Whether you reach your customers through private label drop shipping, a wholesale directory, a retail store, or an online marketplace, the apparel sector can be a great source of profit. However, as your revenue starts growing and your business data grows along with it, trying to organize all the different aspects of your clothing business can be quite challenging. You’ll need ERP software to assist you in streamlining your daily operations and creating data-driven projections for your business.
In this post, we’re discussing ERP software examples, the benefits of using ERP, and more.
How Can ERP Improve Your Business?
ERP software is intended to bring together all of the tools needed to manage a company’s internal and external operations. If the company doesn’t use an ERP system, business owners and executives will have to rely on several programs for different operations, making data migration and data analysis too time-consuming and difficult. With an ERP, your company’s operations will be optimized, and you’ll get the following benefits:
An ERP system collects data from many sources and arranges it according to the users’ needs, acting as a single source of truth. All of the records you need for your operations, from inventory details and staff information to customer files and sales reports, can be stored in an ERP and retrieved whenever you choose. When you and your personnel need to pull files for specific purposes, especially when working together with other departments, this makes communication more efficient and saves time.
Streamlined manufacturing process
Raw materials management is one of the main challenges for apparel businesses. Without an ERP software solution, clothing companies are forced to cope with a number of difficult situations, like ordering surplus materials, which can result in obsolescence, or ordering insufficient amounts of supplies, which can lead to delays in bulk orders. An ERP system will automate the entire manufacturing process by determining the exact quantity of raw materials required, as well as their cost.
Effective inventory management
Keeping track of the stock in your warehouse is critical for the profitability of your apparel business, but it is difficult when you need to do it manually. Enterprise resource planning software can contribute to better inventory management by categorizing items by vendor, price, color, size, style, and other factors. The system adjusts the item order in accordance with demand and fulfillment dates. In addition, it uses special sales processing algorithms in order to provide accurate profit estimations.
Interruptions and delays in your business operations can harm your company’s reputation and lead to long-term losses. With enterprise resource planning software, you can unify business processes across different departments, making it easy to foresee and recognize issues and come up with quick and efficient solutions.
Improved query management
When production and inventory procedures are automated, your human resource management team and sales team will be able to respond to supplier and customer inquiries more quickly. Members of the customer service department, for example, can quickly and efficiently access client data and resolve issues connected to supply chain management concerns on the go. An ERP system can also help to unify purchase orders and allow online transaction tracking while calculating overall sales and managing delivery dates.
More accurate reporting
Enterprise resource planning solutions include business intelligence tools and machine learning capabilities to help you assure the consistency and accuracy of all the data you save in your centralized database. These enable you to evaluate information, easily identify data discrepancies and generate performance insights using real-time analytics and powerful filters. That way you can easily make the required adjustments to your operations.
Why Do You Need ERP Software
For many growing apparel companies, it’s not a question of whether they need an ERP solution, but when they will need it. As a company grows, the amount of data it generates and the number of data sources that need to be tracked grow along with it. Managing all of that data across numerous systems is expensive, time-consuming, and prone to errors. Here are a few compelling reasons why your company requires ERP software as soon as possible.
- Your existing process is inefficient. If you are frequently moving between software, losing track of all those spreadsheets, or having trouble getting your apps to connect with one another, it’s time to install an ERP system. ERP’s main capability is to seamlessly integrate different functions and bring together various business operations in a single central database. This eliminates the majority of redundant procedures you are doing across many applications and decreases the chance of data entry errors.
- You have outgrown your existing software. If you are processing data in entry-level software designed to hold only a certain amount of data, you will need a more powerful system to do the heavy lifting. ERP solutions are built to store massive amounts of data across a wide range of business processes. Manufacturing, accounting, and customer relationship management are just a handful of these operations. ERP systems provide business owners with the flexibility they need for future expansion and, more importantly, some much-needed peace of mind.
- Inaccurate inventory. Not being able to track your inventory accurately can have numerous negative consequences on your business. For instance, if you keep too much of everything, you’ll run out of storage space, your cash flow will be strained, and long-held things may become damaged or obsolete. If, on the other hand, you store too little inventory, production will be halted, extra costs will be incurred owing to expedited shipping of missing parts, and delivery will be delayed. If you’re having trouble keeping track of your inventory at multiple locations, and it’s affecting your customer satisfaction and bottom line, an ERP system can help.
- Unhappy customers. Customer expectations two decades ago were vastly different than they are today. A dissatisfied consumer is less likely to return, and the absence of repeat business from existing partnerships means you’ll have to work harder on sales. With an ERP system, data is always at your fingertips. Being able to convey progress and make adjustments on the fly is a relationship-builder, so having access to information from a centralized ERP system can be a great plus when it comes to improving customer experience and securing repeat business.
ERP Software Examples
ERP is used in the apparel sector for workflow management, design, garment manufacturing operations, management of materials, distribution, and shipping. An apparel enterprise resource planning software is a central database that keeps track of all corporate procedures and activities. ApparelMagic is one of the best apparel ERP software examples.
ApparelMagic is an ERP solution specially designed for businesses in the fashion sector. The software is powered by a combination of enterprise resource planning software and product lifecycle management (PLM) and has customer relationship management features (CRM).
In addition, ApparelMagic offers an inventory management feature that ensures you have enough raw materials for in-demand items at all times. With multi-channel sales and superior costing, the solution helps you increase your profit margins. It also automates the purchasing, raw material management, and manufacturing processes, allowing you to concentrate on other aspects of your business. On top of that, ApparelMagic enables multi-currency accounting to assist you with your global business and eliminate the need to convert statistics and risk numerical errors.
ApparelMagic can work with a wide variety of third-party applications to help you speed up or simplify your wholesale business, financial management, shipping, and other core business processes. A few of these software systems include Shopify, QuickBooks Online, ShipStation, Square, SPS Commerce, etc.
How to Use ERP software
An enterprise resource planning system is only as good as its users and setup. When everything’s in place, it should be able to support you in your everyday work and ensure that you have access to the data you need at all times. However, in order for your investment to pay off, you must implement it properly. Here are some things to take into consideration when implementing your ERP platform of choice:
- Requirements. The best ERP software is one that meets the needs of your business, not the other way around. When the right match is found, ERP should be a positive engine for business change and give your apparel company a vital competitive advantage.
- Users. Before you adopt an ERP system for your company, be sure that all of your staff are on board and well-informed on how it actually works. It is critical that they receive proper training in order to get the most out of the software and to understand how to use it to achieve the desired objectives. You can accomplish this on-site by assembling employees at a certain location on a set timetable, or you can use an e-learning solution to allow employees to learn on their own time.
- Integration and third-party devices. Another issue to think about is whether the ERP system you’re considering involves the use of third-party devices like barcode readers or POS machines. ApparelMagic is a software provider that offers you the complete package. It has you covered, whether you need an end-to-end solution or an open-core for third-party app integrations.
- Scalability. You must ensure that the selected ERP system can scale with your business. Is the system capable of supporting your distribution channel or eCommerce in the future? Is it going to help your company compete in the worldwide fashion market? If your ERP system can’t keep up with your company’s growth, it’s probably not the right system for you.
The Bottom Line
Without the right ERP system in place, understanding, anticipating, and managing customer demand can quickly become a daunting task for even the most seasoned apparel industry experts.
ApparelMagic ERP includes all of the key features you need to run your whole garment business. It was created specifically for the fashion sector and integrates all business operations, such as raw material procurement, manufacturing, inventory, sales, and finance. Make sure you sign up for a free ApparelMagic demo, to see how all of the examples we’ve covered can help your apparel business adopt even more efficient practices.