ERP Software

Apparel ERP: Getting it Right

The CFO’s Perspective: Part 1

Perhaps no one is more obviously and deeply impacted by a decision to implement a new Apparel ERP system than the CFO. It’s going to turn your world upside down. But that can be a good thing if it means you’ll have more and better insight into operations, a better handle on key metrics and, ultimately the tools you need to control costs and drive return on investment. The right Apparel ERP vendor can help you identify and quantify opportunities for improvements as well as provide the support your business needs in the long term. Below we identify some of the key points a CFO needs to keep in mind as they evaluate potential Apparel ERP vendors.

It comes down to Financials. Numbers, number, numbers. You need fast, accurate access to all the numbers from all locations to run a business effectively. The last thing you need is disparate systems in far-flung locales, or the need to enter data more than once.  That’s why you’ll want to fully understand your Apparel ERP systems ability to deliver seamlessly integrated financials on the fly. When inventory is converted, moved or sold, in any location, it needs to be reflected instantly.  And the type of financial management, accounting, reporting and control are dependent on local customs and business environments. Insist on a system that gives you ready access to all the data you need to drive business decisions.  Ask how the financial package can help you capture, analyze and simulate critical trends. Evaluate you r ability to handle all aspects of financial accounting, budgeting, forecasting, reporting, consolidation and transaction processing with all the appropriate internal controls. This will help your business save money, eliminate redundancies, streamline activities and allow the redeployment of assets to more profitable activities.

Reporting and Analytics for Decision Support.  Business intelligence is vital for fast, insightful analysis and accurate reporting. Look for systems that make it easy and intuitive to access meaningful data and run appropriate analyses. Insist on interfaces that present data clearly and simply, organization wide, and that proactively alert you to pending exception conditions, then drill down to the transactional layer to implement decision.

Total cost of ownership.  Don’t be fooled by deeply discounted Apparel ERP systems with seemingly low acquisition costs. Ongoing software licenses, subscription fees and service costs can swell that actual cost of ownership.  Have your vendor show you the likely total costs over five and ten-year scenarios.

Written by :

kristine H