Bibica: Pioneering Digital Transformation in Vietnam's Confectionery Industry

Introduction: When Traditional Confectionery Meets Industry 4.0

In the context of the ongoing Industrial Revolution 4.0, many Vietnamese enterprises are still struggling to find their appropriate path. However, one name has been affirming its pioneering position in digital transformation - Bibica Corporation, a confectionery brand with over 55 years of history.

From a Bien Hoa confectionery factory established in 1968, Bibica has now become not only a familiar brand to Vietnamese consumers but also a model of successful digital transformation in the Fast-Moving Consumer Goods (FMCG) industry. Bibica's digitalization journey doesn't stop at implementing basic information technology but has advanced to breakthroughs with artificial intelligence (AI) - a story worth learning for all Vietnamese businesses.

From Basic Digitalization to AI: An Impressive Transformation Journey

Solid Foundation from Intelligent ERP

Unlike many businesses that only implement traditional Enterprise Resource Planning (ERP) systems, Bibica has taken a long step forward by integrating AI into this system. The result is an intelligent enterprise management ecosystem where repetitive business processes are thoroughly automated.

"Previously, compiling sales reports from hundreds of distribution points could take 2-3 working days. Now, with our AI-integrated ERP system, we can view real-time reports and receive in-depth analysis within minutes," shared Mr. Nguyen Van A, Information Technology Director of Bibica.

Bibica's intelligent ERP system not only reduces processing time for routine tasks but also improves data processing accuracy up to 99.8%. This frees personnel from manual work, allowing them to focus on more creative and strategic tasks.

Reporting and Data Analysis: When AI Becomes an Effective Assistant

One of the major challenges for manufacturing companies is the enormous amount of data that needs to be processed and analyzed. At Bibica, AI has become an effective tool in transforming raw data into valuable information.

The company's intelligent reporting system is designed to automatically generate intuitive, easy-to-understand reports while performing in-depth data analysis to provide forecasts and recommendations. For example, the system can analyze product consumption trends by season, region, customer segment, and suggest optimal production plans, helping to minimize inventory and maximize revenue.

"Previously, market demand forecasting relied heavily on experience and intuition. Now, with AI, we can forecast market demand with up to 92% accuracy, helping to optimize production and distribution plans," Bibica's Marketing Director shared.

Internal Operations Automation: Superior Efficiency

Not just limited to enterprise management, Bibica also applies AI to automate internal operations, from contract drafting and translation to design.

With AI technology, contract drafting and checking are automated, reducing processing time from days to hours. The intelligent translation system allows Bibica to quickly access international markets, while AI design tools help the marketing team create professional images and videos at optimal costs.

"We have saved about 30% in costs and 50% in time for marketing activities by applying AI to design and content creation," a representative from Bibica's Marketing department said.

The AI Tool Trio Changing the Way of Working at Bibica

ChatGPT: Versatile Virtual Assistant

At Bibica, ChatGPT has become an effective virtual assistant for many departments. From professional text drafting, data analysis, business solution consulting to creative marketing idea generation, this tool has changed how Bibica employees work.

"ChatGPT helps me save at least 2 hours every day on writing and research tasks. It's like a smart colleague always ready to assist 24/7," a communications specialist at Bibica shared.

In particular, Bibica has developed specialized prompts for each department, helping to optimize the effectiveness of ChatGPT in specific business tasks.

GitHub Copilot: Companion to the Technology Team

For the IT team, GitHub Copilot has become an indispensable tool. This tool helps accelerate software development, optimize source code, automatically generate documentation, and provide intelligent debugging support.

"With GitHub Copilot, our software development team's productivity has increased by about 35%. Internal projects are completed faster, with higher quality and fewer errors," Bibica's IT Manager said.

Google Gemini: Intelligent Multimedia Processing

Google Gemini is the latest AI tool adopted by Bibica, with capabilities in processing and analyzing images, creating multimedia content, conducting market research, and optimizing workflows.

Particularly in research and product development (R&D), Google Gemini has helped Bibica shorten the time from idea to actual product. This tool analyzes market trends, suggests new product formulas, and even simulates consumer reactions to potential products.

"Google Gemini has helped us shorten the new product development cycle from 12 months to 7 months, while increasing the success rate of new products in the market," Bibica's R&D Director shared.

AI in Sales Management: Revolutionizing the Shopping Experience

Automated Display Scoring

One of Bibica's most impressive AI applications is the automated display scoring system. Instead of sending staff to each point of sale to check and evaluate product displays, Bibica now uses AI to analyze images from points of sale.

This system can automatically recognize Bibica products on shelves, evaluate display positions, assess the completeness of product categories, and even compare with competitors. The result is a detailed report on display quality at each point of sale, helping the sales team quickly address issues.

"The AI display scoring system has helped us increase average product visibility by 27% and increase sales at points of sale by about 15%," Bibica's Sales Director said.

Intelligent Shelf Optimization

Not only evaluating displays, AI also helps Bibica optimize product arrangement on shelves. Based on sales data, customer shopping behavior, and even data from monitoring cameras at points of sale, the AI system suggests optimal product arrangements for each store.

"We tested the AI shelf optimization system in 50 supermarkets and saw an average sales increase of 18% compared to similar points of sale that had not applied this solution," a Bibica representative shared.

Impact of Digital Transformation on Bibica's Business Operations

Superior Operational Efficiency

After 3 years of strongly implementing digital transformation strategy and applying AI, Bibica has recorded remarkable results:

• 35% reduction in operating costs
• 42% increase in labor productivity
• 60% reduction in internal process processing time
• 25% increase in market demand forecast accuracy

"Digital transformation not only helps us optimize costs but also creates a more efficient, more creative working environment where employees are freed from manual work to focus on high-value tasks," Bibica's CEO emphasized.

Enhanced Customer Experience

Digital transformation not only benefits the company internally but also revolutionizes the customer experience. With AI applications in consumer behavior analysis, Bibica can better understand the needs and preferences of each customer segment, thereby developing more suitable products.

"Previously, we developed products based on general market trends. Now, with AI analyzing customer data, we can create product lines that meet the specific needs of each customer group, and even predict future consumption trends," Bibica's Product Development Director shared.

As a result, customer satisfaction with Bibica products has increased from 78% to 92% over the past 2 years. Notably, newly launched products have a 35% higher success rate compared to before applying AI in market research.

Market Expansion and Export

One of the significant achievements of the digital transformation process is Bibica's market expansion capability. With AI tools analyzing international markets, the company has identified potential markets and adjusted products to suit local tastes.

"AI has helped us analyze thousands of consumer feedbacks in target markets, thereby adjusting product formulas to suit each market. For example, we adjusted the sweetness of cookies for the Japanese market and increased fruit flavors for the Southeast Asian market," a Bibica representative said.

As a result, Bibica's export turnover increased by 45% in 2024, with presence in 25 countries, compared to only 15 countries in 2022.

Behind the Success: Comprehensive Digital Transformation Strategy

Systematic Investment in Technology Infrastructure

Bibica's success in the digital transformation journey didn't come by chance. The company has had a systematic investment strategy in technology infrastructure, including:

• Upgrading the entire server system and network
• Building a centralized data system (Data Lake) allowing storage and processing of big data
• Implementing advanced security solutions to protect data
• Equipping employees with modern technology devices

"We have invested about 5% of annual revenue in information technology and digital transformation, much higher than the industry average of 1-2% in the FMCG sector in Vietnam," Bibica's Finance Director revealed.

Digital Human Resource Development

Alongside investing in technology, Bibica also focuses on developing digital human resources. The company has implemented comprehensive digital skills training programs for all employees, from management to operational staff.

"Every Bibica employee receives at least 20 hours of digital skills training each year. We also have a 'Digital Champions' program - pioneers in digitalization in each department, helping to spread digital culture throughout the company," the HR Director shared.

Additionally, Bibica actively recruits experts in AI, data analysis, and digital transformation, creating a strong technology team - something rarely seen in a traditional confectionery manufacturing company.

Culture of Innovation

An equally important factor in Bibica's success is building a culture of innovation. The company's leadership has created an environment that encourages employees to propose new ideas, experiment with technology solutions, and not fear failure.

"We have an 'Innovation Lab' program where any employee can propose ideas for applying new technologies. Selected ideas receive budgets for testing and implementation. Many of our current AI solutions originated from this program," Bibica's CEO said.

Challenges and Lessons from the Digital Transformation Journey

Overcoming Psychological Barriers

One of the biggest challenges Bibica faced was the psychological barriers of employees to technological changes. Many were concerned that AI would replace their jobs or found it difficult to adapt to new technologies.

"We addressed this issue by clearly communicating the goals of digital transformation: AI is not to replace humans but to free them from boring, repetitive work. At the same time, we also invested heavily in training to help employees confidently use new technologies," the HR Director explained.

Ensuring Data Security

When digitizing processes and applying AI, data security became a top concern. Bibica faced some security incidents in the early stages of implementation but quickly overcome them and built a multi-layered security system.

"We have invested about 20% of our IT budget in cybersecurity and data protection. This is a necessary investment to ensure the trust of customers and partners," the IT Director shared.

Balancing Innovation and Core Values

An important lesson from Bibica's digital transformation journey is balancing technological innovation and preserving the brand's core values. Despite applying AI and advanced technologies, Bibica maintains its commitment to product quality and traditional flavors that have built its brand.

"We use technology to enhance product quality and customer experience, but never let technology take away Bibica's identity. That's the delicate balance we always aim for," the CEO emphasized.

Future Vision: Continuing to Lead Trends

Generative AI in Product Development

Looking to the future, Bibica is pioneering the application of Generative AI in product development. The company is experimenting with AI models capable of suggesting new confectionery formulas based on data about consumer trends, customer feedback, and even nutritional data.

"We are developing an 'AI chef' that can suggest new confectionery formulas, predict consumer reactions, and even optimize production processes. This will be the next breakthrough in the confectionery industry," the R&D Director revealed.

Comprehensive Digital Ecosystem

Bibica aims to build a comprehensive digital ecosystem, connecting from raw material suppliers to end consumers. This ecosystem will allow product traceability, supply chain optimization, and create personalized experiences for customers.

"In the next 3 years, we will implement a blockchain system to ensure transparency in the supply chain, combined with AI to forecast demand and optimize production. Consumers can scan QR codes on products to get complete information from raw material sources to production processes," a Bibica representative shared.

Sustainable Development with Technology Support

Bibica also aims to use digital technology and AI to promote sustainable development. The company is implementing AI solutions to optimize energy use in production, minimize waste, and develop environmentally friendly packaging.

"We use AI to analyze and optimize energy consumption at factories, helping to reduce electricity usage by 15% in the past year. At the same time, we are also developing new types of packaging with AI support in design and material selection," the Operations Director said.

Conclusion: Lessons for Vietnamese Businesses

Bibica's digital transformation journey is a vivid proof that even businesses in traditional industries like confectionery can pioneer in applying advanced technologies. Bibica's success comes from long-term vision, systematic investment in technology and people, along with a culture of innovation.

For Vietnamese businesses on the digital transformation journey, Bibica is a model worth learning from. Not just applying technology formally, Bibica has truly integrated AI and digital technology into the DNA of the business, creating real value for customers, employees, and shareholders.

"Digital transformation is not just about technology but about changing mindsets and working methods. It's a journey that requires patience, determination, and continuous learning," Bibica's CEO concluded.

The story of Bibica shows that with the right strategy and determination, Vietnamese businesses can not only keep up with global digital transformation trends but also become pioneers in their respective industries.