Phu Tai Group and FPT accelerate digital governance with SAP cloud ERP

Phu Tai Group and FPT accelerate digital governance with SAP cloud ERP

Phu Tai JSC in collaboration with FPT Corporation announced a new digital transformation strategy on December 2 and kicked off the SAP S/4HANA Cloud Public Edition deployment across seven key subsidiaries in the stone and wood sectors.

This is one of the largest Cloud ERP projects in Vietnam's materials manufacturing industry, marking a significant milestone in Phu Tai's journey towards building a modern, data-driven centralised management model.

The move aims to accelerate business growth amid global competition, demonstrating global-standard management solutions for mid-sized enterprises through a new implementation approach.

Building on the successful pilot deployment of SAP S/4HANA Cloud Public Edition at Phutai Quartz, the group's core quartz stone manufacturing unit for export, Phu Tai has decided to roll out the system concurrently across seven additional units.

The implementation covers all critical business domains, including finance and accounting, sales, procurement, warehouse management, production, quality management, and e-invoice integration.

Among them, stone manufacturing companies Phu Tai Binh Dinh Quartz Stone Co., Ltd., Tuan Dat Minerals Co., Ltd., Enterprise 380, Binh Dinh Stone Processing Plant, and Nhon Hoa Construction Materials Enterprise will be deployed simultaneously within four months, inheriting all operational models, processes, templates, and methodologies optimised at Phutai Quartz.

Meanwhile, implementation at wood sector companies Phu Tai Binh Dinh Wood Co., Ltd. and Thang Loi Enterprise will be tailored to the characteristics of the wood production value chain, while still adhering to group-wide governance standards.

At Phutai Quartz, within just five months, the adoption of a modern Cloud-based ERP system enabled the unit to transition to a new operating model built on a modern digital brain, helping to achieve seamlessly connected data, real-time process control, and decision-making powered by precise analytics.

More than 50 core business processes were prepared following global best practices for the quartz stone industry, along with over 60 reports and customised functions to help meet both international governance standards and Vietnamese regulatory requirements.

The impact of the strategy undertaken by Phu Tai is clearly reflected in its daily operations. Overall internal processing time dropped by 30 per cent, order handling, inventory checks, and stock decision-making were accelerated by up to 40 per cent. Real-time decision-making capabilities increased by 50 per cent thanks to dashboards and data analytics.

Inventory governance achieved exceptional accuracy with discrepancies kept below 2 per cent, while excess inventory decreased by 20-25 per cent, significantly reducing long-stagnant stock.

The demand forecasting system reached an accuracy level of up to 85 per cent, enabling Phutai Quartz to proactively secure global quartz raw materials and respond quickly to large and premium orders from demanding markets such as the US and EU.

The project is considered a trial run to validate the organisation's readiness and adaptability, serving as a crucial foundation for Phu Tai's confidence in the effectiveness of digitalised governance.

The large-scale deployment of SAP S/4HANA Cloud Public Edition reflects Phu Tai's strong commitment to building a unified, modern governance platform, especially in the context of Vietnam's stone and wood industries facing significant challenges such as rising international standards, fluctuating raw material costs, growing requirements for data transparency from export markets, and fierce competition from regional manufacturers.

The strategy of starting small and scaling up, and fully utilising the potential of Cloud ERP with implementation consulting from FPT, allows Phu Tai to access a global-standard management platform aimed at optimised cost and rapid deployment speed, a fundamentally different approach from traditional ERP implementation models.

This marks a transformative leap, propelling Phu Tai's operational management into a new acceleration phase with technology as its backbone.

Nguyen Sy Hoe, CEO of Phu Tai JSC, giving remarks at the event

At the ceremony, Nguyen Sy Hoe, CEO of Phu Tai JSC, noted that the stone and wood manufacturing industries are inherently cautious in adopting technology because every decision directly affects productivity, quality, and operational material costs. Each factory and each production batch presents challenges in quality control, inventory accuracy, and cost efficiency. Processes are lengthy, data is siloed, material waste is hard to predict, and lead times are often prolonged.

“Therefore, together with FPT and SAP, Phu Tai has chosen a steady path, gradually building a digital operational DNA for the company, starting with Phutai Quartz as a solid foundation to scale the model across the entire group, elevating Phu Tai's governance to international standards. We strongly believe that this next phase of innovation will drive Phu Tai's acceleration in the new era".

Dang Truong Thach, executive vice president of FPT IS, FPT Corporation, shared, “We sincerely appreciate Phu Tai's leadership for continuing to place their trust in FPT as a strategic partner for this large-scale digital transformation initiative. Phu Tai launched the quartz stone project with a remarkable level of determination, aiming to go live within just five months, and together, we delivered on that ambitious commitment. This journey brought valuable lessons for both sides, and today, FPT remains a steadfast partner, supporting Phu Tai as they continue to roll out their enterprise-wide digital transformation across seven member units.”

Thach added that as the implementation expands across multiple units, this is no longer just a software project but a true transformation journey.

Dang Truong Thach, executive vice president of FPT IS, giving remarks at the event

"In digital transformation, every process must operate on a unified digital platform, much like travelling on a highway: to move fast, you must follow clear rules and cannot stop midway at will. Cloud ERP is no different; it must be built on standardised processes that align with international best practices while remaining practical for the Vietnamese business context," he said.

Nguyen Hong Viet, managing director of SAP Vietnam, shared, “Phu Tai's expanded roll-out of SAP S/4HANA Cloud Public Edition across its stone and wood subsidiaries reflects their forward-thinking approach to digital transformation. Building on top of Phutai Quartz's successful transition to SAP Cloud ERP, we are proud to now support the group's next phase of transformation together with our partner FPT. This continued collaboration shows how manufacturers like Phu Tai can rapidly and incrementally implement SAP Cloud ERP using a standardised framework and tools, helping them gain real-time insights, improve operations, and pursue sustainable growth.”

Phu Tai's journey has become an exemplary success story, inspiring businesses to proactively embrace technology to achieve breakthrough growth, contributing to national digital transformation goals aligned with Resolution 57-NQ/TW, and strengthening Vietnam's competitive position in global markets.

VIR