What is ERP in Garments Industry?

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The demand for ERP arose in the garments industry to work more intelligently and reduce data duplication. The industry involves many processes, from planning to manufacturing to supply chain management, which led to the development of ERP.

Let’s take a closer look at how ERP functions and contributes to the garments & RMG industry.

Benefits of ERP in the Garments Industry

The textile and apparel industry is very intricate. It requires a lot of diversity every minute. In this regard, ERP is the best solution to meet all the demands in time.

Following is a list of benefits ERP systems can get your garments or RMG business:

Manufacturing Process Streamlining

One of the main issues the apparel sector face is managing raw materials. Garment manufacturers need to handle a variety of complex circumstances and without an ERP, it might be tough to handle.

Such as, without proper planning, purchasing excess materials can become liabilities, or buying insufficient quantities of raw materials can delay the shipment of large orders.

The entire process can be automated using an ERP platform to determine the precise quantity and cost of the supplies needed.

Improved Collaboration and Network

ERP solutions combine several distinct features into an integrated system, eliminating the necessity for additional solutions.

It can speed up and simplify data entry, transport and editing, storage encryption, and information access.

Additionally, since most ERP systems have phone, messaging, and email capabilities, they improve networking and communication across various departments and between superiors and deputies.

Inventory Management

Every clothing unit in the apparel sector can come in various sizes, colors, and styles, and each must be recorded. Hence clothing companies place high importance on inventory solutions.

ERP apparel software may assist firms in managing their inventory with ease by classifying their products into several categories such as size, color, style, vendor, and price.

For example, if a buyer wants to order 50 medium-sized blue gowns, you may quickly check the system to see if this item is in stock and know whether you can complete the order.

Better Security and Accessibility

With ERP, working from one centralized location is no longer a challenge. Since all systems are online, users can work around the clock to fulfill deadlines or goals, necessitating continuous system access.

Besides, when conducting financial audits, on-site QC, and sales visits, ERP enables data access for all personnel. However, this access can be managed and limited to maintain the security and integrity of the data.

Data Personalization

ERP systems can be tailored to a company’s unique requirements and demands. However, ensure the customization is done carefully when investing in an ERP system so that the software is suitable for the business and the staff.

In this regard, customized ERP systems highlight the distinctive look of your business and increase its general productivity and efficiency.

Payment and Records Management

Cost accounting often becomes quite challenging for businesses that must handle many customers, prepare and ship several orders, and create receipts for various goods.

Creating price lists bearing discount schemes on multiple rates, bill changes, and adjustments, maintaining sales and purchase ledgers, and developing taxation and MIS reports are some of the most crucial functions of ERP software.

All of these enable a more straightforward financial analysis of the business and improved information sharing regarding payments.

Query Management

With the help of an ERP system, the HR and sales teams can better address inquiries from clients and suppliers if the inventory and manufacturing processes are automated.

For example, customer service team members can rapidly and effectively access client data and address concerns relating to supply chain problems while on the go.

Additionally, an ERP solution can support online transaction tracking, align purchase orders, and calculate overall sales while controlling delivery dates. So ultimately, it benefits the company in many ways.

Conclusion

Like most other industries, the Garments and RMG sectors need to follow the standard business processes and phases. With that said, implementing ERP solutions is almost the same for these industries and serves the same benefits.

However, you must consider best practices and procedures to ensure successful implementation and maximum utilization of the system in your business.

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