5 Important Modules of ERP Leather Manufacturing ERP Modules

1. Blog 5 Important Modules of ERP | Leather Manufacturing ERP Modules ERP Software / By Webcity Technologies No business other than manufacturing leather products has speci몭c requirements with regard to quality, accuracy, delivery timelines, and promptness of information. To keep customers satis몭ed and to run the business ef몭ciently, leather manufacturing units use various modules of ERP systems in the various stages of production. Though scores of ERP software systems are available in the marketplace, Webcity Technologies LLP offers customized ERP for leather industries meeting their speci몭c requirements in their de몭ned budget. The software is well-equipped with a number of modules that

2. allows both medium and top management to take quick decision and run the business pro몭tably.  Let’s take a closer look at some of the ERP modules: 1. Sample Module: The 몭rst and foremost step involved in manufacturing any leather product is the generation of a sample. Based on the information furnished, a sample code is generated and the properties of the product are de몭ned. For instance, if the sample product is a leather bag, then the user can feed important properties of the bag such as color, size, handle, zippers, etc., into the ERP. After its creation, the sample is sent for the buyer’s approval. If the buyer approves it, it will convert into a product else revisions are made which are noti몭ed in R1, R2, and so on the format. Based on the sample features, ERP suggests the quantity of raw material required, available quantity in the stock, and many other important pieces of information which help the Research & Development Team in the 몭nal creation of the product. 2. Product Pro몭ling: Once the client approves the sample, product pro몭ling or categorization is done in the ERP. This module helps users to distinguish leather products such as bags, shoes, belts, etc., based on their unique properties. For instance, if the product is a women’s handbag, then properties include its type (sling or tote bag), color, size, total zipper in a handbag, handle, sizes along with images. ERP contains images of each and every product from different angles so that it becomes easy to identify.  Each product encompasses SKUs (coding). The users are free to denote any product with the buyer or his own code. The barcode-based linking of the product helps in easy identi몭cation and tracking of the product. Not to mention, the properties of the product are user-de몭ned. The product pro몭ling feature of the ERP is descriptive and accurate so that all materials are easy to 몭nd quickly and ef몭ciently. 3. Material Analysis: When the product is de몭ned in the ERP, ERP gives valuable suggestions to the manufacturing unit regarding the

3. raw material required along with its quantity for its manufacturing. For instance, leather, thread, zipper, buckle, etc., are some of the standard raw materials required for manufacturing a woman’s handbag. Usually, a small woman’s handbag comprises 60-70 raw materials. This analysis of raw material helps in the generation of BOM (Bill of Material) for one and even hundreds of pieces. Users of the ERP get the freedom to even de몭ne and keep a track of the components of raw materials. Every product goes through a series of processes. When it comes to a leather woman’s handbag, goes through manufacturing processes such as cutting, stitching, zip stitching, handle pasting, and so on. The ERP also suggests that particular raw material is required in which stage of manufacturing. Lastly, ERP helps in de몭ning the size-related raw material and its cost. For instance, this particular feature is extremely helpful in certain leather products such as shoes and belts. For instance, if a company accepts an order to manufacture 100 leather shoes sizing from 6 to 12, then in such cases 98% raw material remains common in manufacturing shoes for sizes 6-12 whereas with the difference of only 2% in raw materials, which are selected based on sizes (sole and toe). So, based on the raw material difference, even cost differs. Therefore, when the material analysis is done for some products such as shoes, costing is done on a single-size basis and this is applicable to all sizes. 4. Costing: Leather manufacturing SMEs can take the help of ERP software for de몭ning the 몭nal cost price of the raw material after taking into consideration the margin rate also. ERP also provides valuable information regarding BOM Prices. Users are free to add various surcharges such as pro몭ts, commission, packing cost, overhead, etc., on the BOM costing along with 몭xing the components of surcharges. After adding all these surcharges, ERP gives the idea that what will be the cost of the product in other currencies such as the US Dollar also. It helps in generating prices in USD in real-time from the supplier’s price. ERP even shares a suggestive price in the

4. from the supplier’s price. ERP even shares a suggestive price in the USD currency when there is a change in the cost of raw materials. This allows the management of the leather manufacturing company to 몭x its costs. 4. Costing: Leather manufacturing SMEs can take the help of ERP software for de몭ning the 몭nal cost price of the raw material after taking into consideration the margin rate also. ERP also provides valuable information regarding BOM Prices. Users are free to add various surcharges such as pro몭ts, commission, packing cost, overhead, etc., on the BOM costing along with 몭xing the components of surcharges. After adding all these surcharges, ERP gives the idea that what will be the cost of the product in other currencies such as the US Dollar also. It helps in generating prices in USD in real-time from the supplier’s price. ERP even shares a suggestive price in the USD currency when there is a change in the cost of raw materials. This allows the management of the leather manufacturing company to 몭x its costs. 5. Sale Order Generation: When any new sale order is generated, the buyer shares important pieces of information such as quantity to manufacture, rate of each raw material, size, etc., with the company. Based on the information furnished by the buyer, ERP gives a detailed report such as raw material consumption, the time required to manufacture 200 or 1000 products, raw material stock reserve, etc. It provides detailed information about the order dispatched in single or multiple deliveries or by which means of transportation. Manufacturing companies can easily 몭nd the details of a buyer’s representative in the ERP and can contact him for further communication or negotiation. Thus, it is easy to conclude that with the help of advanced ERP software in the system, even the most challenging task is easy to perform with 100% ef몭ciency. Implementation of ERP software in the manufacturing processes of leather goods helps in making well- informed decisions quickly by providing useful information in no time

5. informed decisions quickly by providing useful information in no time and increases production by reducing the overall cost. Book Your Slot For ERP Software Demo 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 몭nished goods. This module helps in the following manner: 1. The 몭rst 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 is 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 몭ve 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

6. assigned to which contractor, how many raw materials are required to produce the 몭nished 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 몭oor-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 last process, 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-de몭ned and even their sequencing is clearly de몭ned 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 몭nal 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: In this module, users can furnish information such as

7. invoices of order, custom invoices, buyers’ invoices in their 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 buyers, contractors, vendors, 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.  How ERP Modules Helps Leather Manufacturing Companies Running Business Ef몭ciently? So far, we have covered the bene몭ts of using ERP software in leather manufacturing companies and SMEs. Surprisingly, the list is so long that it is hard to cover each and every ERP module in one or two-piece of writing. Therefore, this particular piece will also highlight the bene몭ts of using different ERP modules to run your leather manufacturing companies and SME’s successfully. Let’s take a closer look at these modules. 1. Purchase & Supplier Module: The purchase and supplier modules are two individual modules of the ERP software but they work in cohesion. The purchase module is also known as the procurement module and it helps in automating a number of activities involved in the purchase process ranging from managing order requests, maintaining stock levels, and negotiating with suppliers to checking inventory, preparing work orders, etc. On the other hand, the supplier

8. inventory, preparing work orders, etc. On the other hand, the supplier module gives tremendous control over the business to manufacturing companies by maintaining good relations with suppliers and maintaining a level of transparency in each transaction. The ERP software with supplier module helps in streamlining communication by keeping suppliers informed at each and every step and allowing companies to maintain purchase activities in line with the suppliers’ capacities and capabilities. 2. Sampling Module: The sampling module helps in different stages of production and minimizes loss by keeping a record of a number of things. With the help of the sampling module, management can easily perform the following functions: Able to maintain complete sample information such as current price, anticipated sales volume, estimated time required to produce a sample, etc. Easily maintain complete information about the existing customer or new prospect. Able to keep track of costs associated with a particular sample both in a detailed or summarized manner. Relate samples with production batches and BOM easily. Accurately maintain a detailed record of all communication exchanged with customers regarding a sample request. Able to maintain documents related to sampling requests and provide them as and when required. When all these pieces of information are handy, businesses can work with greater ef몭ciency. 3. Costing Module: Determining the right cost of any leather product is one of the major challenges the top management face. They need to set a cost price of any product in such a manner that it is bene몭cial for the company and even acceptable to customers. With a cloud- based ERP costing module, an SME can easily set up the right cost that helps in achieving higher margins. The advanced costing module

9. of ERP allows management to 몭x the price after considering various costs such as set-up charges, labor, margins, mark-ups, etc. This module also helps in determining the right packaging con몭guration to obtain the highest pro몭ts and even making real-time adjustments impacting cost during production or product development. 4. Production & Shop Floor Module: Empower your shop 몭oor personnel by providing them with key pieces of business information at their 몭ngertips. The production and shop 몭oor module of the ERP software provides information such as manufacturing performance, quality details, ef몭ciency, etc., in an easy-to-read format. Such information allows shop 몭oor personnel to remain proactive, streamlining the production process and managing the entire work order life cycle by taking necessary actions. This module even helps in scaling up the production, producing expected yields, reducing wastage, and controlling losses by streamlining the multi-level production process and keeping shop 몭oor personnel informed about the ongoing production process. Last but not the least, the ERP  module helps  Small and Medium Enterprises in effective business management by managing each and every business process ranging from Human Resources, Order, and Quality to Inventory.  The top management can easily get any information from each department with the help of ERP software So, it is evident that leather manufacturing companies or SMEs require advanced cloud-based ERP software to run the business pro몭tably. Contact Webcity Technologies LLP to get robust, scalable, and customized ERP Solutions suiting your unique business needs. It is one of the market leaders in offering off-the-shelf and customized ERP  solutions to  leather manufacturing companies and SMEs resulting in business growth. ← Previous Post Next Post →

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