Apparel ERP case: the ERP path of metus bonway

Apparel ERP case: the ERP path of metus bonway

US solar bonwe: A great effort in both internal and external problems

 

Internal sorrow: for China, the world's largest garment country with a production capacity of nearly 10 billion pieces per year and a serious overcapacity, apparel enterprises are facing a bigger challenge: many garment enterprises still follow the traditional method, produce the product first, and then deliver it to agents and retailers at a level. As a result, either the market forecast is inaccurate, leading to inventory backlog or insufficient production, leading to out-of-stock.

 

This year, Zara and other European fashion killers attacked China. Zara relies on its ability to keep up with fashion trends and ERP-based Agile Supply Chain Management System to seize the market.

 

Among the internal and external troubles, metersbonwe, a famous casual clothing brand established from Wenzhou and rooted in Shanghai, achieved remarkable results: sales reached 2006 in 4 billion, however, the total amount of accounts receivable for the year is only a few RMB 100,000. Without a factory or a specialty store (except for a large image store in a few big cities), the company has over 200 noodle factories, auxiliary material factories, garment factories, and more than 1800 franchised stores all over the country, overcome the "stubborn problem" of clothing inventory backlog and payment overdue ".

What exactly does metersbonwe rely on? Can the chairman of the board, Zhou chengjian, have real-time control and orders of the country's large production, operation, and sales network, and keep the enterprise's receivables to such a low level? Its successful experience can be summarized as: "One mode, three magic weapons ". One model refers to the virtual business model. The three magic weapons refer to the "brand, design and ERP platform oriented to the enterprise alliance ".

 

Virtual Business: comparable to Nike

Metersbonwe was founded in 1995. At the beginning, only a registered capital of 0.5 million yuan, a dozen people. Zhou chengjian, the boss of meters' bonwe, determined in the middle of the 20th century that the market for casual clothes needed to be cheaper, and positioned himself in the casual apparel market, with the launch of T-shirts and jackets, the business was very good. In 1995, the sales revenue reached more than 5 million.

The sales situation is very good, and metersbonwe has more and more clothing varieties, but our factory is no longer able to produce so many varieties. What should I do? Metersbonwe shut down its only factory and outsourced its production to garment factories with excess production capacity in Guangdong.

 

At the same time, meters' bonwe began to leave Wenzhou and invest in direct stores in Hangzhou and Shanghai. However, the remote expansion of outlets, on the one hand, cannot keep up with funds, on the other hand, cannot keep up with management. Metersbonwe has returned to Wenzhou, narrowing down the scale in Shanghai, introducing agents, and developing consignment stores.

This is the prototype of meters' bonwe virtual business model. However, at that time, the management of meters' bonwe did not know that this was a popular virtual business model in the world. However, if there was no factory, we could find someone else to work with, without the capital and management capabilities to open a shop, to develop agents and solve a problem.

 

Benefits of ERP

In the virtual business model, as the enterprise grows, whether or not it can operate properly depends on the ERP platform oriented to the upstream and downstream of the entire industrial chain.

 

Metersbonwe's ERP journey began in 1996. From 1996 to 2000, meters' bonwe independently developed the first generation of ERP systems, including warehouse information management systems, specialty stores and distribution management systems, financial management systems, production and purchase management systems, and office automation systems.

 

With the gradual launch of the first generation ERP system of metersbonwe, the order delivery cycle has been reduced from 15 days to 8 days from 1995 to 2000, and the turnover days of receivables have been reduced from 30 days to 2 days; stores increased from 10 to more than 400; sales soared from more than 5 million to 0.51 billion yuan. By 2001, sales of meters' bonwe had increased to 0.87 billion yuan.

 

Metersbonwe has also transformed from a manufacturing company with several hundred employees in two factories into a "Virtual Enterprise" without a sewing machine, with only ERP systems, Brand Operations, and R & D and design ", it has created a "virtual business" Model comparable to Nike.

 

Link up the ERP platform of the industrial chain

 

The Internet technology that emerged at the end of 1990s revolutionizes the development direction of ERP. The first generation of ERP system, which has made great contributions to supporting enterprise development, has also encountered huge difficulties. The first generation of ERP systems adopts Structured Software design ideas and C/S structures. All branches, agents, and specialty stores throughout the country have their own independent databases, they cannot access each other through the Internet in real time. the disadvantages of the C/S structure and isolated information platforms are increasingly apparent, and the operation and maintenance costs are soaring.

 

After nearly a year of Self-thinking and ideological struggle, in 2001, Wang quangeng, vice president of the group's it, logistics, and production operations, persuaded the group's management team to abandon the old ERP platform, it was decided to re-comprehensively plan and develop a new web-based ERP platform.

 

At this time, Shenzhen daoxun Technology Co., Ltd. entered metersbonwe. daoxun technology is a highly intelligent and intensive high-tech enterprise, is a company dedicated to providing information management consulting and information management software for the fashion industry, located in Shenzhen Nanshan Software Park. Because taoxun technology has a strong development team, the core members of the development team have experience in system architecture in the banking and financial industries. The developed software systems have undergone rigorous stress and load tests, it has unique technical advantages in large-scale deployment.

 

The key to the success or failure of this ERP project lies in the management of restructuring and software applications. Meters' bonwe and taoxun technology work together to address the industry characteristics of brand Chain Enterprises and the characteristics of meters' bonwe enterprises. After in-depth business needs analysis and customer-based development, A Practical ERP system tailored to the business process and management needs of metersbonwe. The system covers the Headquarters system, factory system, agent system, and specialty store system, as well as interfaces with external systems such as e-commerce systems. The system was officially launched at the headquarters in 2002 and promoted to various subsidiaries, manufacturers, agents and specialty stores, covering more than 800 cities and counties. The promotion work was completed in 2003.

 

By employing celebrity endorsements such as Guo Fucheng and Jay Chou and making major advertisements on CCTV, through cooperation with European R & D and design institutions, meters' bonwe has formed its own strong brand and design capabilities, forming an enterprise alliance with its core. Meters' second generation ERP system (URP) is an ERP platform oriented to the enterprise alliance and integrating the entire industrial chain. It has two key features:

 

1. based on the most advanced Web architecture in the Internet era, this service is fully oriented to the virtual operating economy consortium and fully integrates the five subjects in the industrial chain: Brand Owners (that is, the brand owner's metersbonwe) noodle Factory, external manufacturers, franchisees, and logistics carriers, realizing the integration of the industrial chain. Alibaba Cloud strives to provide all-in-one ERP efficient services to the four categories of customers of brand owners.

 

2. implement the highest level of application centralized mode (Real-time rapid response mode of the supply chain), that is, at the bottom of the database and software layer, the business processes and data of the five market subjects are fully integrated, real-time application linkage is achieved in the supply chain.

 

The agile second-generation ERP platform not only changes order processing and financial settlement from the old system at least two or three days to real-time completion, in addition, the order delivery cycle is reduced from 8 days in the old system to 2006 days in 3.3.