Maximizing Inventory Management for Fashion Companies with ERP
Inventory management for fashion companies is more than just restocking merchandise, it is an ongoing process that needs to be carried out effectively in order to achieve a strategical growth of the business. Planning, locating reliable suppliers, issues associated with overstocked inventory or depleted stock... There are many steps on the supply chain that might turn into real headaches for apparel business owners, but more often than not, all of them can be overseen with the right inventory management tools. Technology becomes in these cases a valuable asset that can aid companies in order to keep track of every step within the supply chain and ensure inventory is effectively managed.
How does ERP differ from other tools?
ERP software solutions integrate many functionalities and can track inventory through sales and other data which increases efficiency and will add value to customer experience. These type of solutions assess information from in store/online sales, finance, and logistics as a whole so business owners can see how one component of production and supply chain affects the other in real time. This way there is no need to take the time to view and assess each element section by section, it's all one cohesive report.
An example of how this works is that products with the lowest sales can be pulled from inventory, cut from a collection, marked down and sold to cut losses. Products that have high sales can be immediately restocked. No guessing. Now, finance, design and development, sales, analytics and logistics can all work together. Overall costs are cut in a season by completely eliminating what doesn't sell, and replenishing what does, while it's hot, at a faster pace.
While planning for the next season designers can use the data and take inspiration from the highest selling styles. Creating updated versions that have a better chance for success on the retail platform; whether it was the fabric color, theme, cut, or silhouette that drove sales. An inventory management tool that treats all your business management tools as one system can take your brand to the next level. The number goal is to meet customer needs and ROI.