Comparison of differences between footwear ERP and traditional factories
In the past twenty years, the management logic of shoe factories has not fundamentally changed: accepting orders, scheduling production, procurement, production, and shipping rely on paper documents and verbal confirmation at every step. The ERP system moves the same process online, and the differences are reflected in six aspects, which can be quantified or verified on-site.
1、 Information synchronization
Traditional mode: The sales department sends Excel to the planning department, which then calls the procurement department to confirm the materials. Each time the information is transferred, there is a delay of half an hour to a day, and versions are prone to conflicts.
ERP approach: After entering the order, BOM、 Inventory and production capacity data are shared at once, and any department can refresh the page to see the latest status. Delay reduced from 'days' to' seconds'.
2、 Scheduling efficiency
Traditional mode: The planner arranges production based on experience, and inserting orders requires complete rearrangement. The downtime for product replacement starts from 4 hours.
ERP approach: APS engine integrates delivery time, materials, and machine load, and completes scheduling within 30 minutes; The line switching time has been compressed to 30 minutes, supporting direct insertion of small batch orders of 50 pairs.
3、 Inventory and Cost
Traditional model: Keep a 3-month inventory on hand, and allocate costs by category at the end of the month, which cannot accurately determine the profit of a single shoe.
ERP approach: MRP generates procurement suggestions in real-time, reducing inventory turnover from 90 days to 55 days; Cost convolution is applied to every order and SKU, and the gross profit margin is visible on the spot.
4、 Quality control
Traditional mode: tail sampling, production has already been completed when batch problems are found, resulting in high rework losses.
ERP approach: Install sensors in key processes, transmit data in real-time, immediately alert for deviations from standards, reduce the missed detection rate from 15% to 2%, and synchronously reduce rework costs.
5、 Efficiency rate
Traditional mode: one person, one machine, with a startup rate of about 65%, and labor costs are increasing year by year.
ERP approach: Equipment OEE real-time display, workers scan codes to switch positions, the startup rate increases to 85%, and the unit labor cost decreases by 20%.
6、 Decision speed
Traditional mode: Reports are released at the end of the month, and then meetings are held to decide on replenishment or clearance, often missing the sales window.
ERP approach: The BI module real-time summarizes sales volume, inventory, and in transit volume, and the prediction model alerts the risk of out of stock 5 days in advance, reducing the out of stock rate from 12% to 5%.
Implementation suggestions
1. First, organize the master data: shoe styles, size matrix BOM、 At the beginning of the inventory period, it must be accurate in one go.
2. Module deployment: Start with orders and inventory, stabilize before expanding to production and finance to reduce one-time investment.
3. Parallel verification: Run the dual track system for two weeks, check the system and manual data, confirm that there are no errors, and then switch to the single track.
4. Simplify operations: Scan codes in the workshop and report work through mobile phones within three steps to reduce employee resistance.
cost recovery
Taking a medium-sized factory with an annual output of 1.2 million pairs as an example, the software implementation cost is about 1.2 million yuan, and the reduction of inventory capital occupation, rework, and stockout losses, totaling about 3 million yuan saved annually, with a payback period of 8 months.
conclusion
ERP has not changed the shoe-making process, but has moved information flow, capital flow, and logistics to the same platform, making planning more accurate, inventory less, and response faster. The gap between traditional factories and digital factories is ultimately reflected in three sets of numbers: inventory days, line replacement time, and out of stock rate, which can be measured and calculated without exaggeration.
1、 Information synchronization
Traditional mode: The sales department sends Excel to the planning department, which then calls the procurement department to confirm the materials. Each time the information is transferred, there is a delay of half an hour to a day, and versions are prone to conflicts.
ERP approach: After entering the order, BOM、 Inventory and production capacity data are shared at once, and any department can refresh the page to see the latest status. Delay reduced from 'days' to' seconds'.
2、 Scheduling efficiency
Traditional mode: The planner arranges production based on experience, and inserting orders requires complete rearrangement. The downtime for product replacement starts from 4 hours.
ERP approach: APS engine integrates delivery time, materials, and machine load, and completes scheduling within 30 minutes; The line switching time has been compressed to 30 minutes, supporting direct insertion of small batch orders of 50 pairs.
3、 Inventory and Cost
Traditional model: Keep a 3-month inventory on hand, and allocate costs by category at the end of the month, which cannot accurately determine the profit of a single shoe.
ERP approach: MRP generates procurement suggestions in real-time, reducing inventory turnover from 90 days to 55 days; Cost convolution is applied to every order and SKU, and the gross profit margin is visible on the spot.
4、 Quality control
Traditional mode: tail sampling, production has already been completed when batch problems are found, resulting in high rework losses.
ERP approach: Install sensors in key processes, transmit data in real-time, immediately alert for deviations from standards, reduce the missed detection rate from 15% to 2%, and synchronously reduce rework costs.
5、 Efficiency rate
Traditional mode: one person, one machine, with a startup rate of about 65%, and labor costs are increasing year by year.
ERP approach: Equipment OEE real-time display, workers scan codes to switch positions, the startup rate increases to 85%, and the unit labor cost decreases by 20%.
6、 Decision speed
Traditional mode: Reports are released at the end of the month, and then meetings are held to decide on replenishment or clearance, often missing the sales window.
ERP approach: The BI module real-time summarizes sales volume, inventory, and in transit volume, and the prediction model alerts the risk of out of stock 5 days in advance, reducing the out of stock rate from 12% to 5%.
Implementation suggestions
1. First, organize the master data: shoe styles, size matrix BOM、 At the beginning of the inventory period, it must be accurate in one go.
2. Module deployment: Start with orders and inventory, stabilize before expanding to production and finance to reduce one-time investment.
3. Parallel verification: Run the dual track system for two weeks, check the system and manual data, confirm that there are no errors, and then switch to the single track.
4. Simplify operations: Scan codes in the workshop and report work through mobile phones within three steps to reduce employee resistance.
cost recovery
Taking a medium-sized factory with an annual output of 1.2 million pairs as an example, the software implementation cost is about 1.2 million yuan, and the reduction of inventory capital occupation, rework, and stockout losses, totaling about 3 million yuan saved annually, with a payback period of 8 months.
conclusion
ERP has not changed the shoe-making process, but has moved information flow, capital flow, and logistics to the same platform, making planning more accurate, inventory less, and response faster. The gap between traditional factories and digital factories is ultimately reflected in three sets of numbers: inventory days, line replacement time, and out of stock rate, which can be measured and calculated without exaggeration.
