Why ERP is Necessary for Leather Goods Manufacturing Industries?
It is hard to imagine fashion and many other industries operating successfully without leather products. You may find genuine leather products in the market easily but manufacturing companies need to put a lot of hard work and effort into running their business successfully. It is a fact that in the past few years, the leather goods manufacturing industries, as well as SMEs, have undergone a sea change. The reason for the same is high competitiveness in the marketplace and high customer expectations in terms of product quality, innovation, and effective delivery channels. To be a market leader, the industries are relying on the best quality of automation system which is secure, user-friendly, scalable, robust, and reliable. Fortunately, with ERP software, companies manufacturing leather goods, bags, shoes, and other products have come into the position to perform better than before.
Major challenges which a leather manufacturing SME faced are with regard to stocks, promptness of delivery, and regulatory compliance. Tracking raw material shipments, BOM (bill of material) formula generation, cost calculations, etc., were certain activities performed manually. This eventually leads to consuming more time, an increase in error chances, and an overall reduction in business profitability. But once the companies have implemented ERP software, they find businesses are performing in a better manner and improving their overall productivity.
How ERP helps the leather goods manufacturing business?
Not only in one area, ERP software help a leather manufacturing business in multiple ways.
For the leather industry, available stock of raw material plays a special role in reducing inventory wastage. Based on the stock figure, the companies work on their production capacities. Thus, any fault in tracking inventory accurately leads to fail in meeting the market requirements. Similarly, if the tracking is done manually, it consumed a lot of time with an increase in chances of error. With ERP implementation, the task of keeping track of available stock of raw material becomes fast, easy and error-free. Moreover, the management gets a notification as and when the stock slips below the required level allowing them to take timely actions.
Bill of Materials (BOM)
A Bill of Material is a specific list of items and sub-assemblies required for manufacturing particularly items say leather shoes, bags, or saddlery in a particular quantity. It is one of the most important documents in the manufacturing business based on which document like Work Orders are prepared. By choosing cloud-based ERP software for manufacturing saddlery or leather bags, it becomes easier for companies to manage BOM on multiple levels. Highly scalable software gives access to navigating multiple levels of BOM via BOM browsers.
It is a herculean as well as a tricky task for managing different products and their batch numbers safely. In the leather industry, where companies have to manage products in different colors, shapes, sizes, etc., the effective management of thousands of products needs undivided attention. In such situations, ERP software proves to be a clear winner by managing a number of products effortlessly from a single console. Whether an employee wants to retrieve any information or want to track any particular product, everything is possible with a single click.
It becomes easy for an industry to win more customers and address their requirements adequately if they are able to manage orders well. Companies need to put special attention to effective order management as it is a key to build a long-lasting association with customers. The on-time delivery of products helps in cementing a better customer-company relationship and it is possible only when the ERP software looks after the order management. In the leather industry, classification of orders, pricing, billing, timely delivery, and other requirements is easy to perform with flawless ERP support.
It becomes easy to implement quality control measures and adhering to them if an ERP system is in place. Right from the phase of procurement to sales, the software is designed in such a manner that it monitors every production phase and informs the authorities in case any error occurs. Timely reporting of error further helps in taking correction measures. So, it becomes a cakewalk to monitor the quality of sourced materials, the overall quality of the final product, and taking timely actions in case something goes wrong. This further helps in improving the customer satisfaction rate.
An industry like leather needs to focus equally on scrap management systems also. You may find multiple takers for your scrap material but it will be of no use if the timely dispatch of the material does not take place after evaluating its accurate value. This is one area that is hard to manage manually. Using ERP software helps in managing this area optimally by connecting with a number of takers and sending them timely information about available scrap stock. Once scrap material is timely handled, companies are in a position to give more functional space and a work-conducive environment to your employees.
So, reap the benefits of ERP for your leather manufacturing by managing all areas of concern and delivering quality products to customers. Webcity Technologies LLP can help you by offering customized as well as off-the-shelf ERP software for running leather goods, bags, shoes, tannery, saddlery, leather bag manufacturing business efficiently. The company offers ERP software that is user-friendly and affordable. So, make your inquiries today!