Enterprise Process Reengineering Based on Footwear ERP: The Key Path to Improving Operational Efficiency

In today's era of rapid digital development, footwear companies are facing increasingly fierce market competition. In order to stand out in the competition, improving the overall operational efficiency of the enterprise has become the key. The implementation of ERP (Enterprise Resource Planning) system is an important measure for many footwear enterprises to achieve this goal. However, in order to fully leverage the advantages of ERP systems, enterprises must optimize and restructure their existing business processes to meet the requirements of information management.

1、 Problems in the existing business processes of footwear enterprises

（1） Poor information flow

In traditional footwear enterprises, there are often information silos between departments. For example, the market demand information obtained by the sales department cannot be timely and accurately transmitted to the production department, resulting in a disconnect between production plans and market demand. The production department may produce based on past experience, resulting in product backlog or shortage. Similarly, the procurement department is unable to monitor inventory status in real-time, which can lead to issues of excessive or insufficient procurement and increase the company's costs.

（2） Low production process efficiency

The production process of the footwear industry is complex, involving multiple links such as design, cutting, sewing, molding, etc. In traditional processes, there are issues with coordination and communication between various stages. The production plan lacks scientific scheduling, equipment utilization is low, and the production cycle is long. Moreover, there is a lack of effective means for quality control in the production process, resulting in a high rate of defective products, which affects the reputation and economic benefits of the enterprise.

（3） Weak supply chain management

The supply chain of footwear enterprises involves multiple links such as raw material suppliers, manufacturers, and distributors. The traditional supply chain management model lacks effective evaluation and management of suppliers, resulting in high procurement costs. In terms of logistics distribution, there are also problems of untimely delivery and high delivery costs. At the same time, there is insufficient information sharing with dealers, making it difficult to timely understand market trends and customer needs.

2、 Enterprise Process Reengineering Strategy Based on Footwear ERP

（1） Develop clear process reengineering goals and plans

Before implementing an ERP system, enterprises need to clarify the goals of process reengineering. This includes improving production efficiency, reducing costs, enhancing product quality, and increasing customer satisfaction. Based on these goals, develop a detailed process reengineering plan, determine the scope, timeline, and expected outcomes of the reengineering business processes. For example, set specific goals such as shortening production cycles by 20% and reducing inventory costs by 15% within one year after implementing the ERP system.

（2） Reorganize business processes

Order management process: Through the ERP system, achieve full process automation management of orders. From customer ordering, order review, production scheduling to shipping, payment and other processes, they can be tracked and processed in real-time in the system. After the sales department receives the order, the system automatically transmits the order information to relevant departments such as production, procurement, and logistics. Each department works together according to the order requirements to improve the efficiency and accuracy of order processing.

Production management process: Utilize the production planning and scheduling functions of the ERP system to develop scientifically reasonable production plans based on order demand, inventory situation, and equipment capacity. Real time monitoring of production progress through Manufacturing Execution System (MES) to promptly identify and resolve issues during the production process. For example, when there is a delay in a certain production process, the system automatically adjusts the subsequent production plan to ensure the smooth operation of the entire production process. At the same time, strengthen the quality control of the production process, set quality inspection standards, strictly inspect raw materials, work in progress, and finished products, and improve product quality.

Supply chain management process: Integrate supplier resources with ERP system, establish supplier evaluation system, comprehensively evaluate supplier's delivery time, product quality, price, etc., and select high-quality suppliers. Implement electronic management of the procurement process, completing all stages from inquiry, comparison, ordering to receipt, payment, etc. in the system, improving procurement efficiency and reducing procurement costs. In terms of inventory management, real-time updates and precise management of inventory are achieved through barcode or RFID technology, and inventory upper and lower limit alarms are set to prevent stockouts or excessive inventory. Optimize the logistics delivery process, select suitable logistics methods based on order addresses and customer needs, improve delivery efficiency, and reduce delivery costs.

（3） Organizational restructuring

In order to adapt to the business processes after process reengineering, enterprises need to make corresponding adjustments to their organizational structure. Break down traditional departmental barriers and establish cross departmental teams centered around business processes. For example, establishing an order processing team composed of personnel from sales, production, logistics, and other departments, responsible for the entire process of order processing. This can strengthen communication and collaboration between departments and improve work efficiency. At the same time, clarify the responsibilities and authorities of each position to ensure the smooth operation of the process.

（4） Employee training and communication

The implementation and process reengineering of ERP systems cannot be separated from the support and participation of employees. Enterprises should strengthen training for employees, enabling them to understand the functions and operating methods of ERP systems, and master new business processes. Through training, improve employees' information literacy and business skills, enabling them to adapt to new job requirements. At the same time, strengthen communication with employees, timely understand their ideas and needs, solve problems encountered by employees during the implementation process, and enhance their sense of identification and enthusiasm for process reengineering.

3、 The Effect and Prospect of Process Reengineering

Through enterprise process reengineering based on footwear ERP, the operational efficiency of the enterprise will be significantly improved. The information flow is smoother, the collaborative work ability between departments is enhanced, the production plan is more scientific and reasonable, the supply chain management is more efficient, the product quality and customer satisfaction are improved, and the market competitiveness of the enterprise is enhanced.

Looking ahead to the future, with the continuous development of technology, ERP systems will continue to be upgraded and improved. Footwear enterprises should continue to pay attention to the application of new technologies, continuously optimize business processes, fully leverage the advantages of ERP systems, and achieve sustainable development of the enterprise. At the same time, enterprises should also pay attention to communication and cooperation with other enterprises in the industry, and jointly promote the digital transformation and development of the footwear industry.