Controlling gold loss in jewelry making: Lessons from Giang Kim Hoan

This article will analyze in detail the standard crafting process and how to apply an ERP system to digitize the raw material management stage, thoroughly addressing loss through a real story from Giang Kim Hoan.

I. Blind spots of material loss in the traditional crafting process

In any jewelry shop, the flow of materials from wax creation, mold casting, cooling, stone setting to polishing always comes with the risk of asset loss. Especially, at the cooling and polishing stages, the amount of gold dust and tiny metal shavings released into the environment or sticking to tools is significant, requiring an extremely strict recovery and measurement mechanism to protect the core asset value.

The concerning reality is that most gold shops today still maintain the habit of recording by hand or using traditional, fragmented tools to track the quantities of goods in and out. The inevitable consequence of this method is that reconciliation is only done at the end of the month, leading to business owners being unable to accurately determine where the loss of materials occurred, which craftsman was responsible, and what percentage is natural loss compared to actual loss.

At Leonix, we believe that in the jewelry manufacturing industry, delaying a cycle of end-of-month reconciliation means losing a large amount of gold that cannot be recovered. The software system should not only be used to record quantities but must also help management see the risk of loss before it becomes a financial loss.

Jewelry manufacturing and the blind spot of loss

II. Digitalizing the MES workshop: A real-time gold loss control solution

To thoroughly address the issue of material loss, implementing a specialized manufacturing execution system (MES) for the jewelry industry is a necessary technological advancement. By integrating electronic scales directly into the software system, the new operational flow allows for real-time weight recording, turning even the smallest fluctuations in materials into immediately digitized data.

The digital manufacturing process is tightly operated through automated control steps:

• Scan Barcode Production Order: This action helps accurately identify the jewelry item code, standard norms, and clearly assign the craftsman responsible for the processing.

• Automatic data connection: The system automatically retrieves data directly from the electronic scale before and after each manufacturing stage to eliminate errors caused by manual data entry.

• Smart alerts: The platform automatically calculates the actual gold discrepancy rate and provides immediate alerts to the management software if the loss exceeds the allowed standard limit.

In ERP projects for the jewelry industry at Leonix, establishing a seamless data flow between manufacturing (MES) and electronic scales is the core foundation to completely eliminate "information silos." As a result, inventory and accounting data are updated automatically without the need for double manual entry.

Learn more: [WHY ERP BECOMES A CRUCIAL FACTOR IN MODERN JEWELRY BUSINESS MANAGEMENT?]

Real-time gold loss control

III. Case Study Giang Kim Hoàn: Saving 2 taels of gold each month thanks to Odoo ERP

Giang Kim Hoàn is a prominent brand in the market with a line of Custom Jewelry products, possessing a highly diverse and complex range of product codes. Before digital transformation, the enormous manual reconciliation workload created significant bottlenecks in management, making it difficult to scale the production workshop due to various risk barriers.

The decision to implement Odoo ERP has brought a comprehensive transformation to the company's operational ecosystem, evidenced by breakthrough numbers:

• Reduced the material loss rate by 4 times throughout the entire production process by tightening delivery discipline with Barcode/RFID identification codes.

• Saved 2 taels of raw gold each month by strictly controlling and refining the loss standards at the polishing and cooling stages.

• 100% transparency in the unified data flow between the central manufacturing workshop - RFID label warehouse 00 - direct retail store.

Digital transformation and minimizing material loss in the jewelry industry

IV. A solid asset management foundation for jewelry businesses

It will not be possible to replicate the scale of a successful jewelry store or chain of workshops if the flow of raw materials continues to leak through traditional management blind spots. Equipping a transparent asset control tool that consolidates information and is measurable with accurate data is the effective solution for businesses to grow safely and break through revenue.

At Leonix, we believe that data provides an objective and transparent view. The technology system does not replace the capabilities of the jewelry business owner, but rather protects the profit margins and assets with the most transparent real numbers.

Learn more: [Comprehensive Odoo ERP solutions for the jewelry industry]

If your jewelry workshop is facing similar bottlenecks in controlling gold loss and fragmented data, consult with a Leonix expert to assess your current operating system.