Digital transformation – the inevitable tendency of business and production

Before the tremendous challenges, many enterprises have digitally transformed to remote working, which is the inevitable tendency requiring enterprises to quickly adopt for higher efficiency of operations.

Digital transformation of operations have been applied by various enterprises in the province. In the photo: Production is on-going at Kim Sang Equipment Manufacturing and Trading in Tan Uyen town

The necessary conditions for breaking through

As an enterprise working in the field of exporting products to the US and Thailand markets, Kim Sang Equipment Manufacturing and Trading Company Limited in Tan Uyen town has been greatly supported by the digital transformation of the export activities as affirmed by Director Nguyen Dinh Thi. Currently, all reports of the company from production requirements to order confirmation are done online; even the order approval is online and signed with digital signatures. Implementing the motto of bringing the best products, Kim Sang, over the past time, has constantly invested and improved technology towards automation with less labor intensity to meet the higher demands of domestic and international customers. Thanks to that, Kim Sang LED has reached world-class quality to become a partner of major brands in the world.

“Digital transformation efficiency is only a part of it. More importantly, our operating costs are reduced, contributing to increasing the management efficiency of enterprise. All order management history is completely controllable, no need for paper or when overseas customers need reports, we can be flexible to respond very quickly,” said Nguyen Dinh Thi.

By constant efforts, Kim Sang is highly appreciated by partners for factory scale, equipment, production capacity and especially product quality assurance. The management process is more modern when Kim Sang put the management model of ERP software and the quality management system according to ISO: 9001-2015 in to use. Consequently, in the general hardship of the world, the company with the orientation of long-term and sustainable development in the coming time besides maintaining quality continues to invest in 2 square led production lines to meet the demand for mass production.

Nothing taken for granted

The effectiveness of digital transformation in businesses is great; however, according to experts, digital transformation especially in small and medium enterprises is facing tremendous drawbacks. According to Dr. Pham Tuan Anh, Information Technology Director of Becamex IDC, small and medium-sized enterprises have many advantages in digital transformation because of their small, compact model and easy arrangement of processes.

“The most difficult thing in digital transformation for businesses is the people operating in this transformation system. For successful digital transformation, it is necessary to optimize systems, processes, regulations, forms, and work flows in the enterprise. It is necessary to develop systems for quality and inspection standards, the control of or systems for reporting before digitalization. However, the biggest shortcoming is that the process has not really been noticed by businesses, making the standards inconsistent and very hard for the operation process to apply. It is time for businesses to see that digital transformation helps improve productivity to make decisions in a timely and fastest manner," said Dr. Pham Tuan Anh.

Cao Van Dong - General Director of Kettle interiors Asia Co. Ltd. in Tan Uyen town, said that furniture production is challenged by technology and materials which require high synchronization. Digital transformation helps businesses control the synchronization quickly and accurately while controlling costs, increasing labor efficiency, and increasing brand value, revenue and customer experience. There is no one optimal digital transformation solution for all businesses but they must rely on the production and management processes of their own competence.

In the first nine months of 2022, import and export activities of the furniture faced many problems. “The exchange rate is no longer an advantage; therefore, besides ensuring quality and following the standards of the import market, businesses have to find ways to streamline processes and their systems to change the way they work and manage to reduce production costs and to be profitable. In particular, digital transformation has effectively supported businesses," Cao Van Dong emphasized.

Reported by Tieu My – Cam Tu – Translated by Vi Bao

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