In the first quarter of 2024, Vietnam’s textile market witnessed a strong recovery, with garment export revenue reaching $9.5 billion, an increase of 9.6% compared to last year. Export volumes to major markets such as the US, Japan, and China also saw impressive growth, signaling a global demand rebound. Exports to the US hit $3.42 billion (up 8.6%), Japan reached $1.02 billion (up 10.1%), and China saw a surge of 19.4%, reaching $0.82 billion. This growth reflects a positive phase of development for Vietnam’s textile and garment industry, showcasing a strong shift aligned with global trends and increasing demand for quality as the international market stabilizes.
Playing a crucial role in the global supply chain, textile manufacturing plants in Vietnam are actively investing in new technologies, improving production processes, and enhancing working conditions. This innovation boosts productivity and competitiveness in the international market and opens up long-term development opportunities. However, businesses are also facing challenges such as fierce competition, stringent product quality requirements, and increasing customer expectations.
1. Challenges in inventory management for the textile manufacturing industry
In textile manufacturing industry, managing large volumes of inventory while dealing with various stock types alongside significant challenges.
Difficulties in sorting and organizing inventory: Fast-moving inventory, slow-moving inventory, and non-moving inventory each require different managing and handling approaches:
Fast-moving inventory:
Definition: These are raw materials, supplies, or finished products that have a high turnover rate and are frequently used or shipped in a short amount of time.
Example: In the textile industry, items like cotton fabrics, common trims like zippers, buttons, or sewing threads are considered fast-moving inventory. These materials are constantly being used to meet large orders from retailers or fashion brands.
Slow-moving inventory:
Definition: These are materials or products that have a slower turnover rate, used less frequently, but are still needed for specific orders or certain times of the year.
Example: Specialized fabrics like high-end silk, lace, or unique decorative accessories for seasonal fashion collections fall into the slow-moving inventory category. These materials are not used regularly but are essential for specific custom orders.
Non-moving inventory:
Definition: This refers to items that have not been used or sold for an extended period, possibly becoming outdated or no longer in demand.
Example: Fabrics that are no longer in style, obsolete buttons, or surplus materials from old projects that are no longer used in current production would be classified as non-moving inventory.
The wide variety of designs, sizes, and colors in the textile industry creates difficulties in sorting and managing inventory. Accurate identification and categorization can help optimize warehouse space and improve operational efficiency. If not managed properly, companies may face challenges in organizing their stock, leading to inefficient use of storage space. During transportation, materials can be damaged if not properly packaged and stored. Impacts, vibrations, and poor weather conditions can harm both raw materials and finished products.
Storage and Preservation Challenges: With slow-moving and non-moving inventory, long-term storage can lead to deterioration and decreased quality, especially for sensitive items like fabrics or other garment materials. When rolls of fabric or yarn are stacked too high, the pressure from the top layers can cause deformation or compression, leading to damage. This not only wastes resources but also risks damaging the company's reputation if subpar products reach customers.
Inventory Management Challenges: Managing large amounts of inventory requires precise and timely tracking systems. Without an efficient warehouse management system (WMS), companies may lose control over slow-moving or non-moving stock, leading to the accumulation of unnecessary items, higher storage costs, and slower turnover of new products. Ineffective warehouse management can also result in raw materials not being regularly inspected, failing to catch early signs of deterioration, or not performing necessary maintenance measures.
2. Warehouse management solutions for the textile manufacturing industry
Blue Yonder WMS is not just a warehouse management software, it is an effective solution that helps textile manufacturers boost productivity, reduce costs, and improve product quality while responding to market demands more quickly.
Real-time inventory visibility: With real-time tracking of every type of material from fabrics and accessories to sewing threads, Blue Yonder WMS helps businesses optimize production planning, allocate materials efficiently, and minimize waste. This allows companies to better control costs and increase production efficiency. In addition, with the ability to accurately pinpoint the location of goods, manage inventory by batch, optimize warehouse space, and set up multiple classification logic rules, Blue Yonder WMS helps businesses maximize warehouse utilization, reduce search times, and minimize errors during stock in or out processes. This not only improves operational efficiency but also lowers warehouse operating costs.
Data-driven decision making: With the ability to analyze data and forecast demand trends, especially in the textile industry, where consumer preferences and seasonal trends are constantly shifting. WMS systems assist businesses in planning their production and inventory more effectively. This helps avoid resource waste and prevents obsolete products. The system also optimizes manufacturing processes by tracking materials from receipt to product distribution. Analytical tools can identify areas for improvement, allowing businesses to shorten production times, enhance productivity, and reduce costs.
Supply chain process optimization: Blue Yonder WMS offers a comprehensive view of the supply chain, enabling businesses to collaborate efficiently with partners from material suppliers to distributors, ensuring continuous product flow to meet market demand. Moreover, the system provides detailed analytics reports, allowing businesses to assess the performance of different warehouse areas. This enables strategic adjustments to production and warehouse operations through automation and tight inventory management, improving overall operational efficiency. This results in reduced operational costs, improved process efficiency, enhanced service quality, rapid response to changing market demands, and increased customer satisfaction.
Easy API integration: One of Blue Yonder WMS's standout features is its flexible integration with other systems such as Material Handling Equipment (MHE), Real-time Location Systems (RTLS), and Transportation Management Systems (TMS).
Material Handling Equipment (MHE) includes equipments like conveyors, automated forklifts, and warehouse robots that optimize the transportation and handling of merchandise, from raw materials to finished products. This not only reduces errors and increases productivity but also improves order processing accuracy, ensuring that the right items and quantities are delivered to the correct locations.
Real-time Location Systems (RTLS) track the location of goods and equipment in the warehouse using technologies like RFID or GPS. Additionally, RTLS manages batches of materials or products with short life cycles. Accurate tracking of each batch helps businesses quickly locate the necessary materials for production or products ready for dispatch, accelerating warehouse operations and improving efficiency.
Transportation Management Systems (TMS) enable better management of goods delivery from the warehouse to retail stores or directly to customers. This system optimizes delivery routes and provides precise information on delivery times, minimizing the risk of delays or misdeliveries, and helping businesses meet the rapidly changing demands of the fashion market.
Integrating Blue Yonder WMS with MHE, RTLS, and TMS creates a smart warehouse ecosystem that enhances efficiency and accelerates response to customer needs.
3. Case study: The digital warehouse transformation of Pacific Textiles
Pacific Textiles, a leading textile manufacturer with nearly 30 years of experience and two major facilities in Hong Kong and Vietnam faced increasing complexity in warehouse operations. They realized that their legacy system was no longer adequate to support their supply chain. With the expansion of the new factory in Vietnam, Pacific Textiles chose to implement Blue Yonder's warehouse management system (WMS) to enhance operational efficiency and meet the demanding requirements of the textile industry.
“We knew we needed a modern warehouse management solution that could scale with our business. The recent opening of a new factory in Vietnam will increase the complexity of our operations. Additionally, as we seek to gain operational efficiencies through automation, we needed an agile platform that allows for easy integration. We selected Blue Yonder due to their robust, scalable, and integrated Warehouse Management solutions. Blue Yonder’s reputation for innovation and its proven track record of successful implementations across various industries were key factors in our decision,” said Hubert Tsang, CIO of Pacific Textiles.
4. About Blue Yonder Warehouse Management System (WMS)
In today’s increasingly complex supply chain management landscape, Blue Yonder stands as a leader in providing cutting-edge warehouse management solutions, helping businesses optimize everything from inventory tracking to automating processes. As one of the largest supply chain management solution providers in the U.S., with over 3,300 global clients, Blue Yonder has consistently ranked as a top WMS leader by Gartner for over 15 years.
In Vietnam, Total Solution Logistics (TSL) is the exclusive partner for Blue Yonder solutions, offering local businesses the opportunity to access world-class technology. With integrated AI and Machine Learning (ML), Blue Yonder WMS increases operational efficiency, minimizes errors, enhances profitability, and supports businesses in competing within a global market.
5. Về TSL - Đối tác chính thức của Blue Yonder tại Việt Nam
To ensure that Vietnamese businesses maintain their competitive edge in the global market, Total Solution Logistics (TSL) continuously innovates with advanced logistics technology. Combining comprehensive solutions in software, hardware, and consulting services, TSL helps companies optimize every aspect of their supply chain—from warehouse management to last-mile delivery. Partnering with TSL ensures that businesses stay at the forefront of technology while boosting operational efficiency across industries like 3PLs, retail, distribution, manufacturing, and e-commerce.
With over 100 clients and 70+ successful projects, TSL delivers comprehensive solutions in warehouse and transportation management, as well as a range of other supply chain services. In addition to software solutions, TSL provides barcode equipment from Honeywell and Zebra, ensuring seamless integration into production lines. TSL also offers consulting services and technology infrastructure that helps businesses achieve international standards across all operations.
Contact us now to receive free consultation and demo with TSL experts on the world's leading warehouse management solution.
Hotline number: (+84) 28 665 08307
Email: info@tsl-group.vn
Website: https://www.tsl-group.vn/
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