Today, information technology plays a vital role in the textile industry. Any manufacturing unit employs four ladies, men, materials, a machine and of course money. To achieve organizational success, managers need to focus on synchronizing all of these factors and developing synergies with organizational processes inside and outside. With increased competition, companies have been supporting information technology to enhance supply chain management (SCM) and use it as a competitive advantage. In short, many textile companies take advantage of the technological strength to add value to their business.
Supply Chain Management includes: sourcing, recruitment, transfer, and all logistical activities. It seeks to increase transaction speed by exchanging data in real time, reducing inventory, and increasing sales volume by meeting customer requirements more efficiently and effectively.
Why do textile industries need IT support?
Lack of information on supply and demand aspects
Most of the decisions made by the manager are related to supply and demand issues. Unfortunately, there are very few who are able to obtain it, and as a result the decisions taken involve risks and uncertainties. Excess inventory is one of the most common problems facing managers that leads to increased cycle time, old securities, weak selling, lower prices, and less demand demand, which ultimately leads to customer dissatisfaction.
Long purchase time
In the traditional textile industry, the buying process takes much longer. Therefore, retailers need to forecast demand and determine consumption trends at a very early stage. Lack of clarity about the future can lead to inventory running out, delaying, or stockpiling early.
Efficiency supply chain
With the desire to have global reach, garments and textiles face obstacles of inefficiency in carrying out the various processes involved directly from designing and developing samples, obtaining approval, manufacturing, and dispatching to payment procedures. The total time taken can extend to one year or longer. If we calculate, the output actually represents only ten to twenty percent of the total time. The rest of the time is taken to process the information from one party to the other.
The IT development path intersects every application in the textile industry. By more stringently improving the performance of the textile industry and controlling processes, IT has introduced intelligence into every node of the supply chain.
Step into global trade
It is a fact that a global company is open with lots of opportunities and threats in terms of competition, changing trends, and other environmental changes. It requires managing each type of information much more efficiently and quickly.
IT interaction with the textile supply chain
Exchange of information
The proper flow of information between supply chain members is crucial. This information flow can affect the performance of global supply chain operations. It includes data about customers and their orders, stock status, production and promotion plan, shipping schedules, payment details, etc. Barcode coding and electronic data exchange are two IT tools that can facilitate information integrity.
Tape encryption makes it easy to record detailed data by converting it into an electronic form and it can be easily shared among members through the EDI system. EDI, with its high efficiency, is able to replace traditional methods of transportation such as phone, post and even fax. EDI enables managers to analyze and apply them in their business decisions. It also helps speed up the demand cycle that reduces investment in inventory. The EDI-based network enables the company to maintain rapid response and closure relationships with geographically dispersed suppliers and customers. Manufacturers and retailers can share new designs developed through CAD / CAM.
Supports planning and implementation processes
Planning and coordination are very important issues in supply chain management. The next step after sharing information is planning that includes joint design and implementation of product introduction, forecasting and renewal of demand. Supply Chain members decide their roles and responsibilities that are coordinated through the IT system.
Various software tools such as MRP, MRP-II, and APSS facilitate planning and coordination between different functional areas within the organization.
Material Requirements Planning (MRP): Assists in managing manufacturing operations according to production planning system and inventory control. The proper implementation of the MRP ensures that the materials needed for production and product are available for consumption in a timely manner, which improves stock level and helps in scheduling various activities. The MRP system uses computer databases to store lead times and order quantity. The MRP essentially involves three steps: First, assess the requirements for the number of component units required to produce a finished product; here the logic is applied to carry out Bill of Material (BOM) explosions. The second step involves deducting the existing shares from the total to know the net requirements. Finally, manufacturing activities such as finished goods are scheduled on demand, assuming a time limit.
Manufacturing Resource Planning System (MRPII) is a logical extension of the MRP system covering the entire manufacturing function. This usually includes loading, scheduling, feedback, extension programs, as well as material requirements planning. It provides a mechanism for assessing the viability of a production schedule under a specific set of constraints.
A textile company that has multiple manufacturers and engages in global business requires something more than MRP and MRP-II like Distribution Requirements Planning (DRP), and has the ability to solve both capacity and material constraints and spread the effects of problem impacts in both back and forth direction to Forward throughout the supply chain.
The Advanced Planning and Scheduling System (APSS) includes both the physical focus of MRP and the rapid response strength of the MRP-II.
Coordination of logistical flows
Workflow coordination can include activities such as procurement, order fulfillment, implementation of changes, design improvement and financial exchanges that lead to cost and time efficiency. The results are cost-effective, fast and reliable supply chain operations.
Information technology contributes to maximizing the value of the textile supply chain by integrating supply chain operations inside and outside the organization and collaborating in the business of sellers and customers based on shared expectations. The Internet adds to the contribution of information technology to supply chain management through coordination, integration and even automation of vital business processes. A new supply chain game system is emerging as a result of commercial innovation fueled by the Internet.
Many supplier companies maintain order data by style, size, texture and color to replenish stock at retail outlet. The renewal level is determined in advance by the two parties after reviewing the sales history by product and community buying behavior.
New business models:
Data extraction and data storage
Data mining is the process of analyzing data from different perspectives and summarizing it in useful information that can be used as a basis for monitoring and control, which enables companies to focus on the most important aspects of their business. It allows users to analyze data from many different dimensions, categorize it, and summarize specific relationships. In short, it is the process of finding links or relationships between dozens of fields in large relational databases.
Data storage is a data warehouse and can be defined as a process for managing central data and retrieving it. Data centralization increases user access and analysis.
E-commerce can be B2B (Business To Business) and B2C (Business To Customer). B2C Trade is the direct selling to consumers online. While the B2B marketplace can be defined as neutral, internet-based intermediaries who focus on specific business operations, host electronic markets, and use different market-making mechanisms to mediate inter-firm transactions. B2B seems to be more potential than B2C.
Retail textile giants add online shopping to their offerings. This affected their distribution infrastructure and warehouse. As a result of internet connectivity, retailers have changed their supply chain strategy. Oversized products are stored with fixed demand in local stores, while low-volume products are centrally stored for online purchase.
Companies prefer a direct route to consumers by closely examining individual customer tastes, preferences, habits, and purchasing. Instead of waiting for consumers to visit their stores, retailers send them emails with offers. The Internet has facilitated a rapid response system. By using the technology that supports the web, you can have an automatic customer renewal system.