SAP ERP Solution For Textile and Garment industry
1. The General Objective:
Following the business expansion and diversification has been going on, the Company currently aims to restore management competence as well as streamline its organization.
The current business challenges for Company are:
- Taking responsibility for managing and re organizing its business and production activities in future.
- There exist competitions among sales divisions, especially in price which will cause some disadvantages to Company and which will decrease its profitability.
- There are many repeated and redundant tasks/works in business and manufacturing processes, which need more resources and time to integrate information and keep track with changes.
- Lack of cooperation among design, marketing and sales teams to keep updated changing demands and to create new design collection.
- Applications are separately developed to support Company’s operations and management. Therefore, the information system is not integrated and centralized to support the management’s decision making process
- Using out of dated IT infrastructure.
- Some software vendors tried to introduce and implement their software solutions at COMPANY. However, they failed to deliver their software as committed. As such, end-users are reluctant and sceptical to learn new software.
- COMPANY faces some difficulties in calculating prices/costs of products and material on time as requested. As such, the accountant usually uses standard costs to estimate products’ values. However, there always exist variances between standard and actual costs, which are unable to finalize purchase orders to determine whether they are profitable.
- Difficult to update clients’ transaction status and payment schedules because of scattered databases among divisions and end-users’ late data input.
- Inventory management is unable to keep update real time data when goods/material are received/issued at the warehouses because of end-users’ late data input.
- Codes of material have not been standardized and applied in all production divisions, which caused some difficulties in calculating material/products’ costs and finalize orders.
- Suppliers and clients’ databases are scattered at different divisions and sales agents.
- Production plan is usually based on design capacity rather than effective one, which is difficult to fulfil its planning and monitor the production orders’ progress. There are some other factors affecting an order’s delivery schedule:
- Procurement process
- Workers’ ability
- Unable to integrate information among divisions
- Productivity/capability management
- Production planning
- The material consumption standard is not frequently updated to reflect actual costs in production.
- COMPANY cannot organize and keep track of their design archives due to many designs created in many years.
- COMPANY faces difficulties in managing and organizing production arrangement, monitoring production progress, and managing material/accessories’ qualities to ensure delivery schedule because its existing production processes are divided into many small operation phases and because there are many types and variety of products produced at COMPANY.
- COMPANY aims to equip a powerful ERP satisfied for its needs following:
- To solve many issues motioned above including all specific textile and garment features.
- Capacity to expand to other businesses as trade, services, construction, real state, financial…
- Ensuring for operation safety and security in WAN through public net lines; the speed of lines enough for en-users to run system; the system runs well as the number of users can reach more than 1000 and the number of direct under companies over 10.
The system can provide all the real time information inside all of COMPANY divisions to board of management in general and details as well, as Company it with authority divided and safety.
2. Solution summarizes:
In current, COMPANY intend to implement quickly, manage information accurately through all divisions, departments and factories, to support COMPANY in conducting businesses and production functionalities effectively, as well to assist COMPANY keeping the top of companies in this industry. To meet these demands, COMPANY needs a fully information system with integration model, firstly focus on the ERP system, Includes:
- Material Management (MM): MM module manages the purchase and inventory handling functions. This module provides PO management from issue of requests for materials, to storage, transfer invoices from this to accountants.
- Sales Distribution (SD): SD module manages the complete sales process. This module provides specific sales processes for textile and garment as well as other sales standards.
- Production Planning (PP): Management of production process, from requests from sales divisions to estimate the production plan, materials request planning to ensure the delivery schedule and concurrently minimize costs.
- Quality Management (QM): This module can help COMPANY control and manage the quality of raw material to finished goods. It makes sure that the quality of COMPANY’ products follow a standard quality.
- Financial Accounting/Controlling (FI/CO): This module forms the core of ERP, centralized all of transactions from other modules to calculate business effectives and controlling divisions performance.
- Business Intelligence (BI): The BI reporting tool serves specially to board of management at different levels; to support them to follow performance of each division depended on their authority in the Company as well as system divided.