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| which further results in long cycle-time, outdated | | | | both capacity and material constraints and quickly |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