5 Important Modules of ERP Leather Manufacturing ERP Modules

1. Blog 5ImportantModulesofERP|Leather ManufacturingERPModules ERPSoftware/ByWebcity 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edand to run thebusinessef몭ciently,leathermanufacturingunitsusevarious modulesof ERPsystemsinthevarious stages of production.Though scores of ERP software systems are available in the marketplace, WebcityTechnologiesLLPofferscustomizedERPforleather industriesmeetingtheirspeci몭crequirementsintheirde몭ned budget.Thesoftwareiswell-equippedwithanumberofmodulesthat

2. allowsbothmediumandtopmanagementtotakequickdecisionand runthebusinesspro몭tably.Let’stakeacloserlookatsomeoftheERP modules: SampleModule:The몭rstandforemoststepinvolvedin 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 productisaleatherbag,thentheusercanfeedimportantproperties ofthebagsuchascolor,size,handle,zippers, etc.,intotheERP.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edin 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 informationwhichhelptheResearch&DevelopmentTeaminthe몭nal creationoftheproduct. Product Pro몭ling:Once the client approves the sample, product pro몭lingorcategorizationisdoneintheERP.Thismodulehelpsusers 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 hisowncode.Thebarcode-basedlinkingoftheproducthelpsineasy identi몭cationand trackingoftheproduct.Not tomention,the properties of the product are user-de몭ned.The product pro몭ling featureoftheERPisdescriptiveandaccuratesothatallmaterialsare easyto몭ndquicklyandef몭ciently. Material Analysis: When the product is de몭nedin the ERP, ERP givesvaluablesuggestionstothemanufacturingunitregardingthe

3. raw material required along with its quantity for its manufacturing. For instance, leather, thread, zipper, buckle, etc., are some of the standardrawmaterialsrequiredformanufacturingawoman’s handbag. Usually, a small woman’s handbag comprises 60-70 raw materials.ThisanalysisofrawmaterialhelpsinthegenerationofBOM (BillofMaterial)foroneandevenhundredsofpieces.UsersoftheERP getthefreedomtoevende몭neandkeepatrackofthecomponentsof rawmaterials. Everyproductgoesthroughaseriesofprocesses.Whenitcomestoa leather woman’s handbag, goes through manufacturing processes suchascutting,stitching,zipstitching,handlepasting,andsoon.The ERP also suggests that particular raw material is required in which stageofmanufacturing. Lastly,ERPhelpsinde몭ningthesize-relatedrawmaterialanditscost. For instance, this particular feature is extremely helpful in certain leather products such as shoes and belts. For instance, if a company acceptsanordertomanufacture100leathershoessizingfrom6to12, theninsuchcases98%rawmaterial remainscommonin manufacturingshoesforsizes6-12whereaswiththedifferenceofonly 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, costingisdoneonasingle-sizebasisandthisisapplicabletoallsizes. 4. Costing: Leather manufacturing SMEs can take the help of ERP software for de몭ningthe 몭nalcost 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 varioussurchargessuchaspro몭ts,commission,packingcost, overhead,etc.,ontheBOMcostingalongwith몭xingthecomponents 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 theUSDollaralso.IthelpsingeneratingpricesinUSDinreal-time

4. from the supplier’s price. ERP even shares a suggestive price in the USDcurrencywhenthereisachangeinthecostofrawmaterials.This allowsthemanagementoftheleathermanufacturingcompanyto몭x itscosts. Costing: Leather manufacturing SMEs can take the help of ERP software for de몭ningthe 몭nalcost 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 varioussurchargessuchaspro몭ts,commission,packingcost, overhead,etc.,ontheBOMcostingalongwith몭xingthecomponents 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 USDcurrencywhenthereisachangeinthecostofrawmaterials.This allowsthemanagementoftheleathermanufacturingcompanyto몭x itscosts. 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. Basedontheinformationfurnishedbythebuyer,ERPgivesadetailed reportsuch asrawmaterialconsumption,the time requiredto manufacture 200 or 1000 products, raw material stock reserve, etc. It providesdetailedinformationabouttheorderdispatchedinsingleor multipledeliveries orbywhichmeansoftransportation. Manufacturing companies can easily 몭ndthe details of a buyer’s representativeintheERPandcancontacthimforfurther communicationornegotiation. Thus, it is easy to conclude that with the help of advanced ERP softwarein the system, even the most challenging task is easy to perform with 100% ef몭ciency. Implementation of ERP software in the manufacturingprocessesofleathergoodshelpsinmakingwell-

5. informeddecisionsquicklybyprovidingusefulinformationinnotime andincreasesproductionbyreducingtheoverallcost. BookYourSlotForERPSoftwareDemo LeatherManufacturingERPModules:HelpfulFor BusinessesinMultipleWays It is a known fact that ERP software has become the most used softwareinthemanufacturingindustry.Likeallothersoftware systems, the ERP is implemented in leather manufacturing SMEs or companies to make things easier for users and provide accurate informationtothetopmanagementformakingwell-informed decisions.TheERP softwarecontainsvariousmodulesthataid businessprocessessuchassales,purchase,production,etc.Thistime, we will see how ERP playsan important role in managing the productionprocessofleathergoods. 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nishedgoods. This modulehelpsinthefollowingmanner: The몭rstleveloftheproductionplanistoprepareaworkplanor job card. This work plan contains detailed information about everyorder,different contractors,andwhichtaskis assignedto which contractor. It even furnishes information that one entire orderisassignedtoonecontractorortoanumberof contractors. Thenextfeatureiscreatingalistoftheprocessesinvolvedinthe 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,usersgetthecrystalclearideathataparticularorderis

6. assigned to which contractor, how many raw materials are requiredtoproducethe몭nishedgood,currently,theraw materialisinwhichprocess,howmanyprocessesare completed, how many processes are left, how many days are required to complete the whole order, the order is delayed or on-timeproductionistakingplace,etc. Theuserscanevenobtaina몭oor-wisereportofeachorder.This reportgivesthereal-timestatusofanorderandaconcreteidea of the workload of each process. Based on the information, the companydecideswhetheranovertimeshiftisrequired. Regardlessofthefactthatrawmaterialisinthethirdprocessor last process, production never stops. This feature is extremely helpfulwhenacompanyispreparinganyorderinlarge 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 thattheproductiondoesnotstop. Process-wise mapping of each product is possible in the ERP. Thisprocessisuser-de몭nedandeventheirsequencingisclearly de몭nedsothatusersgetanideawhataretheprocessinvolved in the manufacturing ofeach product.Afterproduction is completed,thegoodsaresentforqualitychecks. Packing:Thepackingofanorderusuallytakesplaceoneortwodays before the 몭nalshipment. The ERP features direct and instruction- basedpackingofeachproduct.Someproductsareshippeddirectlyto clientsin astandardformatwhereassome areshipped asper instructions shared by a buyer. The top management gets to know whetherthepackingofoneparticularproductisshippedonthesame dayofreceivingoranotherday.TheERPalsocontainstheexactdate andtimeofparticularorderpackingalso. Shipment:Inthismodule,userscanfurnishinformationsuchas

7. invoices of order, custom invoices, buyers’ invoices in their currency (mostly dollar), export-related documents, the current status of an order,dispatcheddetails,andreports. 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 theinvolvementoftalentedlaboralso.Butthesamework is doneby the ERP in a lesser time frame and with more accuracy. This saves both the time and money of the leather manufacturing SMEs which wouldotherwisespendonhiringmanpower. Toconclude,technologicaladvancementshavebeentakingplaceata fastpaceintheleathermanufacturingindustry.Underthese situations, using ERP modules in different processes helps in saving timeandmoneyforanorganizationinthelongrun. HowERPModulesHelpsLeatherManufacturing CompaniesRunningBusinessEf몭ciently? Sofar,wehavecoveredthebene몭tsofusingERPsoftwareinleather manufacturing companies and SMEs. Surprisingly, the list is so long thatitishardtocovereachandeveryERPmoduleinoneortwo-piece of writing. Therefore,this particular piece will also highlight the bene몭tsofusingdifferentERPmodulestorunyourleather manufacturing companies and SME’s successfully. Let’s take a closer lookatthesemodules. 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 moduleandithelpsinautomatinganumber of activitiesinvolvedin thepurchaseprocessrangingfrommanagingorderrequests, maintainingstocklevels,andnegotiatingwithsupplierstochecking

8. inventory,preparingworkorders,etc.Ontheotherhand,thesupplier modulegivestremendouscontroloverthebusinesstomanufacturing companiesbymaintaininggoodrelationswithsuppliersand 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’ capacitiesandcapabilities. SamplingModule:Thesamplingmodulehelpsindifferentstagesof production and minimizes loss by keeping a record of a number of things. With the help of the sampling module, management can easilyperformthefollowingfunctions: Able to maintain complete sample information such as current price,anticipated sales volume,estimated time required to produceasample,etc. Easilymaintain completeinformationabouttheexisting customerornewprospect. Able to keep track of costs associated with a particular sample bothinadetailedorsummarizedmanner. Relate samples with production batches and BOM easily. Accuratelymaintainadetailedrecordofallcommunication exchangedwithcustomersregardingasamplerequest. Abletomaintaindocumentsrelatedtosamplingrequestsand providethemasandwhenrequired. Whenallthesepiecesofinformationare handy,businessescanwork withgreateref몭ciency. CostingModule:Determiningtherightcostofanyleatherproduct is one of the major challenges the top management face. They need tosetacostpriceofanyproductinsuchamannerthatitisbene몭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 thathelpsinachievinghighermargins.Theadvancedcostingmodule

9. of ERP allows management to 몭xthe 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 toobtainthehighestpro몭tsandevenmakingreal-timeadjustments impactingcostduringproductionorproductdevelopment. 4.Production&ShopFloorModule:Empower yourshop 몭oor personnelbyprovidingthemwithkeypiecesofbusinessinformation at their 몭ngertips. The production and shop 몭oormodule of the ERP software provides information such as manufacturing performance, qualitydetails,ef몭ciency,etc.,inaneasy-to-readformat.Such informationallowsshop몭oorpersonnelto remainproactive, streamlining the production process and managing the entire work orderlifecyclebytakingnecessaryactions.Thismoduleevenhelpsin scalinguptheproduction,producingexpectedyields,reducing wastage,andcontrollinglossesbystreamliningthemulti-level productionprocessandkeepingshop몭oorpersonnelinformedabout theongoingproductionprocess. Last but not the least, the ERP module helps Small and Medium Enterprisesineffectivebusinessmanagementbymanagingeachand every business process ranging from Human Resources, Order, and Quality toInventory.Thetop management can easilyget any informationfromeachdepartmentwiththehelpofERPsoftware So,it isevident 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, andcustomizedERPSolutionssuitingyouruniquebusinessneeds.It is one of the market leaders in offering off-the-shelf and customized ERPsolutionstoleathermanufacturingcompanies andSMEs resultinginbusinessgrowth. ←PreviousPost NextPost→

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