With the level of competition on the rise, an average company is now incorporating IT into their operations. This will help to improve their Supply Chain Management (SCM), thereby using it as their competitive advantage.

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.


Lack of information on demand and supply aspects

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.

Long Procurement Time

Procurement process tends to take a long time in a conventional textile industry, so it is important for retailers to do a forecast for their demands. They must also be able to identify the trends for consumption at the beginning of their process. By integrating IT into the operations, you can eliminate the bottlenecks and ensure a smooth process, thereby increasing the level of efficiency in the business.If there are bottlenecks anywhere, the whole process will be affected but with IT, you can fix the problems.The role of planning and coordination cannot be overemphasized.

Supply chain incompetency

In the process of going global with their businesses, many textile companies are having certain problems managing their operations at this higher level. For instance, the efficiency level required for this level of operation is not so easy to meet up with. The total time it takes for them to complete a full process can be as long as a full year or more, from designing to getting approvals to payment dispatch and to actual production. Ironically, production time is actually about 20% of the total time. The other events in the process take up the remaining 80% of the time.

Stepping Into Global Trade

Going global comes with both opportunities and threats to the business, so it is important to properly manage the transition to global trade. With IT, you can manage your information in record time and by so doing, you will increase your level of efficiency.If the flow of information among supply chain members is not seamless, because it would limit the efficiency of the supply chain operations. The information shared includes inventory, production plans, customer data and preferences, shipment details, payment plans or schedules and promotion plans.

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Information Sharing

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.



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