ENTROSOFT HELPING VIETNAMESE ENTERPRISES SOLVE SUPPLY CHAIN PAIN!
At least 3 times, Bosses will feel like they are lost in a maze when managing inventory? Goods are piling up in the warehouse but customers complain about missing products, money is "buried" in vain in inventory, the team complains about the confusing process, and competitors surpass you thanks to smoother operations.
“Uncontrolled inventory is the number one enemy of business cash flow,” said Nguyen Duc Tai, Chairman of Mobile World, at a conference in Ho Chi Minh City in 2022. According to KPMG Vietnam (2021), 46.9% of supply chain leaders in Vietnam consider inaccurate demand forecasting to be the main cause of inventory chaos, causing billions of dong in losses each year.
Inventory is not just a technical problem – it is a strategic pain that threatens your business’s profits, reputation, and survival. While you are struggling with inventory, your competitors have used modern technology to optimize the supply chain, deliver faster, and dominate the market. Entrosoft with its EntroSCM solution is the key to help you isolate and thoroughly solve the inventory problem, turning the supply chain into a competitive advantage. Let’s dive into the pain of inventory and how EntroSCM helps Vietnamese businesses overcome their competitors.
VIETNAMESE ENTERPRISES HAVE HEADACHES ABOUT INVENTORY MANAGEMENT
Inventory is the “heart” of the supply chain, but in Vietnam, it is often the source of major problems. Here is a detailed analysis of the inventory pain and its impact on businesses:
1. Inaccurate demand forecasting: “Guess wrong, pay dearly”
Incorrect forecasting of market demand is the leading cause of inventory disorder. According to Vietnam Report (2023), 60% of Vietnamese enterprises in the retail and manufacturing sectors have difficulty predicting demand, especially in the context of market fluctuations due to inflation and disruptions in the global supply chain. For example, in the textile and garment industry, many Vietnamese enterprises had to liquidate inventory at low prices in 2022 due to incorrect forecasts of orders from the US and EU.
Consequences: Excess inventory “burys” capital, increases storage costs, while shortages cause you to lose orders and customers. “Incorrect inventory is a failure of the entire system, not just the logistics department,” Mr. Tran Dinh Thien, former Director of the Vietnam Economic Institute, emphasized at a conference in Hanoi in 2023.
2. Manual warehouse management: “Confusing as a tangle”
Many Vietnamese businesses, especially SMEs, still use Excel or manual processes to manage their warehouses. A report by VCCI (2022) shows that 65% of small and medium-sized enterprises in Vietnam have not yet applied a modern warehouse management system, leading to errors in inventory, loss of goods, and delays in order processing.
Consequences: You don’t know exactly how much inventory you have, leading to over- or under-ordering. Employees spend hours manually counting inventory, while customers complain about out-of-stock items. Operating costs increase, efficiency decreases.
3. Storage costs eat away at profits
Logistics costs in Vietnam account for 16-20% of GDP, much higher than in Thailand (11-13%), according to Vietnam Investment Review (2023). Of which, storage costs are a large part, including warehouse rent, electricity, labor, and goods preservation. Long-term inventory also carries the risk of damage or obsolescence, especially in the food and fashion industries.
Consequences: Money “buried” in inventory cannot be circulated, reducing profits and investment capacity. A report from Supply Chain World suggests that businesses can save 25% on warehouse costs if they use effective inventory management technology.
4. Asynchronous data: “Information blindness”
Each department – warehouse, sales, purchasing – uses its own system, leading to messy data. “Disconnected data is the number one enemy of good decisions,” an expert on Business Insider once emphasized. According to PwC Vietnam (2022), 70% of Vietnamese businesses have difficulty integrating supply chain data, leaving leaders without a comprehensive view.
Consequences: You make decisions based on incorrect information, such as stocking unnecessary inventory or missing out on sales opportunities. Waiting time for reports from departments slows down your response to the market.
5. Pressure from customers and competitors
Customers are increasingly demanding fast and accurate delivery, while competitors are applying technology to optimize the supply chain. Vietnam E-commerce Report (2023) said that 80% of Vietnamese consumers expect to receive goods within 1-2 days. If you fail to meet this, they will switch to competitors. In the retail industry, "giants" such as Shopee and Lazada have invested heavily in automated warehouses, putting great pressure on local businesses.
Consequences: Lost customers, reduced revenue, and weakened competitive position. Have you ever felt helpless when your competitors deliver faster, even though your product is no worse?
6. Greening pressure (ESG)
International customers, especially from the EU and the US, require Vietnamese businesses to comply with ESG standards. According to GreenBiz, 80% of global businesses will be required to report on ESG by 2030, but many Vietnamese companies do not have tools to track carbon emissions from warehousing and transportation activities.
Consequences: Loss of opportunities to cooperate with international partners, reduced brand reputation, and difficulty attracting investors.
These inventory pains are not only technical issues but also strategic barriers that hold Vietnamese businesses back in the global race. To overcome them, you need a strong and smart solution.
ENTROSCM - BREAKTHROUGH ERP SOLUTION FOR SUPPLY CHAIN FROM ENTROSOFT
EntroSCM from Entrosoft is a specialized ERP system for supply chains, integrating AI, Big Data, and automation, designed to completely solve inventory problems and improve supply chain efficiency.
Accurate forecasting, no need to worry about shortages or surpluses: EntroSCM uses AI to analyze market trends, sales history, and economic fluctuations, predicting demand with high accuracy, reducing forecast errors by 30%. For example, in the food industry, EntroSCM helps you know exactly how much inventory to import to avoid spoilage or shortages during peak seasons.
Smart Warehouse Management: Track inventory in real time, automatically suggest goods based on demand, optimize warehouse space. EntroSCM helps reduce warehouse costs by 25% by reducing excess inventory and loss. The intuitive interface allows you to check stock quantities with just a few clicks, instead of spending hours manually counting inventory.
Comprehensive data synchronization: Connect warehouse, transportation, purchasing, and sales in a single system, ensuring data transparency and consistency. Easy-to-see dashboards provide a 360-degree view of your supply chain, helping you make quick and accurate decisions.
Accelerate delivery: Automatically schedule shipments, track shipments in real time, and integrate with carriers for on-time delivery. EntroSCM increased on-time delivery rates by 40%, meeting the expectations of Vietnamese and international customers.
Efficient Supplier Management: Evaluate supplier performance, manage contracts, and reduce risks through an integrated portal. EntroSCM helps you build strong supplier relationships and avoid disruptions like the 2021-2022 raw material crisis.
Absolute security: Encryption technology, digital signatures, and continuous monitoring protect the system from cyber attacks, ensuring uninterrupted supply chains.
Green support: Track carbon emissions from warehouses and transportation, generate international standard ESG reports (like GRI or CDP). EntroSCM helps you meet requirements from international partners, enhance brand reputation.
Flexible Management: Mobile-friendly interface and optimized web application (PWA) let you check inventory, shipping, or suppliers anytime, anywhere, whether you're in the office or on the go.
TOP 5 BENEFITS THAT ENTROSOSCM BRINGS TO BOSSES
EntroSCM not only solves inventory problems but also helps Vietnamese businesses overcome competitors in the context of fierce competition:
1. Increase profits: Reduce warehouse, shipping, and operating costs, increasing profit margins by 20%, according to research from Supply Chain Quarterly. You have more resources to invest in expanding or improving your products.
2. Make fast, right decisions: Intuitive dashboards and real-time reports give you instant visibility.
“A good leader is one who simplifies things so that people can understand them,” Colin Powell once said, and EntroSCM helps you do that.