ERP for the apparel industry is advanced business management software to achieve the desired productivity, growth, and profit. This blog post will delve into the concept of ERP for the apparel industry, explore its significance, and outline the key features it offers.
Let’s begin and learn more about it.
What is Apparel ERP Software?
Businesses are heavily impacted by this fast and dynamic world. So technology is the only solution that can help businesses make their operations effortless. The apparel business also has a plethora of aspects to manage on a daily basis. For success, there should be efficiency in the management of resources and operations. The enterprise resource planning system is tailored to streamline and optimize various business processes. It has the capability to integrate multiple functions such as inventory management, supply chain management, production planning, sales, finance, and human resources.
Apparel ERP software is an advanced system flexible enough for the business to efficiently handle its entire operations, from procurement to finished product and distribution. For example, the apparel business must have impeccable inventory if it uses its own warehouse or a 3PL. It is significant to know that the green shirts are in aisle 8 when there are dozens of green shirts of all sizes and patterns.
Overview of the Apparel Industry in India
Apparel is among the largest Industries in India and makes a huge contribution to exports. With a very high penetration level, the value of the market had a CAGR of 12% from US$ 152 billion in 2021 and is estimated to reach US$ 225 billion by 2025. India is famously known for its diverse heritage, so it offers a variety of apparel products ranging from traditional attire to modern fashion wear. In addition, this sector has a swarm of skilled artisans, cost-effective manufacturing efficiencies, and a vast domestic market.
In recent times, the apparel business has witnessed tremendous advancements in technology that have resulted in improved manufacturing capabilities and enhanced product quality. In addition, the industry has also adapted to sustainable methods, eco-friendly fabrics, organic clothing, and ethical sourcing. Apart from the Inventory Management system and Supply Chain Management, apparel retailers and manufacturers have to look after the Grid Inventory system, which looks after the style, size, and color of an item.
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Challenges of the Apparel Sector in India
The apparel sector in India records a CAGR of 15%, which is impressive. With optimism come even the challenges hindering the growth path. Below are the six challenges:
1. Chemical Hazards and High Volumes of Waste
It is reported that the textile sector is the largest waste generator, filling up 5% of the landfill. It is exacerbating, mainly due to the growing demand for the latest fast fashion. An enormous amount of water waste, resource waste, etc. is creating bigger environmental hazards.
It is mandatory for the industry to use chemical acids, industrial enzymes, and alkaline solutions in its day-to-day operations. The issue here is that during the singeing process, a lot of gases get mixed up in the air, which can result in various health hazards.
2. Raw Material Scarcity, Supply Chain Disruption and Inflation
India is involved in 25% of the cotton production, whereas the global cotton production is only 8%. Worldwide, there is an inflated demand for cotton products. The apparel division uses dyes, caustic soda, and sodium bicarbonate, and the prices of all these goods are increasing three times. In addition, there are also severe issues of supply chain blockage caused by logistics and unfavorable weather conditions. And inventory control is a crucial aspect specifically for this industry.
3. Infrastructure Issues Impacting the Business
Apparel is a labor-intensive sector globally. And there is overdependence on manual labor in spite of vast technological innovation in this sector. So, it is resulting in a lot of errors, mistakes, random negligence, etc. Other issues include machine downtime and suboptimal machine usage, resulting in productivity loss. Lack of technology updates is also a major issue.
4. Skilled Labor Shortages and Fragmentation
Compared to the US and China, Indian weaving units are average. Only 5% have a properly organized manufacturing and technological infrastructure. The skilled labor shortage is also another serious concern, as 7 out of 10 workers are illiterate and have no knowledge about the sector. To curb this issue, proper training should be given to the workers.
5. Apparel Product Data Management
The fashion sector has the toughest product environment among the rest of the industries since fashion styles, trends, colors, and sizes are constantly changing. It becomes difficult to constantly and accurately update software databases with real-time data each time.
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Benefits of ERP software for Apparel manufacturers
The enterprise resource planning system comes to the rescue to overcome challenges. It is a cloud-based solution that automates all the business processes and streamlines them.
1. Reduces Complexity and Management
Apparel ERP assists the industry to streamline production as well as business specifications. The software is distinctively designed to handle the fine details of inventory products, purchase and campaign management, business structure, price, and more.
2. Customer RMA ( Return Material Authorization)
With apparel ERP systems, whenever you enter an RMA for a customer, you can enter return quantities, which can be further used for single RMAs or those that are linked to sales orders. After the return quantities are entered, the RMA screen will be automatically populated.
3. Optimizes Supply Chain Operations
Supply chain management software is a boon for the apparel business because it streamlines all operations. Its visibility features help in knowing the product status at every stage. Plus, it helps in maintaining compliance requirements and standard product quality. It provides operational flexibility to carry out entire operations in a proper manner. It helps in accurate resource allocation, optimizes inventory, and provides better customer service.
4. Simple Ordering and Return Processing
In the apparel sector, especially in the retail department, order and return processes on a daily basis are very common. Hence, it is crucial for apparel businesses to deploy effective tracking systems that can handle all these processes in a simple way.
5. Flawless Receipt Generation and Payments
ERP systems for apparel help eliminate manual interference in invoice generation and improve accuracy in the bearing process. The solution comes with a fully integrated accounting system that provides flexible payment options for customers so that they can pay their bills
6. Forecasting through Data Analytics
Analyzing future purchase trends and making decisions based on them is the most critical thing for any apparel business to succeed in the market. Apparel manufacturing ERP software will help your business leverage the data stored in the system so that you can apply data analytics while understanding and predicting future customer demands
7. Department-wise Cooperation
ERP application for apparel offers a number of functionalities, and the primary benefit of this integrated platform is that it helps team members from all departments stay on the same page. They can make data entry, edit, transfer, or access data in a very flawless way through a centralized database.
Conclusion
Apparel ERP software in India is the best business intelligence software, easy to use, and the right choice for the fashion industry. It is a cloud-based ERP solution for inventory control, manufacturing processes, supply chain management, and better customer service.
Sage X3 Apparel ERP Software has the ability to optimize your apparel business to increase productivity, profitability, and growth.
