Most top retail firms are prone to the whims of evolving marketing and changing consumer demands. A company failing to adapt to these changing demands is likely to fail to survive the cut-throat competition.
India is the third-largest apparel manufacturing industry, producing around 4% of the total textile globally. In this landscape of immense growth potential with intense competition and rapidly evolving customer demands and trends, garment manufacturing companies need retail technology that could simplify their manufacturing processes.
An ERP for Manufacturing Industry is a holistic solution for garment manufacturers to increase business efficiency and minimize manufacturing losses. Implementing this system can help monitor supply and demand for different products, ensure inventory stocks don’t run out, and minimize manufacturing costs.
This article will let you know the challenges faced by the garment manufacturing industry and how ERP can help overcome them.
Challenges in the Garment Manufacturing Industry
In the past few years, the garment manufacturing industry has faced many of these challenges:
Lack of Integration
Every department in the garment manufacturing process has software and systems, making it difficult to ensure data integrity across the board.
Lack of Supply Chain Transparency
Many garment manufacturing companies don’t have 360-visibility into supply chain operations. Such companies need smart retail solutions to maintain and sync inventory.
Lack of Automation
The garment manufacturing industry relies heavily on manual processes and human labor; thus, there is a lack of automation, resulting in increased costs and low efficiency.
Inability to Meet Consumer Demand
Apparel manufacturers run businesses in the market experiencing ever-changing trends and customer demands, making it difficult to predict consumer behavior and, thus, failing to meet consumer demand.
Importance of ERP in the Garment Manufacturing Industry
Manufacturing ERP Software is critical to coordinating and streamlining business processes, from production to sales, marketing, and distribution. Here listed are some key ways an ERP system can help the apparel manufacturing industry overcome its challenges:
Increased Efficiency of Inventory Management
Keeping track of inventory ensures businesses have enough supplies to meet customer demands and prevent running out of stock. You can simplify inventory management with an ERP system.
This advanced technology enables synchronized operations like stock purchases, the status of items and orders, etc. Moreover, ERP allows various departments to communicate seamlessly and ensure quick decision-making while reducing losses due to deadstock or delayed orders.
Better Data Analysis and Reporting
One biggest challenge apparel manufacturing companies face during data analysis is that information is siloed in different departments. Data errors can be eliminated with a centralized ERP system.
When all required information is available in a single place, managers find it easier to identify inefficiencies and fix potential problems by quickly changing the manufacturing processes. Streamlined data analysis and reporting enable companies to make better predictions for the future and business decisions.
Reduced Operational Costs
You can carry out financial transactions instantly with the ERP system without any delays or errors, no matter how many garment manufacturing branches your business has worldwide. Centralizing multiple functions to a single ERP system will increase productivity and reduce costs. As per Forbes, ERP can lower operation costs by 15% and increase operational efficiency by 60%.
Improved Customer Service
Customers are the lifeblood of the apparel manufacturing industry, and customer service is integral to business success. An effective ERP platform can improve your customer relationship management (CRM) efforts to help your business keep pace with the rapidly evolving marketplace.
For instance, when a customer orders any piece of clothing, the ERP will track the order through each production stage, allowing customer representatives to intervene immediately in the event of issues.
With a high-performance manufacturing-specific ERP, garment manufacturing units can facilitate customer service with faster deliveries, reduced errors, and better customer outreach.
Closing Remarks
A manufacturing ERP is an ideal solution for garment manufacturing companies. This advanced technology can manage all aspects of retail business, including production, purchase, sakes, accounts and inventory management, and more. Manufacturers can automate and streamline the process of complex order production, minimize inventory loss, increase business operations’ accuracy, improve productivity, and optimize costs.
Therefore, apparel manufacturers must look for an agile and scalable ERP well-suited for businesses of all sizes striving to accelerate their growth. In addition, look if the system has a complete suite of integrated modules to meet the industry’s rapidly changing needs.
