, Zed- helps TH Milk manage its activities related to way, TH Milk has more insight into the
Sales couldn’t customize their software for TH distribution channels, such as ordering, pur- activities of the salespersons through moni-
Milk. Thus, in 2013, TH Milk decided to adopt chasing, tracking inventory, and customer toring of their daily sales route plans and
Acumatica’s Cloud ERP platform instead. support. With this implementation, TH Milk sales. This has enabled TH milk to become
Within a span of about nine months, all 180 is now able to receive real-time measurement effective in managing and mentoring sales-
distributors were connected to the system. and updates of the amount of inventory it has. persons to achieve their sales targets.
The Acumatica Cloud-based ERP system TH Milk deployed the ERP modules on TH Milk’s success with ERP is noteworthy
is based on a single, centralized database that its private cloud with the assistance of given that enterprise systems have a history of
can be accessed via the Internet. It thus pro- DMSPro, an Acumatica-certified partner in only 15 years in Vietnam, and ERP implemen-
vided TH with real-time information that is Vietnam. While the private cloud allows TH tation is still far behind developed countries.

Questions
#1. What problems did TH Milk face prior to installing the ERP Acumatica (n.d.). Distribution Management. www.acumatica.com.
system? Retrieved December 17, 2016, http://www.acumatica.com/cloud-erp/
#2. How did implementing an ERP system transform TH Milk’s distribution-management/
business? DMS Pro (n.d.). AiM (All-in-Mobile). www.dmspro.vn. Retrieved December
#3. What is a Cloud ERP system, and what are the benefits of 17, 2016, from http://www.dmspro.vn/solutions/aim-all-in-mobile.html
Acumatica’s Cloud ERP to TH Milk? DMS Pro (n.d.). TH Food Chain Joint Stock Company. www.dmspro.vn.
Based on: Retrieved December 17, 2016, from http://www.dmspro.vn/customer.html
Acumatica (n.d.). Vietnam’s leading fresh milk producer transforms Le, M.D., & Han, K.S. (2016). Understanding the Impact of ERP system
distribu-tion management system with Acumatica. www.acumatica.com. implementation on firm performance—focused on Vietnamese SMEs. Inter-
Retrieved December 17, 2016, from http://www.acumatica.com/ national Journal of Software Engineering and its Applications, Vol. 10, pp.
success-stories/erp-system-for-th-milk/ 87–104
Acumatica (n.d.). Financial Management. www.acumatica.com.
Retrieved December 17, 2016, from http://www.acumatica.com/
cloud-erp/financial-management/

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