Does The Gioi Di Dong smoothly run Vietnam's leading retail system thanks to thegioididong's ERP system?

About The Gioi Di Dong

Before looking at thegioididong's ERP system, let's take a look at the company! The Gioi Di Dong opened its first store in March 2004, selling and repairing mobile phones and digital devices and working in fields related to e-commerce.

According to EMPEA statistics on the mobile phone retail market in Vietnam, in 2014 The Gioi Di Dong held about 25% and was the leading business in its field.

By 2018, The Gioi Di Dong was in the top 100 largest retailers in Asia-Pacific. Besides The Gioi Di Dong stores, the business also owns large chains such as Dien May Xanh and the Bach Hoa Xanh food supermarket chain.

  

Besides The Gioi Di Dong stores, it also owns large chains such as Dien May Xanh and Bach Hoa Xanh

If you have read about Vinamilk's ERP system you'll know how hard the outstanding problems are to solve. So how has The Gioi Di Dong been able to build its technology management system over the past years? Let's read on with SBiz.vn.

How The Gioi Di Dong applied an ERP system

Like other businesses, The Gioi Di Dong began building its management system with basic software such as Excel. However, when it opened its second retail store, many remote management needs arose, and Excel was no longer effective.

From then on, The Gioi Di Dong began building an ERP (Enterprise Resource Planning) system to manage and keep track of basic factors such as revenue, inventory, profit and invoicing..., so the company's leaders could stay informed without going to the stores.

How is thegioididong's ERP system applied?

As the system grew, and the number of stores, products sold and staff soared, The Gioi Di Dong again ran into the problem of scheduling staff shifts. Previously, shift scheduling was also done in Excel, overloading staff. Moreover, Excel quickly “freezes” once it reaches tens of thousands of rows.

So The Gioi Di Dong went on to build shift scheduling software. Whenever a new problem arose, The Gioi Di Dong's ERP system looked for answers, and the system has now become massive.

The solution provided by this ERP system includes functions for managing sales, goods, customer information, finance and accounting, HR and payroll, an electronic office, purchasing, warehousing, warranties…

Today The Gioi Di Dong has also added a logistics module to manage and adjust the flow of goods, optimize on-time delivery, reduce operating costs and deliver to the door... This is what TGDD is focusing on pushing forward.

TGDD expected to complete this logistics module by June 2012. In addition, the IT department would add BI (Business Intelligence) to make the reporting system more multi-dimensional in its analysis, so leadership receives instant analytical reports every day by email and SMS.

The changes after applying thegioididong's ERP system

Behind its success is an entire IT infrastructure combined with thegioididong's flexible ERP software. This software supports business operations, delivers high efficiency and makes running more than 1,500 retail stores easier and smoother.

The solution was built on real needs, so it addresses the specific requirements of TGDD's business model.

For example, IMEI-based management creates a mechanism for moving goods between stores and controls inventory more effectively. From the system, you can find which IMEIs have been in stock too long, how much stock is left, where goods are and how many products remain, and staff at one store can find which nearby store has the product a customer wants to buy...

Most importantly, the solution creates a highly interactive online environment that lets all TGDD staff work together through this ERP software.

Furthermore, controlling customer information has also become simple, because all ERP data is in one place: all company staff can easily access and view customer information, and some people can even change it without worrying that customer information isn't kept up to date. Even the board of directors can easily see what customers bought, where and for how much.

For example, the sales management module lets you see reports instantly and know how many products each store is selling and how much stock it holds, optimizing product information. Furthermore, TGDD stores have display shelves with LED systems showing product names and prices, arranged automatically by the system at head office and then sent to the stores, making it easier for customers to find products.

Or in the financial information and payroll module, new fingerprint technology lets staff know exactly which days they worked, what time they clocked in and out and how much was deducted. Based on fingerprint attendance in the system, the payroll manager just clicks and thegioididong's ERP software automatically calculates pay and sends each person a detailed payslip, without any feedback or questions from staff.

The business's outstanding difficulties were resolved

Before thegioididong's ERP system was applied, operations and management were manual: everything was managed in basic Excel and ledgers, and sales and purchase orders were handwritten. This manual management left The Gioi Di Dong exposed to the risk of losing products and goods and even unable to manage its inventory.

Furthermore, business processes weren't standardized to set rules and working methods weren't consistent, leading to overlapping processing. Because each store was in a different location, management was difficult: how much stock was there? Which products were in stock or out of stock so goods could be ordered into the warehouse? On top of that, the many sales and purchase invoices each day took a lot of time to process and manage, so report tracking was completely inaccurate.

ERP systems help businesses solve order processing problems

To solve these difficulties, The Gioi Di Dong turned to an ERP system and implemented 3 main modules - purchase management, sales and smart warehouse management - to deal with the problems.

Purchase module: helps The Gioi Di Dong standardize its purchasing process with suppliers and record all purchasing activity. It compiles the history of orders transacted and reports accurate purchase quantities at each point in time.

Smart warehouse management module: helps The Gioi Di Dong manage products more easily, synchronizing product data from stores and warehouses in the same software system for management.

Product data is managed by group, making it simple to look up and find products. Stock alerts help reorder products that are running low.

Learn more: How do 5,000+ businesses successfully manage smart warehouses?

Sales module: the software helps The Gioi Di Dong manage quotations and create orders for customers. It records the entire history of sales orders and prices transacted, with no missed orders or mistakes in processing sales orders.

Conclusion

Clearly, ERP systems are becoming increasingly popular and are a bright spot in businesses' digital transformation today. Not only Thegioididong but Vinamilk also uses this solution for its business. Learn more: Vinamilk's ERP system - a springboard for breakthrough

If you are interested in an ERP system like thegioididong's or Vinamilk's or want your own smart system software, contact SmartBiz for fast advice.