Women’s clothing factories are fast paced environments and garment orders often pour in. However, as the fabric market prices are also quick changing it can present challenges in pricing correctly for the factories. At the time of quoting for a style the fabric price is current, however even a few days later that price can become outdated. When the company has orders coming in all the time, if cost management is not done correctly the profit margin can become very small.
 

Managing costs is critical for a successful business. Production uses a rich variety of materials and because information is not always timely it can cause the company to mis-purchase, resulting in waste.

Another issue is when the actual costs of material procurement is not consistent with the forecasted cost, and then the company also does not analyse the discrepancies which means they cannot be fixed.

There are many sources of order data, large amounts of date, and the statistical quality is inconsistent, resulting in inaccuracy.

Cost budgeting and estimating is complicated and it is easy to make mistakes, which makes it difficult to accurately evaluate whether each order is profitable or not.

If the costs are calculated manually it would be a slow process and the orders that are not profitable will not be discovered until after the order has been produced, which is too late.

Weixin Garment Factory has established our own system of garment production management. The system has 5 key components.

This system helps increase the transparency of the cost of orders and more accurately calculate the cost of each account. Here is a quick rundown of each step and how it improves our business cost efficiency.
 

Step 1:  Automatic update of material status.

This involves making the bill of materials and checking the status of the material in real time to avoid wrong purchases.

The system automatically update materials, materials loss rate, etc. as the order changes.
 

Step 2: Control purchasing costs.

Our system can aggregate and analyze material requirements, compare historical prices, and generate purchase orders automatically.

It evaluates supplier lead time, delivery performance and price and tracks material purchase status.

Step 3: Data integration

The system can accurately record a series of processes such as purchase orders, receipts, payment requests, approvals and payments.

The system also supports evaluating the progress of orders, automatic update of materials, purchasing prices, loss rate etc.

Step 4: Simplifying reconciliation operations

We simplify the costing process, which can call queries multiple items at a time and update them concurrently.

Real-time summary and analysis of data of all departments greatly simplifies the reconciliation operation and avoids repeated reconciliation.

Expenses are automatically allocated to the account and the process of each item of material, processing cost or expenses are monitored.

Step 5: Payment Approval

The system provides automatic comparison of budgets, automatic alerts and reminders of potential over expenditure on orders.

Each payment is recorded and automatically matched to the order, avoiding duplicate payments, or missing transactions.

The system will collect and compare each item of material, processing and other costs to avoid overpayments.