Erp in apparel sector

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the ppt covers various erp aspects in the apparel manufacturing companies

Transcript of Erp in apparel sector

ERP Solution Providers

Submitted by:Aditi Ashok (KOL13AP37)Aditi Raina (KOL13AP13)

ENTERPRISE RESOURCE PLANNING

What is ERP?

•Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications.•It is used to manage the business and automate back office functions related to technology, services and human resources.•ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing.

Need of ERP solution providers• Real-time information for decisions• Best practice procedures• Improved visibility• Faster month-end close• Increased customer satisfaction• Managed and controlled costs• Better operational efficiency• Accurate records• Balance of supply and demand• Reduced lead times and throughput

ERP Vendors Depending on your organization's size and needs there are a number of

enterprise resource planning software vendors to choose from in the large enterprise, mid-market and the small business ERP market.

•Companies with revenues exceeding $1b.•SAP & Oracle

TIER I

•Companies with revenue range of $50m to $1b•Infor, QAD, Lawson, Epicor, Sage and IFS

TIER II

•Companies with revenue range of $10m to $50m•Exact Globe, Syspro, NetSuite, Visibility, Consona, CDC

Software and Activant Solutions

TIER III

ERP Vendors – Industry wise1. Manufacturing and distribution industry

ERP Solution Providers

Mar

ket S

hare

in %

SAP Oracle Microsoft Infor Epicor IFS Lawson Consona Corp

Activant QAD Others0

5

10

15

20

25

30

2. Transport, Communication, Energy, Sanitary ServicesM

arke

t Sha

re in

%

ERP Solution Providers

SAP Oracle Microsoft Infor Epicor IFS Lawson Consona Corp

Activant QAD Others0

5

10

15

20

25

30

3. Service sectorM

arke

t Sha

re in

%

ERP Solution Providers

SAP Oracle Microsoft Infor Epicor IFS Lawson Consona Corp

Activant QAD Others0

5

10

15

20

25

30

4. Retail sectorM

arke

t Sha

re in

%

ERP Solution Providers

SAP Oracle Microsoft Infor Epicor IFS Lawson Consona Corp

Activant QAD Others0

5

10

15

20

25

30

ERP- Market Analysis

Worldwide ERP Software Market Share, 2012

ERP in Garment IndustryTextile and garment ERP software falls into two basic groupings. The small ERP provider, who has developed a custom solution for a small client base, and the large ERP solution who is more general, but can tailor their systems to the needs of the Apparel, Garment, or Textile industries.

Following are some of the areas in garment industry in which ERP is used:-

Sales and marketing

Production Planning and

ControlMRP/CRP BOM (Bill Of

Material)

Warehouse Management

Inventory Management

Shop Floor Control (SFC)

HR Management

Master Production Schedule

Purchasing Management

Benefits of ERP

• Provides lower price, better quality and quicker delivery to retailers and consumers.

• Provides the correct information to the correct people at the correct time anywhere in the world, enabling better output, improve decision making and promote business communication between employees, customers and suppliers.

• Reduces paper work, eliminate duplicate entry, automate operational tasks and provide better platform to access information.

• Save significant time

ERP Vendor ComparisonSAP Oracle Microsoft

DynamicsINFOR

Market share 25% 13% 5% 6%

Short-list Rates 45% 31% 18% 8%

Selection Rates when Short listed

21% 14% 9% 19%

Implementation Duration

19.5 months

23.4 months 24.9 months 16.2 months

Total cost of Ownership

$2.2 million $2.7 million $1.7 million $2.1 million

Payback Period 9 months 21 months 22 months 24 months

Top Solution Providers

Fishbowl is an Orem, Utah-based software company.Formed in 2001It has gained lots of market share due to its commitment to seamless integration with Quickbooks. It is a very popular option for small to mid-sized firms looking to automate manufacturing and inventory control.

•NetSuite Inc. is an American software company based in San Mateo, California. •It was founded in 1998 as NetLedger, •Equipped with a variety of enterprise resource planning tools, NetSuite for Manufacturing uses the Software-as-a-Service model, along with customizable dashboards and industry-specific tools, to manage manufacturing companies.

Business All-in-One is SAP's solution geared towards mid-market enterprises. The functionally broad and deep system can be applicable to most companies in every industry, and is remarkably flexible and customizable.

Oracle JD Edwards is an industry leader in enterprise resource planning solutions for small and mid-sized manufacturing firms. The robust, complete system is backed by Oracle's world-class support network and best practices.

Microsoft Dynamics GP is one of the most popular ERP systems on the market for small and mid-sized process and discrete manufacturers. It offers complete functionality for MRP, quoting, CRM, shop floor control, and accounting.

•Sage Business Solutions provides end-to-end software solutions to large, mid-size and small business in Australia, New Zealand and the Pacific Islands.•Established in 2006•The Sage ERP portfolio offers packages for all sizes and types of manufacturers, supporting both discrete and process modes. The system offers comprehensive management of inventory, planning, shop operations, accounting, and more.

Business ByDesign is SAP's Software-as-a-Service (SaaS) ERP system designed for small to mid-sized companies seeking a robust ERP solution in the cloud. The program offers CRM, accounting, inventory control, MRP, and MES.

S2K for Manufacturing is VAI's ERP suite suitable for both process and discrete manufacturers. The IBM iSeries-based system is modular in design but is most often deployed as an integrated suite of applications.

CASE STUDIES

• MSUM, an LN Bangur group enterprise is a Composite Textile company with over 70 years’ standing in the chosen business of Yarns and Fabrics.

• Having a star export house status, it is a technically & technologically upgraded, scalable and diversified yarns manufacturing unit apart from processed fabrics.

Solution Provider:• SAP

Business Challenges & Drives• Complex production planning execution. • Huge product variants in fabric division. • Fluctuations in the procuring of raw materials • Product manufacturing cost is very significant in selling price. • Quality of the raw material (Cotton) will decide the final product quality (Yarn) • Varied discount sales based on product quality (grade of fabric)

CASE STUDY 1

Solution Approach• Developed cotton mixing program to get the homogenous mix based on

the quality parameters.• Adopted stringent and user friendly production planning mapping to get the

stage wise product ion. • Developed a user friendly screens to calculate the vendor and customer

interest calculation.• Developed a flexible discount procedure methods.• Developed bail packing program to address the different grades, variants for

various customers. • Developed a program to handle the dyes & chemical consumption against

customer & product wise, which influence actual product cost.Outcomes• High quality of finished product.• Grade clarity in the material stocks at different stages. • Complete accountability of raw materials, dyes and chemicals. • Visibility to management in operational performance & increased efficiency.

Flamingo Fashions Ltd. • Flamingo Fashions Ltd., a business unit of DBL group,

knitgarments manufacturers and exporters in Bangladesh, selected the Oracle E-Business Suite 12.1.

• Oracle E-Business Suite 12.1, management will now have a complete 360 degree view of real time information

• Enabling them to have instant insight into financial reports for better management of assets, inventory and workforce, while making informed decisions.

• Flamingo Fashions' decision to implement Oracle because of the flexibility Oracle provided in deploying the solution.

• IBCS Primax Bangladesh Limited, a Gold Level member of Oracle PartnerNetwork, is the implementation partner.

CASE STUDY 2

Conclusion

• ERP solutions can be difficult to implement and cause a considerable disruption at work. But once implemented successfully works miracle.

• A closely tailored solution will cause the minimum disruption and assure you of the greatest chance of success. Since ERP software provides the privilege of customization, it must me taken advantage of.

• The vendors discussed above are all experienced and selecting one of them that fits your niche seems to be a sensible and practical approach.

Thank You!