FPT IS partners with GONSA to build a technological “highway” for the pharmaceutical industry

Recently, GONSA, a leading logistics and healthcare product distributor, has made significant waves in the pharmaceutical sector by successfully implementing a simultaneous overhaul of 5 software systems.

GONSA has described this as a “revolutionary” move, as companies usually only undertake simultaneous transformations of 1-2 software systems. This bold decision positions GONSA as a pioneer in adopting technology to automate end-to-end business processes, bringing it one step closer to its “ambition” of becoming a nationwide healthcare product distribution company powered by advanced technology. 

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GONSA has completely shifted its business operations to a digital platform.

GONSA has successfully transitioned its entire business operations to a digital platform. “Our management has become more streamlined as GONSA’s leadership can now access real-time business data and make timely adjustments. Operational processes and warehouse management have been digitized, and employees are freed from manual tasks thanks to automation software. By simply accessing the system, the leadership can track the progress of tasks for each department and each employee. GONSA has also gained more trust from customers, knowing the company has a transparent and efficient system,” shared Mr. Le Vi Hien – Chairman of the Board of Directors of GONSA.

After the century-defining pandemic, digital transformation has made significant leaps across all sectors, particularly in industries related to services and consumer goods. The pharmaceutical industry is no exception, as consumers placing a greater emphasis on health and wellness, e-commerce and digital solutions have become increasingly popular. This is the driving force behind the pharmaceutical industry as a whole, compelling companies within the sector to embrace digital transformation in order to continue developing and better meet the increasingly sophisticated demands of the market.

According to statistics from the Drug Administration of Vietnam, as of the end of 2023, Vietnam had approximately 250 pharmaceutical manufacturing plants, 200 import-export facilities, 4,300 wholesale distributors, and over 62,000 retail pharmacies. This extensive network of pharmaceutical plants and agents across provinces and cities has partially met the public’s healthcare and pharmaceutical needs.

However, according to Mr. Hien, there are only about 10-15 companies specializing in pharmaceutical distribution and logistics like GONSA. The scale of these distribution companies is still concentrated in specific regions and has yet to achieve nationwide coverage.

The vast untapped market presents both a significant opportunity and a major challenge for GONSA as it aims to become a nationwide technology and logistics provider for healthcare products. This “ambition” serves as a driving force behind GONSA’s determination to simultaneously implement the transformation of five software systems.

Mr. Le Vi Hien also analyzed that the pharmaceutical industry is highly specialized and requires stringent management. Digital transformation is an inevitable necessity as consumer trends increasingly shift toward online platforms. Moreover, as GONSA builds its distribution strategy based on multinational partnerships, it requires a transparent and clear data technology platform to provide timely information. In the current context, developing a robust technology system is a top priority for businesses to adapt to new conditions and achieve breakthroughs in the future.

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In 2023, after 168 days of preparation and nearly 200 days of project execution, GONSA successfully launched five new technology systems on January 1, 2024. This event marked a near-complete digital transformation of the entire company’s operations. Explaining the decision to simultaneously invest in five systems – a bold move rarely undertaken by other companies – Mr. Le Vi Hien stated, “Previously, GONSA had implemented IT solutions several times but lacked synchronization. You could compare the earlier operations to different departments traveling on the highway in various ways: some walking, some cycling, and others switching from walking to driving mid-journey. As a result, despite adopting IT, the departments still worked in silos, disconnected from one another, leading to illogical outcomes. Therefore, GONSA resolved to build a new road—a highway that integrates five interconnected technology systems simultaneously. These systems converge into a unified framework, seamlessly connected and supporting each other, creating a streamlined, end-to-end platform from top to bottom.”

Since the beginning of 2024, GONSA has been fully utilizing a new system with closed-loop processes for efficient business management and optimization of its service chain. With the RISE with SAP enterprise resource planning (ERP) software, GONSA has implemented a comprehensive suite of modules covering the entire operational chain, from order placement to warehousing, transportation, and delivery. All GONSA’s data is centralized on a single platform, and accounting-related activities are fully automated.

After nearly 10 months of operation, the RISE with SAP S/4HANA Cloud system has proven to be an effective solution for addressing the unique challenges faced in pharmaceutical distribution and sales. The system serves as a backbone, connecting various modules such as inventory management, procurement, sales and distribution, financial management, and loan management. This integration enables GONSA’s leadership to make timely business decisions based on a comprehensive, real-time data view.

Specifically, in inventory management, the system helps GONSA update stock levels, accurately identify slow-moving items that risk becoming obsolete and tying up capital, and adjust purchasing plans accordingly. By minimizing inventory and accelerating inventory turnover, the company can increase sales through tailored business plans that align with market demands.

In loan and deposit management activities, the system automates the forecasting of cash inflows and outflows. By synchronizing financial data in real-time, GONSA can accurately determine available credit limits, optimize investment allocations, manage contract fulfillment, and accelerate debt collection, ultimately optimizing cash flow.

In sales and procurement management, RISE with SAP S/4HANA Cloud establishes a credit management mechanism for businesses. By automating the management of credit limits and identifying overdue or unpaid balances from purchasing partners, the SAP Cloud ERP system provides timely warnings and accurate supply recommendations. As a result, businesses can significantly reduce financial risk and implement comprehensive, transparent, and sustainable business practices.

As businesses increasingly adopt technology, the complexity of tasks and the volume of data grow exponentially. This is where the akaBot process automation solution becomes indispensable. It serves as a powerful tool to automate end-to-end processes such as data entry, information reconciliation, invoice storage, and outbound order creation within the RISE with SAP S/4HANA system.

As a major distributor of healthcare products, GONSA handles thousands of invoices and orders each month. Previously, processing incoming and outgoing invoices relied entirely on manual work by employees. This approach not only consumed significant time on repetitive tasks but also resulted in a high error rate, especially increasing the workload and stress on the Accounting Department during period-end closings. With the automation of invoice verification, akaBot now manages processes such as reconciling information and documents with the tax system to ensure the supplier’s legitimacy. It also checks batch numbers and expiration dates of pharmaceutical products against the SAP Cloud ERP system. For accurate invoices, akaBot records them for subsequent steps; for incorrect ones, the virtual robots generate reports for user review and adjustment. This automation enables GONSA’s staff to streamline invoice verification from multiple input sources, reducing processing time to just 1–2 minutes per invoice and eliminating 100% of errors in data entry.

AkaBot has also demonstrated remarkable efficiency in automating purchasing processes. For orders that are on hold due to credit limits or stockouts, akaBot can automatically process them once funds are available or inventory is replenished. By automatically checking credit limits and generating purchase orders every 30 minutes, akaBot eliminates the need for manual intervention and ensures timely order fulfillment.

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By automating end-to-end processes in the Accounting and Purchasing departments, GONSA has saved 1,100 hours per month in invoice processing and automated order fulfillment, achieving 100% accuracy. This has freed up employees from manual tasks, allowing them to focus on more strategic and value-added activities.

As a logistics and distribution service provider, GONSA not only manages internal operational processes but also collaborates with numerous domestic and international partners. Each partner has unique requirements for data such as inventory levels, revenue reports, and account receivables. Despite the large volume of reports, GONSA leverages the SAP Cloud ERP system to quickly generate standardized reports tailored to the specific needs of each client, ensuring near-perfect data accuracy.

Mr. Nguyen Minh Qui – Chief Accountant, Project Manager of ERP SAP S/4HANA, shared: “Working on a digital platform has created a more positive atmosphere among employees, as many processes have been replaced by software. For instance, since implementing akaBot, invoices can be recorded as soon as goods arrive at the warehouse, eliminating the waiting time from before. Errors in calculations, formatting, and reconciliation with tax authorities have nearly disappeared.”

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According to Mr. Qui, a company survey revealed that both existing and new customers highly appreciate the accuracy and timeliness of GONSA’s reports and data. The company has also attracted new partners who have chosen GONSA because of its professional, transparent, and efficient systems.

Achieving these results after the digital transformation was a monumental effort, requiring the collective commitment of GONSA’s 250 employees and the integration of 176 workflows across 200 days. These are truly impressive figures. It was the determination and unity of the team that made it possible to achieve outcomes beyond expectations.

Reflecting on the decision to make a major investment in digital transformation, Mr. Lê Vi Hiển shared: “A significant communication campaign was launched, cascading from the management team down to every employee to keep everyone motivated. Before deciding to implement five systems simultaneously, we took the time to share the deployment plan with all managers and staff, asking them if they were ready to take on the challenge. With everyone’s agreement, GONSA proceeded. The most memorable moments were the final days before the go-live, when GONSA’s offices were lit up late into the night. Colleagues shared warm meals together, demonstrating their unity and dedication as they completed the final stages of the project, propelling the company into a new era.”

The market is constantly evolving towards greater technological integration, and users’ demand for technology is steadily increasing. The digital transformation process requires businesses to develop a long-term digital transformation strategy to stay competitive and meet these growing demands.

The decision to simultaneously invest in five software systems marks GONSA’s initial success in fully digitizing its operations. This serves as a foundation and the lifeblood for GONSA’s second phase of digital transformation, propelling the company towards its goal of becoming a nationwide health product distributor powered by advanced technology.

To enable scalability and flexibility in customizing technology to align with its development goals, GONSA carefully selected solutions based on several key criteria: extensive experience in consulting and implementing solutions, strong after-sales support and maintenance services, and, most importantly, robust support in terms of service policies, financial arrangements for the project, and continuous collaboration with expert teams throughout the implementation process.

Mr. Nguyen Ngoc Hanh – Head of IT Department, Project Manager of OCS, and TMS Project at GONSA, shared: “Preparation is crucial, with finding the right partner and selecting the right solution accounting for 50% of success. In terms of solutions, GONSA trusts the quality of RISE with SAP S/4HANA Cloud, a world-class enterprise management system chosen by hundreds of leading businesses in Vietnam. Additionally, GONSA selected a capable partner with proven expertise in successfully implementing the SAP Cloud ERP solution for companies in the same industry.”

To address GONSA’s challenges and strategy, FPT IS adopted a comprehensive solution model approach. This involved implementing an ERP system, a transportation management system, and a warehouse management system. Additionally, FPT IS integrated solutions involving robots and AI to automate GONSA’s operational processes within the overarching framework. FPT, in collaboration with GONSA’s leadership team, divided the implementation into distinct phases to align with the management objectives of each stage, ensuring a tailored and effective rollout.

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Mr. Dinh Huu Hung, Deputy Director of Software Delivery for the Southern Region, FPT IS, stated: “The leadership envisions GONSA as a technology-driven pharmaceutical business. Therefore, GONSA’s management has dedicated significant time to shaping the direction of technology platforms that support their business operations. The solution proposed by FPT IS not only helps GONSA stabilize its business processes but also creates a business environment that serves GONSA while enabling connections with many other factors.”

Drawing from practical experience and success in its digital transformation journey, GONSA plans to collaborate with FPT IS in the future to develop a platform that enables GONSA to connect all pharmaceutical manufacturers in Vietnam for global export. This platform will also link with businesses, distribution agencies, pharmacies, hospitals, and end customers. By leveraging process automation, AI, Chatbots, workforce optimization, and the streamlining of cash flow and goods flow,, GONSA aims to enhance operational efficiency and scalability for future growth.

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