Running an apparel business isn’t easy. From managing processes such as sourcing of raw materials, manufacturing and quality control to controlling warehouses, distribution, accounting, and sales – there’s a number of operational complexities to deal with.
ERP software can help apparel businesses to handle their operations efficiently by organizing different types of data onto a single, centralized platform.
Here is a list of all benefits of using an ERP in the apparel industry.
1. Streamlined Manufacturing Process
Managing raw materials is one of the biggest challenges in the apparel industry. Without ERP software, apparel businesses need to deal with a great number of complicated situations such as procurement of surplus materials, which could result in liabilities, or procurement of insufficient amounts of raw material, which could cause delays in bulk orders.
An ERP platform will automate the entire process by calculating the exact amount of materials required, as well as their cost.
Another aspect to consider is the quality of procured raw materials, as well as the condition of the finished goods. An ERP solution will provide real-time data on various aspects of the manufacturing process, including dyeing, stitching, printing, packing, and labeling in order to make sure they’re carried out effectively and in compliance with the quality control standards.
Finally, details like customized price tags, labels, and bar codes, as well as self-designed invoices can also be incorporated into the ERP software in order to increase brand awareness and boost sales.
2. Better Networking and Collaboration
ERP solutions incorporate a number of different functionalities into a single system, thus eliminating the need for other solutions.
ERP software makes data entry, transfer, and editing, information access, and storage encryption much faster and simpler. In addition, as most ERP systems are integrated with calling, messaging, and e-mail options, they provide better communication and networking between different departments, as well as among superiors and subordinates.
3. Inventory Management
In the apparel industry, every single piece of clothing, whether a skirt or a coat, can come in various styles, sizes, and colors, and each of these pieces has to be tracked. For that reason, it comes as no surprise that inventory solutions are a top priority for apparel companies.
ERP apparel software can help businesses to easily manage their inventory by sorting their merchandise into different categories such as vendor, style, color, size, price, etc. For instance, if a customer wants to place an order for 50 blue dresses in size medium, you can easily check whether this item is available in the system and immediately determine whether you are able to fulfill the order.
The system updates the order of items in accordance with the fulfillment dates and demand. It also processes the sales through algorithms in order to accurately maintain the profit calculations. In case of variations in logistics overhead, selling margins, or manufacturing costs, there’s no need for complicated technicalities; the matrix can be easily modified by simply entering new parameters.
4. Easy Access and Security
Today, working from a single, centralized location no longer represents an obstacle. With all systems being online, people can work round the clock in order to meet deadlines or targets, which demands access to the system 24/7.
ERP allows data access for all employees when making on-site quality checks, financial audits, and sales visits. However, this access can be controlled and restricted in order to make sure that the data’s security and integrity remain intact.
5. Personalized Data
ERP solutions can be configured to suit a company’s specific needs and requirements. If you decide to invest in an ERP solution, make sure that the customization is carefully carried out, so that the software is compatible with the organization and the employees.
Having a personalized ERP solution will highlight the trademark style of your organization and boost the overall productivity and efficiency of the company.
6. Management of Receipts and Payments
For companies that have to manage a big number of clients, prepare and transport multiple orders, and generate receipts for various products, cost accounting can be really complicated.
Some of the most important features of ERP software include creating multi-rate price lists with discount schemes, bill modifications and adjustments, maintenance of purchase and sale ledgers, and generation of MIS and taxation reports. All these allow for easier analysis of the company’s financials and better communication of information related to payments.
7. Management of Queries
When the manufacturing and inventory processes are automated, the HR and sales teams will be able to give better responses to queries from customers and suppliers. For instance, members of the customer support team can access client data quickly and efficiently and resolve issues related to difficulties in the supply chain on the go.
In addition, an ERP solution can help to harmonize purchase orders and accommodate online transaction tracking, at the same time calculating overall sales and managing delivery dates.
Dealing with the apparel industry without an ERP solution isn’t as easy as it seems. Without a proper ERP system, learning, foreseeing, and taking care of buyer demand can easily turn into a challenge that can be overwhelming to even the most experienced apparel industry veterans.
ERP software has everything covered to help you manage your entire apparel business. The ERP solution particularly designed for the apparel industry integrates all the business processes involving the critical areas of apparel production planning – procurement of raw materials, inventory, quality, payroll, finance, sales, and plant management.