Never run out: How ERP enables inventory management in the textile industry
Demand in the textile industry can be unpredictable. It is subject to seasonal variations as well as the vagaries of fashion trends. Delays in responding to demand can lead to lost opportunities, and surplus goods that have to be sold at considerable mark-downs. Unsatisfactory turnaround times and inconsistent quality of service has serious consequences; India's textile sector is lagging behind strong competition from other Asian players. This includes not just China but newer entrants such as Bangladesh and Vietnam.
Effective inventory management can significantly improve this scenario. However, in typical Indian textile SMEs, inventory management functions are often left in the hands of individual resources. If raw materials are not replenished in good time to respond to client orders, production is delayed. On the other hand, overstocking to avoid shortfalls can lead to material damage or wastage. For the international market to view an Indian textile SME as a viable partner, these issues have to be addressed and eliminated.
With an integrated, Enterprise Resource Planning (ERP) solution, the factors that compromise proper inventory management are eliminated. A good, specialized ERP package for the textile industry will provide a variety of helpful features:
- Order initiation to the right department is just a mouse click away, with clear indication of deadlines and priority
- Standardized order forms prevent confusion
- Details of past engagements with vendors can be stored and referred to
- Better prediction tools and a swifter order process prevents the stockpiling of raw materials
- The production process is tracked at all stages for maximum transparency
- Finished lots are sent to the warehouse with clear instructions on dispatch
- Status of goods in the warehouse can also be tracked
- Details of transporters can also be referred to in selecting the best option
This functionality gives you the ability to adjust rapidly to changing demands, delivering finished goods within the tight time frames required in the global market. This translates to the ability to demand a premium price for your premium services. It's the perfect recipe for a textile manufacturing business that never runs out of satisfied clients.
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