A set of integrated modules facilitates tracking of development, stocking, and sales throughout the apparel/footwear life cycle, as well as financial management and accounting.
Defining apparel/footwear items begins with Collections, which ideally share a set of characteristics.
A collection comprises the following elements: Brand, Season (Spring/Summer, Fall/Winter), Strategy, and Line. It is completed by one or more Styles and Product Types.
Collections act as a reference when creating spec sheets. They also are involved in consultation reports, label printing processes and formats, sizing, etc.
Axional ERP/Fashion assimilates the Collection concept to the Item Family concept, which allows you to have all information about a collection constantly at your disposal for all processes and reports.
Specifications are comprised of a Brand, Season, Collection and Product Type. They are completed by the assignment of a Model Code, a name by which the item will be known commercially which will stay constant while the product evolves, if a Prototype process is being initiated.
The product specifications sheet is used to generate the technical characteristics of a product, with the goal of providing all technical information relative to the final article.
Product specifications associate the collection with other design characteristics needed to progress to manufacturing. The system also allows users to set which material/color combinations and which sizes the product will be manufactured in (incorporated into general ERP logistics variables).
They also serve to specify items and packs of items designed for the apparel industry, and help break down the cost evaluation of materials.
Product types can be freely defined and configured. For example, they may include the four following aspects from prototype design all the way through to final product distribution:
- Vendor sample
- Final product
Defining Material/Color Combinations
Product material/color combinations involve:
- Manual assignment. Each item may possess distinct material/color combinations. In addition to assigning a material/color combination code, all materials and colors associated with the product are indicated.
- Option to generate color groupings, which allows the one-time assignment of various material/color combinations to a product specifications sheet.
Defining Packs and Sizing
For each spec sheet, a decision must be made as to which sizes to manufacture, and a sizing code will be assigned to list all possible sizes the item comes in.
For each spec sheet, a decision must be made which packs will be manufactured, and a sizing code will be assigned to indicate the number of items in each size, thus creating pack items with corresponding contents.
Images and Documents
In product specifications, both catalog photos and photos of item composition will be assigned. Documentation related to the manufacturing process can also be attached.
Once all requirements for product specifications have been reported and validated, the item generation process can be launched. For a product specifications sheet, the following will be created:
- A free item with all possible size and color options.
- An item containing each type of pack defined in specs.
Should this model be manufactured or not? When making this decision with any apparel or footwear model, in addition to many other considerations an exhaustive cost evaluation is needed for the manufacture of each unit and resulting logistics costs.
The cost evaluation of manufacturing, import and logistical expenses will be compared with a fixed sale price based on knowledge of the market for each mode. Based on the margin the company wishes to achieve, the evaluation will determine if it is or is not profitable to produce the model.
In the footwear industry in particular, wholesaling – and on occasion manufacturing – includes the management of packs. Packs will vary depending on the type of footwear or apparel, the geographic area, or the type of customer. The pack contains all commercial needs for the store.
An example of a women’s pack would be:
Size 37, 3 units
Size 38, 4 units
Size 39, 3 units
Size 40, 2 units
To assemble and disassemble packs according to current sales needs, a transformation process allows companies to create items using defined packs, therefore generating the packs which suit their sales needs in an agile and efficient way.
By indicating the pack code and number of units which the company wishes to generate, Axional ERP/Fashion can first evaluate if sufficient stock exists to create new pack items, and then withdraw ungrouped individual items from the stock system in units corresponding to pack orders, thus adding packs to stock.
By indicating the code of the pack you wish to disassemble, the process will withdraw pack items from the system and simultaneously add the units in the former pack to stock as ungrouped items.
Submitting Orders by Size: Multi-Level Entry System
When entering order items in the apparel/footwear industry, a common issue is that the item code may not be significant to the end user, and once an item has been located it tends to have various sizes to order. This undoubtedly slows down operations when registering orders.
For this reason, Axional ERP/Fashion has an entry system for item lines by level, allowing the user to define which attributes of an item (e.g. Brand, Season, or Model) they can look up to locate a specific item in the system.
Once an item has been located, the user accesses a new screen where, in one interaction, they can set order quantities by size and color. Also in just one transaction, the system creates as many order lines for an item as necessary for all size/color combinations. The time shaved off of day-to-day operations is significant.
Axional ERP/IEM is a module which may be especially valuable in the apparel/footwear world. It is highly relevant for companies that import products from countries that require customs control.
Thanks to this module, you can achieve precise control over the costs of your product by handling import costs at a unit level, facilitating cost evaluation and analysis for each product. Users can also evaluate the convenience of production outsourcing, determine the ideal sales strategy, and obtain more precise contribution margins.
Read more about Axional ERP’s imports module.
Planned stock plays a role in inventory management functions. It allows companies to reserve sale order stock from purchase orders, delivery notes, and/or import notes.
In this way, processes that deliver merchandise to the end customer gain greatly in reliability and service, since when merchandise is received in logistical warehouses it is already assigned to the end customer in a documentation line. As such, no customer need wait for stock to arrive at the warehouse before goods are allocated.
At the moment of sale, companies can evaluate if merchandise will be available, and if not the customer will be informed and their request added to the next round of purchases. It also helps companies scale new purchases based on the sales of products not yet in the wholesaler’s possession, whether because they haven’t arrived or are still being manufactured.
This agility and reliability in customer service is of vital importance for the fashion industry. At times, merchandise not delivered by a specific date will no longer interest the customer, and will also accumulate into hard-to-sell stock due to the seasonal nature and rapid obsolescence of apparel/footwear.
Prices and Rates
Axional ERP/Fashion flexibly includes the ability to manage prices and rates both from a retail/outlet model and a model of sale to distributors and independent stores.
Regarding wholesaling rates, they vary depending on the specific customer, store location, and policy, as well as special discounts. When setting rates, users can also create just one record for all sizes and colors of a model, called rate by model. They can also view a detailed breakdown of rates by size or color, in special cases.
As far as stores, prices are transferred to the sale price table for in-store sales. Stores can also leverage the POS promotions module, e.g. 2-for-the-price-of-1, 50% off second purchase, etc.
|SD||Sales and Distribution|
|Assortments and Prices||Retail Price Management|