A Digital Transformation Journey David John Whitehead, Chairman Mavin Group
Mavin Overview a pioneer in Vietnam’s “from farm to table” supply chain.
Established in 2004 as Austfeed Vietnam. - A small feed-miller based in the north.
Now, 17 years later, Mavin Group is an Australian foreign invested enterprise, a large vertically integrated agribusiness, one of the ten biggest in Vietnam. - 2,500 staff , 5 feedmills, hundreds of farms, veterinary pharmacy laboratories, and a meat processing plant, from the north to the south throughout the country.
Mavin network in Vietnam
2,500 staff. Corporate HQ in Hanoi. 5 feedmills, 1 food factory, 2 veterinary pharma laboratories And 20 Warehouses, 1,000 Distributors, Hundreds of swine, poultry and fish farms nationwide. Oversea Representative Offices: 1. MAVIN CAMBODIA CO., LTD. Phnom Penh city, Cambodia
2. MAVIN LAOS CO., LTD. Vientiane, Laos
Endeavouring to develop sustainable Agribusiness in Vietnam
Pioneering in HI-TECHNOLOGY PRODUCTION
Mavin applies modern and fully automated production technology from Europe (Buhler) and USA (CPM); all feedmills meet European Good Managing Practice standard (GMP). Advanced technology is applied in all farms of Mavin with automatic feeding, cooling systems and computerized operations. Mavin is a pioneer in aquaculture, applying the most advanced Norwegian round cage technology on reservoirs, and lakes Mavin invested in a state of the art food processing plant with all production facilities import from Germany.
Mavin grew quickly, and our major challenge was to put in place systems and processes which would allow us to control our production, manufacturing, costs, and operations.
We lacked the control and monitoring systems we needed to understand how the company was doing, particularly in comparison to our competitors.
Manual processing wasn’t good enough anymore, and we were growing too fast to manage the business effectively. We needed to be able to make smart, strategic decisions based on comprehensive data.
We wanted to learn more about our company and how it was operating: - Which processes were working well? - Which could be improved? - How could we monitor what was happening within the company?
DIGITAL TRANSFORMATION was the best way to solve these challenges!
Digital transformation is not only about technology, but about creating new experiences and value for customers, partners and employees.
Empower People
Inspire People
DIGITAL LEADERSHIP Digital leadership requires an entirely new mindset, one that needs to be passed onto all members of the organization, at every level.
Lead Change
Share Vision
Mavin’s Digital Journey: We needed to assess how technology will be used to improve our business model, manage costs, drive value, and connect with customers.
We made the commitment to invest in firstly building the right culture; educating, informing and inspiring staff; then transformation of the IT function, including new skills and partnering opportunities.
A foundational change about how we deliver value to our customers.
DIGITAL TRANSFORMATION
We see DX as the process of using digital technologies to create new, or modify existing business processes, culture, and customer experiences, to meet changing business and market requirements.
DX marked a re-thinking of how we use technology, people, and processes in pursuit of new business models and new revenue streams, driven by changes in customer expectations around products and services.
Re-imagining of business in the digital age is digital transformation.
5 STEPS OF DIGITAL TRANSFORMATION Align objectives with business goals We asked ourselves what business outcomes did we want to achieve for our customers? We needed to align our goals to customer need.
IT and business must cooperate We realized that IT must work for us as a strategic partner of the business to solve problems and deliver value for customers. The business just could not sit there and demand technology solutions; we had to know what we are asking for.
Select strategic partners We recognized that we needed help fulfilling our digital imperatives, so we selected partners with proven track records whose values closely aligned with our own.
Redesign business and products around customer outcomes
We are using cloud software to accelerate change and we will embrace artificial intelligence to boost operational efficiency and respond to evolving customer expectations.
Retrain employees around digital In order to align our digital imperatives with customer preferences, we had to ensure that our employees were on the same page. In the pivot to become a digital business, software becomes a strategic asset, so we needed manage it effectively.
MAVIN DIGITAL TRANSFORMATION VISION
OBJECTIVES
4 PILLARS
ENABLING PARTNERS
Mavin Five-Year Digital Plan
Year
Enterprise Resource Planning
2019
ERP for Feed industry Analytics (BI & MIS)
2020
ERP for Food industry, VET industry
2021
ERP For PigFarm industry Human Resource Management (HiStaff)
2022
Business Planning and Consolidation (BCP)
SAAS (Success Factor) Cloud Security
2023
ERP for New Feed Mills, Farms Big Data
SAAS (CRM)
Solution Providers & Implementation Partners Committed Investment
Cloud Computing
IAAS
Digital
Smart Production and Services (IoT, IoF, AI, Big Data, Virtual Intelligence)
Digital Sales (E-Ordering)
Smart Factory (phase 1)
Digital Workplace (E-Office, EMeeting)
Smart Farming (Aqua) Smart Farming (Sow)
Digital Workplace (E-Learning)
Smart Farming (Finisher)
Digital Workplace (MyMavin, eSign, eForm) Digital Sales Journey (DMS)
Smart Factory (phase 2) Smart Farming (phase 2)
AI, Block-Chain, VI
Smart Feedmill with SCADA/MES and ERP SAP S/4HANA Industry 4.0: IT and OT converging with IOT
DIGITAL WORKSPACE
Internet of things
OT SYSTEMS: SCADA/MES, PLC…
IT SYSTEMS: SAP S/4HANA, HR, …
Mavin Operates with New Processes on SAP S/4Hana Capturing end to end, using one integrated platform Raw Material consumption & Manufacturing
Raw material procurement
Finished goods Nutrition system (BRILL)
Consumption
MM
Material / Cost booking
Overhead cost Process order sent from SAP Material consumption sent from MES system
SD
PP
Purchasing document approval
• Quality notification
• Material Requirements Planning
• Stock procurement with QM
• Make to stock
• Goods return to vendor
• Scheduling
• Batch management
Goods receipt
• Batch recall
Supplier
Security & Controls
• Usage decision processing
Inquiry & Contract Mgmt.
• Forecasting & Collaborative forecasting
Sales & Distribution
Procurement
• Inspection lot generation
Inspection of FG
Sales Order Order Shipping
Cost
Invoice Management
Billing
Stock Reduction
Vendor Invoice Management Cash
Invoice Data
Purchase Requisition
Purchase Order
Purchase order
VNPT eINVOICE
MES (SCADA)
QM** Inspection of RM & FG
Delivery
Sales and distribution
Labor cost
Process order
BOM interface from Nutrition Formula System
Master data, Purchase req. & Issue out stock
Stock
Inventory
FICO GL GL Transactions
AR Collection
AP Accounts Receivables
Financial & Controlling (FICO ) Module
Payments
Accounts Payable
AR **These functionality is optional & only used if required in business scenario
Invoice Customer
Business Intelligence Reporting
Data from all modules can be sent to SAP BI for reporting
Mavin Cloud Data Center Mavin is one of the first companies in Vietnam to employ a cloud solution for procedural management in operational control and monitoring. See more at: https://customers.microsoft.com/en-gb/story/863524mavin-azure-en-vietnam
Smart Farming for Sow Farms PORCITEC SYSTEM ARCHITECTURE FOR SOW FARMS
Internet
Technicians in 16 farms Porcitec ONLINE Server
Report staff
Supervisor
Impact
Productivity & Efficiency Improvement
Business Planning Improvement
Access to accurate, real-time data Record transactions and retrieve real time reports anytime, anywhere Ensure business resilience and continuity
International languages and process
Office Digitalisation
INNOVATIVE AND FORWARD-THINKING
Identify potential areas of improvement Focus on parts of the process that require the most attention.
Make quick decisions Able to analyze procedures and processes, better understand customers’ needs.
Quickly respond to change
Connection Strengthen the connection between people, and between people and processes.
Benefits FINANCIAL PERSPECTIVE CUSTOMER PERSPECTIVE INTERNAL PERSPECTIVE
Long-Term Shareholder Value
Improve Cost Structure
Expand Revenue Opportunities
Increase Asset Utilisation
Enhance Customer Value
Customer Value Proposition Price
Qualtiy
Avaibility
Service
Selection
Partnership
Brand
Operation Management Processes
Customer Management Process
Innovation Processes
Regulatory and Social Processes
Supply Production Distributrion Risk Management
Selection Acquisition Retention Growth
Oppoturnity R&D Develop Launch
Environment Social and Governance
LEARNING AND GROWTH PERSPECTIVE
Human Capital Information Capital Organisation Capital Culture
Leadership
Alignment
Teamwork
FUTURE BUSINESS PLAN Consolidate group operation in core business in the model “From Farm to Table”, setting up all business units (P&L) under Mavin Digital Transformation Program (MDX) Swine business will follow the plan to have 50 thousand sows in 2022 and 100 thousand sows in 2025 (top 30 world biggest swine producers) Promoting duck business as vision to be top 10 producers of the world’s “from farm to table” Mavin Aqua will be biggest producer of Nile Tilapia, Red Tilapia and Common Carp in Vietnam, and we will begin our marine aqua project within 5 years. Expand to Myanmar, Laos and Cambodia markets.
The future
Enterprise Resource Planning 1. Continue ERP journey: - Scale out SAP ERP to remaining business lines such as aqua, duckfarm and new plan/companies (new feed factories abroad, new big farms); - Stabilize, optimize, automate the SAP ERP system. Maximize integration, automation to improve operational effectiveness across departments and companies in Mavin; 2. Implement IT projects to apply IFRS, ESG international standards to Mavin; 3. Implement CPM, Data Analytics projects across the group for managing the business.
Further develop and fine tune our technology needs, and consider ever more innovative ways to use digitalization to positively transform our organisation
Cloud Computing & Digital Digital Ecosystem: Investigate and build digital ecosystem that engage Mavin Supplier, Customers, Partners... Digital B2B, B2C Business Model Digital Workplace: continue to implement initiatives to digitalize staff workplace
Smart Production and Service - Smart Farming Integrated management control system using BigData and Artificial Intelligence (PigFarm and DuckFarm). - Smart Health Monitoring Based on Artificial Intelligence (smart cough monitoring, Visible image recognition, Infrared temperature measurement, Pig Count and Weight estimation...), eVet Digital, Telemedicine, Blockchain-based for value chain traceability...