5 Important Modules of ERP

No business other than manufacturing leather products has specific requirements with regard to quality, accuracy, delivery timelines and promptness of information. To keep customers satisfied and to run the business efficiently, leather manufacturing units use various modules of ERP systems in the various stages of production. Though scores of ERP software systems are available in the marketplace, Webcity Technologies LLP offers customized ERP for leather industries meeting their specific requirements in their defined budget. The software is well-equipped with a number of modules that allows both medium and top management to take quick decision and run the business profitably.  Let’s take a closer look at some of the modules:

  1. Sample Module: The first and foremost step involved in manufacturing any leather product is the generation of a sample. Based on the information furnished, a sample code is generated and the properties of the product are defined. For instance, if the sample product is a leather bag, then the user can feed important properties of the bag such as color, size, handle, zippers, etc., in the ERP. After its creation, the sample is sent for the buyer’s approval. If the buyer approves it, it will convert into a product else revisions are made which are notified in R1, R2 and so on format. Based on the sample features, ERP suggests quantity of raw material required, available quantity in the stock and many other important pieces of information which help the Research & Development Team for the final creation of the product.
  2. Product Profiling: Once the client approves the sample, product profiling or categorization is done in the ERP. This module helps users to distinguish leather products such as bags, shoes, belts, etc., based on their unique properties. For instance, if the product is a women’s handbag, then properties include its type (sling or tote bag), color, size, total zipper in a handbag, handle, sizes along with images. ERP contains images of each and every product from different angles so that it becomes easy to identify.  Each product encompasses SKU’s (coding). The users are free to denote any product with the buyer or his own code. The barcode-based linking of the product helps in easy identification and tracking of the product. Not to mention, the properties of the product are user-defined. The product profiling feature of the ERP is descriptive and accurate so that all materials are easy to find quickly and efficiently.
  3. Material Analysis: When the product is defined in the ERP, ERP gives valuable suggestions to the manufacturing unit regarding raw material required along with its quantity for its manufacturing. For instance, leather, thread, zipper, buckle, etc., are some of the standard raw materials required for manufacturing a woman’s handbag. Usually, a small woman handbag comprises 60-70 raw materials. This analysis of raw material helps in the generation of BOM (Bill of Material) for one and even hundreds of pieces. Users of the ERP get the freedom to even define and keep a track of the components of raw materials.

    Every product goes through a series of the process. When it comes to a leather woman handbag, it goes through manufacturing processes such as cutting, stitching, zip stitching, handles pasting, and so on. The ERP also suggests that particular raw material is required in which stage of manufacturing.

    Lastly, ERP helps in defining the size-related raw material and its cost. For instance, this particular feature is extremely helpful in certain leather products such as shoes and belts. For instance, if a company accepts an order to manufacture 100 leather shoes sizing from 6 to 12, then in such cases 98% raw material remain common in manufacturing shoes for sizes 6-12 whereas with the difference of only 2% in raw materials, which are selected based on sizes (sole and toe). So, based on the raw material difference, even costing differs. Therefore, when the material analysis is done for some products such as shoes, costing is done on a single-size basis and this is applicable on all sizes.
  4. Costing: Leather manufacturing SMEs can take the help of ERP software for defining the final cost price of the raw material after taking into consideration the margin rate also. ERP also provides valuable information regarding BOM Price. Users are free to add various surcharges such as profits, commission, packing cost, overhead, etc., on the BOM costing along with fixing the components of surcharges. After adding all these surcharges, ERP gives the idea that what will be the cost of the product in other currencies such as the US Dollar also. It helps in generating prices in USD in real-time from the supplier’s price. ERP even shares a suggestive price in the USD currency when there is a change in the cost of raw material. This allows the management of the leather manufacturing company to fix its costs.
  5. Sale Order Generation: When any new sale order is generated, the buyer shares important pieces of information such as quantity to manufacture, rate of each raw material, size, etc., with the company. Based on the information furnished by the buyer, ERP gives a detailed report such as raw material consumption, the time required to manufacture 200 or 1000 products, raw material stock reserve, etc. It provides detailed information about the order dispatched in single or multiple deliveries or by which means of transportation. Manufacturing companies can easily find the details of a buyer’s representative in the ERP and can contact him for further communication of negotiation. 

Thus, it is easy to conclude that with the help of advanced ERP software in the system, even the most challenging task is easy to perform with 100% efficiency. Implementation of ERP software in the manufacturing processes of leather goods helps in making well-informed decisions quickly by providing useful information in no time and increases production by reducing the overall cost.

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