Role of ERP Software in the Footwear Manufacturing Industry

Footwear manufacturing businesses are a very crucial segment of the production industry. The footwear businesses have a wide range of customers with a variety of preferences such as sneakers, shoes, slippers, sandals, and many more. However, in this fast-paced and competitive world, providing stylish and quality footwear is very significant to gain a large customer market.

For the last two decades, manufacturing businesses started opting for various technologies like ERP software to stay updated with the market trends and to meet customers’ requirements.

Despite the of quality products, the manufacturing industry has ample aspects including production, procurement, supply chain, inventory, finance, etc. To streamline all these elements, choosing the best ERP solutions in India is important.

Thus, to achieve this, you must understand the major role of ERP systems in the footwear manufacturing industry:

• Managing Inventory:
  Inventory is a vital element of manufacturing business whether footwear, garments, plastic, or any other. Production of finished products can be delayed without proper availability of stock. With ERP software, you can track, manage, and control the entry and exit of stock. It allows businesses to track and monitor the quality of raw materials, finished products as well as production processes. ERP offers a barcode feature during the entry and exit of raw and produced materials. This barcode system helps businesses to enhance their efficiency and performance by eliminating manual tasks from the system.
• Waste Reduction:
  Footwear manufacturing businesses have greater chances of producing waste while transforming raw materials into finished products. ERP simplifies the manufacturing processes by tracking every single activity and reducing wastage. The use of inventory that is unnecessarily being used can be reduced with ERP monitoring applications. The reduction in waste helps to lower the operational and labor cost. ERP integrates lean manufacturing principles that make organizations to adhere them and reduce wastage while meeting the production requirements as per customers’ demand.
• Supply Chain Control:
  The supply chain is a very significant part of the manufacturing business as it comprises raw materials into finished products ready to use by customers. ERP software streamlines and optimizes the supply chain in the footwear industry. It provides real-time information at a centralized platform about inventory level, production planning, production schedule, material requirement, and delivery time. The modern ERP system automatically checks the inventory level when there is a need for production on customers’ demand. During a customer’s order, the software automatically checks the inventory level, intimates about the re-order level when required, and creates a purchase order.
• Streamline Workflow:
  Footwear manufacturing businesses are very vast and complex due to the different product lines in them. Thus, smoothening and streamlining the footwear business becomes difficult without proper software. ERP came with a blessing for footwear manufacturers as it easily reorganized their businesses by automating core processes and tasks. The manual tasks not only consume the critical time of employees but have the potential for human errors too. Therefore, automation helps businesses to reduce errors and improve efficiency. Additionally, it also provides accuracy in demand forecasting by collecting and analyzing real-time data from different resources. It enables businesses to enhance customer experience and streamline their workflow.
• Reducing Cost:
  Producing footwear involves a huge investment of large machinery, equipment, and labor. This makes it difficult for manufacturers to generate profit. Here is when the ERP system comes with a costing component and helps to analyze different cost scenarios and where manufacturers can save unnecessary expenses. It also determines different pricing policies that concentrate on optimizing business costs at every possible point. The material requirement planning and production planning feature of ERP helps to maintain the lowest possible material and product levels. This automatically results in lower capital costs and reduced wastage which ultimately decreases the manufacturing expenses.
• Simplification of cross-departmental collaboration:
  Departmental communication and collaboration are very significant factors in any business. ERP software provides a unified database to share and access business information throughout the organization. This helps to improve the visibility throughout the business and helps to simplify the cross-departmental collaboration. All the departments can share their actual figures on a real-time basis and others can use them without affecting the actual work. Moreover, ERP automates business tasks which reduces the chances of manual errors while submitting the data to others.
• Customization:
  Every footwear business has unique needs and requirements for manufacturing. Not any software can fulfill them. ERP system provides a customization feature to meet client’s requirements. This software allows the users to modify the system as per their specific needs such as adding extra sections in the reports. This customization is very crucial over time with upcoming trends, technologies, and innovations. This means manufacturers can stay updated while working on the same software over the years.
• Data Security:
  Data security is a major concern of every company. For a footwear manufacturing business, having a secure database is critical to strengthening customer trust to increase business profitability. ERP provides accessibility to the information to only authorized employees and according to their roles and responsibilities. ERP allows secure information with secure passwords that are difficult to guess.

EndNote

This is how ERP software for the footwear manufacturing industry allows it to be competent and flexible toward market trends and demand. It consolidates the operations and automates them to reduce errors.

The cloud-based ERP system will make your small, medium, and even large footwear business gain higher market share by satisfying customers.

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