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How Apparel and Footwear Companies Benefit from ERP

Executive Summary:

This post provides an overview of apparel and footwear companies’ challenges and how ERP software can benefit fashion and apparel businesses, including inventory management, demand planning, and production management.

Challenges Faced by Apparel and Footwear Companies 

The fashion industry has been at the forefront of recent advancements and breakthroughs to stay competitive. As a result, approximately 80 billion items are made annually, and fast-fashion businesses release 52 micro-collections annually rather than the two regular seasons. 

The fashion industry faces several significant issues as it adjusts to the changing environment, including consumer behavior that is changing quickly, digital transformation that is speeding up, and growing concerns about sustainability and diversity. As a result, businesses in the fashion sector must use the greatest ERP solution and act in the best interests of all stakeholders, including investors, customers, employees, and society, to address these difficulties daily.

Some of the fundamental challenges faced by apparel land footwear companies are:

Delivery of Products Inefficient

According to a survey, 70% of customers said they would only buy from a business again if they got their purchase within the promised delivery window. Therefore, ineffective product distribution is a significant issue for companies in the garment industry, regardless of the cause.

Quality Problems

The visual examination or evaluation of materials and fully finished garments about some standards, specifications, or requirements is known as fabric inspection in the clothing industry. There may occasionally be a few defective end products after the sewing lines are finished and the garment lines are examined. The manual method of fabric examination used in the apparel industry could be more labor-intensive and accurate.

Manpower Shortage

The need for qualified workers has emerged as one of the major issues facing the apparel business, whether due to the Covid-19 pandemic or consistently increasing customer demands. Due to this labor shortage, many companies in the clothing industry are being compelled to work overtime to fulfill orders on time. However, even after making all these measures, delivery bottlenecks can occasionally still occur.

Inadequate Inventory Management

There are instances when the production facility’s huge staff and continued access to raw materials must be increased to meet the escalating customer demands. Monitoring the inventory is similarly crucial. By doing this, you can also prevent both understocking and overstocking.

ERP Software Benefits for the Clothing and Apparel Industry

Apparel ERP software automates and streamlines internal corporate procedures, increasing output and effectiveness. All procedures in apparel manufacturing software and distribution are made easier with Apparel ERP software for clothing, increasing market time. In addition, it provides a dependable, user-friendly source of current data that ensures everyone is using the same data.

Some of the common benefits of utilizing EPR solutions in your footwear and apparel companies are:

Streamline Organization Procedures

Important company information spread across several platforms is difficult to access when necessary. Due to the Saas apparel solution and ERP system’s ability to combine data into a single platform and make information retrieval in a standard, accessible format considerably simpler, garment businesses frequently find it helpful.

Additionally, a clothing ERP system enables you to define role-based permissions so that you can manage the information that employees have access to and grant authorization only to the appropriate individuals.

Process Returns and Orders More Efficiently

Order and return processing is frequent in the apparel industry, particularly in the retail sector. Therefore, your garment business needs to be outfitted with an efficient monitoring system to handle these operations easily.

The advantages of ERP software go beyond just streamlining internal procedures. Thanks to the integrated system, your staff can examine stock levels and customer transaction histories in real time, enabling them to address customer concerns and respond to supplier demands proactively.

The tracking and management of orders and returns are standardized by feature-ready ERP software for the garment sector. You can predefine discounts, package tracking, shipping, return policies, account credits, and other associated operations using this institutional system. This streamlines the procedures and boosts delivery punctuality and return processing simultaneously.

Enhanced Inventory Overview

Cloud-based garment ERP solutions provide a better comprehensive view of each stock, offering robust automation and barcode scanners to maintain inventory and watch for shortages or surpluses.

Utilize Data Analytics For Prediction

Data analytics can better understand customer demands and experiences, assisting garment businesses in attracting new clients and retaining existing ones.

Best ERP Solution in the Market – NStitch

Folio3’s NStitch manufacturing software offers a complete B2B software solution for clothing manufacturers wishing to optimize their operations. The product’s real-time data and production planning capabilities can assist manufacturers in finding supply chain bottlenecks, reducing lead times, and boosting productivity. Folio3’s NStitch tool, which Streamline Apparel production planning and offers a central database for all manufacturing-related data, leverages the advantages of cloud technology to provide a highly secure, scalable, and flexible solution. This makes it an ideal B2B software solution for apparel companies of all sizes.

Advantages of Implementing Folio3 NStitch Solution


Thanks to the solution’s high level of flexibility, manufacturers can modify any aspect of the program, from the user interface to its functionality, to suit their demands.

A complete B2B solution: 

A complete B2B solution is offered by Folio3’s NStitch system, which is tailored exclusively for the apparel manufacturing industry for enterprises in this market—B2B software for clothing manufacturers.

Real-time data analytics:

 The intelligent solution offers real-time data insights into production processes, empowering manufacturers to choose wisely regarding supply chain operations, production scheduling, and inventory management.

Security of Data: 

The NStitch solution is a SaaS software housed on a distant server and accessed online. Since all data is saved in the cloud rather than local workstations, it offers great security and is less susceptible to online threats.

Simple to Use

Easy tracking of manufacturing steps, such as different sizes and colors, using a consolidated production order and a modern yet straightforward user interface

Reports Of Every Kind In A Few Clicks 

Create reports like WIP Status Reports, Cost Sheets, and Delivery Tracking Reports to help your AFA firm discover obstacles and make wise business decisions.


The obstacles will be numerous, ranging from long-term struggles like sustainability and sizing struggles to expand ones like diversity and mistrust, according to industry experts who predict a difficult year for fashion.

However, firms have demonstrated their resilience by surviving one of the most challenging times the fashion industry has ever experienced during the epidemic. Businesses in the garment industry can meet the problems 2023 presents by adjusting to changing consumer behavior, paying attention to the worries of clients and coworkers, and investing in the correct solutions and tools, like NStitch. The ERP-based AFA Manufacturing Software by Folio3 has been implemented by several well-known brands in the apparel and fashion manufacturing sector to expedite clothing creation and maintain visibility throughout production.


What difficulties do fashion companies face?

  1. Global Competition is Growing.
  2. Labor is being abused.
  3. Competition. Sustainability.
  4. Production problems.
  5. Elevated pollution.
  6. Technological challenges.
  7. Consuming problems.

What is wrong with the garment business?

The complex supply chain for the fashion and apparel business and industry is experiencing unheard-of disruptions due to personnel shortages, the energy crisis, and material scarcity. When these problems are taken together, production and distribution costs rise, affecting the profitability of many clothing brands.

How might ERP software benefit a clothing business?

The following region is where you can collect ERP. Enterprise Resource Planning for AFA manufacturing business (cutting, sewing, weaving, dying): Trade Finance, Supply Chain, Inventory & Warehousing, Sales, Marketing, Laboratory, Production & Production Schedule Management, QC & Packaging, Distribution, Accounts, DSS, MIS.

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