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10 Benefits of Installing ERP System in Textile Business

28 Aug 2020 By Admin0 Comments

The textile company usually faces problems in tracking down their inventory, material requirement planning, and material production schedules.  A customized and complete ERP solution provides a single interface for various modules like manufacturing, sales, purchase, stock, accounting, distribution and other assets.

 Using ERP system in textile industry enables the business to:

Shop Floor control
Lot traceability
Quote and quality management
Keep Check on the accounts
Bill of Material (BOM)
Plan cash flow and monitor forecast positions.
Interpret business conditions
Provide efficient business information to assist financial decisions
monitor receipts of payments
Engineering change control
Let’s look at 10 benefits of the ERP system that textile companies have experienced post implementation of ERP.

1. MIS Reporting and Financial Data

Customized ERP’s help textile industries to manage their financial data. It provides real-time transaction information providing company’s revenue, expenses, outstanding debts and vendor charges. It also facilitates MIS reports like balance report, balance sheet as and when required.

2. Collaboration and communication

We do not want to see a business tangled with each department operating separately from each other. A proper channel for communication and medium for collaboration is necessary for a centralized and consistent data. An ERP system touches every aspect of the business, thus naturally encouraging a collaboration between the teams.

3. Better Security

Data security shouldn’t be a worry when you have an ERP in place to take care of your textile needs. The new system will certainly improve the reliability, consistency, accuracy and security of data, all through in-built resources and firewalls.

The ERP system has always restricted inappropriate data to avoid being stolen by hackers and thieves.

4. Scalability

A well-structured ERP solution enables you to add new users and functionality as and when your strategies change. It makes sure any additions to the system doesn’t affect your ongoing operations. When your business expands and is ready to grow, your ERP system should be able to facilitate that growth.

5. Reduction in cycle time

ERP systems allocate materials to specific customers and is important for making deliveries as planned. Sometimes it becomes difficult for making deliveries since there is no possibility for material. In such cases ERP system eases out the process by letting you handle such cases efficiently.

6. Reduced machinery downtime

Today, it is estimated that almost 8% of machine downtime is connected with non-availability of proper raw material. This happens due to inefficient planning and communication barriers in compiling the correct information. Thus, ERP systems, as discussed, could help you bring down your machinery downtime with effective supplier selection module.

7. Sales Improvement

Almost 80% customers place repeated orders. It was seen that there are 3 factors that affect orders, i.e. price, order and delivery.  An integrated ERP system will definitely help textile industries in overcoming these risk factors. Price is something that affects most of the customers, therefore proper research and competition analysis is important.

8. Dye House Management

Fabric price increases due to a lot of waste generated from the dyeing industry. An ERP system facilitates dye house management which provides chemical inventory, daily production report, batch management system, lab-management, etc.

9. Customer Management

Customer management becomes quiet easy with processes automated for capturing and storing customer data, preferences and activities. Tracking and increased lifetime value of customer can keep your existing customers engaged and build your brand.

10. Database Integration

The most important benefit deploying an ERP system for your textile organization is that it can be easily integrated with your current database without any hassles. Customization is just limited to your needs. Once the system is installed, it will easily blend with your current traditional system.

10 Benefits of Installing ERP System in Textile Business


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