In order to have a successful business, the managers need to ensure a smooth synchronization of all these 4 elements in the proper order. By doing this, the manufacturing company will be using IT as a leverage to increase the value of their business. What Supply Chain Management does for the business is to help manage your operations by providing the right product, at the right time, right place and at the right cost to the customer. SCM helps you to increase the operational speed by reducing your inventory and also exchange real-time data. It finally promotes effectiveness and efficiency by ensuring that you meet all your customers' requests and eventually increase your sales volume.
There are many reasons why Textile Industries need to integrate IT into their operations. Here are some of them.A major will always have to make decisions about demand and supply but each decision comes with its own risk and uncertainty. So, a good manager must always be conscious of this. If they are not adequately prepared, it might eventually lead to the business running out of stock or being overstocked or having unnecessary delays in their process.
For instance, you can introduce Bar Coding and Electronic Data Interchange. These 2 will make for easy access and dissemination of information. Bar coding makes it easy to record information in a simple format that can easily be accessed through the Electronic Data Interchange.You are able to reduce or totally eliminate unnecessary details because each teach can access data needed at the right time.
Supports Planning and Execution Operations
What comes next after information sharing is Planning. This involves design and implementation in order to introduce your product; make a demand forecast and restocking.Each member of the supply chain must have defined functions and this can be coordinated through IT.There are various IT tools that can help with planning and coordination, including MRP, MRP-II, APSS
Material Requirements Planning (MRP): This helps to manage the production processes by using the production planning and inventory control system. This will ensure that all the materialsneeded for production and product consumption are available at the right time. It also helps to optimize the inventory level and also schedule different activities. MRP system involves using computer databases to store lead times and order quantity. There are 3 main steps involvedin MRP. The first step is to assess how many units of components will beneeded to produce a final product; this step means using logic to implement spikes in Bill of Material (BOM). The second step is to deduct the stock in hand from totalstock to find out the net requirement. The third step involves scheduling all production activities in such a way that finished products are available at the right time, assuming that the lead-time is accurate.
Manufacturing Resource Planning (MRPII):This is a logical extension of MRP system. This covers the whole manufacturing process, starting from machine loading to scheduling to feedback and finally to Software extension programmes.This also includes the material requirement planning as in MRP.MRP-II provides the method of evaluating the probability of meetingproduction schedule under certain limiting conditions.
Distribution Requirement Planning (DRP): Aglobalized Textile company with multiple pointsof productionwould definitely need more than MRP and MRP-II. DRP offers the ability to deal with limitations relating to both capacity and material.DRP helps to see the potential impacts of these constrains or limitations in a backward and forward track throughout the supply chain.
The Advance Planning and Scheduling System (APSS):This combines the material emphasis of MRP and the speed scheduling emphasis of MRP-II.
Data mining involves analyzing and summarizing data from different standpointsinto useable information for easier monitoring and control. This allows the companies to focus attention on the key areas of the business.
There are 2 major types of E-commerce, namely B2B (Business To Business) and B2C (Business To Customer). B2C commerce involves selling directly to consumers through Internet. On the other hand, B2B involves using neutral Internet-based intermediaries that target specific businesses and electronic markets. They use various marketing devices to promote transactions among businesses. B2B is said to be more preferable than B2C.
Incorporating online shopping has helped to improve the distribution and warehousing operations of many Textile-retail giants. This in turn has as impacted greatly on the strategies of their supply chain system. The try to ensure that their local stores are adequately stocked with high volume products, while centrally stocking low-volume products for online purchases. The Internet has tools that can easily help Companies to closely monitor each customer's tastes, preferences, habits, and buying patterns. This in turn helps to ensure that customers have automatic replenishment system.
IT helps to increase the value of textile supply chain by integrating all supply chain operations both in and out of the company. It also helps to unify all the activities of vendors and customers using the forecasts initially made. The Internet aids this process by promoting a seamless coordination, incorporation and automation of supply chain operations.
This involves coordinating all workflow activities such as procurement, design optimization, implementing changes,order execution and financial exchanges in order to minimize cost and ensure time efficiency. This makes supply chain operations more effective and efficient.
Data warehousing on the other hand, serves as the storehouse of data. Thisinvolves centralizing data management and retrieval. By doing this, the company is able to maximize their user access and carry out better analysis.
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