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For the apparel industry, there are a range of ways that a return on investment (ROI) can be achieved through the installation of an ERP system. The improvements can include better inventory management, material resource planning, processes and production planning. 

But how do you measure the returns gained from a successful apparel ERP software implementation? The key is understanding how the intangible benefits gained can result in tangible returns for your business. 

Here are some examples of how ERP solutions can provide sizeable ROI in an apparel or textile company:

Improved Inventory Management 

In many apparel businesses, the cost of holding inventory can be significant at the best of times and for a larger organisation there will usually be more stock and materials that need to be held to complete orders. 

Improving how inventory is managed can lead to reduced costs across the board and in doing so provides a more stable and optimised production process.  

ERP software functionality allows for multiple sites to be involved, which means that materials can be sourced from their locations ahead of time to ensure the timely production and delivery of goods. Goods can be tracked and traced throughout the transport process to ensure 100% visibility throughout the supply chain while allowing stock allocation across different locations to reduce the distance and time to source such stock and materials.  

ERP systems, such as ApparelX, allow for real-time inventory levels to be displayed, meaning sufficient resources and materials can be scheduled. It also manages other resources by scheduling the right staffing and machinery requirements for each order placed. Being able to effectively manage what is required to complete an order also allows cost savings on a reduced level of over-purchased stock which may go to waste due to poor planning and forecasting. 

Improved Material Resource Planning  

For apparel manufacturers, having the right materials at the right time is crucial to being able to fulfil orders.  

One of the benefits of ERP software for apparel manufacturers is that it ensures the successful and timely fulfilment of orders by providing real-time information on the availability of required fabrics and materials for items so they can be maintained at optimum levels in line with production and demand forecasts.  

Improved material resource planning helps to minimise the amount of waste produced from production orders by scheduling orders with similar items and shared materials alongside each other to reduce the cost of waste. With regularly changing inventory levels across many different product lines, it can be hard to tell if you have the materials required when new orders are placed. 

Improved Production Planning 

ERP software functionality improves production planning by allowing a complete 360° visibility of the entire production platform, regardless of its complexity, to determine the optimum resource utilisation needed for specific items and products.  

A production planning module consistently analyses the number of required materials needed to fulfil an estimated sales demand for a specific period. If shortages within the Bill of Materials (BOM) are detected, they will be highlighted well in advance so that you are still able to adhere to delivery and fulfilment promises for that order.  

Users are also able to simulate the potential effects of an over/under sales prediction which provides the likely outcomes of either scenario. This allows employees to effectively plan around potential issues. Without an effective apparel management solution, sales predictions are often far from accurate, which leads to increased purchase exposure, errors being made, idle machinery and underutilised production resources, all of which will cost a business vast amounts of money and time.

Improved Processes, Saved Time & Reduced Human Errors through Automation

Error reduction can be achieved by automating data entry processes at various stages of the apparel manufacturing process. Processes such as report generation and demand forecasting rely on accurate data being input into the system.  If this data is incorrect, it will affect other areas of the business further down the line. Through error reduction, an apparel business could achieve a higher accuracy of their data and thus reduce costs to correct these issues while also being able to make better decisions based on the data they have.

Specialist Apparel ERP Software 

ApparelX is a modern apparel and textile ERP solution that has been designed specifically for textile, apparel, PPE, footwear and soft furnishing companies of all sizes. It can be adapted to meet the needs of manufacturers, contract suppliers, high-street retailers and distributors and can be scaled to grow with your business. Many leading companies within the industry have taken advantage of the benefits ApparelX has to offer, providing them with an affordable solution that provides a rapid return on investment (ROI).  

If your business is showing signs it could benefit from an apparel ERP solution, please contact the team at 01384 400 600, email info@syscom.plc.uk, or submit a contact form below.