ERP As An Industry-Specific Solution
What is ERP software and what are its benefits? You may already know the answer to these questions. If not, we think this is a great place to start.
What Is Enterprise Resource Planning?
What is ERP, then? Why exactly should it matter to you? It allows for the streamlining of processes and information between multiple units across an entire company.
As technology becomes more capable, ERP systems are becoming more critical for
companies looking to enhance efficiency without adding program after program to their
processes. ERP is designed to simplify complex processes while increasing functionality
and capabilities.
ERP is not new, but its importance has grown rapidly over the past few years. The term
was coined by Connecticut-based Gartner, Inc. in the 1990s and is described as “an
application and deployment strategy that expands out from ERP functions and achieves
integration of an enterprise’s key domain-specific, internal and external collaborative,
operational and financial processes.”
Today, ERP is more than just a system. It’s a process designed to improve businesses
across all industries. This makes it absolutely necessary. According to Gary Forger in
“Modern Materials Handling,” ERP “acts as a planning backbone for a company’s core
business processes.”
Because its capabilities are almost limitless, businesses are catching on. According to the latest Panorama study, 81% of organizations surveyed are in the process of implementing an ERP system or have completed their implementation. The reasons for implementing software vary from one organization to another, but they include:
• Replacing out-of-date software (49%)
• Replacing homegrown systems (16%)
• Replacing accounting software (15%)
• Starting from scratch with no existing system (20%)
The bottom line is that ERP solutions are necessary and critical for staying competitive,
accurate and efficient in today’s marketplace.
One ERP Solution Doesn’t Fit All
Just because a solution seems like it could work in any industry doesn’t mean it’s right
for yours. Based on this, some companies offer customization of ERP software solutions
on an item-by-item basis, which can be time-consuming and costly to implement and
maintain.
Due to this challenge, companies in the apparel industry are often left wondering where
to begin. The solution lies in modular-based ERP solutions. When apparel-specific ERP
software is put in place, it adds functionality while reducing manual processes and isolated spreadsheets.
Examples of ERP Software for Apparel modules include:
• Order Processing and Returns Management: When order management is
streamlined, the order life cycle — from receiving quotes and orders through
fulfillment and invoicing — is more efficient. This leads to more on-time deliveries
and improved client satisfaction. Thanks to an apparel matrix, order entry and
purchasing can be simplified. The matrix enables users to enter specific quantities
based on variations in products, like color and size. The matrix also makes it easy
to view which products are available, in real-time, to give the customer an idea of
whether an order will be fulfilled right away or backordered.
• The Decoration Module: Decoration Modules take order entry one step further by
streamlining the process specifically for the maintenance of decoration orders. The
right Apparel Software will manage the entire process, including receiving an order
with one or multiple art records that need to be applied to the garment, handling the
proof approval process and managing the work order flow for applying art records,
either internally or at a third party.
• Purchasing and Forecasting: Determining what to buy, when to buy and how
much to buy is the key to an integrated Forecasting System. The automation of
Purchase Orders from the forecast and having the P/O’s ultimately tied to the
Accounts Payable is a must for any Apparel Solution. Forecasting by style/color
and style/color/size allows Apparel Companies to forecast at the top level by style,
ensuring Apparel Companies can predict their apparel inventory needs more
accurately.
• Accounting and Financial Management: Many Apparel Software solutions say
they are a complete ERP, but they don’t have a native Accounting and Financial
Management solution. Most Apparel ERP Solutions integrate to an Accounting
Solution. Because the Accounting Solution helps drive the financial success of
Apparel Business, why would you want to integrate to an external solution?
• Inventory Management: Accurate inventory tracking is essential for the apparel
industry. The right apparel inventory management system will be designed
specifically to showcase inventory views by SKU, style/color or style. Additionally, ERP
inventory software for apparel manufacturing allows key inventory information to
be shared across the system for more efficient management and increased product
availability.
• Manufacturing: The manufacturing modules will automate supply chain processes
from inside FDM4, improve visibility and accounting of external and internal costs,
more accurately plan material requirements and easily interface to external systems.
With the unique needs of the Apparel industry in mind, the workflow process was
designed to handle multiple types of manufacturing workflows, even within the same
production of a style, with multiple bills of materials and workflow design by style.
All the modules mentioned above are designed specifically to be textiles manufacturing
ERP solutions. The modules provide a way to mitigate item-by-item customization
complexities and costs.
Challenges Specific to ERP for the Apparel Industry
To understand the benefits of an ERP system and software for the apparel industry, it’s
important to realize the challenges that make the industry unique:
1. Cost Savings
Cutting costs is critical for experiencing growth. When apparel companies work with an
ERP system, they can expect to need less warehouse space, due to better and more
efficient planning. This in turn can reduce operational and administration costs and lead
to better business process management — a benefit cited by 82% of organizations that
have implemented ERP solutions.
2. Apparel Product Data Management
The Apparel industry has one of the most challenging product environments. With constantly evolving trends, styles with short lifespans and an enormous variety of styles, colors and sizes, it’s no wonder Apparel Companies have issues updating their software database with all the new information.
The right Apparel Software Solution will address this need with an automated, easy to-use Product Load module that allows users to load and manage styles and items, including colors, sizes, features, images, pricing, costing and all other pertinent information from Excel format. This ensures that once a new style is approved, all the required data is loaded without manual data entry and the complications — and delays — that often accompany it.
3. Relationship Management — Customers
Without customers, your apparel business will fall flat. Keeping customers satisfied ensures they remain loyal and your business remains steady. ERP solutions for the apparel industry simplify order management from start to finish, in a single database, without maintaining multiple systems — which can cause delays and frustrations on both ends. Module-based ERP systems for the apparel industry are not optional. They’re absolutely necessary for success.
Learn More About ERP From FDM4
See for yourself how an ERP solves manufacturing’s toughest issues with FDM4. We offer an ERP solution tailored to the needs of the apparel and textile production industries. For non-apparel enterprises, w Find out more about the ERP solutions we offer at FDM4!