Leading managers always choose logical, smart thinking to keep their businesses moving forward and in step with the times. And of course, TH True Milk JSC is no exception. Indeed, building a scientific, well-designed ERP system has helped TH take great strides on the road to fame and achieve many successes.

How has building an ERP system helped the TH group?

Let's look at the benefits this business has gained from applying the ERP model!

About TH True Milk JSC

TH True Milk, whose full name is TH Milk Food JSC, is part of TH Group. The business was founded with financial advice from Bac A Commercial Joint Stock Bank (BAC A BANK). TH True Milk has been steadily growing to become a leading producer of clean milk of international quality in Vietnam.

TH True Milk has been steadily growing to become a producer of clean milk of international quality

The company operates on the principle of preserving the purity of nature in every product. TH True Milk has applied an advanced management system and a closed-loop production process synchronized from farming to distributing products into consumers' hands.

The TH group's efforts in management and production serve one single purpose: to give its customers the freshest, cleanest, safest and most nutritious products.

The TH group's difficulties and challenges before building an ERP system

To become the TH of today, the group also started with the most traditional management methods. Before building the perfect ERP system for the business, the entire HR management process at TH was done entirely in Microsoft Excel. This included managing personnel records, timekeeping, payroll and insurance...

The difficulties and challenges the business faced before implementing an ERP system

The difficulties and challenges the TH group faced before implementing an ERP system:

• HR data in Excel was messy. There was no synchronization or standardization in the management data templates, making it difficult to bring these files into one system.

• Because the TH group has a diverse product range, its reporting and table system was incomplete and constantly changing.

• The group is large, but there was no consistency in the rules for timekeeping, working hours, overtime... at each company. In addition, TH has a rule that staff can work an extra 1 or 2 hours a day to make up for a day off, which also made processing difficult for the software.
  
  

A traditional management system may be holding back the growth of any business

• The group's payroll calculation mechanism is quite complex, because it is a multi-sector business and each sector has its own specific mechanisms. However, TH wanted to standardize its subsidiaries on one way of calculating pay, so synchronizing them was difficult.

• TH is a multi-sector group that also includes FDI companies, so insurance calculations were complex and overlapping.

The benefits TH True Milk gained from applying an ERP system.

To achieve its current results, TH has overhauled how its management apparatus operates more than once. Specifically, the ERP system was applied in January 2007 at 11 subsidiaries of the TH group. The ERP modules implemented included personnel records, timekeeping, payroll and social insurance, covering up to 10,000 employees. Looking at the benefits the business has gained, it is fair to say that building an ERP system for the TH group was a timely and entirely correct choice. TH's achievements include:

The HR information management module

• TH successfully put its tree structure - organization chart, job titles, positions and headcount - into the software system;
  
  

Smarter HR management with an ERP system

• Synchronized reports and tables, with support for bulk printing of forms on request for the group;

• Integrated data exchange between production management systems;

The timekeeping and payroll module

• The system accurately calculates working hours and overtime and flags timekeeping issues and staff arriving late or leaving early;

• Data flows automatically from the timekeeping module to the payroll module to calculate and pay staff accurately each month;

• Timesheets are emailed to staff, and payroll printing and sign-off are supported in the software;

• The module also supports annual tax finalization and printing the necessary integrated forms for the tax software;

The social insurance module

• Accurately calculating all employees' monthly social insurance costs.
  
  
  

The ERP system accurately calculates all employees' monthly social insurance costs

• The system has alerts and generates social insurance increases and decreases from data sources such as contracts, workdays, pay schemes and leave...

• Building social insurance forms for sign-off or change reports to the social insurance software.

That is the story of our customer TH True Milk and the benefits the business gained by building its own ERP system. Not only TH but also The Gioi Di Dong (Mobile World) are using this solution for their businesses. If you would like to learn more about the ERP model and smart business management solutions, contact SmartBiz.