ERP Software

Apparel ERP: Getting it Right

The CFO’s Perspective: Part 2

This continues our discussion of key points a CFO will want to consider when choosing an Apparel ERP vendor.

Think Global, Act Local.  The more far-flung your empire, the more important it is that your Apparel ERP system be the glue that brings all the pieces into unison. Complex and fast-moving global supply chains are difficult to manage without separate systems requiring duplication of effort and potential for mistakes. Further, to truly have global inventory visibility, you need to be able to take an order in one location and fulfill it from one or more other locations. When this can be achieved with internal transactions being reconciled automatically there are clear opportunities to reduce costs and speed up work flows. So be sure to insist on a system that layers seamlessly onto your supply chain model and that automates the material and financial transactions between various locations as well as with customers and suppliers.

Quantify the Upside.  The right Apparel ERP vendor has done this many times before with companies very much like yours. They solutions they offer include more than just software.  Industry best practices have been integrated into the solution. That should enable the vendor to look at your current situation and define and quantify opportunities for improvement. Insist on knowing the exact contribution of each module: How will the new solution help increase revenue, reduce operating cost and improve your use of working capital? You’ll want to know exactly what to expect the return on investment is on your new Apparel ERP system and you’ll want to be able to update that number on a moment’s notice.

Choose the right level of on-going support.  It’s only natural to expect your new ERP vendor to commit to meeting your long- term maintenance and support needs. However, support packages can vary greatly, and so can the needs of companies. So, why buy something you don’t need? Your aim should be a support option that best aligns with your cost structure and in-house expertise. In other words, the option that makes the most sense for your business. Your business will keep on changing and your needs will evolve. You need to chose an apparel ERP vendor that can offer a flexible menu of support options to meet those needs.

Finally, it’s the people.  Like everything in business, it all comes down to the quality of he character of the people you are working with. At the end of the day, choose the partner you know you can trust.

Written by :

kristine H