What is ERP? | How come this is beneficial for garment industry?

 In any workplace, where mass production/manufacturing is happening in bulk quantity, it becomes mandatory for such organizations to utilize the masses (employees) in an efficient manner on a daily basis so that long-term projects can be achieved in an effective manner. Talking alone about the manufacturing industry, many management processes or manufacturing hacks have been implemented with an aim to achieve a high production rate, because in such organizations the whole operating cycle revolves around production efficiency as well as around the capability to deliver within lead time it was essential that a system gets integrate so that higher production rate can be achieved.

To counter such barriers, manufacturing companies come up with software or rather a strategic plan which would make sure that “time” is being utilized to the fullest. The strategy was to build ERP (Enterprise Resource Planning) software. 

WHAT IS ENTERPRISE RESOURCE PLANNING?

Enterprise resource planning (ERP) is a software that utilizes and manages the day-to-day activities of businesses. Activities like, Accounting, Risk management, Project management, Supply chain operations, procurement, and compliance. Because the manufacturing businesses heavily rely upon its production rate, it becomes essential that every aspect is delivering to its fullest, else the whole supply chain gets affected. The ERP software has enabled such businesses to assess the status of projects, analysis of lead time efficacy as well as overall supply chain process in an efficient manner.

ERP IN GARMENT MERCHANDISING?

In garment merchandising, where several processes are included from raw material to the end product. The application of ERP software has helped the organization to squeeze the data through each module and then assess the opportunity cost within modules so that better and efficient results can be achieved in the future. Although the ERP software can be costly but, it has advantages of its own kind. It has helped organizations to store data in a short time. 

In merchandising, the ERP system modules are,

• Order Management System

• Embroidery Management System

• Sample Management System

• Inventory Management System

• Purchase Management System

• Production Planning System

• Shipping Management System

ORDER MANAGEMENT SYSTEM

The order management system is a cycle of an order and the overall execution of processes that lead from order confirmation to all the way towards the shipping of the product. first, the order gets confirmed then the ERP software enables the status of the project such as order quantity, order style, fabric colors, threads to be used, ship-mode, order item description, accessory description, customer details, packing description, and other important information are put here to make an order sheet. if, at any point of the process, there has been a delay or shortage of resources the ERP Order Management Software will indicate that the process is in any delay. This essentially helps the merchandiser to resolve the problem in a quick time which does not affect the lead time. 

EMBROIDERY MANAGEMENT SYSTEM

In embroidery, different designs and logos are attached with samples and these designs and logos are needed to be converted into the Data Stitch Tajima (DST) format as well as Embroidery Format (EMB) so that the machine can read and understand the command easily and the right type of embroidery design and logo gets imposed on the fabric.

SAMPLE MANAGEMENT SYSTEM

When the sample order sheet gets finished, then the order sheet is passed for sample development. Bear in mind that the sample order sheet is similar to the bulk order sheet. All information gets input in the sample order sheet as same as in the bulk order sheet, information such as fabric parts, material, accessories, and other information are input in the sample order sheet. The ERP software on the other hand helps the merchandiser to track the status of the sample, like which date the sample gets submitted, when the sample gets sent for cutting, when the sample gets finished, etc. If any problem gets emerges, then the ERP software will update the merchandiser about it.

INVENTORY MANAGEMENT SYSTEM

Inventory plays an important part in manufacturing companies, and it is important that each and every element of the end product is there for the process. But overfull inventory can become a liability for any company as it will require a storage area (Warehouse) to store inventory which leads to an eventual increase in cost. So, the merchandiser has to make sure that inventory is there in the company but it is not affecting any cost to the company. The ERP software enables the managers to counter such problems, they can schedule the inventory management system on monthly basis by giving inputs like Fabric types, all types of essential material information for making either sample or bulk production. This type of system helps the merchandisers to track whether they are running short of any essential material or not. In this way, it saves time for merchandisers.

PURCHASE MANAGEMENT SYSTEM

In the garment industry, many different types of accessories like labels, fabric, etc. They are not available in the company sometimes, they needed to be purchased from outside through other sources, and for that merchandiser makes a purchase material order. Through the incorporation of the ERP system, merchandisers would know purchasing orders, quantities of orders, descriptions of materials, and other information about purchasing in a short period of time.

PRODUCTION PLANNING SYSTEM

Once the sample order gets approved, the company then moves towards bulk production, and before bulk production, all require accessories, labels, fabric, materials are needed to be available in the company. After that, the merchandiser should schedule the production planning for the order by checking the status of the already running floor production. Through ERP the status of the production floor can easily be tracked, which eventually saves time.

SHIPPING MANAGEMENT SYSTEM

When the bulk order gets finished or completed. Shipping of the order is the next and last process and to do that certain things are needed to be available in the company. Things like Polybag, hangtag, stickers, barcode stickers, cartons required after bulk production, etc. Through the ERP system, the merchandiser can check the status of each essential shipment element and at the same time, other elements can be input at this particular stage. Elements like Packing instruction, carton instruction, shipment date, etc. The ERP system will keep the merchandiser updated about each element of the system which will eventually save the time of the company and the merchandiser.

CONCLUSION

So these were the essential and important metrics of garment merchandising upon which the whole company goes through towards the completion of the end product. By incorporating the ERP system in the textile sector and especially in the garment merchandising sector, the company itself can become more and more efficient with its production rate. Else, without incorporation of the ERP system, things or process does get complete but that manual and old-fashioned approach demands excessive concentration and focus.