Wood (Indoor/Outdoor/..) Production

The wood processing industry and interior - exterior furniture manufacturing industry has a very ancient history of development, parallel to human development. Wood processing and producing wood products (carpentry) to serve human life and activities such as houses, tables and chairs, beds, cabinets, ... are traditional crafts of almost every ethnic group in the world.

However, along with the development of society and science and technology, wood processing and interior - exterior furniture have been industrialized, mass-produced in large quantities in factories, applying a series of machines from simple to complex. Craft carpentry is still there, but the main focus is on custom-made products that need the ingenuity, meticulousness, and creativity of the craftsman in the direction of the station, sculpture.

Despite being affected by the Covid-19 epidemic, in 2020, Vietnam surpassed Poland, Germany, and Italy, second only to China in the top of countries exporting wood and wood products in the world. In 2020, the export turnover of forest products reached 13.17 billion US dollars, up 16.4% over the same period in 2019. The export value of timber and forest products in the first 6 months of 2021 is estimated at 8.71 billion USD, an increase of 61.6% over the same period in 2020, the export value orientation of over 12 billion USD is completely feasible in 2021.
 

In the context that the global wood production and processing industry has many difficulties when the US - China trade war is increasingly tense, Vietnam's wood exports have a huge advantage. This is one of the few industries that has grown every year for the past 18 years despite the world economy in crisis, even with double-digit growth years, such as in 2019 and 2020 despite Covid-19. Vietnam is currently the fourth largest wood exporter in the world, the second largest in Asia. In 2019, exports reached 11.8 billion USD, in 2020 more than 12.5 billion USD.

However, this industry also has the following big challenges:

• Labor resources are in short supply due to the epidemic situation and there is a shift of labor to other industries.
• The production of this industry needs to build factories and large warehouses, but land prices are getting higher and higher, many businesses want to expand production but do not have land funds.
• The third challenge is the pressure of digital transformation that forces businesses to adapt quickly from design, production technology and especially digital commerce.

Enterprises in the wood and furniture industry mainly produce according to Orders/Consts, so the monitoring process from the Business stage - Production planning - Preparation of production materials - Production statistics - Warehouse of semi-finished products must be attached to Orders/Cons contracts. Therefore, businesses face difficulties in the planning stage, importing raw materials, machinery and equipment according to the "Just In Time" principle.

For Sales Department:

• In addition to fixed products, customers often generate new samples, so they must have a "Sample Design" according to the description or a sample product available provided by the customer, after agreeing, a "Sample product" will be produced.
• Support in determining "Cost Estimate", which is the basis for making Price Lists for customers.
• Support the sales department to determine the delivery response time based on the factory's production capacity and production productivity for each product code.
• After signing the Order/Cont, it is necessary to manage the changes arising at the request of the customer.
• Track the production progress according to each order and the expected delivery time according to the actual production.
   

For the Purchasing Department:

• Support to determine the Purchase Plan to optimize inventory but still ensure full Materials for the Production Plan and reserve for the Sales Plan.
• Manage and balance materials to meet the regular fluctuations of the Production Plan.
• Determine the inventory cycle and turnover from time to time to make a suitable purchase plan.
• Support good control and evaluate the price fluctuation history of each type of Material to have suggestions for choosing a supplier that is suitable for the purchase demand with the best cost.
• Evaluate and rank Suppliers to make the right choice, bringing the best benefits to the company.
   

For Warehouse Management:

• Manage export-import-warehous in batch, by location, by expiration date for raw materials and supplies with expiration date.
• Determine the appropriate maximum and minimum inventory.
• Control the export of materials/import of semi-finished products, finished products according to production orders.
• Manage the amount of available inventory according to Purchase Order and Production Order.
   

For Production Management:

• Actual Planning and Production associated with Orders/ Contracts.
• Batch Production Control, is the basis for tracking future production batches.
• Production requirements are often changed, so planning, preparation (personne, materials, machinery, ...) and production implementation must also be changed accordingly.
• Production Orders must be broken down to each stage with suitable production output based on the inventory balance of each Stage of Semi-Finished Products.
• Must be able to balance Materials for production, allowing the replacement of Materials at the time of Planning and being the basis for controlling Materials for Production later.
• Must support the Production Planning Department to make an automatic production plan based on the productivity of production resources (machinery/ labor/ ...) according to each specification of the product code according to the production stage.
• Good support for Quality work (QC) in production stages.
• Statistics of Production Results on the line at each stage of production and the actual Consumable Materials for each stage of production.
• The Planning Department can immediately track the production progress, the expected production progress based on actual production and the expected delivery time. Support the department to plan which scenario is suitable to meet the committed progress based on the actual situation (Hork time, increase production resources,...)
   

For Machine and Equipment Management:

• Need to have a maintenance plan, maintenance of machinery and equipment.
• Plan and implement maintenance and maintenance in accordance with the production plan.
• Must anticipate the need for regular and unexpected materials to serve the periodic maintenance and repair, quickly fix unexpected machine failures.
• Must have a history of maintenance, maintenance, repair of machinery and equipment along with a list of suppliers of materials, equipment, transaction history, price, delivery time, ...
• It is necessary to have information data on the number of operating hours of the machine, the number of stampings of the mold, ... to warn of the need to maintain machinery and equipment, prevent unexpected failures.
   

With in-depth knowledge and experience in research, analysis and development of Enterprise Resource Planning (ERP) Solutions in Europe. We build ExpertERP Solutions according to advanced technology, international standards with a process that both meets the multidisciplinary direction and can solve specific problems and intensive management requirements by industry.

With a team of experienced experts, successfully deployed for pharmaceutical manufacturing businesses in Vietnam. ExpertERP Total Management Solution applies to all business - production activities of enterprises, thanks to the application on a single platform of systems, software and databases, the flow of information data ensures transparency, seamless, instant, accurate. Allow access to data and statistics, instant reports, "Anytime - Anywhere - On any device", support the Leadership to make timely and correct decisions.

The Covid 19 pandemic situation will continue to have a bad impact and cause many difficulties for production - business activities of enterprises in general, the wood processing and furniture industries in particular. However, this is a favorable time for businesses to stabilize, re-regulate all activities, and move towards a comprehensive "DIGITAL TRANSFORMATION" of the company. If you want to be highly capable of improving management, increasing labor productivity, and increasing profit margins, you must digitize all core activities of the enterprise, which is the Application of ENTERPRISE RESOURCE PLANNING (ERP) SOLUTION. With successful deployment experience for many businesses in the industry, GMC's ExpertERP Solution will help your business achieve these key goals.

• Manage all potential and traditional customer information, allow marketing and advertising campaigns to be carried out according to company policies.
• Manage all care activities, exchange-work information, customer pursuit of the marketing - sales team. Help manage "Design & manufacture sample products" activities, calculate the planned cost & expected delivery time to build a price list according to customer requirements.
• Support the sales department to track the production progress according to each management order and determine the delivery time based on the actual production to help increase the quality of customer service.
• Help manage all supplier information, transaction history, price, payment policy, delivery, product warranty service quality, supplier evaluation.
   

• Support the Purchasing Department to make a purchase and supply plan based on the company's general business & production plan. Help track and manage orders from the time of purchase to the time of return to the warehouse, quality inspection, warehouse.
• Support the Human Resources Department to manage all employee information, shift division, timekeeping, salary calculation, bonus, social insurance-health, insurance-personal, income tax, ... Establish, evaluate and monitor personal productivity targets (KPI) for each department, department.
• Support in building Sales - Purchasing - Supplying - Production Plans.
• Automatic planning of production plans based on the production capacity of each production resource in the factory by the ability to determine the productivity of machinery/manpower/tools according to each product Spec in each stage.
• From the production plan according to order/contract (Make to order) or production into the warehouse (Make to stock), it is possible to immediately refer to the data on available inventory; ordered goods; goods on the way to the warehouse; semi-finished products (in stock; on the line), ... calculate resources (NVL-Suppliance-Machinery-Workers-Time) to meet the production requirements of the order/contract or warehouse.
• Especially production statistics by stage by mobile app, simple, easy to use, instant and accurate data, helping the Board of Directors have "real time" aggregate data to make timely and correct decisions.
• All production - business data entered by departments and departments will be run to the Accounting-Finance Department to check, verify, calculate inventory, costs, profit and loss, balance cash flow and expenditure, loans, investment, ... immediately advise when the Board of Directors needs reporting data.