Honda Trading Viet Nam Co., Ltd.: Transforming Efficiency and Agility. A Success Case Study of RPA and DX Implementation in a Leading Trading Company

Honda Trading Vietnam is a trading company operating in various domains and components such as parts/equipment, raw materials, die, and mold. Since the establishment of a partnership with ABeam, the company has introduced and implemented a new Robotic Process Automation (RPA) system on a company-wide level. Honda Trading aims to spread the RPA to all employees, who are currently doing complex yet repetitive, uninspiring tasks such as sales order entry, invoice creation, and stock calculation. In just one year 2022, RPA totally innovates how the company can actually "transform."

RPA can save thousands of hours of manual work, standardize business processes, and consolidate operations. However, the biggest achievement at the end of the day is the satisfaction and smiling faces of the company employees. They don't have to spend hours doing repetitive tasks, less overtime burden, and they can enjoy more with the new innovative work style. From 2023 onwards, Honda Trading Vietnam intends to maximize RPA in their operation and combine RPA with other DX solutions to follow the "Digital Transformation" journey with ABeam Vietnam as a Real Partner.

In today's globalized economy, expanding into new markets is a strategic move that can lead to significant growth and increased profitability.

Vietnam presents a compelling investment opportunity for Honda Trading Vietnam, with its promising growth potential, favorable business environment, and advantageous trade agreements. As the dominant player in the Vietnamese motorcycle market, Honda already enjoys a 80% market share, demonstrating its success in the country. With over 60 million registered motorcycles in Vietnam, the demand for affordable transportation remains high. Moreover, the government's push for electric motor vehicles and the increasing popularity of car ownership indicates a shift in the market landscape. By investing in Vietnam, Honda Trading Vietnam can tap into this thriving market, expand its technology, and further strengthen its market position. With strategic management and a focus on advanced technology, high quality, and reasonable prices, Honda Trading Vietnam can seize the unique opportunities that the Vietnam market has to offer and achieve long-term success.

At the outset, Honda Trading Vietnam had identified a specific department facing significant challenges due to manual, repetitive, and error-prone processes. The Steel Department, responsible for the Steel Material business, struggled with time-consuming tasks that hindered their ability to focus on strategic financial analysis and decision-making. In 2022, the company decided to launch RPA (Robotic Process Automation) for this department as a Pilot Project to test the potential of revolutionizing business processes throughout the entire organization.

Mr. Hoizumi looks back on the business as follows: “Honda Trading Vietnam has multiple sales departments, among which the Steel department's operations are a special case due to the nature of its products and business processes. Despite the business turning out well, the Steel department encounters a problem with some customers who have specific requirements. These requirements not only pertain to the products but also extend to paperwork, such as invoices and delivery notes. Though some quality check methods were implemented, occasional human errors still occurred, leading to an increased workload for all employees, which is in direct contrast to the initial goal set at the start. During this time, we realized the need for a new and extraordinary approach compared to our past practices.”

Photo of President of Honda Trading Vietnam: Mr. Hoizumi Katsutoshi (Left)
and Project Manager Mr. Chatchai Sithipongsathorn (Right)

To address these challenges, Honda Trading Vietnam, in collaboration with the ABeam Vietnam DX consultants, initiated a pilot project for the Steel department. After careful consideration, the company selected one invoice creation process that involved ten associates working simultaneously throughout the day. This process required employees to read data from various sources, perform calculations, and send invoice requests to the accounting department. After three months of project execution, the pilot project yielded exceptional results within the Steel department, including:

• A 60% reduction in processing time (saving more than 2000 hours annually), resulting in faster invoice approvals.
• Improved data accuracy, eliminating costly errors and reconciliation discrepancies.
• Employees were relieved from mundane tasks, enabling them to focus on value-added activities.

With these outstanding figures and outcomes, Honda Trading Vietnam knew that they had made the right decision. The trial project had a significant impact on all Steel department employees. Robotic Process Automation (RPA) dispelled doubts in the minds of Steel associates, transforming their thoughts from "Why do we need this tool when we can do it ourselves?" to "Can we apply this to other processes as well?". Morale is high, and now is “the time has come to expand the DX activities on a company-wide level”, as shared by Honda Trading Vietnam management.

After the resounding success of the pilot project in the Steel department, Honda Trading Vietnam embarked on an ambitious journey to extend Robotic Process Automation (RPA) to other departments within the organization. Encouraged by the remarkable results achieved, the company recognized the immense potential of RPA in transforming business processes across the board. With the goal of enhancing operational efficiency and unleashing the full potential of its workforce, Honda Trading Vietnam began collaborating with various departments to develop new Robots.

One of the subsequent success stories came from the Accounting & Finance department. Here, manual data entry and repetitive invoice creation were common challenges leading to unwanted errors and extra workload. By implementing RPA, the Accounting & Finance department experienced a significant reduction in processing time and errors, resulting in faster invoice approvals and streamlined Accounting & Finance operations. The newfound efficiency allowed Accounting & Finance department personnel to shift their focus to more valuable tasks and decision-making, thereby adding greater value to the organization.

To strengthen its RPA initiatives and ensure a sustainable approach, Honda Trading Vietnam established an internal DX Promotion team. Comprising skilled professionals well-versed in RPA development, deployment, and maintenance, this dedicated team played a crucial role in identifying automation opportunities, collaborating with departmental stakeholders, and seamlessly integrating RPA solutions into existing processes. As the team's successes accumulated, employees from various departments enthusiastically embraced the technology, recognizing its potential to alleviate them from mundane tasks and empower them to make more meaningful contributions. This cultural shift towards embracing digital transformation and automation further solidified the company's commitment to implementing RPA on a company-wide scale.

Honda Trading Vietnam embarked on an ambitious digital transformation (DX) initiative, recognizing the need to adapt to the evolving business landscape. To drive this transformation, together with ABeam Consulting Vietnam, the company started DX planning assessments on a company level. ABeam's first step was to conduct a thorough analysis of Honda Trading's existing business processes and operations. Working closely with Honda Trading Vietnam departments, through multiple workshop sessions, ABeam raised Honda Trading associates awareness about DX and encouraged employees to come up with improvement points together. A total of 48 DX candidate processes were selected based on their criticality to the business, potential impact on operational efficiency, and alignment with strategic objectives.

Over the course of the next three months, ABeam and Honda Trading collaborated extensively, leveraging ABeam's deep industry knowledge and expertise in emerging technologies. Together, they crafted a comprehensive DX implementation roadmap tailored to Honda Trading's unique business needs. The roadmap provided a detailed outline of prioritized initiatives, technology investments, and organizational changes necessary to achieve Honda Trading's DX goals.

The DX implementation roadmap encompassed various aspects, including Robotic Process Automation (RPA) to streamline repetitive tasks, Business Intelligence (BI) solutions to enhance data analysis and decision-making, Optical Character Recognition (OCR) to digitize all the documents and papers, and Low-code development to fulfill new system demands. Additionally, ABeam's season consultants provided valuable guidance on change management, ensuring that the transformation journey was embraced by Honda Trading's employees at all levels.

As the three-month project concluded, Honda Trading Vietnam had a clear and actionable DX roadmap that aligned with strategic objectives. By leveraging ABeam's expertise, Honda Trading gained a competitive advantage in the market, unlocking new levels of efficiency, innovation, and customer-centricity. The collaboration empowered Honda Trading to navigate the digital landscape confidently, positioning them for sustained success in the rapidly changing business environment. 

For the most crucial thing to proceed this project with local members, Mr.Chatchai shared: “To address these challenges and ensure a smoother digital transformation journey, we had prioritized thorough planning, clear communication, executive sponsorship, and an iterative approach that allows for adjustments based on lessons learned along the way. Additionally, seeking external expertise, collaborating with cross-functional teams, and continuously evaluating progress can contribute to a more successful transformation effort.”