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How to Solve the Management Difficulties in the Home Furnishing Industry with Foreign Trade Software

2023-05-19

The furniture industry belongs to the category of decoration industry. If the sale is in the retail industry, if the production is in the processing industry, and if it is in the processing industry, it can also be called the secondary processing industry. The home furnishing industry generally refers to furniture, bedding, kitchen and bathroom utensils, indoor accessories, and daily necessities, and belongs to the category of consumer products industry.

The home furniture industry is relatively representative in China's light industry and holds an important position in global home furniture export trade. According to data statistics, as of the end of 2022, there were 5561 enterprises above designated size in China's furniture industry, an increase of 271 compared to 2021; Realized a main business revenue of 856 billion yuan and a total profit of 53.75 billion yuan. According to the above data, the overall development of the home furniture industry has considerable development potential and market prospects.

What are the management difficulties in the home furniture foreign trade industry?

Difficulty 1: Sample management work is complex.

The home furniture industry has the characteristic of customizing according to orders. For different customers, the materials and colors used in corresponding product information vary. The scope of product information includes packaging, pictures, accessories, and raw and auxiliary materials. With such a complex amount of data, it is difficult to manage it clearly relying solely on traditional manual Excel.

Difficulty 2: Low efficiency in cost accounting.

The home furniture industry often uses actual production materials (such as leather, sponge, fabric, spring, board, wood, glass, etc.), which are not linked to the budget data of the pre production BOM and are managed separately and independently, resulting in duplicate data production and inability to compare and correct the differences between the budgeted and actual costs in a timely manner. The quoted costs are not precise enough to effectively understand the waste of material costs.

Difficulty 3: The format of foreign trade documents is chaotic.

The content of foreign trade documents includes: sample list, quotation, order, invoice, packing list, customs declaration, inspection declaration, etc. Different countries and customers have different document format requirements, including pictures, disassembly and assembly of multiple outer boxes, mixed loading of goods numbers, multi material customs declaration, container shipment, multiple destination ports, etc., which are mixed with various complex factors. Salespeople need to spend a lot of time and energy processing and making these documents, resulting in low work efficiency.

Difficulty 4: Accounts receivable and payable are prone to errors.

In the process of foreign trade business, prepayments, batch shipments, additional or reduced fees, customer claims, and so on are all involved. Whether it is payment to customers or payment to suppliers, manual operations face high risks of errors and poor standardization.

Difficulty 5: Inadequate control of delivery time and production progress nodes.

When customers who place an order have a high demand for customization, it is necessary to schedule production based on the order quantity, BOM structure, loss rate, and processing requirements, in conjunction with the inventory situation of semi-finished products and the actual procurement situation. Manual processing is time-consuming and prone to errors, making production progress difficult to control, and delivery time difficult to control.

Difficulty 6: The dynamic data tracking of procurement warehousing is not timely.

It is difficult to control whether the purchased materials are stored on time, and the dynamic situation often leads to some materials not being stored on time, resulting in production delays and unnecessary losses.

Provide comprehensive digital management solutions for home furniture companies with different enterprise structures and growth stages.

Control the entire business process and improve efficiency.

Help the furniture company to create a standardized and efficient business management platform, manage the business process management of quotation, order, contract, purchase, inspection, inventory, arrangement, shipment, collection and other aspects, control the details accurately, and avoid problems such as delayed purchase and production progress and out of control quality management caused by factors such as untimely and disorderly data transmission, and eliminate cost waste, delivery delay The occurrence of situations such as decreased customer satisfaction.

Lean business, reduce costs and increase efficiency.

The home furniture industry has a high degree of personalized customization, complex production processes, and a large number of production materials and accessories. Outsourcing production often occurs, which leads to a large and trivial production data volume. Some foreign trade companies have poor information technology foundation and blindly use universal foreign trade software to adapt to long cycles. Analyze the profit commission carefully and establish a reasonable performance evaluation system.

Reasonably schedule production and increase production capacity.

Foreign trade software provides capacity analysis tools to improve the efficiency and rationality of formulating production plans.

Intelligent decision-making.

Foreign trade software uses data as decision-making support based on the actual sales situation of the product, assisting the responsible person in guiding development; Analyze the quality of customers and suppliers, follow up on business efforts, and prevent the loss of important customers; Analyze business benefits from multiple dimensions based on orders and invoices; Analyze and count accounts receivable and payable, and eliminate overpayments and omissions.

The home furniture industry version of foreign trade software is customized according to industry characteristics.

For industrial and trade oriented home furniture companies, we have implemented cost accounting (BOM) for sample development, production planning, production layout, dispatch, process reporting, progress management, and salary accounting in terms of functionality; After receiving the order, material demand analysis, inventory analysis, procurement analysis, and material requisition management are carried out to digitize the entire production process and avoid unreasonable scheduling, material waste, and uncontrollable delivery times. For purely trade oriented home furniture companies, achieve outsourcing processing management and settlement in terms of functionality.

Cost accounting. The cost data of materials, labor, and expenses during the sample development process is automatically generated to quickly calculate costs, providing data support for the responsible person to control the sample development cost.

Quotation management. Custom filtering and viewing of historical quotation records, flexible configuration of quotation formulas, and intelligent reminder of price anomalies.

Order management tracking. Automatic generation of order profits, multiple types of order flipping methods, and automatic container consolidation calculation; According to the established tracking process, generate order tracking nodes and to-do alerts, dynamically control the status of each order, ensure delivery time, and ensure customer satisfaction.

Procurement management. The system automatically splits and calculates the material requirements for each order, and generates a purchase order based on the actual inventory situation; Real time monitoring of procurement progress, supplier delivery alerts, and ensuring production lead time.

Inventory management. Foreign trade software can flexibly set up inbound and outbound management methods, and according to the actual situation of the company, it can automatically combine factory handover data and shipment data to automatically increase or decrease inventory; Support multi location management, customize or calculate inventory accounting methods such as weighted average method based on the actual situation of the company.


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