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Masan Consumer Corporation is a large, fast-moving consumer goods company based in Vietnam. It is part of Masan Group, one of Vietnam’s largest private sector companies, which builds, acquires, and manages businesses in several fast-growing areas of the country’s economy.
Masan Consumer Corporation manufactures and distributes food products, including soya, fish and chili sauces and instant noodles. Since its inception in 1996, the company has steadily grown its product portfolio, domestic sales, and distribution channels to establish a leading position in Vietnamese-branded food products.
Up until December 2007, Masan Consumer Corporation used a locally produced financial management system that required accounting staff to manually enter, review, and consolidate financial data. The company also lacked an integrated inventory management and manufacturing system to streamline its production line.
“We needed a system that would automate our financial management processes and improve manufacturing workflows by effectively managing stock levels and demand,” said Tran Thi Phuong, business system manager, Masan Consumer Corporation.
In mid-2006, Masan Consumer Corporation engaged Oracle Partner PYTHIS to deploy Oracle E-Business Suite modules, including Oracle Financials, Oracle Purchasing, Oracle Order Management, Oracle Inventory Management, and Oracle Process Manufacturing, to automate financial reporting, and improve financial, inventory management, and manufacturing processes. The company also took advantage of My Oracle Support to gain access to Oracle experts who provided regular system updates and assisted with system and configuration issues.
In May 2010, Masan Consumer Corporation purchased Oracle On Demand, a hosted service where the company’s Oracle E-Business Suite applications are managed at Oracle’s datacenter in Austin, Texas.
The Oracle On Demand team completes six-monthly application maintenance checks, providing critical patch updates and extended baseline patches. These regular Oracle E-Business Suite application updates reduce the risk of system failure and unplanned outages.
In keeping with its business continuity plan, Masan Consumer Corporation purchased Oracle’s Maximum Availability Option and has completed two successful cycles of disaster recovery testing to date.
“As a manufacturer of fast-moving consumer goods, there is constant pressure to deliver large numbers of products to the market as quickly and efficiently as possible,” said Thi Phuong.
“Oracle E-Business Suite, hosted under the Oracle On Demand service, makes it easier for us to focus on our core operations while streamlining our inventory and production processes to ensure we stay ahead of global competition.”
Oracle Financials has reduced the time it takes for Masan Consumer Corporation’s accounts staff to compile month-end financial reports. Staff is able to consolidate profit and loss reports for the company’s seven branches across Vietnam and close monthly financial reports about 60% faster.
“Our month-end financial reports are closed in about six days, compared to more than 12 days previously,” said Thi Phuong. “We no longer need to manually import data from multiple departments.
“Our managers use the centralized system to easily gain instant access to financial data at any time, enabling them to create and analyze reports to make more informed business decisions, such as the best geographies to market certain products,” said Thi Phuong. “This also provides our investors with certainty that our financial information is as accurate as possible.”
Masan Consumer Corporation uses Oracle Inventory Management, Oracle Purchasing, and Oracle Order Management to improve its supply chain planning and management activities.
The integrated system enables production staff to easily check inventory levels of raw materials—such as the ingredients used to create sauces and other food products—as soon as the relevant data is fed directly from Oracle Purchasing.
Stock levels are updated on a real-time basis, providing staff with quick and easy access to consolidated, enterprisewide inventory information.
“Oracle Inventory Management provides production staff with a complete view of the types of food products and quantity of raw materials available at any given time, and it streamlines our production processes while eliminating waste,” said Thi Phuong. “This indirectly helps us maintain our revenue stream and increase our profitability.”
Managers can easily create a single inventory report quickly rather than spending hours collating information from multiple stock reports.
“The ability to quickly identify low stock levels has also improved our production planning, ensuring we can easily meet our customers’ requirements,” added Thi Phuong. “The online system also enables us to automatically generate invoices, significantly reducing the time it takes to deliver products to our customers.”
Masan Consumer Corporation uses Oracle Process Manufacturing to streamline production planning. The system provides production staff and their managers with fast access to data relating to the formulation for more than 100 sauces and noodle products while maintaining control over product quality, regulatory requirements, and production costs.
“Our product managers have quick access to manufacturing information and are able to review products coming out of our production line every day and effectively plan for further production runs,” said Thi Phuong. “This streamlined process has enabled Masan to increase productivity, and reduce time and resources to collect manufacturing data.”
Oracle On Demand’s 24x7 support and the availability of the My Oracle Support portal provides the company’s system administration staff with around-the-clock support for Oracle E-Business Suite. The Oracle On Demand team manages the company’s servers and configures, patches, and monitors its applications.
“Our application performance reports are readily available online, and we can easily log and track service requests,” said Thi Phuong. “Oracle On Demand adheres to ISO 270001 and ISO 27002 security and compliance standards, which reduces security risks.
“Every six months, we complete an Oracle On Demand disaster recovery test to ensure we can meet our recovery point and time objectives. These tests can be completed without impacting our primary production systems. This is crucial because our business operates around the clock, and we can’t afford to have any downtime.
“With the Oracle On Demand service in place, we have had a low number of unplanned outages, and average system availability is 99.95%,” added Thi Phuong.
Masan Consumer Corporation chose Oracle E-Business Suite applications because they are tightly integrated and easy to use.
“Adding operational units and legal entities, and creating customized reports has never been easier,” said Thi Phuong. “Oracle E-Business Suite is a cost-effective and centralized system that meets our business requirements. In addition, Oracle On Demand makes it quick and easy to provision servers and storage capacity when required.”
Masan Consumer Corporation engaged Oracle Partner PYTHIS in June 2006 to implement Oracle E-Business Suite modules Oracle Financials, Oracle Purchasing, Oracle Inventory Management, Oracle Order Management, and Oracle Process Manufacturing.
Pythis assembled the test script, managed configuration issues, and provided end-user training. PYTHIS also worked with specialists from My Oracle Support to map out Masan Consumer Corporation’s business processes and ensure the system was configured correctly, so it met the company’s needs.
Masan Consumer Corporation also engaged Oracle to retrofit the company’s customized Oracle applications, so they were compliant with Oracle’s CEMLI framework, which are recommendations for how standard Oracle solutions could be modified.
“Without PYTHIS’ help, we wouldn’t have been able to complete this project in such a tight timeframe,” Thi Phuong said.
The deployment was completed in December 2007 and the system went live in January 2008.