| Today, Information technology (IT) plays a vital role in | | | | material for production and product for consumption at |
| the field of textile industry. Any manufacturing unit | | | | right time optimizes the level of inventory and helps in |
| employs four Ms that is, Men, Material, Machine and of | | | | scheduling various activities. MRP system uses |
| course Money. To get organizational success, | | | | computer databases to store lead times and order |
| managers need to focus on synchronizing all these | | | | quantity. MRP includes mainly three steps: first |
| factors and developing synergies with in and outside | | | | assessing the requirement of how many units of |
| organizational operations. With the increased | | | | components is required to produce a final product; |
| competition, companies are taking support of IT to | | | | here it applies logic to implement Bill of Material (BOM) |
| enhance its Supply Chain Management (SCM) and | | | | explosions. Second step includes deducting the stock in |
| using it as a competitive edge. In short, many textile | | | | hand from gross to find out net requirement. Finally, |
| companies are leveraging the technological power to | | | | scheduling manufacturing activities such that finished |
| adding value to their business. | | | | goods are available when required, assuming the lead |
| Supply Chain Management includes: sourcing, procuring, | | | | time. |
| converting, and all the logistic activities. It seeks to | | | | Manufacturing Resource Planning (MRPII) system is a |
| increase the transaction speed by exchanging data in | | | | logical extension of MRP system which covers the |
| real-time, reduce inventory, and increased sales volume | | | | entire manufacturing function. This typically includes |
| by fulfilling customer requirements more efficiently and | | | | machine loading, scheduling, feedback and Software |
| effectively. | | | | extension programmes in addition to material |
| Why Textile Industries Need IT Support? | | | | requirement planning. It provides the mechanism to |
| Lack of information on demand and supply aspects | | | | evaluate the feasibility of a production schedule under |
| Most of the decisions a manager takes are related to | | | | a given set of constraints. |
| demand and supply issues. But unfortunately very few | | | | A textile company which has multipoint manufacturing |
| are able to get it, as a result decisions taken carries | | | | and engaged in global business necessitates something |
| risk and uncertainty. Excess inventory is one of the | | | | more than MRP and MRP-II like Distribution |
| most common problems faced by managers which | | | | Requirement Planning (DRP), it has ability to solve both |
| further results in long cycle-time, outdated stock, poor | | | | capacity and material constraints and quickly |
| sale, low rates, and reduction in order visibility and finally | | | | propagates the effects of problems in both backward |
| leads to customer dissatisfaction. | | | | and forward direction throughout the supply chain. |
| Long procurement time | | | | The Advance Planning and Scheduling (APSS) system |
| In a traditional textile industry, procurement process | | | | includes both material focus of MRP and rapid |
| takes a much longer time. So, the retailers need to | | | | response scheduling power of MRP-II. |
| forecast demand and identify consumption trends at a | | | | Coordination of logistics flows |
| much earlier stage. Lack of clarity about future can | | | | Workflow coordination can include activities such as |
| either result in early stock out, delay or overstock. | | | | procurement, order execution, implementing changes, |
| Supply chain in-competency | | | | design optimization, and financial exchanges which |
| With the urge for getting global, apparel and textiles | | | | results in cost and time efficiency. The results are |
| are facing hurdles of inefficiency in carrying out various | | | | cost-effective, speedy and reliable supply chain |
| processes involved right from designing, developing | | | | operations. |
| samples, getting approval, manufacturing, dispatching to | | | | IT contributes towards the maximizing the value of |
| payment procedures. The total time taken can get | | | | textile supply chain through integrating supply chain |
| extended to one year or even longer. If we calculate, | | | | operations within and outside the organization and |
| production actually accounts for just ten to twenty | | | | collaborating the acts of vendors and customers |
| percent of the total time. Rest of the time is taken for | | | | based on shared forecasts. Internet adds to IT |
| the information processing from one end to the other. | | | | contribution towards supply chain management through |
| The trajectory of development of Information | | | | coordination, integration and even automation of critical |
| Technology has intersected every application in textile | | | | business processes. New system of the supply chain |
| industry. From enhancing performance of textile | | | | game emerges as a result of business innovation |
| manufacturing and tighter process control, IT has | | | | fuelled by the Internet. |
| inserted intelligence at every node of textile supply | | | | Many supplying companies maintain demand data by |
| chain. | | | | style, size, fabric and color to replenish inventory at |
| Step into the global trade | | | | retail outlet. Level of replenishing is predetermined by |
| It is a fact that a company going global is opened with | | | | both parties after reviewing history of sales by product |
| lot of opportunities as well as threats in terms of | | | | and buying behavior of the community. New Business |
| competition, changing trends, and other environmental | | | | Models: |
| changes. It necessitates managing every kind of | | | | Data mining and data warehousing |
| information efficiently and at much faster speed. | | | | Data mining is the process of analyzing data from |
| Interaction of Information Technology with Textile | | | | different viewpoints and summarizing it into useful |
| Supply Chain | | | | information that can be used as a basis of monitoring |
| Sharing of Information | | | | and control, enabling companies to focus on the most |
| Proper flow of information among supply chain | | | | important aspects of their business. It allows users to |
| member is very crucial. Such flow of information can | | | | analyze data from many different dimensions, |
| influence the performance of overall supply chain | | | | categorize it, and summarize the relationships identified. |
| operations. It includes data about customers and their | | | | In short it is the process of finding correlations or |
| demand, inventory status, production and promotion | | | | relationship among dozens of fields in large relational |
| plan, shipment schedules, payment details, etc. Bar | | | | databases. Data warehousing is the repository of data |
| coding and Electronic data interchange are the two | | | | and can be defined as a process of centralized data |
| information technology tools which can facilitate | | | | management and retrieval. Centralization of data |
| information integration. Bar coding facilitates recording | | | | maximizes user access and analysis. |
| of detailed data by converting it to electronic form and | | | | E-commerce |
| can be easily shared among members through EDI | | | | E-commerce can be B2B (Business To Business) and |
| system. EDI with its high efficiency is able to replace | | | | B2C (Business To Customer). B2C commerce is the |
| the traditional ways of transmission like telephone, mail | | | | direct selling to consumers through Internet. While B2B |
| and even fax. EDI enables managers to analyze and | | | | marketplace can be defined as neutral Internet-based |
| apply it in their business decisions. It also helps in | | | | intermediaries that focus on specific business |
| expediting order cycle that reduces investment in | | | | processes, host electronic marketplaces, and use |
| inventory. EDI based network enables Company to | | | | various market-making mechanisms to mediate |
| maintain quick response and closure relations with | | | | transactions among businesses. B2B appears to be |
| suppliers and customers, who are geographically | | | | more prospective than B2C. |
| dispersed. Manufacturers and retailers can share even | | | | E-retailing |
| new designs developed through CAD/CAM. | | | | The textile-retail giants are adding an Internet |
| Supports planning and execution operations | | | | shopping-component to their offering. It has affected |
| Planning and coordination are very important issues in | | | | their distribution and warehousing infrastructure. As a |
| supply chain management. The next step after sharing | | | | result of going online, retailers have changed their |
| information is planning which includes joint design and | | | | supply chain strategy. High volume products with stable |
| implementation for product introduction, demand | | | | demand are stocked in local stores, while low-volume |
| forecasting and replenishment. Supply chain members | | | | products are stocked centrally for online purchasing. |
| decide their roles and responsibility which is | | | | Companies prefer a direct route to consumers by |
| coordinated through the IT system. | | | | closely scrutinizing individual customer's tastes, |
| Various software tools like MRP, MRP-II, APSS | | | | preferences, habits, and buying patterns. Instead of |
| facilitates planning and coordination between different | | | | waiting for consumers to visit their stores, retailers |
| functional areas within the organization. | | | | simply send them e-mails with offers. Internet has |
| Material Requirements Planning (MRP): It helps in | | | | facilitated quick response system. With the use of |
| managing manufacturing processes based on | | | | web-enabled technology it is possible to have |
| production planning and inventory control system. | | | | automatic customer replenishment system. |
| Proper implementation of MRP ensures availability of | | | | |