Heineken Vietnam Innovates and Aspires to Reach New Heights in the Digital Age with Microsoft Dynamics Solutions

A crucial element in Heineken Vietnam's strategy is building an extensive distribution network to ensure products are always available to customers nationwide, regardless of all size or at all locations. Heineken Vietnam has taken a smart approach by leveraging technology as a competitive advantage, through the implementation of Microsoft Dynamics 365 Business Central On-Cloud (SaaS), combined with the Microsoft Azure and Power Platform ecosystem. This significant advancement in technology application not only helps the company expand its distribution channels but also greatly enhances management and operational efficiency. 

Customer Profile

HEINEKEN Vietnam Brewery Co., Ltd. (HVBB) is a joint venture between Heineken and Saigon Trading Group (SASTRA) and is one of the leading beer producers in Vietnam. Since establishing its first brewery in Ho Chi Minh City in 1991, HEINEKEN Vietnam has grown robustly with 6 breweries and over 3,000 employees nationwide. As a subsidiary of the global Heineken Group, the company focuses on producing and distributing famous brands such as Heineken®, Tiger, Larue, BIVINA, Bia Viet, Strongbow, and Edelweiss. 

With a vision to become the leading beverage producer, HEINEKEN Vietnam continually innovates and combines international experience with a deep understanding of the Vietnamese market to offer consumers a diverse product portfolio, catering to various needs, preferences, and moments of enjoyment. 

Business Challenge

Heineken Vietnam currently owns an extensive distribution network with hundreds of distributors and thousands of agents nationwide. Since 2014, to manage purchasing activities for distributors, the company has implemented a distributor management system based on the Microsoft Dynamics NAV platform. However, after 10 years of operation, this system no longer meets the advanced operational requirements nor aligns with the global IT strategic direction of the group. 

Firstly, because the system was hosted on internal servers, performance significantly degraded as the number of users and data increased. Secondly, order processing became complex as orders from other systems had to pass through Heineken's servers before reaching the distributor through job queues, causing order information to not be updated in real-time. This resulted in order backlogs and delays in delivery. 

Additionally, the old system failed to accurately track and control inventory at agents, negatively affecting their business operations. Distributors also faced difficulties in tracking order status after confirmation and delivery initiation. Order completion information could only be obtained through calls or physical documents, requiring manual status updates on the system, leading to inaccuracies and wasted time. 

Finally, the old system's limited scalability and integration capabilities made it challenging for the company to communicate and share data seamlessly between departments. 

Solution

Based on specialized knowledge and extensive experience in the field of Microsoft Dynamics 365 application development, NaviWorld proposed a comprehensive distributor management solution for Heineken Vietnam, including Standard Implementation, Advanced Development, and Comprehensive Integration. 

  • Standard Implementation: NaviWorld deployed Microsoft Dynamics 365 Business Central on the cloud for distributors, creating the Distributor Information System (DIS). This system integrates purchasing, inventory, and sales modules, ensuring internal consistency, strict management, and accurate data. Additionally, NaviWorld established a central system on the cloud, connecting directly with Heineken Vietnam's server system, synchronizing data from distributors to ensure timely and accurate updates. 
  • Advanced Development: NaviWorld developed a lighter version of the DIS system, called DIS LITE, for agents. Using Business Central as the foundation and PowerPage web interface, this system provides all necessary features, enabling agents to efficiently manage business operations. 
  • Comprehensive Integration: NaviWorld connected the DIS system with Heineken Global's Commerce Head Quarter (CHQ) system, allowing orders from other systems in the Heineken ecosystem to be instantly updated to NPP and vice versa. Additionally, NaviWorld integrated DIS with the transport management system (TMS) developed by GlassRUN, enabling distributors to confirm orders on DIS and have order status automatically updated in TMS, optimizing operational and delivery processes. 

Benefits

  • Stable Performance: By migrating distributor operations to Microsoft's cloud platform, the system operates smoothly, minimizing disruptions in business processes, enhancing reliability, and optimizing user experience. Says Mr. Phan Dai Phong - Head of Technology at Heniken Vietnam 
  • Real-time Data: The Central and DIS systems are closely integrated with other platforms, ensuring transparency and real-time updates in all purchasing and inventory management activities at Heineken Vietnam. This provides distributors and agents with accurate, timely information, improving decision-making and management efficiency. Says Mr. Phan Dai Phong 
  • Optimized Processes: Through seamless integration with Heineken's ecosystem systems, such as CHQ and TMS, it ensures consistent, accurate, and synchronized order and transport management. Says Mr Truong Huu, Head of Commercial and Supply Chain Digitial Porfolio at Heineken Vietnam 
  • Cost, Time, and Effort Savings: The DIS LITE system, with its user-friendly web interface, supports businesses in expanding access to agents and managing partners within Heineken Vietnam’s ecosystem quickly and timely. Thus, the company saves on costs and time in operational management. Says Mr Truong Huu 

Conclusion

By applying advanced Microsoft Dynamics 365 technology solutions and receiving strong support from Naviworld, Heineken Vietnam has optimized processes, enhanced management efficiency, and expanded market reach. This is not only a success story in business but also a testament to the power of innovation and pioneering spirit. 

Heineken Vietnam has demonstrated that with the right strategy and the right technology partner, all challenges can be overcome. They have set a new standard in distributor and agent management within the beer industry, affirming their position and adaptability to market fluctuations. 

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** Email: info@naviworld.com.vn
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