ERP Applications

Apparel ERP: Open the door With Sourcing Applications

Apparel ERP systems are at the heart of the transition for so many apparel brands from manufacturing at home to relying on distant sources in a complex global supply chain. In fact an Apparel ERP system would be considered the essential component necessary for the success of many of the biggest brands, the tool that drives down risk and drives up margins. Switching to an outsourced model without a robust Information Technology component is a recipe for disaster, as we will see in a minute. But there are solutions that are far less costly and easier to deploy than the enterprise-wide reboot a full-blown Apparel ERP system entails. They are called, appropriately enough, Sourcing Applications; certainly a subset of ERP, much narrower in focus than full-blown Supply Chain Management (SCM), and a manageable first step in asserting control over your outsourced business model.

Outsourcing is virtually essential to compete in today’s Fashion/Apparel industry. Labor makes up over 60% of an item’s cost, and roughly sewing alone absorbs 30%. So it’s natural to seek out lower-cost markets with adequate low-cost labor supply. Still, several studies have shown that almost half of North American and European companies that shift business processes offshore fail to generate their anticipated savings. Why? There is a lot that can go wrong. Long distances, widely spaced time zones and different languages are just the tip of the iceberg. You also have to worry about political and economic stability in her chosen region, currency fluctuations and changing import/export “traps.” Transportation delays can lead to the added cost of emergency airfreighting.  And quality can be difficult to control at a long distance. The most common complaints you hear from companies new to a sourcing model are “lack of visibility” and difficulties responding quickly when customer requirements change/

That’s where Sourcing Applications come in as sort of Apparel ERP LITE.  These applications use centralized workflow management of collaborative product development, collaborative vendor negotiations, production and logistics tracking and a range of tools hat result in faster, cheaper, more responsive supply chain management. With online, real-time visibility and secure data updates, these apparel software solutions help increase productivity, reduce surprises and lift the veil on distant operations. Typically, software modules focus on Product Development, Global Sourcing, Vendor Communications, Actual Costing, Time and Action Calendars (with automated alerts and alarms) and Retail Integration. Sourcing applications can make the difference in your move to an outsourced model.

Written by :

Amy Cruz