Leather Manufacturing ERP Modules: Helpful For Businesses in Multiple Ways

It is a known fact that ERP software has become the most used software in the manufacturing industry. Like all other software systems, the ERP is implemented in leather manufacturing SMEs or companies to make things easier for users and provide accurate information to the top management for making well-informed decisions. The ERP software contains various modules that aid business processes such as sales, purchase, production, etc. This time, we will see how ERP plays an important role in managing the production process of leather goods.

Production: The production module of the ERP software is designed to provide detailed information about the production process, which is followed for converting raw materials into finished goods. This module helps in the following manner:

  1. The first level of the production plan is to prepare a work plan or job card. This work plan contains detailed information about every order, different contractors, and which task assigned to which contractor. It even furnishes information that one entire order is assigned to one contractor or to a number of contractors.
  2. The next feature is creating a list of the processes involved in the production. One product goes through multiple processes. For instance, the manufacturing of leather bags has four to five main processes such as cutting, stitching, etc.  By looking at ERP, users get the crystal clear idea that a particular order is assigned to which contractor, how many raw materials are required to produce the finished good, currently, the raw material is in which process, how many processes are completed, how many processes are left, how many days are required to complete the whole order, the order is delayed or on-time production is taking place, etc.
  3. The users can even obtain a floor-wise report of each order. This report gives the real-time status of an order and a concrete idea of the workload of each process. Based on the information, the company decides whether an overtime shift is required.
  4. Regardless of the fact that raw material is in the third process or at the last process, the production never stops. This feature is extremely helpful when a company is preparing any order in large quantity. For instance, if the main order is to manufacture 500 leather bags and so far only 100 bags have cleared the cutting process, then these pieces are moved to the next process so that the production does not stop.
  5. Process-wise mapping of each product is possible in the ERP. This process is user-defined and even their sequencing is clearly defined so that users get an idea what are the process involved in the manufacturing of each product. After production is completed, the goods are sent for quality checks.

Packing: The packing of an order usually takes place one or two days before the final shipment. The ERP features direct and instruction-based packing of each product. Some products are shipped directly to clients in a standard format whereas some are shipped as per instructions shared by a buyer. The top management gets to know whether the packing of one particular product is shipped on the same day of receiving or another day. The ERP also contains the exact date and time of particular order packing also.

Shipment: At this module, users can furnish information such as invoice of order, custom invoice, buyers’ invoice in his currency (mostly dollar), export-related documents, the current status of an order, dispatched details and reports.

Documents: When any shipment gets ready, a lot of paperwork is required. Usually, one invoice needs to prepare in different formats and in different currencies to give clear information to different parties such as buyer, contractor, vendor, etc. Preparing these 4 reports in different formats is a time-consuming task and demands the involvement of talented labor also. But the same work is done by the ERP in a lesser time frame and with more accuracy. This saves both the time and money of the leather manufacturing SMEs which would otherwise spend on hiring manpower.  

To conclude, technological advancements have been taking place at a fast pace in the leather manufacturing industry. Under these situations, using ERP modules in different processes helps in saving time and money for an organization in the long run. 

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