ERP Selection and Implementation in Apparel Industry

ERP is the acronym for enterprise resource planning. ERP is an information system that integrates all facets
of business like R&D, sales and marketing, manufacturing, logistics, human resources, logistics, financials,
and so on. ERP streamlines workflows, business processes, and methods followed by the organizations to
attain the goals envisioned for supply chain management.

ERP implementation process in garment industry:

Many organizations do not have sufficient internal skills to implement an ERP system project. This results in
many organizations offering consulting services for implementation. Typically, a consulting team is
responsible for the entire ERP system implementation, see Fig.

Basic ERP system implementation process.

Fig: Basic ERP system implementation process.

ERP systems play an important role in the fashion and apparel industry. There are many cases of
implementation globally. Also, there are many cases where the implementation is a huge challenge to the
fashion companies.

For best business practices and successful business results, the ERP system application has to be completely
implemented across all departments. The implementation of an ERP system will have a greater impact on
the processes of the organization, functioning of the department, organization culture, employees, and the
management.

ERP system implementation is a difficult task. Most of the implementation overshoots the implementation
schedule, costs overrun budgets, under-delivers the business expectations, and delivers less business value.
It involves huge financial implications, a lot of human resource at different levels with different frequencies,
and it requires lots of technical expertise and a dedicated approach, which makes it more difficult for smooth
implementation. In general, ERP system implementation in an existing industry is a transformation process.
Any transformation in the industry has to go through its rough patches of resistance, conflict, setbacks,
bottle necks, and time delays. This also leads to extensive delay in implementation, which most of the time is
treated as a failure to deliver in time.

The apparel industry works with stringent time frames and involves many technical processes. As the
product life cycle becomes shorter with less lead time to deliver, the industry moves in to automation of its
processes with state-of-the-art technology. Automating the processes of the industry through implementing
an ERP system application will be one of the major initiatives taken by the organization to keep up the pace
of the industry’s growth.
Project planning:

The implementation of an ERP system is an initiative taken by an individual or group of individuals or

management in an organization. An organization has to identify its objective and need for implementing the
ERP systems in line with the organization’s goals. The ERP system implementation will not yield expected
results if the objectives are not clearly defined. These objectives must be defined, keeping in mind
parameters such as existing business needs, the processes, and future expansion plans. The organization
must identify a team of technical experts who understand the business processes to define the requirements
of the automation process. The expert team must study existing ERP system products available in the
industry and the software used by peer groups.

Software selection:

Product selection plays a key role in ERP system implementation. Successful implementation is determined
by the product selection that determines the future course of business. The technical team plays an anchor
role in software selection, and it must be transparent, critical, and analytical and should function with
complete freedom of expression. The software should be flexible to meet the changes in business, scalable
to grow with the company, less complex, user friendly, affordable to the organization, and compatible with
the internal culture of the organization. The software should use the latest technology used in the industry.
Software selection should not be influenced by an individual or a group, popularity or brand name and
should not be biased.

Vendor selection:

Vendor selection is also a key to successful project implementation. The technical team has to analyze the
existence of the product in the market and the experience of the vendor by analyzing the number of
successful installations, turnover, and experience in development and implementation. Technical expertise
of the vendor’s implementation team or the implementation partner is an important key for implementing
an ERP system in an organization. The ERP system implementation can fail due to poor vendor selection and
lack of after-sales support.

Customization:

ERP system software are not ready-to-use products; these require minor changes to make them functional
and to meet the complete requirements of the organization. The technical team in association with the
experts of the external implementation team must determine the level of customization required, by
keeping the parameters in mind such as these:

Ready to use features of the software by understanding existing business processes of the organization.

The technical team identifying the gaps that need to be bridged, so that the organization practice becomes
akin to the ERP system environment; GAP analysis would determine the depth of restructuring required in an
organization and provide necessary suggestions such as new reports, analysis, and better features; this
process is inevitable even though it is expensive and time-consuming. Reengineering needs organizational
restructuring and change in the processes that will help in enhancing productivity and eliminate processes
that are not required; reengineering the processes must be taken to suit the requirements of the software
and for the better process controls. The product must be user friendly; customization should not exceed 20%
of the project scope. Most of the implementation delays are caused by excessive time taken for
customization. Misunderstanding the level of customization required or the clear-cut understanding of
processes of the organization will result in unnecessary delay at the implementation stage.

Architectural design:

Technical requirements of the organization determine the architectural requirements. Technical

requirements include the number of modules required, which includes e-business and e-commerce
applications. Architectural design is the backbone of the ERP system implementation. The implementation
team should identify the type of deployment required, such as on premise or host the application at a data
center or cloud (private or public). Based on this the organization should determine the number of user
locations, data capturing points, access points, and report centers and determine the architectural
requirements such as hardware, software, network, firewall, and other infrastructure requirements. The
security levels should be clearly defined at the time of preparing the software requirement specification
(SRS). Any ambiguity in architecture design will complicate and delay the implementation.

Cost of the software:

A proper investment plan with clear-cut budget allocation is a key to the implementation success of ERP
systems. Vendors never disclose the complete investment plan, which includes these points:

1. Product pricing
2. Hardware infrastructure
3. Technology
4. Training and implementation
5. Maintenance

Improper fund flow will lead to a delay in implementation. A service level agreement must be signed with a
complete plan of action and scope for deviations such as delay in implementations and accountability factors
on both sides.

Data management:

Capturing the right data at the right point is the key to scientific implementation, which includes elimination
of duplicate and redundant data and capturing indirect data through data mining. The success of
implementation is determined by the use of existing data stored in the organization in various formats using
a data conversion method.

Preparing for the venture:

The ERP system implementation team must have participation from all stake holders such as technical
experts, top- and middle-level management, end users, and finance. The implementation may fail due to
improper implementation methodology, poor budget allocation, fund flow, and nonavailability of
infrastructure. Failure to draw blue prints, SRS for implementation, or defining the responsibility and
accountability will lead to implementation failure. Lack of awareness among the employees about ERP
systems and its advantages will lead to resistance to change. Prior to the commencement of the
implementation the organization must provide the right IT infrastructure prescribed by the implementation
team. Nonavailability of infrastructure and technology may lead to unnecessary delays in project
implementation. The ERP system implementation may not yield expected results in time due to improper
installation, configuration, customization, critical testing with real-time data, or training of trainers and end
users. A conflict of interest between internal and external experts and resistance to change by employees
will result in a delay of the implementation.

Failure to implement the ERP system application or delay in the process will affect the growth of the industry
and result in a huge loss in terms of finance and time. In the long run, delay in implementation diverts the
focus of the industry, thus challenging its basic existence. The ERP system implementation failure is not a
threat to one organization; it is a threat to the apparel industry itself. It indirectly affects society and the
growth of the nation. There is tremendous scope to study the difficulties faced by organizations in
implementing the ERP system application in the apparel industry.

References:

Information Systems for the Fashion and Apparel Industry by Tsan-Ming Choi

ERP for Textiles and Apparel Industry by R. Surjit, R. Rathinamoorthyand K. J. Vishnu Vardhini
ERP in Fashion: Implementation Issues and Business Benefits

ABSTRACT

Enterprise resource planning (ERP) systems have been widely applied across a range of industries. An
ERP system is a complete, enterprise-wide, business solution consisting of software modules for
various business functions (finance, sales, operations, etc.) with an integrated centralised database.
Previous research suggests that the fashion industry is characterised by very specific and complex
issues which make implementation of generic ERP systems in fashion businesses problematic. For
example, a fashion style is not a single product, there are many variations in size, colour and fabrics for each
style, so any system must be able to manage the very wide range of products being designed, manufactured
and sold. For this reason, ERP implementation in fashion businesses usually involves significant
customisation or the use of a vertical solution. Vertical solutions are standardised pre-configured systems
tailored to a specific sector, with “add-ons” to match the sector’s requirementsThis paper uses a case
study approach to examine the implementation of a specialist fashion ERP system. Americana International
Ltd., the brand owner and manufacturer of Bench clothing, is selected as the target case company.
Via published material and semi-structured interviews with management of the company, the paper
examines the implementation of a vertical solution: Microsoft Dynamics NAV with Pebblestone
Fashion. Problems and issues occurring during implementation are examined; and the business benefits
achieved through the use of the ERP system are identified. Based on the case study results, the paper
concludes that implementing an ERP systemin a fashion company can significantly enhance operations
management within the business. Finally, future challenges and research opportunities relating to
implementing fashion ERP systems in conjunction with Product Lifecycle Management (PLM) systems are
explored.Keywords: enterprise resource planning (ERP), product lifecycle management (PLM), vertical
solutions1.IntroductionOver the past two decades, companies have invested considerable resources in
the implementation of enterprise resource planning (ERP) systems [1]. AnERPsystem is a complete,
enterprise-wide, business solution consisting of software modules for various business functions
(finance, sales, operations, etc.) with an integrated centralised database. Through cross-functional
integration, and improved information flows, ERP systems hold the promise of providing companies with
greater competitive advantage. [2]ERP systems have their roots inthe Materials Requirements Planning
(MRP) systems of the Proceedings of the 1stInternational Conference on Digital Technologies for the Textile
Industries Manchester, UK,5-6 September2013

Apparel and Fashion ERP Systems, Applications and Selection Criteria

In today’s competitive and fast fashion market, can you manage a manufacturing unit without right
information in right place? No, that would be very difficult to manage the business effectively and profitably.
Basic information like the production status, material movement status, purchase and sales data. That is why
all apparel and fashion manufacturing company prepare the report, keep records, and do documentation.
Still many of them using the manual method of reporting and data recording.

The next-gen business owners and business leaders are not happy with the manual report system. Most of
them have already realized how the manual reporting system is dragging them back. They know the benefits
of the ERP systems and buy an ERP system for their business.

You may know that the garment manufacturing industry is moving to industry 4.0. An enterprise resource
solution (ERP) is the must for managing apparel supply chain whether it is factory level or an extended
supply chain. An ERP system helps a garment unit by providing necessary information as needed, helps in
preparing the database, eliminate the manual data entry and repetitive entry of same data or reduce register
maintenance partially and in some parts completely.

The objective of implementing an ERP

We are discussing the ERP systems. And ERPs are no more a new technology in the garment and fashion
manufacturing industry. It looks good to have an ERP system. Factory owners feel good to have a good
technology - ERP system in the company. But before you purchase one ERP system for your factory, you
should know the objectives of the ERP system in the apparel manufacturing and the primary applications of
the ERP systems.

I have listed basic applications of the ERP system -

Real-Time business information,

End-To-End process accountability,

Improved visibility

Reduction in production cost

Digitization of day to day documentation like - Order entry, shipment, Challan generation, billing, production
launch, stock entry, production planning and process scheduling (Time and Action calendar)

Inventory management and control,

Product costing,

Generation of fabric indent and BOM

Reduce and eliminate physical report and record maintenance, which is an error-prone and not secure.

Quicker approval of bills, samples etc.

Manpower management

Staff performance analysis

Employee payroll and employee leave management.

What you need to implement an ERP system successfully?

Just buying a good ERP brand product does not make the company better. The system needs to utilized by
the company - either the system should be customized as per factory needs or factory needs to change its
working procedure as the system demand to run it efficiently. Following are few pointers on prerequisites for
getting the most from the EPR implementation.

Awareness among the factory staffs and department heads should take responsibility of using the system’s
functions.

A comprehensive training of the staff who will be using the ERP tools

Action should be taken from the top management on elimination of manual process and moving toward
digitization

A team needs to be formed for implanting and running the ERP system and helping the users when needed. I
have observed that in small size companies, ERP system is implemented but only one or two people
responsible for running the system. This would not give success in long run.

Many small size factories don’t have IT setup (IT team). In such cases factory should hire one skilled person
to look after the ERP system and troubleshooting.

Good networking /internet connection / LAN connection should be there for better utilization of the system

Apparel ERP selection criteria

If you have decided to buy an ERP system, you have many options to choose from the best brands. Still, you
should select one following some criteria. Based on the world's best PLM and ERP solution providers you can
follow these criteria for selecting an ERP system for your business. Apart from the price of the ERP you
should consider these points -

Ease of user training and system maintenance

Flexibility of software tools – Customization of system flow based on factory workflow

Availability of different modules with the ERP software

Compatibility of data integration with other software for reporting

ERP pricing model

Annual maintenance charge (AMC) for the using the ERP system

Latest reporting tools and

Report customization service should be provided by ERP solution provider

Last but not the least, ERP system makes employees' life easier at work in many ways. A factory can manage
its processes and manpower very efficiently with the help of the ERP system. But users should know the fact
that an ERP system cannot run automatically - it needs human intervention and human should have the
desire to utilize the benefits of the ERP system.

Important Apparel ERP Software Functions that Boost ProductivityPosted by BatchMaster India in Software
Selection On May 9, 2018

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Apparel-ERP-Software

There are over seven billion people on this planet. Seven billion! And not a single person can do without
clothes, as it happens to be a basic necessity. If each person owned only one shirt, one pair of pants, and
one accessory like a jacket, scarf, or a shrug, the world would have 21 billion articles of clothing. Obviously,
we own many more garment items than just three, as our wardrobes are all loaded with a large number and
variety of clothes and yet we long for more. The Millennials spend a considerable amount of time browsing
the online garment stores over some of the applications on their smartphones. Even the physical stores at
your nearest mall are frequently visited by female shoppers and students to check out the latest collections
of their favourite brands.

You might be surprised to know that India accounts for approx. 14 percent of the world’s production of
textile fibres and yarns. India is also the largest producer of jute, second largest producer of silk and cotton,
and third largest in producing cellulosic fibre. Textile and apparel exports from India are expected to increase
to US$ 82 billion by 2021, while cotton production in India is estimated to reach 37.7 million bales in FY18.
(Source: https://www.ibef.org/pages/textiles).

Considering growth at this rate, apparel manufacturers are invariably required to remain on their toes.
Garment or fabric industry is not an easy sector to operate in. With difficulties in right fabric procurement, to
maintaining classic clothing design along with fighting with fluctuating labour and production costs, the
apparel manufacturers need to boost their productivity and meet the market demands. Only then will they
be able to tackle the challenges well and keep pace with the industry growth.
In such times, Enterprise Resource Planning (ERP) software help apparel businesses deal with the industry
challenges and boost their productivity. Read on to know how an apparel ERP application does it for the
hyper-connected and customer-centric apparel industry.

An apparel ERP solution maintains entire business information in a single database so that the data is
accurate across all sales channels and departments. Order consolidation, real-time inventory update, order
tracking, cumulative production, etc.; all happen at a single click of the button. As a result, you enjoy
complete business visibility with integrated end-to-end functionality. This ensures you have easy access to
information, market insight, more efficient workflow, and ultimately improved productivity.

An apparel ERP is a tool which can help the apparel manufacturers achieve a tight control over operations
and stay competitive. By syncing all operations through an ERP, you ensure that all processes are running
without any hitch; and if there’s any, it can be pointed out in real-time and acted upon immediately. This
saves a lot of time as compared to brain-storming needed in case of manual methods where you have to put
money and man in identifying just the source of the problem. This ultimately boosts the productivity of every
department while eliminating delays, reworks and production halts.

An apparel ERP solution benefits the apparel manufacturers on the whole as well, by helping them manage
men, and machine, apart from managing the operations. It helps with manpower management, i.e.
managing the labour, their work hours, remuneration etc. Besides, ERP software also allows to schedule your
shop floor processes according to the capacity of your machines. In addition, it connects your shop floor with
the top floor (management), thus giving you real-time updates on productivity and processes from each of
your machines and facilitates sound decision making. This way, you also get the ease of scheduling your
production as per the machine availability, thus reducing the downtime and the set-up time, and ensuring
maximum output.

An ERP software provides real-time inventory visibility across the warehouse. Real-time inventory tracking,
which considers both averages and variation in orders, is also made possible by an ERP solution. As a result,
your manufacturing facility is better suited to handle sudden changes in throughput, and in a nutshell, more
likely to operate at optimum efficiency. Through its inventory management module, ERP system can help the
manufacturers manage their inventory effectively through achieving optimum inventory levels and cutting
down on waste and surplus, improving manufacturing efficiencies, processes, overall quality and
productivity.

An apparel ERP software standardizes the manufacturing processes for the apparel manufacturers and
ensures uan ninterrupted flow of work by following pre-decided production protocols. In addition, it also
helps them optimize and standardize business processes by encouraging the adoption of best practices. This
makes the manufacturing process less complex and helps organizations save time, thus leading to better
performance and more efficient people, which is a direct indicator of enhanced productivity.

An apparel ERP also puts in place an effective work flow, which reduces the scope of errors and reworks and
maintains consistent quality. As a result, the time saved on such reworks can be used for other productive
tasks.

An apparel ERP software also allows process automation, which ultimately results in improved productivity.
With its help, you can automate a number of processes such as procurement and maintenance of raw
materials, tracking of supplies that are purchased, and calculations about sales margin, profit ratios and all
such metrics, which are otherwise impossible to do manually. This makes the job of the employees easier as
well as enhances their efficiency and productivity, as they now do not have redundancies in operations, or
have to waste time completing repetitive tasks manually.

ERP software is also available on the cloud, offering the apparel manufacturers much flexibility and
convenience of operation in a secured, web-based environment. An ERP solution also facilitates real-time
communication with local and overseas suppliers waving goodbye to time wasted in trying to connect and be
productive.

ERP software for apparel sector are known to bring in flexibility and agility to your business, and lend it the
ability to scale and meet industry-specific challenges apart from boosting productivity. One such solution is
BatchMaster ERP for Apparel, which increases your apparel business’ efficiency and productivity in the truest
sense and collectively contributes towards significant ROI generation. It allows the apparel manufacturers,
distributors as well as retailers manage the entire supply chain with ease. Handling product designing,
sourcing, demand management, supply-chain planning, production & inventory management, and
multichannel distribution become child’s play with BatchMaster ERP for Apparel. To know about our other
offerings, visit www.batchmaster.co.in or write to us at sales@batchmaster.com.