How ERP Can Help Apparel Manufacturers Save Time and Money

apparel ERP

The need for ERP came to the apparel industry when the demand to index and databasing resources for raw materials, individual products, and people management increased.

The apparel industry faces unique challenges. First of all, the apparel industry is highly competitive. That alone is already a challenge that businesses must consider and find a way to stand out in the market.

Next, from manufacturing and designing clothes to distribution and use of manufactured textile, every operation is affected by seasonality, fluctuating global demand, operating costs, and climatic conditions.

Fashion, textile, and apparel businesses can dramatically transition if you implement a powerful ERP system to help increase productivity and money.

ERP solutions for the Apparel and Fashion Industry

The apparel industry utilizes ERP for garment manufacturing processes, demand planning, apparel design, material management, production, shipping and distribution, cash flow, and optimizing all core business operations. 

Why is an ERP system necessary in the textile and apparel industry?

ERP software provides a better approach to increasing profits in various textile and apparel sectors. With the manufacturing features of an ERP, it can help apparel businesses plan precisely how much textile they need to make clothing to decrease textile waste and scrap fabric during manufacturing.

Benefits of implementing Dynamics 365 for the apparel industry

The textile and apparel industry faces constant pressure due to economic fluctuations, technological innovations, and short-lived trends. With an ERP like Dynamics 365, it can address the industry’s challenges by deploying AI and business analytics functionalities.

Microsoft Dynamics 365 ERP & CRM gives you one platform to track your financials, optimize the supply chain, run planning and manufacturing operations and deliver a complete Omni channel experience with customer insights.

The benefits of implementing a new ERP solution in an apparel business include:

  • Better accuracy of data in real-time
  • Error reduction and more efficiency by reducing manual processes
  • Better controlled inventory management
  • Shorter order-to-shipment cycle
  • Cost savings due to more efficient planning
  • Improved accounting control through integrated financials
  • Accessible anywhere anytime via cloud solution
  • Helps to prepare necessary reports easily

Basic Components of Dynamics 365 ERP:

  • Manufacturing Management
  • Sales and Distribution
  • Inventory Management
  • Production Planning
  • Purchasing Management
  • Costing
  • Quality Management
  • Finance and Controlling
  • HR/Payroll

Real-time tracking

Dynamics 365 provides real-time tracking and reporting of resources for the warehouse, shop floor, procurement, and shipping.

Cost Savings

Cutting costs is critical for experiencing growth. For example, when apparel companies use an ERP system, they might need less warehouse space due to better and more efficient planning. It can reduce operational and administrative costs and improve business process management.

Product Data Management (Inventory Matrix)

With constantly evolving trends and various styles, colors and sizes, apparel companies can have difficulties updating their database with all the new information. An ERP solution can address this need with automation, allowing users to load and manage styles and items, including colors, sizes, features, images, pricing, and costing.

Dynamics 365 F&SCM offers a product matrix feature with five dimensions: color, configuration, size, style, and version. The combinations of product dimensions determine product variants different SKUs. With a matrix feature, you can manage your products through the entire manufacturing and distribution cycle while monitoring every single item, better manage inventory and improve purchase order processes.

Time management

With ERP software, you can fulfill purchase orders quickly and assign the best person to do the work. It helps to reduce errors, repetitive data entry, and other manual tasks, which saves tons of time. 


ERP software greatly contributes to earning maximum profit in various textile and apparel sectors. An apparel ERP can ease the operations of a business and effectively help reduce manual errors while giving room for growth. 

Got more questions about Microsoft Dynamics 365 for the textile and apparel industry?