Traphaco Joint Stock Company
Traphaco 3S ERP Digital Transformation
Directly under Traphaco, the company serves as the manufacturing unit supplying 60 – 65% of the total production output for the entire Traphaco system. Traphaco CNC is Vietnam's leading enterprise in the production of traditional herbal medicines. It is also the first entity in the country to be granted GMP-WHO certification for a traditional medicine manufacturing plant.
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Industry
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Company Size
+350 employees
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Solutions
3S ERP
01
Finding the "Missing Piece" to Complete the Digital Transformation Picture
To ensure a green value chain, alongside human resources and products, technology is one of the three main pillars that Traphaco CNC aims for. The enterprise constantly focuses on and invests in production technology and operational management. For the traditional medicine industry, science and technology are considered the key to sustainable development.
The factory includes a GMP-compliant workshop system, Soft Capsule and Preliminary Processing workshops with an area of up to 40,000 $m^2$, along with a system of production lines that have been supplemented and upgraded to the largest scale. In particular, Traphaco CNC is also equipped with an ASEPTIC closed-technology PVC ampoule production line and a high-speed blister packaging line, contributing to making the enterprise a manufacturing unit capable of 100% automation with the capacity to supply hundreds of millions of product units per year.
Upgrading the production scale in both area and technological depth also requires the companionship of an effective management system as well as a workforce ready to meet high technical requirements. Therefore, with enthusiasm and a strategic vision to become a “high-tech” company in the true sense of its name, Traphaco CNC’s leadership conducted a search for a management solution provider most suitable for the business’s needs at that time.
This was the origin of the project to implement the 3S ERP.iPHARMA system by ITG Technology at Traphaco CNC – the missing piece to complete the digital transformation picture for Vietnam’s No. 1 traditional medicine manufacturing enterprise.
02
Turning Difficulties into Motivation
Upon approaching the project, ITG realized that Traphaco CNC had specific processes that required a unique technological system that “packaged” software could hardly meet. Therefore, shortly after, ITG began researching and putting 3S ERP.iPHARMA into operation at Traphaco CNC. The solution was designed to solve the problem of production management, end-to-end quality control, and especially to help Traphaco CNC effectively trace origins through Electronic Batch Records (EBR).
In 2020, when the project was launched, both units encountered many difficulties from the very beginning. It can be said that from the survey to the stage of building the User Requirement Specifications (URS), it was perhaps the most turbulent time for ITG and Traphaco CNC as they had to work together through computer screens without being able to meet in person.
The two project teams had to work online together for nearly 5 months due to the pandemic. Geographical distance along with specific problems in the pharmaceutical manufacturing field posed countless challenges during the implementation process.
Mr. Ha Truong Son
Project Manager of ITG
Mr. Son further shared that this remote exchange process lasted until the programming stage and some system training sessions for Traphaco CNC. All of that partly caused a breakdown in the flow of information between the two parties.
However, during the working process, the two sides coordinated closely to bring Phase I of the project to completion. Not letting difficulties become disadvantages, in July 2021, the project officially successfully deployed the modules: Purchasing Management, Sales, Planning, Warehouse, Production, Quality Control (QC), Testing, and Electronic Batch Record Management.
Electronic Batch Record management has allowed Traphaco CNC to strictly control input raw materials according to GMP quality standards, digitize, and record the entire product production process on the 3S ERP.iPHARMA system with an easy-to-use interface, helping to minimize cumbersome manual tasks. Here, all information about processes and Bill of Materials (BOM) is brought to a digital environment to form a Master Data warehouse. To increase security, the system allows for access authorization and records the history of every operation and activity.
Therefore, origin tracing – an issue that was once a headache for Traphaco CNC’s leadership because they could not well manage product records – has now been resolved. The huge volume of data that once stretched across hundreds of pages of paper at Traphaco CNC is now encapsulated within the 3S ERP.iPHARMA management system.
The quality testing of raw materials and input/output goods also quickly improved and was more optimized thanks to the presence of the system at all processes: Research, testing, production, and product version management. This also directly helped Traphaco CNC create effective production plans.
In addition, by inheriting data recorded from the 3S ERP.iPHARMA system, Traphaco CNC can optimize warehouse management activities according to GSP standards. The sales module is also able to retrieve purchase-sales report information from traditional and new customers, helping the business department develop better sales strategies.
The implementation of the system in Phase I has significantly improved the operational capacity of departments at Traphaco CNC. Information from raw materials, goods imported, exported, to inventory is all digitized, ensuring absolute data accuracy—something that any pharmaceutical manufacturing enterprise always prioritizes. And that is an important prerequisite helping the project enter Phase II smoothly.
03
Accelerating to the Finish Line
Phase II began just as the Covid-19 pandemic was gradually being brought under control, which was a positive signal for the ITG and Traphaco CNC project teams to accelerate to the finish line together. Inheriting the data volume and success of Phase I, the financial accounting modules and the Business HUB intelligent management system were step-by-step successfully deployed.
In particular, effectively operating modules related to budget operations, accounts payable/receivable accounting, as well as production cost management was set as the backbone of Phase II by Traphaco CNC. The Business HUB management portal also became a tool helping Traphaco CNC’s leadership control business activities anytime, anywhere, and on any device such as Smartphones or Tablets with intuitive report charts. The seamless flow of information connecting 3S ERP.iPHARMA with Business HUB provides accurate data on the enterprise’s activities.
In the first few months after full system deployment, the workforce at Traphaco CNC inevitably faced difficulties due to having to balance and transition between the old management method and the new system. Fortunately, Traphaco CNC’s leadership showed decisiveness, determining that production could be stopped, but improvements would not stop and must be accelerated to perfect the operating system and enhance corporate governance efficiency.
Testing activities were conducted meticulously and carefully in every detail by Traphaco CNC in collaboration with ITG. This was also an important factor supporting ITG in bringing the project at Traphaco CNC to a successful conclusion.
The time of applying ERP software was when we were assigned by the Board of Directors the task of completing the 6-month data. It was extremely difficult and urgent; however, we truly thank the ITG project team for working day and night to support the finance and accounting department in data entry and troubleshooting system issues. Currently, the system has supported the accounting team in saving time as well as increasing accuracy in implementing professional operations.
Ms. Nguyen Thi Ha
In charge of Finance and Accounting at Traphaco
04
Eloquent Figures and Precious Thanks
3S ERP.iPHARMA has created an advanced and effective management backbone, standardizing all professional processes of Traphaco CNC. In production activities, the system is present in all 3 quality management stages of Traphaco CNC, including: Controlling input material quality, quality during the production process, and finished product quality delivered to distribution channels.
Notably, the ability to digitize all Electronic Batch Records and Electronic Testing Records – a powerful arm in supporting Traphaco CNC’s origin tracing – has helped the enterprise reduce 100% of paper storage costs compared to traditional batch record keeping.
Through more than 2 phases of implementation, 100% of Traphaco’s data has been digitized on the system, 100% of functions are operating well, and 100% of professional requirements from Traphaco CNC have been met.
And so, another success story about the digital transformation journey for manufacturing enterprises in Vietnam has been written with the participation of ITG Technology. Both project teams gave each other precious thanks and handshakes demonstrating trust at the acceptance ceremony held right at Traphaco CNC’s headquarters.
The project to implement the 3S ERP.iPHARMA system that just closed is an important milestone bringing Traphaco CNC closer to the smart factory model in the near future. It is hoped that with support from 3S ERP and ITG, the mission of “building a green health path” in the 4.0 era of the enterprise will be conquered step by step, thereby bringing many more wonderful and noble values to consumers and the community.
