Textiles: A Perfect Fit

BSL Limited is a leading textile company with strong presence in both domestic and export markets. It is in the final stages of implementing ERP. Most of its business processes are running successfully on Textile Integrated Manufacturing (TIM) software, a textile-based ERP solution from Datatex, Italy, and delivered by Infinite Computers in India.

Need for the Top View

Prior to ERP implementation, BSL had a mix of independent legacy systems. Though they were built over a period of time as per user needs, they failed to meet overall management information needs. Whenever some information was required, data was gathered from independent systems, and then reports were prepared. This led to delay in information usage and decision making. Same data was being entered by various departments for different purposes. Besides, there were also serious data security and safety issues, which led the management to go for an integrated package.

BSL studied the market players in the textile-ERP business. It looked at its requirements of an integrated, online information resource planning system, and zeroed in on the Datatex TIM. It has implemented the solution in various business areas such as textiles processes, purchase, sales cycles, and job-work processes.

BSL chose TIM for a number of reasons. It is a textile-specific ERP with a deep understanding of the processes. The vendor as well as implementer had strong textile knowledge base. It has strong textile customer base in Asian and global markets, having 400 successful implementations. And it is cost effective.

BSL wanted an ERP that could meet its textile needs, which were very different from generic business needs. The Datatex TIM could address its requirements for various processes. For instance, spinning, required a method to handle huge numbers of production orders with online tracking at all stages. TIM could do that. Similarly, in other areas such as dyeing, weaving, and defect recording, the ERP could handle the processes well.

Meeting the Challenges

Changing the habits of employees and altering the business processes posed major challenges. Based on the 'as-is' and 'to-be' study, areas that needed to change were identified. This approach made the change management process smoother. Support of functional heads was also sought out.

Before the deployment of ERP, IT was closely involved in running and building the business functions at BSL. All systems worked on the assumption that the IT team owned them. Breaking this thinking and giving the ownership of business process to individual departments, with IT playing the role of a custodian, was a big challenge.

Before ERP, the individual business units had their own systems and there were no data dependencies on other units/business functions. ERP changed that. Now, unless the first department completes its data feeding, other departments can not do the transactions. 

Post Implementation Benefits

Though BSL is still new in the ERP environment, it can already see benefits. Some of its preliminary observations are:

• Better visibility into customer orders execution.
• Optimal planning of spinning, loom shed, dyeing. A significant component of the RoI is accruing from the dyeing function.
• Improvement in standard and actual product costing methods. It has also led to precise profitability analysis at the product and lot level.
• Reduction in losses due to second/third quality fabric reduction.
• Management of finance and localization needs.

The ERP implementation has been an exciting project for BSL. It expects to see more benefits from the new system in future.

The Author is vice president of Finance and project director for the Datatex TIM project in BSL.

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