Doi Kham Food Products Co., Ltd.Empowering Social Business Through Digital Innovation

Doi Kham Food Products Co., Ltd. is a model of social business, operating under the King’s philosophy, developing and creating products from communities with world-class quality and for the overall well-being of society.

Challenges

The goal is to become a social business driven by technology, that is profitable and grows sustainably.
Some operational data does not reflect reality.
There is a need to adjust the business model to respond to the digital lifestyle.
The current solutions in use cannot fully meet business requirements.

Solutions

Integrate SAP S/4HANA with the new POS system.

Outcomes

Efficiently connect the operational systems of the headquarters and production plants in different provinces.
Have up-to-date information, improving planning for agricultural product procurement and production.
Support a cashless society and better respond to the lifestyle of modern consumers.

"To cope with the changing business, we decided to upgrade our ERP solution by moving to SAP S/4HANA and partnering with Fujitsu to develop a POS system that seamlessly integrates with the SAP system."

Mr. Pipatpong Israsena, CEO & President, Doi Kham Food Products Co., Ltd.

Making the data connection between the headquarter in Bangkok and the Royal Factory food production plants in different provinces efficient

Up-to-date information, improving planning for agricultural product procurement and production.

Industry:Manufacturing
Location:Thailand
Customer's website

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About the customer

Doi Kham Food Products Co. Ltd. which is inspired by the King’s sufficiency economy philosophy is operating as a ‘Social Business’ strengthens and develop communities for the locals in order to enhance quality of living in a more sustainable manner through sustainable farming.

Introduction

Doi Kham Food Products Co., Ltd. was founded under His Majesty, King Bhumibol Adulyadej’s vision, with the purpose of addressing the hardships faced by the people in the highland areas of northern Thailand. His Majesty established the first Royal Factory for processed foods in an agricultural area in Chiang Mai province in 1972.

Later in 1994, “Doi Kham Food Products Co., Ltd.” was established. Currently, Doi Kham offers more than 220 products across 23 product groups. As of 2023, Doi Kham has over 30 branches and 15 Doi Kham Family (franchise) stores nationwide, as well as three Royal Factory food production plants located in Chiang Mai, Chiang Rai, and Sakon Nakhon
provinces.

Driving a social business that aims for success and sustainable growth must have digital technology as a key driver to ensure accurate data and create flexible processes. This allows for effective adaptation to consumer demands and business competition,” said Mr. Pipatpong Israsena, CEO & President of Doi Kham Food Products Co., Ltd.

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Data Challenges

“On the journey of operating a social business, we have faced many challenges beyond responding to the changing demands of the market. Importantly, some operational data did not reflect reality, while making business planning even more complex” said Mr. Pipatpong.

This marked the beginning of our transition to a social business, with digital technology at the core of our operations, including the implementation of ERP systems and the application of various technologies in business operations.

However, when faced with rapidly changing businesses and evolving digital lifestyles, the existing systems were unable to fully meet business needs effectively.

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Technology for sustainability

Therefore, it is the origin of the significant operational infrastructure setup, which not only responds to current needs but also supports future operations.

That was upgrading the ERP system to SAP S/4HANA and simultaneously updating the POS system.

Mr. Pipatpong stated, “To cope with the changing business model, we decided to upgrade the ERP solution from the existing SAP B1 to SAP S/4HANA, running on the cloud. Additionally, we updated the POS system, with Fujitsu and ICS, a Fujitsu company as our trusted technology partner.”

SAP S/4HANA which runs on cloud provided great flexibility in operations for Doi Kham, ensuring efficient data connection runs between the headquarter in Bangkok and the Royal Factory food production plants in Chiang Mai, Chiang Rai, and Sakon Nakhon.

Meanwhile, the new POS system can seamlessly integrate with SAP, providing up-to-date information, reducing redundancy, and increase business agility.

The new POS system enables Doi Kham’s product sales to respond to digital lifestyle trends, increasing flexibility in creating membership systems, point accumulation, promotions, various discount formats, and effectively supports a cashless society.

The collaboration between SAP S/4HANA and the new POS system provides Doi Kham with accurate sales data and making decision-making more precise.

It helps set appropriate and fair prices for agricultural product procurement, as well as plan production to align with market demand effectively.

Collaboration with Fujitsu and ICS, a Fujitsu company generates business profits but also aims to generate satisfaction and happiness among the community, partners, consumers, and society at large.