How ERP Software Helps With Supply Chain Management in the Garment Industry

Struggling to streamline supply chain operations in the garment industry? ERP software can be your ultimate solution. From inventory tracking to production planning and real-time data management, ERP systems optimise every aspect of supply chain management. Dive into our blog to explore how ERP software can revolutionize your garment business!

In the fast-paced world of garment manufacturing, it has become crucial for businesses to adopt new technology to survive in the marketplace. In a survey from Forbes, we find that “introducing a new SCM system is a complex endeavour, yet it can provide a competitive edge, as indicated by 57% of companies surveyed.” ERP for production and ERP for garment industry can help provide advanced supply chain management features to help overcome common challenges faced by manufacturers. Continue reading to learn more about ERP for supply chain management in the garment industry.

Why the Garment Manufacturing Industry Needs ERP Software for Supply Chain Management

Companies in the Garment Manufacturing Industry require a system which can help efficiently manage operations. With ERP for manufacturing industry, your business will be able to benefit from a range of features, starting from real-time reports to cloud-based software features. It helps equip your business to deal with complex challenges and navigate the ever-changing business landscape. Keep reading to learn more about the different challenges of garment manufacturers and how ERP software helps solve them:

Common Challenges in Garment Manufacturing and Supply Chain Management

Garment manufacturers have to deal with numerous challenges daily. Let us take a look at some of the common challenges:

1. Unexpected Shortage of Materials

The shortage of raw materials can lead to major disruptions in the supply chain management processes. Due to a lack of established communication with vendors can also cause further delays. A disjuncture in collaboration between different departments of your business can also lead to miscommunication related to the need for certain materials, leading to abrupt halts within your production schedule. In such cases, there is a need for a system that can facilitate different communication channels and ensure smooth operations within your business.

2. Complex Trends in Demands

The current market has become much more unpredictable, with complex customer needs and the introduction of new e-commerce platforms. Businesses in today’s time need to adapt to the multi-layered complex trends within the market space to understand patterns in customer demands. There is a need for accurate forecasting to predict demand trends and any fluctuations within the market that may take place. This would help your business to stay prepared and never fall back on production schedules.

3. Lack of Visibility Across Departments

Due to different departments having varied operations and functions, it can become quite difficult to track all processes. This may lead to shortsightedness during procurement of certain materials, monitoring of tasks, and proper management of manufacturing logistics. This leads to delays across all stages in the production schedule, starting from processing orders to fulfilling demands. Businesses require a system that helps gain visibility across different processes to easily track operations and ensure the smooth functioning of supply chain management.

4. Monitoring Vendor Performances

The success of the garment industry depends on the efficient sales by employed vendors. Keeping track of all vendors can become quite challenging for businesses. Your business may not be able to understand what decisions need to be taken if you are unable to monitor their performances. Therefore, there is a need for a system that can give you a detailed overview of the performance of vendors. This helps you to make more informed decisions while also making sure your vendors are performing according to the expected requirements.

5. Delays in Financial Reporting

With so many different order processes and bills to manage, it may become too time-consuming for your employees. Manually tracking financial records may also lead to errors and unexpected compliance issues. Businesses need to handle financial reporting efficiently to plan effective strategies. Therefore, it is best to utilise intelligent systems which will help streamline such processes.

6. Lack of Visibility Across Production Stages

Businesses often have to report the different operations undergoing in each production stage. Due to the lack of technology to track every process, it becomes a tough task for employees to monitor the progress across different production stages. The inability to monitor operations becomes a hurdle for businesses in identifying any existing gaps or different requirements within ongoing processes.

7. Maintainance of Consistent Quality in Finished Products

For any business, it is essential to maintain consistent quality for the finished products. Companies in the garment industry often struggle to maintain consistent quality of finished products when there is no system to track the schedule for material procurement, estimate overall costs and the final quality assessment of the products. This leads to delays in acquiring raw materials and improper cost accounting, resulting in poor quality of finished products.

8. Management of Costs of Sourcing, Production & Sales

The lack of any proper system in place for cost accounting for material requirement planning (MRP), production stages in supply chain management, and revenue generation from sales of products results in a lack of efficiency and productivity among employees. There are increased chances of errors and discrepancies within cost accounting, which may also lead to further compliance issues and legal risks.

Features of ERP Software for Apparel Industry

Let us take a look at the different features of ERP Software and how it helps conduct smooth operations for supply chain management in your apparel business:

1. Real-Time Reports

ERP software provides real-time insights into different processes within the business. With an ERP system, you will save valuable time and resources by being able to monitor performances across different departments. It will allow you to quickly identify gaps and enable fast adjustment to noticeable problems. Avoid delays and unexpected shortages of supplies with the help of ERP for garment manufacturing.

2. Data-Driven Solutions

To survive in the complex market of the fashion and textile industry, you need to swiftly adapt to existing trends and patterns. ERP ensures you are always ready for unexpected changes with its accurate demand forecasting. It uses demand forecasting to predict any possibilities in supply chain disruptions. ERP helps manufacturers to stay alert to market trends and easily monitor all processes within the business.

3: Effective Inventory Management

With manufacturing ERP software, you will be able to track all garment manufacturing processes with ease. ERP software helps improve supply chain management by ensuring supply chain visibility and real-time data on ongoing operations within inventory management and warehouse management. Having a detailed overview of the entire supply chain processes with ERP software for garment manufacturing.

4. Cloud-Based Software

By using cloud-based ERP software, you will be able to access required information on supply chain data from any location and device. Moreover, you will also be able to enhance security and data storage functions with cloud-based ERP solutions. With robust security, the data of your supply chain operations will stay safe and secure. ERP systems provide your business with easy scalability as well. The software will adapt to the growing needs of your business without any issues.

5. Automation of Tasks

Increase the efficiency and productivity of your employees with ERP implementation. ERP systems offer your garment manufacturing business the ability to automate manual and tedious tasks. By automating tasks, your business will be able to enhance supply chain operations and complete necessary tasks faster. Moreover, there will be reduced errors across the supply chain processes, allowing your operations to run smoothly with no unexpected delays.

6. Stage-wise production Tracking

Track all stages of production in real-time with garment manufacturing ERP software. Every stage can be monitored within a single platform, with easy-to-understand details on ongoing operations. With assured visibility across the supply chain processes, your company will be able to manage production schedules with ease and ensure the on-time delivery of products to your customers.

7. Customisation and Product Configurability

For efficient supply chain management, ERP software offers customisation features within the platform to adjust to the needs of the business. ERP for apparel is built to meet the unique high-standard needs of supply chain management. The product reconfigurability allows businesses to upscale their operations without worries and seamlessly integrate every department's complex workflows within a single platform.

8. Costing and Profitability

Manage the costs and profitability of the business with ERP's integrated cost accounting features. From costs of raw materials, different product stages and lastly, the revenue generation from the sale of products can all be monitored and analysed with the help of ERP software. With the in-built data analysis and reports, your business will be able to understand the needed costs of specific production stages and overall expenses over processes.

Conclusion

Stand out in the garment and fashion industry with the help of the right ERP system. By implementing an ERP system, you will be able to streamline supply chain processes across all levels of garment production and be able to withstand the complexities of the market without any issues.
If you are looking for the best ERP software in Kolkata, then reach out to Expand smERP for the best solutions.