Implementation of ERP in apparel Industry
Today we will discuss steps for the implementation of ERP in apparel industry. The word ERP stands for enterprise resource planning. ERP gives us integrated information about all the factors such as Research and development, marketing and sales, production, logistics, human resource, and finance. ERP sets root for workflow, business procedures, and techniques followed by any business community to achieve their goals.
How to implement ERP in Apparel Industry
Most of the administrations and industrial sectors do not have any expertise to install and implement the ERP system. Therefore, these business groups are offering consultancy to implement this system. In most of the organizations, ERP consultancy team has responsibility for the total implementation and running of the ERP system. An essential implementation of ERP in apparel industry is given in the below steps.
ERP system plays a vital role in the garment industry. There are many examples of ERP implementation in the business sector around the world. But still, its implementation is a big challenge in most apparel industries. When all departments of organization are linked with each other with the help of this system, then process flow and information flow of that organization never flop at any stage. The enterprise resource planning system has a significant impact on organization employees as this system reduces physical effort; it improves the departmental working and removes bugs in conversations from one department to another department.
Implementation of an ERP system is a complicated job, but once it’s done working of employees becomes smooth and precise. The major problem is an extension of implementation schedule; cost exceeds more than its budget, business expectations go down, and delivery of less business value. To make ERP the part of your system requires high technical experts, substantial financial implications, a lot of human resources at different stages with different occurrences, and a highly motivated approach. Installation of ERP is a transformation of a system to another system. Therefore any change in an old order faces challenges like conflicts, resistance, bottlenecks, time delays, and acceptance.
The garment industry works with rigid time frames and goes through many technical processes. As the life cycle of the Product becomes shorter with the less lead time to deliver, the industry switches to the automation with state of the art technology. The switching of industries towards automation through the installation of an ERP system is the best strategy of organizations to continue the step of industry growth.
An industry that is interested in implementing an ERP system has to identify the objectives and its goals for which the implementation of the ERP system is required. The ERP system will never give outstanding results for the organization if the objectives of ERP installation are not clear. The goals must be defined by keeping all the parameters in mind, for example, any upcoming expansion plan in business. The industry must involve a team of its employees working there who understand the process and information flow to define the requirements of the automation process. The consultancy team and team of industry employees together will implement ERP in that organization.
Selection of Software:
The selection of Products has a crucial role in the implementation of the ERP system. The successful installation of ERP is determined by product selection that determines the future direction of the business. The team of experts plays a lead role in a variety of software. This selection must be clear by keeping all aspects in mind and can function with complete liberty of languages. The selected software must have options to edition to make the changes in the business. It should be scalable so that it can grow with the company growth. The software must be easy to use, affordable to the organization, and compatible with the working style of the organization.
Vendor selection is also essential for the successful installation of enterprise resource planning (ERP). The expert’s team has to evaluate the product existence in the market and get views of the vendors by evaluating the number of successful implementations and experience during installation. The implementation expert team of the vendor is a vital key for the installation of an ERP system in any organization. The reason is, the expert team of the vendor has the experience of ERP implementation. There are high chances of failure for the implementation of ERP if the selection of the vendor is terrible.
The Software system of enterprise resource planning is not ready to use Product, it requires some minor changes to make it operational and to encounter the goals of the organization. The internal expert’s team of the organization will associate with the external implementation technical team to determine the level of customization by keeping all aspects in mind. For example,
- Understand the business information flow and process flow before ready to use the feature of the software.
- The gaps that are needed to be connected must be traced by the expert team to make the running procedure of the organization, similar to the ERP system. Determining gaps would decide the depth of transformation required in an organization and would provide essential recommendations, for example, creating a new report, inquiry, and best structures. This process in non-stoppable, although it’s costly and time taking.
- The implementation of this system requires organizational transformation and modification in the process that will increase productivity and removes unproductive in the work Process. Transforming the procedure should be taken to uniform the requirement of software for better control of the process.
- The Product should be easy to use; customization should not cross 15 to 20 percent of the project scope.
Mostly customization takes too much time that’s causes delays in implementation.
Architectural necessities based on the technical requirements of the organization. These functional requirements are dependent on the number of modules that consist of E-business and E-commerce demonstrations. The architectural design is considered as a spinal card of ERP implementation. The expert team that is given the task of ERP system implementation should confirm the type of arrangement required in the enterprise resource planning system. For example, principle or host the application at a data center. That is based on the number of user’s locations, data seizing, access points, and report tabs of the organization. Determine the architectural design like hardware, software, networking, and many more infrastructural necessities. During preparations of software specifications, the security level must be defined. Any uncertainty in architectural design will cause complications and delays in system implementation.
The proper plan and allocated budget have a more significant impact on the successful implementation of ERP in apparel industry. The sellers never reveal the total expenditures, which includes the following points.
- Price of Product
- The infrastructure of the hardware
- Installation, Implementation, and training programs.
- Preservation or maintenance
- case of improper budget allocations will lead to the time delay in the implementation of the ERP system. A professional agreement should be signed with the complete plan of action and scope of nonconformity, like implementations delay and answerability on both sides.
Seizing the right data in the right place is the critical point of ERP system implementation. Such as, the removal of duplicating data, dismissed data, and seizing secondary data from the data withdrawal or database.The best implementation is considered when the existing data of an organization in different formats is stored in ERP with the help of the data conversation method.
Preparation for the project:
Before starting the process of implementation, a meeting should be held between the system implementation team, all stockholders, technical experts, middle and top management, finance, and end-users.The implementation may fail because of the inappropriate method, inappropriate budgeting fund flow, and non-availability of groundwork. Catastrophe to draw blueprints, SRS for deployment, or defining the responsibility and answerability will cause the failure of the project. The employees of the organization typically resist due to unawareness of the enterprise resourcing system (ERP) and its advantages.Before the start of the implementation, the organization must make available the precise IT structure prescribed by the implementation team.Due to non-availability of infrastructure and technology will cause unnecessary time spam in project implementation.
The improper installation, configuration, customization, critical testing with real-time data, and training of users for ERP systems will never result in well-implemented software for the organization. The incompatibility between internal and external teams, lack of acceptance ERP system by the employees of the organization will never permit the ERP system implementation on time.
In the modern world, time is money. The failure of ERP implementation severely affects the growth of the organization and causes massive loss of money and time. Postponement in the implementation distracts the attention of the organization; that’s why it is a challenging task. The failure of the ERP system is not a threat to one company; it is a threat to the garment industry itself. Directly or indirectly, but somehow it affects society and growth of the nation.There are incredible choices to study the problems handled by the organizations during the implementation of the ERP System in apparel industries.
Advantages of ERP System:
- ERP Improves process efficiency.
- Precise Predictions.
- Associates with different departments.
- Integrates the Information.
- Streamlines the process flow.
- ERP Customizes reports.
- Data consistency.
- Increases Productivity.