Vimedimex - Outstanding digital transformation enterprise in 2022 | Digitalization | Finance

External challenges come from competitors, manufacturers, suppliers, healthcare organizations... Internal challenges come from sales costs, new product research and development, management, monitoring, target market analysis as well as market coverage.

The biggest challenge is the strict quality standards that must be absolutely followed in the pharmaceutical industry such as GMP, GSP, GLP, GDP, GPP, USFDA 21 CFR, GAMP 5…

Digital transformation in the pharmaceutical industry is not simply applying new technologies such as automation, but integrating digital technology into the entire model, business strategy, management culture, and operating methods of Vimedimex on the basis of technological innovation and digital technology application, especially requiring vision, persistent leadership thinking, and determination towards successful digital transformation, and Vimedimex has done that.

For the first time, a Vietnamese enterprise was voted and awarded the Golden Cup by Oracle Netsuite as "Outstanding Digital Transformation Enterprise of 2022" . This is the result of more than 4 years of perseverance and determination, demonstrating the efforts and intelligence on the challenging but proud journey of Vimedimex.

Mr. Du Dinh Truong - Solution Director of SuiteCloud PointStar Vietnam, leading partner of Oracle NetSuite in Vietnam - Head of digital transformation project at Vimedimex discussed:

^{Sir, what is the most important factor in Vimedimex's digital transformation process?}

Vimedimex identifies the application, integration and mastery of modern technologies such as Oracle Netsuite, Salesforce CDP, Amazon Web Services along with Elastic Compute Cloud servers, comprehensive digital transformation across the entire Vimedimex system. Applying modern management methods to standardize work processes, unlock resources, control service quality according to international standards, improve business efficiency and competitiveness of Vimedimex in the pharmaceutical market.

Vimedimex chooses Oracle Netsuite software, the world's number 1 solution for Enterprise Management on cloud computing: (1) Diverse features, flexible scalability, managing all business activities effectively and optimally. (2) Simple, easy-to-use interface helps users quickly access and use the solution's features.

(3) NetSuite provides a comprehensive set of functions to aggregate and synchronize data from multiple information sources into a system that serves the individual or diverse needs of different departments such as finance, inventory, purchasing, sales, etc. that the business process requires.

(4) Oracle NetSuite supports many different languages, helping Vimedimex manage all business operations on a single platform, regardless of where it operates in the world. (5) With outstanding data transmission speed, real-time and mobile connectivity, the system responds and keeps up with the specialized needs of users.

(6) Reliable data center ensures security, data protection against unexpected incidents affecting the system, ensuring the strongest security for customers and the ability to recover data after disasters. (7) Oracle Netsuite software has the ability to combine with other systems to import additional data, automatically updating information from outside the system.

Vimedimex chooses Salesforce CDP software as the number one CRM system in the world.

(1) With seamlessly integrated subsystems, centralizing all data and large enough information of the customer purchasing system on the same platform, (2) Using smart analysis tools and the ability to integrate two-way data between Salesforce and any other system. (3) Salesforce CRM integrates features for information management, workflow creation, task management, opportunity tracking, collaboration support tools, customer purchasing interaction tools, analysis capabilities, intuitive dashboards that allow use on mobile devices, supporting useful features such as sales forecasting, monitoring potential customers, supporting Vimedimex to gradually move away from on-premises infrastructure, towards flexible models.

Vimedimex chose Amazon Web Services, a comprehensive cloud computing platform widely used globally, to apply to CEVPharma's B2B e-commerce system. (1) The infrastructure is always highly available, these are completely isolated partitions in the AWS infrastructure. Divide applications across multiple AZs in the same region, isolate all incidents, and achieve a higher level of availability.

(2) Ultimate weapon hardware, design not only routers, chips in servers, network devices, storage servers, computing servers, high-speed networks;

(3) Full-featured service, more internal features than any other cloud provider, the ability to scale services for CEVPharma is very easy and automated, with the appropriate Auto-Scaling configuration, EC2 instances can be automatically created, meeting the increased number of customers buying access to the CEVPharma website.

(4) System security with the most secure and flexible cloud computing environment today, maximally protected by a data center platform, protecting information, identity, applications and devices of customers.

Sir, how are Oracle Netsuite, Salesforce CDP, and Amazon Web Services software applied and integrated into Vimeidmex's business management model?

Firstly, the Oracle Netsuite solution is built on the "Best Practices" standard process for pharmaceutical business operations, providing features to synthesize and synchronize data from multiple information sources into a system serving diverse needs integrated into the CEVPharma operations management subsystem.

(1) Subsystem for managing supply sources and drug list structure: By pharmaceutical chemicals and biological products; By single-ingredient and multi-ingredient drugs; By pharmacological groups; By origin, by original brand name drugs and generic drugs; By technical criteria groups; By route of administration, dosage form, By ABC analysis; By VEN analysis to determine priorities for purchasing and storing drugs in the warehouse.

(2) Product catalog management is arranged into 27 large groups, according to treatment effects. Product information is described in detail (Serial number, Identification code, Drug name, drug ingredients, Content, Packaging unit, Unit of measurement, Dosage unit, Production batch, Expiry date, Manufacturing facility, Manufacturing standards (GMP-EU, PICS, GMP-WHO), Country of manufacture, Wholesale price listing, Non-commitment discount policy, Commitment to sales discount policy, Promotion program).

(3) 24/7 online wholesale transaction management subsystem on CEVPharma, the interface has a hierarchical product catalog structure, manages detailed information about prices, discount policies, promotions and changes that are always updated on CEVPharma. Customers can compare prices in real time, on all channels, which improves price competitiveness and increases customer loyalty when purchasing on CEVPharma. Add or delete products in the shopping cart, automatically calculate total costs, making order control more convenient. Support features such as Keyword Search, Quick Product Filter, Quick Shopping Cart, Quick Checkout... also support the online shopping process.

(4) The warehouse management subsystem meets GDP and GSP standards, preserving all products to maintain their original quality so that each of these tiny warriors can continue to win the battle against disease, bringing smiles and happiness to the people. Track import transactions through the operations of creating new, updating, viewing product lists in the warehouse, viewing details, filtering products according to three criteria: view all, imported for a long time and not sold yet, slow selling, best-selling products. Arrange products and product categories by pharmacological group, production batch, expiry date, etc.

(5) The 3PL logistics freight transport system management subsystem on the Oracle Netsuite TMS platform and the Mobile App for Drivers are integrated with the Google Maps system, GPS tracking device: TMS-4G is attached to specialized vehicles, allowing temperature monitoring during the entire transportation process, preserving goods according to GSP standards and a temperature and humidity sensor system, wifi transmitter and 4G sim card to deliver goods to the correct specified location.

(6) The sales staff management and monitoring system is integrated with the Google maps digital map system and GPS positioning on the sales staff's phone to determine the location and coordinates of the sales staff, and display the location and travel history of the sales staff visually on the map.

Second, the Business Management and Marketing Subsystem is applied and integrated with Salesforce CDP software, the number one CRM system in the world.

(1) Subsystem for managing 24/7 online wholesale distribution channels of district-level customers (KHM) on CEVPharma and cross-selling distribution channels serving 20 million customers using MBBank, Mobile App through the solution of embedding CEVPharma Website with MBBank Mobile App for KHM who are Distributors of 590 districts of 63 provinces and cities (DLPP) on the platform of installing CEVPharma's POS system, helping to manage import transactions, inventory by lot, expiry date, and sales management.

Once an order is successfully placed in the cross-selling channel, Order information and customer information will be automatically integrated to CEVPharma's POS System.

(2) System management subsystem Customers purchase applications, integrated with the Call Center system, Email, SMS, Website, Oracle Netsuite, ... this helps to easily access information about Pharmacies/Dispensaries of Pharmaceutical Companies, Hospitals, Medical Centers, Clinics and Dispensary Medicine Cabinets in 590 districts of 63 provinces and cities and evaluate and classify according to the following criteria: Number of years of operation, Scale, monthly revenue, Frequency of goods import, Number of employees,

(3) The sales plan management, capital plan, and cost plan division ensures flexible scalability and connectivity with other systems via APIs. The Oracle Netsuite system will automatically calculate and generate a Balance Sheet Report comparing the plan and implementation.

(4) The marketing planning management subsystem is applied, integrating digital marketing on multiple platforms, requiring an automated and effective approach in analyzing, controlling and allocating funds in the most effective communication channels. In essence, no matter how "powerful" marketing automation is, it is still only at the tool level. The real value is when marketing staff can directly use these tools in Vimedimex's daily and monthly marketing processes and content, to replace and upgrade essential marketing activities.

(5) The subsystem manages and takes care of customers effectively anywhere, at every customer touch point with CEVPharma on just one system. Increase customer satisfaction by providing personalized customer care, consistent with each customer, and breakthrough sales growth. Salesforce CDP provides a 360-degree view of the customer experience from the time they visit the CEVPharma website to the purchase process, and the end of the purchase process is measured and tracked through the Salesforce CDP platform.

Third, the financial accounting management subsystem includes the following subsystems: Financial planning management, Capital planning management; Cost planning management; General ledger accounting (GL); Cash capital accounting; Accounts receivable accounting; Accounts payable accounting; Fixed assets and tools accounting; Cost accounting; Cost of goods sold accounting; Financial report management.

(1) The financial management subsystem is the lifeblood of Vimedimex. Financial indicators are ratios calculated by dividing a number related to finance or business by another figure (total revenue divided by the number of employees).

(2) The cash capital accounting subsystem of the Oracle Netsuite solution, cash fund receipts or disbursements, bank deposits are strictly managed and controlled. Payments to suppliers, customer collections are managed in detail for each payment right on the receipt or payment screen, helping accounting staff to operate quickly and accurately. Information on cash balances, receipt and payment logs are continuously updated, promptly providing plans for receipts, disbursements and managing Vimedimex's cash flow effectively.

(3) Accounting transactions are integrated with other subsystems such as inventory management, purchasing, sales, and import subsystems. Therefore, when operational transactions occur, the accounting entries automatically increase or decrease inventory ( from the inventory subsystem ), accounts receivable ( from the sales subsystem that manages customer information, sales transactions, and customer lists ), accounts payable ( from the purchasing subsystem that manages supplier information, import data, and supplier lists ),

(4) The accounts receivable accounting subsystem using Oracle Netsuite solution is automatically created, recorded in accounting sub-books, customer debts in each contract and order are strictly managed and connected to the cost management subsystem to track cost items for each work item, serving the work of calculating product costs. Analyze debt standards and debt age to avoid bad debt in Vimedimex and develop effective sales policies.

(5) The cost accounting subsystem of the Oracle Netsuite solution collects, processes and calculates information about costs and product prices for each order, through one or more stages. Costs are allocated according to many criteria depending on requirements. Automatically calculate product costs and apply them to product inventory receipts.

(6) The cost of goods sold accounting subsystem is the cost of goods sold during the period. The cost of goods sold includes the cost of goods sold during the period and expenses related to sales activities such as: direct sales discounts on electronic invoices, promotional costs, commission costs for sales staff, communication costs, inventory price reduction provisions, value of lost goods (after deducting the compensation (if any)... Business management costs. After determining the cost of goods sold for sale, sales revenue and service provision, accountants need to determine the results to provide information for financial reporting.

Digital transformation has changed the stature and position of Vimedimex and entered the ranks of the world's leading advanced enterprises in the digital transformation technology race. This success is not only the result of the spirit of solidarity, creativity, and readiness to face challenges, to seek and apply effective solutions, but above all, it also demonstrates the transparency, clarity, and automatic establishment of an absolutely pure balance in all business activities of Vimedimex.

Because Vimedimex's business is not simply about profit, aiming at economic goals, but more importantly, it is also about dedication and service to society. The success of digital transformation applied to Vimedimex's transparent business model is an effective and practical method to help each person in the district and remote areas access quality pills according to GMP production standards with the true value of each pill, through the public and transparent listing of selling prices on the CEVpharma system.

From there, any buyer can refer to the price, know the price of medicine at different price ranges, cut costs through intermediaries, there is no longer a difference in selling price between provinces, cities and the selling price of districts, this is the real realization of value, creating fairness, transparency for people, for society and demonstrating Vimedimex's humane strategy for people.

Source: https://diaoc.nld.com.vn/so-hoa/vimedimex-doanh-nghiep-chuyen-doi-so-xuat-sac-nam-2022-20230504160921817.htm