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Today's warehouses in Vietnam face numerous unresolved issues requiring attention
Warehousing, within the logistics framework, represents a subset of logistical warehousing activities. It is understood as a hub for the accumulation, storage, and preservation of various goods like raw materials, finished products, or machinery to support business and manufacturing endeavors. Logistics warehousing, on the other hand, encompasses a broader spectrum, serving as a venue where businesses engage in supply chain-related services including production, sorting, packaging, inventory management, import-export activities, etc., all aimed at catering to the business needs of service-using companies.chgcvvgg
Logistics plays a crucial role in bolstering the economy, not just locally but globally, by meeting the escalating consumer demands and living standards. Especially in an era of economic integration, the logistics sector is poised for significant growth. According to VnEconomy, by 2025, the logistics growth rate is projected to reach 15-20%, a figure substantially higher than the country's overall GDP growth.
However, looking at the GDP contribution by sector, as of the first quarter of 2023, the Transportation and Warehousing sector ranks fifth among 21 economic sectors, contributing 5.29% to the GDP. This underscores the indispensable role of logistics warehousing not just as a bridge between sellers and buyers but as an economic domain fostering robust and sustainable national development.
The chart showing the GDP contribution ranks the warehousing sector in fifth place
Despite its vigorous development in recent years, still harbors numerous unresolved issues, potentially leading to regression and diminishing the industry's competitive edge if not promptly addressed. Here are three of the most apparent warehousing realities in Vietnam.
The business market in our country is currently vibrant, leading to a surge in business and manufacturing entities. Moreover, Vietnam is increasingly targeted by foreign giants for production expansion through the establishment of factories and manufacturing workshops in high-tech zones.
However, land for lease in industrial parks is becoming scarcer, partly due to restrictive investment and land use planning. Additionally, the recent surge in real estate lease/sale prices has deterred businesses from investing in infrastructure development.
The complexity of fire incidents is well-documented by major news outlets and television channels. Fires lurk, awaiting a minimal catalyst, leading to regrettable losses in human lives and property.
Some units or organizations, either due to a lack of knowledge or despite it, hesitate to invest a significant amount and halt operations to upgrade warehouse infrastructure to meet comprehensive fire safety standards. This mindset overlooks all fire-related risks, representing one of the biggest warehousing issues necessitating governmental intervention for timely resolution.
Fire safety is a focal issue for business premises, especially warehouses
Although many students pursue logistics, and companies annually recruit to find personnel to join their ranks, the essential need is for highly specialized staff. Working in a warehouse might be perceived as mundane and unremarkable, hence the management and operation of warehousing face numerous challenges.
Challenges in tightly controlling inventory to ensure a constant supply for the market, minimizing damage, shortages, or misplacements of goods in the warehouse are evident.
Challenges in streamlining and arranging goods for convenient import and export processes, yet fulfilling operational criteria concerning time and productivity to maintain the brand and company's reputation.
And the final challenge lies in dealing with low-skilled personnel, lacking a comprehensive understanding of immutable warehouse management methods. This leads to improper goods arrangement according to their characteristics, resulting in cost losses for expired products or market price fluctuations.
Lack of highly qualified personnel at the warehouse
To overcome factors hindering growth in Vietnam's warehousing sector, we suggest three remedial solutions that can be readily implemented.
Vietnam's warehouses are now equipped with numerous storage racks, optimizing storage area so companies can accommodate more goods. These racks also support product management and preservation, facilitating easy access for warehouse operators.
The current diversity of storage racks meets all storage needs, regardless of warehouse size. For a clearer understanding of each rack type, search for “Eurorack storage racks” to discover over ten different rack types with detailed information on composition, technical specifications, and operation.
Investing in human resources is never wasteful. To acquire quality personnel capable of managing work specific to the company's nature, businesses need to invest time and money in courses, or ideally, invite experts from the field to train employees directly at the workplace.
Eurorack storage racking system in warehouses
Although not yet widespread in Vietnam, smart warehouses represent the future trend for enterprises, as manual operations will be replaced by robotics, significantly enhancing warehouse productivity and thus, making business operations more efficient.
We've all witnessed tools that assist in managing inventory, enabling updates on the latest price information, product specifications, new stock arrivals, and sending periodic reports to managers about inventory changes within a set timeframe.
Imagine the efficiency of a warehouse where all loading and unloading tasks are performed by robots. Robots would automatically execute all pre-programmed commands via the management interface, such as identifying where to pick up items, retrieving the exact quantity required, and placing them in the correct location. This would minimize operational collisions and save managers a significant amount of time for other tasks.
Issues will continue to grow if not timely recognized and addressed with effective solutions. Utilizing storage rack systems, improving employee expertise, and managing smart warehouses are among the efficient methods to smooth and secure all activities within the warehouse, helping businesses achieve
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EURORACK MECHANICAL JSC
Hotline: 0938 520 379
Mail: info@eurorack.vn
Website: eurorack.com.vn
Address: No. 5/3 Doan Thi Diem Street, Ward 1, Phu Nhuan District, HCMC, VietNam
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