Key benefits of an efficient and effective apparel ERP system
Updated: Jun 25, 2019
This post was originally posted on June 9, 2016 and has been updated on March 5, 2018.
ERP integrates all departments and functions into a single computer system able to serve each department’s needs. The following summary highlights the key benefits but relies on selecting and implementing the best apparel ERP solution for your company.
All aspects of the business process from concept to consumer can be integrated. ERP aims to integrate all departments from design, manufacturing, financial, customer services, sale and distribution. Productivity and work-flow is significantly improved.
One of the key benefits of an advanced apparel ERP system is the ability to focus on cost control. By inputting data in one place, with ‘one truth’ and managing the inventory from concept to solution, the cost savings can be significant. By centralizing all key product data, savings can be made on sourcing similar materials and forecasting more accurately.
For example, where a fabric is common to a number of different garments across different divisions, ERP helps to calculate the total fabric required and so better deals can be achieved. In addition, ERP helps to improve communication and flow within the company. For instance, any changes to the fabric such as composition or washing instructions can be centralized which makes communication to relevant teams seamless and fool proof.
Effective ERP systems enable managers to see comprehensive statistics on costing and revenue allowing adjustments to be made to production lines, sourcing of raw materials and other contributing factors. Ultimately there is no chance of data manipulation, with the use of ERP, user input is monitored and each input logged so that it is easy to see which person is responsible at every stage. Having the right information in the right place at the right time anywhere in the world undoubtedly improves productivity.
Reports can be compiled in a short time with pre-sets entered and run on a daily basis. Summaries for use in management meetings provide total operational overviews, in stark contrast to reports assembled by Excel. ERP allows concurrent dates to be entered, meaning time will be saved and management can have an accurate picture of what is happening across the business from production processes to planned dates for item availability in the warehouse. ERP means that optimum inventory can be maintained. Put simply, time and money investment can be allocated to areas that need attention quickly, efficiently, and accurately.
Reduction of Duplicate work
It is hard to imagine how much data is duplicated from concept to customer and how many times information is miscommunicated. Automating operational tasks and providing easy access to information means significant time saving can be achieved, and the risk of human error is greatly reduced.
The sealing process
Sealing a garment can be time consuming and open to interpretation. ERP solutions allow real time online sealing with factories holding the same specification sheets as head office thus reducing mistakes and alterations can be made instantly. Apparel ERP software can also perform automatic translation enabling almost every style detail to be viewed in several languages therefore improving the effectiveness of communication globally.
Flexible and scalable solutions
The ability to take full advantage of the power of an enhanced fashion ERP solution is to choose a partner who is able to be as flexible and dynamic as your organization. In embarking on implementation you must believe in the growth capabilities that your company can achieve. Therefore choosing a partner that has scalable solutions that are future proof is of utmost importance.
Consolidated overview of inventory
One of the biggest issues seen in some ERP systems is the inability to recognize packs and to be able to handle the inventory correctly. Solutions that are designed specifically for the fashion industry are able to do just that. A great fashion ERP solution is able to provide a consolidated overview of inventory in pre-packs along with the ability to unpack/repack that inventory. This will significantly decrease handling time in ordering and distribution that in turn, enable a quicker time to market.