Who Controls The Flow Of Information In The Buying Process Information Technology and Textile Industry

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Information Technology and Textile Industry

Today, information technology (IT) plays a vital role in the field of textile industry. Each production unit employs the four M’s, which are people, material, machine and, of course, money. To achieve organizational success, managers must focus on synchronizing all these factors and developing synergies with internal and external organizational operations. With increased competition, companies are taking IT support to improve their supply chain management (SCM) and use it as a competitive advantage. In short, many textile companies are harnessing the power of technology to add value to their business.

Supply Chain Management includes: procurement, procurement, conversion and all logistics activities. It seeks to increase transaction speed by exchanging real-time data, reduce inventory, and increase sales volume by meeting customer demands more effectively and efficiently.

Why does the textile industry need IT support?

Lack of information on demand and supply aspects

Most of the decisions a manager makes are related to issues of demand and supply. But, unfortunately, very few of them are able to achieve this, which is why the decisions made carry risk and uncertainty. Excess inventory is one of the most common problems faced by managers, which further results in long cycle times, obsolete inventory, weak sales, low prices and reduced order visibility, ultimately leading to customer dissatisfaction.

Long procurement time

In the traditional textile industry, the procurement process takes much longer. So, retailers need to anticipate demand and identify consumption trends at a much earlier stage. Lack of clarity about the future can result in early stockouts, delays or overstocking.

Supply chain inefficiency

With the desire to go global, apparel and textiles face hurdles of inefficiency in carrying out the various processes involved, from design, pattern development, approvals, manufacturing, shipping to payment procedures. The total time required can be extended to one year or even more. If we do the math, production actually makes up only ten to twenty percent of the total time. The rest of the time is spent processing information from one end to the other.

The path of information technology development cuts across all applications in the textile industry. From improving textile production performance and tighter process control, IT has injected intelligence into every node of the textile supply chain.

Step into global commerce

The fact is that a company that goes global opens up with a lot of opportunities, but also threats in terms of competition, changing trends and other changes in the environment. It requires managing every type of information efficiently and at a much higher speed.

The interaction of information technology with the textile supply chain

Information sharing

The proper flow of information between members of the supply chain is very important. Such a flow of information can affect the performance of the entire supply chain. It contains information about customers and their demand, inventory status, production and promotion plan, shipping schedule, payment details, etc. Bar coding and electronic data interchange are two information technology tools that can facilitate information integration.

Bar coding facilitates the recording of detailed data by converting it into electronic form and can be easily shared among members through the EDI system. With its high efficiency, EDI can replace traditional means of transmission such as telephone, mail and even fax. EDI enables managers to analyze and apply it in their business decisions. It also helps speed up the order cycle which reduces inventory investment. An EDI-based network enables the company to maintain rapid response and close relationships with suppliers and customers that are geographically dispersed. Manufacturers and retailers can even share new designs developed using CAD/CAM.

It supports planning and execution operations

Planning and coordination are very important issues in supply chain management. The next step after information sharing is planning, which includes joint design and implementation for product introduction, demand forecasting and replenishment. Members of the supply chain decide on their roles and responsibilities, which are coordinated through the IT system.

Various software tools such as MRP, MRP-II, APSS facilitate planning and coordination between different functional areas within an organization.

Material Requirements Planning (MRP): It helps manage production processes based on production planning and inventory control systems. Proper implementation of MRP ensures availability of materials for production and products for consumption at the right time, optimizes inventory levels and helps in planning various activities. The MRP system uses computer databases to store lead times and order quantities. MRP involves mainly three steps: first, estimating the requirement of how many units of components are needed to produce the final product; this is where the logic for implementing bill of materials (BOM) explosions is applied. The second step involves subtracting the inventory on hand from the gross to find out the net requirements. Finally, planning production activities so that finished products are available when needed, assuming lead time.

The manufacturing resource planning system (MRPII) is a logical extension of the MRP system that covers the entire production function. This typically includes machine loading, planning, feedback and software expansion programs in addition to material requirements planning. It provides a mechanism for evaluating the feasibility of a production schedule under a given set of constraints.

A textile company that has multi-point production and is involved in global operations requires something more than MRP and MRP-II such as distribution requirements planning (DRP), has the ability to deal with capacity and material constraints, and rapidly propagates the effects of problems backward and forward throughout supply chain.

The Advance Planning and Scheduling System (APSS) includes both the material orientation of MRP and the rapid response planning power of MRP-II.

Coordination of logistics flows

Workflow coordination can include activities such as procurement, order fulfillment, change implementation, design optimization, and financial exchange resulting in cost and time efficiency. The results are cost-effective, fast and reliable supply chain operations.

IT contributes to maximizing the value of the textile supply chain by integrating supply chain operations inside and outside the organization and by collaborating supplier and customer actions based on shared forecasts. The Internet contributes to IT supply chain management through coordination, integration and even automation of critical business processes. A new supply chain game system is emerging as a result of Internet-driven business innovation.

Many supplier companies maintain data on demand by style, size, fabric and color to replenish stock at retail locations. The level of replenishment is determined in advance by both parties after reviewing the sales history by product and the purchasing behavior of the community.

New business models:

Data mining and data warehousing

Data mining is the process of analyzing data from different points of view and summarizing it into useful information that can be used as a basis for monitoring and control, allowing 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 the identified relationships. In short, it is the process of finding correlations or relationships between dozens of fields in large relational databases.

Data warehousing is the storage of data and can be defined as the process of centralized data management and retrieval. Data centralization increases user access and analysis.

E-commerce

E-commerce can be B2B (Business To Business) and B2C (Business To Customer). B2C trade is direct sales to consumers via the Internet. While the B2B marketplace can be defined as neutral online intermediaries that focus on specific business processes, host electronic marketplaces and use various market-making mechanisms to mediate business-to-business transactions. B2B seems to be more promising than B2C.

E-retail

Textile retail giants are adding an online store component to their offer. This affected their distribution and storage infrastructure. As a result of going online, retailers have changed their supply chain strategy. High-volume products with stable demand are stored in local stores, while low-volume products are stored centrally for online purchases.

Companies prefer a direct route to consumers by closely studying the tastes, preferences, habits and buying patterns of individual customers. Instead of waiting for consumers to visit their stores, retailers simply send them emails with offers. The Internet has an enabled quick response system. By using internet technology, it is possible to have an automatic customer replenishment system.

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