The Indian apparel industry is witnessing a substantial shift due to changes in the lifecycle and a greater focus on appearance in urban India. As an apparel business, you have to keep up with the fast-paced nature of the industry while keeping your costs lower. Thankfully, this is easier with smart Apparel ERP business planning solutions that are streamlining traditional processes and bypassing traditional bottlenecks by leveraging innovation and state-of-the-art technology. Let’s begin and learn more about it.
What is Apparel ERP Software?
Apparel ERP (Enterprise Resource Planning) software is a comprehensive suite of industry-specific modules that automates all aspects of the apparel business from design, production, quality control, and sales to financial management. It allows businesses to deal with high-volume production activities & sudden-demand spikes, mitigate supply chain complexities, and ensure compliance with industry regulations.
Apparel ERP software integrates different aspects of the business operations and provides industry-specific capabilities needed to achieve long-term growth and operational stability. It simplifies every aspect of the business operations to meet ever-growing business needs, capture new opportunities, and gain cost-efficiency.
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.
You May Also Like: ERP for Manufacturing Industry
Challenges Faced by the Apparel Industry 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.
You May Also Like: The Role of Garment Manufacturing ERP in Streamlining Production
Benefits of ERP software for Apparel Manufacturing Industry
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.
Future-proof Your Apparel Business with Sage X3
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.
Frequently Asked Questions (FAQs)
1. What is apparel ERP?
Apparel ERP is a specialized solution that streamlines everything from garment production and shipping to accounting. It delivers end-to-end supply chain visibility, multi-channel distribution capabilities, and efficient resource management, enabling apparel businesses to adjust their production based on changing market dynamics.
2. What is the best ERP for apparel industry?
Sage X3 is the best software for apparel manufacturers that are looking to gain demand-based BOM planning, advanced inventory control, robust Business Intelligence, and extensive supply chain capabilities. It allows you to focus on speed & agility to meet the fast-changing market trends, and maintain a competitive market edge.
3. What are the key features of software for apparel manufacturers?
Here are the prominent features of the apparel manufacturing erp software:
- Warehouse Management: Efficiently manage your warehouse operations from a single platform
- Vendor Relationship Management: efficiently track and manage your procurement and vendor-specific activities
- Sales Order Management: Gain accuracy in order tracking and ensure timely order delivery
- Inventory Replenishment: Maintain precision in inventory management across different units.
