Using an apparel ERP software, manufacturers can boost productivity by up to 25-30%! Wondering how? Whether it’s the pre-production stages like sampling, costing, sourcing, production planning, pattern making or the production stages like cutting, printing, sewing, trimming, etc., an ERP for apparel manufacturing will have functionalities that simplify managing each of these processes.  

The global ERP market is growing rapidly and is expected to hit USD 49.5 billion by the end of 2025 and more interestingly, the manufacturing industry holds the largest portion of the ERP market – 34%! These numbers are a clear reflection of how more and more manufacturing businesses are recognizing the importance of ERP in improving their processes and enhancing productivity. But what makes ERP an indispensable part of the expanding business market? In this blog, we will highlight the top functionalities of an apparel ERP software that helps manufacturers boost productivity, streamline workflow, and increase profits.

How does ERP increase efficiency and productivity in apparel manufacturing?

As an apparel manufacturer you might be juggling multiple tasks simultaneously – from sourcing raw materials, managing inventory, coordinating production, to fulfilling orders and so much more! It’s a complex process and demands 100% precision and efficiency.  

Now imagine partnering with the best apparel ERP software that has the potential to simplify most of your day-to-day processes and help you increase your overall efficiency and productivity. Here’s how implementing ERP for apparel manufacturing will help your business:

The Need of ERP Software for Apparel Manufacturers

The global fashion industry was worth USD 1.7 trillion in 2023 and it is expected to cross USD 1.79 trillion by the end of 2024. While these numbers clearly reflect the rapid growth of the industry, they also indicate the vastness and complexities involved. Operating in such a massive and fast-paced industry requires apparel manufacturers to depend on advanced software that helps them address common industry challenges and boost profitability.  

Take a look at some of the reasons that give rise to the need for ERP software for apparel manufacturers: 

• An apparel ERP software is an industry-focused solution that has features and functionalities tailor-made for the industry. This allows it to offer 100% visibility to business owners into every aspect of their business. 
• ERP software integrates most of your business processes including procurement, production, finance, etc., helping you eliminate data silos and ensuring data uniformity across the organization.
• The best apparel ERP software comes with powerful features that help you plan your inventory, production cycles, delivery timelines well in advance based on stock and resource availability. This helps you keep up with customer expectations and deliver quality products. 
• If you opt for a cloud-based ERP for apparel, you will get accessibility to your business data anytime at your convenience and from anywhere you need. This will help you make informed business decisions on the go and increase your productivity. 
• The best apparel ERP software comes with strong real-time reporting capabilities. This means you get detailed reports about various business processes on one platform. In addition, it results in data consistency across the organization.

5 Important Apparel ERP Software Functions that Boost Productivity!

49% of business owners have agreed to seeing an improvement in their overall manufacturing efficiency and productivity after implementing an ERP software. Let’s take a look at the top 5 functionalities of an apparel ERP software that makes this possible:

1. Inventory Planning: Streamlined inventory is at the core of a smooth functioning apparel manufacturing business. Right from procuring the required raw materials to keeping track of every piece of inventory involved in the supply chain – manufacturers have to maintain precision in every aspect. 

Inventory Management in an apparel ERP software provides accurate visibility of inventory across different units and warehouses, enabling effective management and planning. Additionally, it helps with:

• • Accurate tracking and transfers of inventory, providing real-time visibility. 
  • Detailed intelligence reports and analytics for better inventory management and planning, optimizing stock levels. 
  • Streamlined administration of stocks, allowing analysis based on cost, demand, supply, and validation methods. 
  • Precise inventory stocking, determining the right quantity of items to avoid stockouts and overstocking.

2. Production Planning: A healthy production cycle helps you maintain on-time deliveries which further results in happy customers. With the Production Planning feature of an ERP for apparel, business owners can facilitate efficient planning and management of production processes, ensuring optimal utilization of resources, cost-effectiveness, and timely order fulfillment. It helps with: 

• • Increased production capacity through synchronized production line functioning and better planning, resulting in higher sales rates. 
  • Effective utilization of available resources for production planning, optimizing resource allocation and minimizing wastage. 
  • Smooth production workflow and reduced labor and production costs. 
  • Minimized inventory costs and risks of misinterpretation, leading to better financial management.

3. Sales Order Management: Efficiently handling customer orders from the moment they are placed until the delivery is completed is crucial for ensuring timely and accurate order fulfillment and enhancing customer satisfaction. The Sales Order Management functionality of an apparel ERP software helps manufacturers with: 

• • Streamlining order processing and improving efficiency, minimizing delays, and backorders. 
  • Enhancing customer satisfaction and loyalty through accurate order tracking and timely delivery. 
  • Centralizing sales across multiple channels, enabling seamless management of various sales channels. 
  • Gaining insights and making informed decisions with informative reports for improved sales planning and strategy. 
  • Improving inventory management by checking product availability, procuring materials based on demand, and optimizing stock-to-dock tracking. 

4. Vendor Management: Fulfilling large customer orders often requires manufacturers to outsource certain aspects of the production process. Therefore, an ERP for apparel offers Vendor Management functionality which helps them specifically manage activities related to vendors and outsourced activities. Here’s how this feature boosts productivity: 

• • Simplified creation and management of various outsourced activities, ensuring efficient tracking and organization. 
  • Efficient management of invoicing and taxation for both manufacturers and vendors, ensuring compliance and accurate financial transactions. 
  • Detailed capture of material issuance to vendors, including process information, enabling accurate tracking and analysis of materials used. 
  • Visibility into pending orders and outstanding materials, facilitating effective monitoring and timely action. 

5. Warehouse Management: Efficient warehouse management is necessary to optimize space and resource utilization, reduce returns, improve customer satisfaction, and streamline warehouse operations. This is where the Warehouse Management aspect of an apparel ERP software acts like a boon. Here is how it helps: 

• • Management of multiple location warehouses from a single platform, simplifying operations. 
  • Streamline stock transfers between warehouses by easily creating stock transfer documents and shifting stock between locations. 
  • Efficiently receive stock into specific warehouses by specifying the desired location on purchase orders. 
  • Generate location reports to gain insights into stock on hand and stock value for each warehouse or stock location. 

In conclusion, implementing an apparel ERP software can significantly enhance productivity and streamline operations. By leveraging the top functionalities such as inventory planning, production planning, sales order management, vendor management, and warehouse management, manufacturers can achieve greater efficiency, reduce costs, and improve customer satisfaction.  

As the ERP market continues to grow, the benefits of these integrated systems are becoming increasingly evident, making them an indispensable tool for apparel manufacturers aiming to stay competitive and profitable. Embracing the right ERP solution can transform your business, providing the visibility, control, and insights needed to drive sustainable growth and success.