Textile ERP | Reliable Manufacturing of Garments with ERP

Benefits of Implementing ERP in the Textile and Garments Industry

The textile and Garments Industry, being a versatile sector in the world, goes through incessant development. Innovative software solutions are necessary for Textile and Garments Manufacturing to keep up with the huge and dynamic competition. It also to integrate business processes effectively. ERP comes to the rescue in such a situation, proving to be the best and most powerful solution for Textile and Garments Manufacturing. With the help of the ERP system, Textile, and Garments Manufacturing Industries can effectively handle every aspect of their business. And, migrating to ERP Software is the best option to meet the challenges of the Textile and Garments Manufacturing Industry.

Let us have a look at the way ERP benefits the Textile and Garments Manufacturers:

Order to cash

The Make to Stock & Order process of Textile and Garments Manufacturing Industry is as follows:

Once the yearly/quarterly or time period-based blanket agreement/contract from the customer is received, the Purchase Order is created as a Blanket agreement or Sales order in ERP, as per which FG is produced continuously in a periodic order. This is then followed by Accounts Receivable Invoices and Incoming payments (Major Reports include Customer receivable, Cash flow, and Sales analysis).

Procure to pay 

Using the MRP function, by the start of the month, we plan for procurement for the month and the purchase request is auto-created. Goods receipt is created against the Purchase Request by the stores, and as per the Accounts, the Payable invoice and Outgoing payment are done (Major Reports include Vendor payables, Cash flow, and Purchase analysis).

Sales order for Textile and Garments Manufacturers

SO is created from the blanket agreement or once PO is raised or once the quotation is confirmed by the customers of Textile and Garments Manufacturing Industries. Using DMS, the soft copy of the PO is also attached. Also, the payment terms and delivery date are fixed. And then, we do send the order acknowledgment from ERP by email.

Sales Quote in ERP

Once the Sales Quotation from the customers is confirmed by ERP, it is converted to an order and the quote gets closed.

MRP

The MRP is used for Production planning and the procurement of required raw materials, considering the stock and for opening PO (Purchase request for RM is auto-created as per the Order/Demand). This is also a critical aspect of the Plan to produce.

Purchase Request in ERP

PR is auto-created by Material Requirements Planning, and even the PR is created manually department-wise as per the requirement of office equipment, consumables, etc. against which the PO is generated.

Purchase Order in ERP for Textile and Garments Manufacturers

On basis of the Purchase request, PO is created by approval procedure.  For items having default supplier, PO is automatically created by MRP, by fetching unit cost from the pricelist set.

GRPO in ERP

On basis of the PO, when the vendor delivers the item, the Goods receipt against PO is posted which debits the inventory (Stock adds in the warehouse – WMS).

Supplier Payment for Textile and Garments with ERP

Based on GRPO, a supplier invoice is added against which the outgoing payment is done.

Production in Textile and Garments Manufacturing with ERP

As per the BOM, considering the demand and stock by MRP, production orders are auto-created. RM is issued route stage-wise, and once all the stages are completed, the receipt from production is done, where the Finished goods come to inventory (Product Costing is a critical aspect of ERP).

Invoice with ERP for Textile and Garments

Account Payable invoice is created and the payment entries are posted (Open document system gives proper control).

This is how ERP Software benefits the Textile and Garments Manufacturing Industry and increases its overall efficiency. Also, the overall manufacturing operations of Textile and Garments Manufacturing Industries can be greatly improved.

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