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Enterprise resource management (ERP) software has been an important part of many businesses and industries since the 1960s, but many smaller companies mistakenly believe it can only benefit large operations. Fortunately, you don’t need a massive business to take advantage of one of the most important apparel software benefits – increased profitability.
Understanding the transformative power of ERP software built just for your industry is the first step toward incredible growth and higher revenue. Learning more about apparel ERP software, its importance, and its incredible benefits can facilitate growth and propel brands forward.
The Growing Need for Apparel Software in the Fashion Industry
The apparel and fashion industry is fraught with uncertainty, especially in today’s high-tech, modern world. According to McKinsey and Company’s The State of Fashion 2024 report, 62% of fashion industry executives state that geopolitical instability is the number one threat to their brands’ growth, and 55% say that economic volatility is their biggest concern. With these worries looming large among even the biggest brands, small and mid-sized companies are looking for innovative ways to leverage themselves as key players in the industry. Many have found that enterprise resource management (ERP) software offers the edge they need.
ERP software is designed to help companies and organizations better manage their end-to-end business processes. It combines aspects of a business that are typically handled separately – accounting, project management, supply chain operations, inventory management, procurement, and more – and combines them into one easy-to-use interface. Until recently, ERP solutions were generic in nature and offered a few optional plugins for businesses in specific industries. Fortunately, it is now possible to find highly specialized ERP software for virtually any industry – including apparel.
3 Apparel Software Benefits that Increase Profitability
The primary apparel software benefit lies in its delivery of niche customizations and rich features that improve upon generic ERP solutions and offer a simple plug-and-play format. These solutions integrate with the tools that apparel businesses already use and provide a completely transparent look at the entire business, from materials acquisition to consumer feedback. These in-depth insights available at a glance can increase profitability in three simple ways.
More Efficiency and Productivity
As a business grows, its operational efficiency can play a major role in determining its profitability. Inefficiency and lack of productivity often stem from miscommunication or a lack of information. Apparel ERP software ensures that everyone has access to the timeliest information possible. The data contained within the ERP software is reliable and trustworthy, which empowers teams to make quicker and more effective decisions.
Another important apparel software benefit is its ability to streamline manufacturing processes. The ERP software makes it possible to view workflows in real time and allocate resources as needed. It can even help with anticipating demand, which is important for optimizing production. Boosting productivity, reducing or eliminating bottlenecks, and allocating resources optimally can have a significant impact on an apparel brand’s overall profitability.
Enhanced Cost Savings
Apparel software can add to cost savings in several remarkable ways. The ability to view inventory in real time avoids under- or overstock, both of which can be costly. ERP software also provides demand forecasting and allows brands to avoid the over production that leads to expensive waste. Finally, the ability to view any part of the supply chain at a glance allows businesses to avoid mishaps that can occur when a supplier cannot fulfill orders for materials.
ERP software designed for the apparel industry is exceptional at streamlining and automating many common business practices. When employees are no longer required to spend their time entering data or counting inventory, they have more time for value-added tasks. Furthermore, this automation reduces manual errors that can cost even more in terms of labor hours.
Better Customer Satisfaction
Interestingly, apparel software benefits customers and clients, as well. Most ERP systems include built-in customer relationship management (CRM) software that allows businesses to track vital information such as customer demographics and previous interactions. It can even guide and automate communications like emails, SMS messages, and more.
In the digital age, consumers look for more than just value and quality in the products they buy. They want personalized service that goes above and beyond what most companies provide. Apparel brands that are tuned into their customer base with the help of ERP software – whether these brands sell direct to consumers or in a business-to-business setting – are better equipped to provide a personalized customer experience that leads to unparalleled satisfaction.
Getting Started with Apparel-Specific ERP Software
Apparel software benefits like better customer satisfaction, reduced costs, and huge boosts in productivity all lead toward the same goal: increased profitability. Instead of choosing a generic cookie-cutter ERP solution, look for software designed specifically for brands in the apparel industry. Apparel ERP software offers a nuanced, feature-rich experience that incorporates industry best practices in a way that facilitates growth and success.
Learn more about the versatile, scalable, all-in-one apparel ERP solution that can help your brand stand out from your competitors. It is easy to get started, easy to use, and easy to customize to your company’s unique needs.