As an SME concern in the Indian Textile Industry, you stand at the crossroads of the success you have seen in the past and the challenges that come your way in the future. If you are one of the companies that enjoy a global clientele and are heavily reliant on exports, you will find yourself increasingly pressured to adapt to a changing landscape in the times to come. How do you set yourself up for success in such an environment?
The first thing to note is that you are not alone! As much of the production and manufacturing relocates from the developed to the developing world, the Indian textile industry has seen a global expansion like never before. Just how important are these exports for the textile industry? In 2007-08 the textile industry exported a whopping 390,276 million (INR) as reported by the Office of the Textile Commisioner, giving us an indication of the massive scale of operations.
However, the lack of operational efficiency, particularly in Indian SME’s , is not allowing them to harness the full potential of low cost, high quality manufacturing. We are all familiar with how poor production planning, inaccurate inventory management or ineffective control of accounts payable can wreak havoc, causing us to miss deadlines, compromise on quality and suffer crunches in cash flow. The industry also faces fierce competition from its next door neighbours like China, Bangladesh, Pakistan and Vietnam who are out-doing India in both cost and service. Furthermore, as demand from the West slumps due to recession woes, the outlook for the industry looks bleak unless companies are willing to stand up and make a change. At a time like this, what can you do to ensure that you are ahead of the pack?
A simple and effective solution to ensure smooth and hassle free operations is employing an Enterprise Resource Planning (ERP) software to manage your day to day business processes. An ERP software manages planning, production, costing, finance, accounts, marketing, human resource and other business functions in real time. With all these functions automated, business operations are free from manual errors and every step from order to delivery is taken care of. It is a commonly circulated myth that ERP softwares are only suitable for large scale operations . Contrary to popular belief, ERP softwares are highly customizable and serve to benefit companies with small, medium and large scale operations equally. Furthermore, ERP softwares are also customized according to the industry.
As an SME corporation, investment in IT infrastructure tends to take a back seat because of the cost as well as the lack of complete information about how it can benefit your business. To make an accurate cost-benefit analysis on whether the returns on such an investment will be worth it, it is important to understand how the features of this product can translate into savings for your business. To answer this question let us look at some of the specific benefits that you can get from employing an ERP software -
- A sound inventory management tool which automatically alerts you to replenish raw materials, ensuring that you avoid stock-outs.
- A record of all the transactions you have made, vendors you have dealt with and customers you have served, making sure that whatever information you need is available on your fingertips.
- Standardised order forms that allow the system to take orders accurately, making certain that you avoid additional costs and wasted time.
- Tracking of the materials from the warehouse to finished product, so that you can monitor the entire production process and understand where bottle-necks are arising.
- Order fulfillment by dispatch of goods to the corresponding address, avoiding the costs and confusion caused by manual errors while dispatching goods.
- A constant check on accounts payable and cash flow requirements, so that financing can be matched with the operational needs.
- Furthermore, industry specific features like sizes and currency conversion, shade matching etc that can make your life so much simpler.
In short, ERP software’s give you the power to adapt to market trends in a jiffy and the comfort of a smooth and efficient operating environment. The savings in time and money amount to producing lower cost products and keeping customers satisfied by constantly delivering on time! Share your thoughts on whether you think ERP software’s are the right way to go for your business. Also, if you would like to find out more about ERP solutions that can be customized for your business, call +91 99695 18615 or +91 97683 07053.
