5 Important Modules of ERP | Leather Manufacturing ERP Modules

1
Blog
5 Important Modules of ERP Leather
Manufacturing ERP Modules ERP Software / By
Webcity Technologies No business other than
manufacturing leather products has speci??c
requirements with regard to quality, accuracy,
delivery timelines, and promptness of
information. To keep customers satis??ed and to
run the business ef??ciently, leather
manufacturing units use various modules of ERP
systems in the various stages of production.
Though scores of ERP software systems are
available in the marketplace, Webcity
Technologies LLP offers customized ERP for
leather industries meeting their speci??c
requirements in their de??ned budget. The
software is well-equipped with a number of
modules that
2

• allows both medium and top management to take
  quick decision and run the business pro??tably.
  Lets take a closer look at some of the ERP
  modules
• Sample Module The ??rst and foremost step
  involved in manufacturing any leather product is
  the generation of a sample. Based on the
  information furnished, a sample code is generated
  and the properties of the product are de??ned.
  For instance, if the sample product is a leather
  bag, then the user can feed important properties
  of the bag such as color, size, handle, zippers,
  etc., into the ERP. After its creation, the
  sample is sent for the buyers approval. If the
  buyer approves it, it will convert into a
  product else revisions are made which are
  noti??ed in R1, R2, and so on the format. Based
  on the sample features, ERP suggests the
  quantity of raw material required, available
  quantity in the stock, and many other important
  pieces of information which help the Research
  Development Team in the ??nal creation of the
  product.
• Product Pro??ling Once the client approves the
  sample, product pro??ling or categorization is
  done in the ERP. This module helps users to
  distinguish leather products such as bags, shoes,
  belts, etc., based on their unique properties.
  For instance, if the product is a womens
  handbag, then properties include its type (sling
  or tote bag), color, size, total zipper in a
  handbag, handle, sizes along with images. ERP
  contains images of each and every product from
  different angles so that it becomes easy to
  identify. Each product encompasses SKUs
  (coding). The users are free to denote any
  product with the buyer or his own code. The
  barcode-based linking of the product helps in
  easy identi??cation and tracking of the product.
  Not to mention, the properties of the product
  are user-de??ned. The product pro??ling feature
  of the ERP is descriptive and accurate so that
  all materials are easy to ??nd quickly and
  ef??ciently.
• Material Analysis When the product is de??ned in
  the ERP, ERP gives valuable suggestions to the
  manufacturing unit regarding the

3
raw material required along with its quantity for
its manufacturing. For instance, leather,
thread, zipper, buckle, etc., are some of the
standard raw materials required for manufacturing
a womans handbag. Usually, a small womans
handbag comprises 60-70 raw materials. This
analysis of raw material helps in the generation
of BOM (Bill of Material) for one and even
hundreds of pieces. Users of the ERP get the
freedom to even de??ne and keep a track of the
components of raw materials. Every product goes
through a series of processes. When it comes to a
leather womans handbag, goes through
manufacturing processes such as cutting,
stitching, zip stitching, handle pasting, and so
on. The ERP also suggests that particular raw
material is required in which stage of
manufacturing. Lastly, ERP helps in de??ning the
size-related raw material and its cost. For
instance, this particular feature is extremely
helpful in certain leather products such as
shoes and belts. For instance, if a company
accepts an order to manufacture 100 leather shoes
sizing from 6 to 12, then in such cases 98 raw
material remains common in manufacturing shoes
for sizes 6-12 whereas with the difference of
only 2 in raw materials, which are selected
based on sizes (sole and toe). So, based on the
raw material difference, even cost differs.
Therefore, when the material analysis is done
for some products such as shoes, costing is done
on a single-size basis and this is applicable to
all sizes. 4. Costing Leather manufacturing
SMEs can take the help of ERP software for
de??ning the ??nal cost price of the raw material
after taking into consideration the margin rate
also. ERP also provides valuable information
regarding BOM Prices. Users are free to add
various surcharges such as pro??ts, commission,
packing cost, overhead, etc., on the BOM costing
along with ??xing the components of surcharges.
After adding all these surcharges, ERP gives the
idea that what will be the cost of the product
in other currencies such as the US Dollar also.
It helps in generating prices in USD in real-time
4

• from the suppliers price. ERP even shares a
  suggestive price in the USD currency when there
  is a change in the cost of raw materials. This
  allows the management of the leather
  manufacturing company to ??x its costs.
• Costing Leather manufacturing SMEs can take the
  help of ERP software for de??ning the ??nal cost
  price of the raw material after taking into
  consideration the margin rate also. ERP also
  provides valuable information regarding BOM
  Prices. Users are free to add various surcharges
  such as pro??ts, commission, packing cost,
  overhead, etc., on the BOM costing along with
  ??xing the components of surcharges. After
  adding all these surcharges, ERP gives the idea
  that what will be the cost of the product in
  other currencies such as the US Dollar also. It
  helps in generating prices in USD in real-time
  from the suppliers price. ERP even shares a
  suggestive price in the USD currency when there
  is a change in the cost of raw materials. This
  allows the management of the leather
  manufacturing company to ??x its costs.
• Sale Order Generation When any new sale order is
  generated, the buyer shares important pieces of
  information such as quantity to manufacture,
  rate of each raw material, size, etc., with the
  company. Based on the information furnished by
  the buyer, ERP gives a detailed report such as
  raw material consumption, the time required to
  manufacture 200 or 1000 products, raw material
  stock reserve, etc. It provides detailed
  information about the order dispatched in single
  or multiple deliveries or by which means of
  transportation. Manufacturing companies can
  easily ??nd the details of a buyers
  representative in the ERP and can contact him for
  further communication or negotiation.
• Thus, it is easy to conclude that with the help
  of advanced ERP software in the system, even the
  most challenging task is easy to perform with
  100 ef??ciency. Implementation of ERP software
  in the manufacturing processes of leather goods
  helps in making well-

5

• informed decisions quickly by providing useful
  information in no time and increases production
  by reducing the overall cost.
• Book Your Slot For ERP Software Demo
• Leather Manufacturing ERP Modules Helpful For
  Businesses in Multiple Ways
• It is a known fact that ERP software has become
  the most used software in the manufacturing
  industry. Like all other software systems, the
  ERP is implemented in leather manufacturing SMEs
  or companies to make things easier for users and
  provide accurate information to the top
  management for making well-informed decisions.
  The ERP software contains various modules that
  aid business processes such as sales, purchase,
  production, etc. This time, we will see how ERP
  plays an important role in managing the
  production process of leather goods.
• Production The production module of the ERP
  software is designed to provide detailed
  information about the production process, which
  is followed for converting raw materials into
  ??nished goods. This module helps in the
  following manner
• The ??rst level of the production plan is to
  prepare a work plan or job card. This work plan
  contains detailed information about every order,
  different contractors, and which task is assigned
  to which contractor. It even furnishes
  information that one entire order is assigned to
  one contractor or to a number of contractors.
• The next feature is creating a list of the
  processes involved in the production. One
  product goes through multiple processes. For
  instance, the manufacturing of leather bags has
  four to ??ve main processes such as cutting,
  stitching, etc. By looking at ERP, users get the
  crystal clear idea that a particular order is

6

• assigned to which contractor, how many raw
  materials are required to produce the ??nished
  good, currently, the raw material is in which
  process, how many processes are completed, how
  many processes are left, how many days are
  required to complete the whole order, the order
  is delayed or on-time production is taking
  place, etc.
• The users can even obtain a ??oor-wise report of
  each order. This report gives the real-time
  status of an order and a concrete idea of the
  workload of each process. Based on the
  information, the company decides whether an
  overtime shift is required.
• Regardless of the fact that raw material is in
  the third process or last process, production
  never stops. This feature is extremely helpful
  when a company is preparing any order in large
  quantity. For instance, if the main order is to
  manufacture 500 leather bags and so far only 100
  bags have cleared the cutting process, then
  these pieces are moved to the next process so
  that the production does not stop.
• Process-wise mapping of each product is possible
  in the ERP. This process is user-de??ned and
  even their sequencing is clearly de??ned so that
  users get an idea what are the process involved
  in the manufacturing of each product. After
  production is completed, the goods are sent for
  quality checks.
• Packing The packing of an order usually takes
  place one or two days before the ??nal shipment.
  The ERP features direct and instruction- based
  packing of each product. Some products are
  shipped directly to clients in a standard format
  whereas some are shipped as per instructions
  shared by a buyer. The top management gets to
  know whether the packing of one particular
  product is shipped on the same day of receiving
  or another day. The ERP also contains the exact
  date and time of particular order packing also.
• Shipment In this module, users can furnish
  information such as

7
invoices of order, custom invoices, buyers
invoices in their currency (mostly dollar),
export-related documents, the current status of
an order, dispatched details, and
reports. Documents When any shipment gets
ready, a lot of paperwork is required. Usually,
one invoice needs to prepare in different formats
and in different currencies to give clear
information to different parties such as buyers,
contractors, vendors, etc. Preparing these 4
reports in different formats is a time-consuming
task and demands the involvement of talented
labor also. But the same work is done by the ERP
in a lesser time frame and with more accuracy.
This saves both the time and money of the
leather manufacturing SMEs which would otherwise
spend on hiring manpower. To conclude,
technological advancements have been taking place
at a fast pace in the leather manufacturing
industry. Under these situations, using ERP
modules in different processes helps in saving
time and money for an organization in the long
run. How ERP Modules Helps Leather Manufacturing
Companies Running Business Ef??ciently? So far,
we have covered the bene??ts of using ERP
software in leather manufacturing companies and
SMEs. Surprisingly, the list is so long that it
is hard to cover each and every ERP module in one
or two-piece of writing. Therefore, this
particular piece will also highlight the
bene??ts of using different ERP modules to run
your leather manufacturing companies and SMEs
successfully. Lets take a closer look at these
modules. 1. Purchase Supplier Module The
purchase and supplier modules are two individual
modules of the ERP software but they work in
cohesion. The purchase module is also known as
the procurement module and it helps in
automating a number of activities involved in
the purchase process ranging from managing order
requests, maintaining stock levels, and
negotiating with suppliers to checking
8

• inventory, preparing work orders, etc. On the
  other hand, the supplier module gives tremendous
  control over the business to manufacturing
  companies by maintaining good relations with
  suppliers and maintaining a level of
  transparency in each transaction. The ERP
  software with supplier module helps in
  streamlining communication by keeping suppliers
  informed at each and every step and allowing
  companies to maintain purchase activities in line
  with the suppliers capacities and capabilities.
• Sampling Module The sampling module helps in
  different stages of production and minimizes
  loss by keeping a record of a number of things.
  With the help of the sampling module, management
  can easily perform the following functions
• Able to maintain complete sample information such
  as current price, anticipated sales volume,
  estimated time required to produce a sample,
  etc.
• Easily maintain complete information about the
  existing customer or new prospect.
• Able to keep track of costs associated with a
  particular sample both in a detailed or
  summarized manner.
• Relate samples with production batches and BOM
  easily. Accurately maintain a detailed record of
  all communication exchanged with customers
  regarding a sample request.
• Able to maintain documents related to sampling
  requests and provide them as and when required.
• When all these pieces of information are handy,
  businesses can work with greater ef??ciency.
• Costing Module Determining the right cost of any
  leather product is one of the major challenges
  the top management face. They need to set a cost
  price of any product in such a manner that it is
  bene??cial for the company and even acceptable
  to customers. With a cloud- based ERP costing
  module, an SME can easily set up the right cost
  that helps in achieving higher margins. The
  advanced costing module

9
of ERP allows management to ??x the price after
considering various costs such as set-up
charges, labor, margins, mark-ups, etc. This
module also helps in determining the right
packaging con??guration to obtain the highest
pro??ts and even making real-time adjustments
impacting cost during production or product
development. 4. Production Shop Floor Module
Empower your shop ??oor personnel by providing
them with key pieces of business information at
their ??ngertips. The production and shop ??oor
module of the ERP software provides information
such as manufacturing performance, quality
details, ef??ciency, etc., in an easy-to-read
format. Such information allows shop ??oor
personnel to remain proactive, streamlining the
production process and managing the entire work
order life cycle by taking necessary actions.
This module even helps in scaling up the
production, producing expected yields, reducing
wastage, and controlling losses by streamlining
the multi-level production process and keeping
shop ??oor personnel informed about the ongoing
production process. Last but not the least, the
ERP module helps Small and Medium Enterprises in
effective business management by managing each
and every business process ranging from Human
Resources, Order, and Quality to Inventory. The
top management can easily get any information
from each department with the help of ERP
software So, it is evident that leather
manufacturing companies or SMEs require advanced
cloud-based ERP software to run the business
pro??tably. Contact Webcity Technologies LLP to
get robust, scalable, and customized ERP
Solutions suiting your unique business needs. It
is one of the market leaders in offering
off-the-shelf and customized ERP solutions to
leather manufacturing companies and SMEs
resulting in business growth.
? Previous Post
Next Post ?
10
Popular Posts 7 Tell-Tale Signs Indicating
Company Needs New ERP Software Streamline HRM
Processes by Implementing High-End ERP Best ERP
Software for Manufacturing Companies in India 5
Important Modules of ERP Leather Manufacturing
ERP Modules ERP Inventory Module How It Benefits
Leather Manufacturing Companies?
Contact Us C-41, Sector-58, Noida -
201301, Uttar Pradesh, India 9015088555 /
9015355588 info_at_wtllp.co.in
Copyright 2022 Blog Powered by Webcity
Technologies LLP