Infrastructure

Trung Nguyên Legend Corp. modernizes IT with IBM Cloud to take coffee brand global

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Trung Nguyên coffee SAP ERPCoffee is one of Vietnam’s key exports, and the country produces millions of tons of Robusta and Arabica beans each year. Trung Nguyên Legend Corp.’s mission is to bring Vietnamese coffee culture to the world and become a major global coffee brand.

To make its expansion aims a reality, Trung Nguyên Legend Corp. must be lean and flexible enough to react quickly to market developments and seize new opportunities. To boost business agility, Trung Nguyên Legend Corp. chose to migrate its SAP ERP business applications to IBM Services for Managed SAP Applications.

The leading Vietnamese coffee

We produce, process and sell coffee products in more than 80 countries and territories. Our products include G7, the top instant coffee in Vietnam and a beloved brand all over the world, Trung Nguyên Legend café sữa đá (iced coffee with milk), Special Edition, Classic and the first and only oxygen-tight, biodegradable coffee capsules in the world. We also operate more than 10,000 coffee shops in Vietnam.

Trung Nguyên Legend is already a well-loved brand all over the world, not just in Vietnam. However, we face stiff competition from established, multinational corporations that have been operating in the sector for decades. To challenge the big players, we knew that we needed to modernize our business processes and systems.

We rely on SAP enterprise resource planning (ERP) applications to manage everything from production to our supply chain and distribution through to sales and finance. We used to run these mission-critical applications on on-premises infrastructure, which was time-consuming to manage, expensive to maintain and difficult to scale.

Choosing cloud computing

After weighing our options, we decided to move from on-premises infrastructure to a cloud model. We didn’t want the hassle of managing physical hardware anymore and, crucially, we wanted the ability to scale up operations rapidly when needed.

We looked at offerings from several cloud vendors and settled on IBM Services for Managed SAP Applications. We love the fact it’s a fully managed service. This means that, as well as taking care of all the back-end infrastructure, IBM also handles the application management and maintenance. The longstanding IBM collaboration with SAP gave us the confidence to entrust them with our most critical business applications.

IBM also helped us to migrate our SAP ERP applications to SAP HANA as part of our cloud modernization project. We worked closely with both IBM and a local SAP partner, Digi-InfoFabrica, to migrate to the SAP HANA platform before moving our entire SAP landscape to the IBM Cloud.

Optimizing operations

Running business processes in the IBM Cloud means we can scale capacity up and down whenever we want. All we need to do is ring up the IBM team. This means that we’re much better positioned to react to fluctuating market conditions and demands from the business. It will also make expanding into new markets so much easier.

Because Managed SAP Applications is a fully managed service, we no longer need to worry about our SAP landscape. This means that, instead of routine admin tasks, our IT team can focus on exciting new projects, including building e-commerce and omnichannel marketing platforms.

Moving to the cloud has also removed the need to invest in and maintain costly hardware systems. We estimate that this will reduce the total cost of ownership of our SAP landscape by 43 percent over the next five years.

We’ve also seen performance increase by a factor of 30 since migrating to SAP HANA on Managed SAP Applications. Reports are available more quickly and applications are running faster, so there’s no more waiting around with long loading times, and employees can work more productively.

Recipe for success

By migrating from on-premises infrastructure to super-flexible cloud computing, we have dramatically increased business agility.

The move to Managed SAP Applications represents a massive shift in the way we operate, making us a leaner, more agile, digital-driven company.

Looking to the future, we’re planning to harness IBM big data analytics, AI and blockchain technologies to forge smarter business operations and accelerate international growth. With support from IBM and SAP, we know we have what it takes to become a global coffee brand.

Read the case study for more details.

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