The custom apparel manufacturing sector is no longer just producing regular clothes; they are now creating personalized accessories, team uniforms, promotional merchandise, branded clothing and made-to-order fashion products for customers who have more specific needs. While there are some business opportunities created by the growth of this industry, it is also bringing operational challenges. Custom apparel manufacturers will need to handle many types of fabrics, colors, sizes, designs, order quantities, and delivery schedules, while maintaining quality and profitability.
The use of enterprise resource planning (ERP) systems is allowing manufacturers to better handle the complexities described above by providing a single, integrated system to manage all core aspects of their business. In addition to improving visibility into operations, reducing manual processes, and enabling better decision making based on data from across the organization, ERP solutions also allow manufacturers to tie together various parts of their operation such as inventory control, scheduling, etc.
Understanding the Challenges of Custom Apparel Manufacturing
Custom apparel production is based on many product options. In addition to a wide range of fabric choices, color combinations, size options and unique design specifications per order, there may be as many as 20 or more products that need to be produced in one order. The manufacturer has to manage all of these options while managing cost and deadline constraints.
Several common challenges affect this process:
Complexity of inventory: There is a wide variety of different types of materials, colors and specifications for fabrics that must be monitored.
Production delays: A lack of communication/coordination among different departments can lead to disruptions to the production schedule.
The process of order: fulfillment requires that custom orders clearly define what the customer wants, including all specifications related to the product’s design.
Variations in print, stitching, or material quality may cause a product to be rejected due to inconsistency.
Uncertainty of the Supply Chain: Delays by suppliers in delivering goods may cause interruptions in the production process.
Departments that use separate, unconnected spreadsheet files or manual record keeping have difficulty accessing business information. ERP systems provide a solution to this problem by providing a central location for departments to find the same business information.
What Is an ERP System?
An ERP system is a business management software which allows for integration of various organizational functions into a single platform. The integration will depend upon the specific configuration of the ERP solution and may include purchasing, inventory, manufacturing, finance, sales, customer management and reporting.
Instead of having different record keeping systems for each department, employees share the information. As an example, when a client orders a large quantity, the sales department is able to input that information into a system where production planning and inventory management can access the same data.
The use of a connected approach allows for less repeated data entry, and provides for better communication amongst teams. Additionally, manufacturing companies can track their operational performance via the use of reports and dashboards.
Improving Production Planning and Scheduling
Production planning is especially crucial for manufacturers that process custom orders. Custom products can be manufactured using a variety of materials, print types, machinery, and production times.
ERP software assists production managers in organizing requirements prior to commencing manufacturing. Production planners use the information from resource availability, order deadlines, and production capacity to produce more realistic schedules.
For example, a company that makes custom made cotton scarfs and polyester bandannas will require different machine set-ups for each product. An Enterprise Resource Planning (ERP) system can be used to assign the appropriate material and production resources to meet the required specifications of each product.
By creating better schedules, we will be able to minimize idle time on machines, coordinate our work activities, and recognize possible delays prior to impacting our delivery deadlines.
Strengthening Fabric and Raw Material Inventory Management
In addition to providing value in other areas, ERP technologies also provide value in managing inventories. Apparel manufacturers must keep track of all raw materials including but not limited to cotton, polyester, satin, thread, labels, packaging, and printing supplies.
An ERP system may record the number of materials used in a business, as well as the amount of materials purchased, moved into or out of inventory, and consumed by the various production orders. Additionally, some ERP systems will automatically notify an organization when their inventory levels reach predetermined reorder points.
The visibility also allows companies to prevent two expensive scenarios: carrying too much inventory which consumes cash flow and being short of critical resources during manufacturing.
Inventory records that are accurate will enable you to better predict what materials you will need for your next orders. This will allow manufacturers to determine how much of a particular material they have on hand, versus how much they anticipate using for production, and then place orders for those items prior to experiencing a shortage.
Managing Custom Orders and Product Specifications
Personalisation requires accurate information throughout the entire manufacturing process. A customer can ask for a particular logo, color scheme, fabric type, size, or print arrangement. If any of this information is entered into the system incorrectly, then the finished item may not be exactly what the customer had in mind.
ERP systems provide a centralized repository for order-related data, allowing authorized department members to view approved specifications. Based upon which type of software is used, an organization may be able to link its customers’ orders to its products, bill of materials (BOM), production instructions, and delivery details.
Manufacturers that make customized accessories (printed bandanas, scarves, promotional clothing) must use the same artwork used for approval to produce the products. Manufacturers like 4inbandana show how many different types of fabrics, custom designs and product options are available for manufacturers to manage when producing custom orders.
Centralized records help eliminate potential miscommunications and provide employees with a clear reference point during the entire production process.
Supporting Quality Control and Supplier Management
Quality control should occur throughout the entire manufacturing process, not just after it is finished. With ERP systems, companies can keep track of their inspection data, recognize patterns of defect occurrence, and maintain quality control data for each product and/or production run.
In addition to this, manufacturers have the ability to record any issue that relates to fabric defects, color variations, printing inaccuracies, and/or sewing errors. By reviewing all recorded issues, management is able to find trends in those issues and determine what may be causing them.
ERP software will provide manufacturers with an opportunity to manage their suppliers more effectively. ERP software provides manufacturers with access to supplier purchase histories, delivery records, and supplier performance information. This provides manufacturers with the ability to determine which of their suppliers are reliable, compare purchasing costs, and make better sourcing decisions based upon this information.
The Role of Automation and Real-Time Data
Modern ERP platforms are being developed with increasing levels of automation that will help to eliminate many of the routine administrative processes. Depending on which type of system you choose to use, there could be a number of different types of automated processes available. For example; Purchase Order Generation, Inventory Alerts, Invoice Processing, Production Updates, Automated Reporting, etc.
Managers can see how their company is performing by using real-time information. Using real-time information allows managers to know where they stand with regard to ordering, producing, and storing products. This information is available immediately rather than having to wait for each department to send in a report.
Automation works best when the data being automated is correct. Companies should create a record-keeping process that they can use to make sure all of their records are up-to-date and have clear procedures in place to keep those records up-to-date.
Challenges of ERP Implementation
The introduction of an ERP system has many benefits, but there are some challenges that need to be addressed. There are several things that can cause problems during the implementation process such as software costs, training employees, migrating data from old systems to the new one and making changes to business processes. Smaller manufacturing companies may have a harder time implementing an ERP system due to these factors.
The first step for businesses is to identify what is the biggest issue with their operations and then choose a software program to solve that problem. Teams can transition to using the new software slowly through a phased implementation instead of making changes to all processes at one time.
Employee training is just as crucial. Employees should be able to input data into the system, follow workflow processes, and utilize reports appropriately. In addition, regularly reviewing data entered into the system will assist with maintaining system accuracy.
The Future of ERP in Custom Apparel Manufacturing
The manufacturer must have more flexibility and more dependable operations data due to changing customer needs. Manufacturers are using ERP (Enterprise Resource Planning) solutions that include cloud capabilities, advanced analysis, AI (Artificial Intelligence) and integrated solutions for e-commerce and supply chain management.
The above can be useful for manufacturers to determine how much of a product they will sell, find areas where they could improve their processes, and react faster to changes in customer orders. Technology alone is not enough to guarantee success. It takes the correct tool selection, having correct data, and ensuring that your software is aligned with your business goals.
Final Thoughts
ERP (enterprise resource planning) systems are revolutionizing custom apparel manufacturing through the connection of production, inventory, purchasing, order management, and quality control. These systems enable companies to effectively handle product variations, coordinate resources, and use more accurate data when making business decisions.
An appropriately implemented ERP solution will help manufacturers who are dealing with custom products and changing customer demands build a better base for increased operational efficiency, consistent product quality, and long-term business success.
