In these uncertain times, many companies are looking to cut cost and increase efficiency, and the apparel and home goods industries are no different. The right Enterprise Resource Planning (ERP) system allows companies to gain better insight into day-to-day operations as well as increase productivity and efficiency. This can lead to better business decisions and increased profitability, which is always important, even more so surrounding the current COVID-19 pandemic.
“EXENTA WAS THE BEST OF THE PACK IN TERMS OF VALUE, IMPLEMENTATION, EASE OF USE, AND ABILITY TO HANDLE THE VOLUME OF TRANSACTIONS.”
IAIN SCORGIE, CEO and Founder, MindsInSync
Recently we conducted a case study with our client MindsInSync, a leader in home décor solutions for the kitchen bath and bedroom. CEO and one of three cofounder, Iain Scorige noticed his company was growing too rapidly for it’s outdated business systems. Their accounting and outsourced Electronic Data Interchange (EDI) systems were not meeting the transaction processing demands of their newest and largest trading partner at the time, Bed Bath & Beyond. The executive team wanted to add more large retailers as customers, so it was time to invest in an ERP system with built-in EDI. MindsInSync selected Exenta ERP-a solution designed by fashion industry insiders for the unique transactional requirements of apparel and soft goods manufacturers.
“IN THIS DAY AND AGE, IF YOU’RE OUT OF SYNC WITH REAL TIME DATA, YOU’RE MAKING BAD DECISIONS. THE WORLD’S MOVING SO FAST. EXENTA WAS THE KEY FOR BEING ABLE TO MAKE QUICKER, SMARTER DECISIONS.”
Overall, Exenta ERP helped the company improve efficiency and accuracy throughout its operations, while lowering workforce costs and reducing chargebacks. Many of those benefits were the direct result of fully automating the EDI process in order to eliminate duplicate data entry and gain real-time data analysis. As the timesaving’s and efficiency of automation kicked into high gear, MindsInSync began to acquire major retail accounts rapidly. In a relatively small time span, they opened new lines of business with many major mass-market retailers. Revenue skyrocketed, yet their streamlined process enabled MindsInSync to handle the rapid growth without expanding the staff.
“EXENTA GAVE US THE CONFIDENCE TO GO AFTER MORE NEW CUSTOMERS, BECAUSE WE DIDN’T HAVE TO HIRE A HUNDRED PEOPLE TO DEAL WITH MORE CUSTOMERS. WE KNEW THE SYSTEM COULD HANDLE IT.”
Thanks to Exenta ERP, the MindsInSync team spends less time bogged down in operational analysis, leaving more time to innovate new products and make strategic moves. You can read more on MindsInSync’s successful implementation of Exenta ERP in their case study linked below. Can your company afford more time with the wrong ERP?
Click here to read the full case study, including specific data on reductions in chargebacks, overhead and transaction processing costs.
The fashion, beauty and home goods segments of our economy have an unprecedented opportunity to be heroes in a time of national crisis. Amid stories of luxury perfumeries shifting production to make hand sanitizer and apparel companies donating scrubs to healthcare workers, Exenta would like to recognize our clients, who are stepping forward in inventive ways to support the community by manufacturing PPE in this unprecedented time of need.
This is the first in a series highlighting our clients, their creativity and generosity. If you have a story to share, please contact us.
Klear Vu’s History of Innovation
Since 1927, Klear Vu has been known for consistent quality, on-trend fashion, technical innovation, and on-time delivery. Known for several patented products: The Gripper®, Spill Guard® and Delightfil®. Based in Fall River, Massachusetts, Klear Vu designs a variety of chair cushions and pillows distributed through major US retailers including Walmart, Amazon, Kohl’s and Bed, Bath and Beyond. Klear Vu is an industry leader in technical innovation, committed to developing products that meet its consumer’s complex needs. The company has been an Exenta ERP customer for over three years and we recently had an opportunity to speak to Ben Cooper, President of Klear Vu.
Meeting Community Need Through Innovative Manufacturing
When Cooper noticed a decline in customer orders due to retail closures amid the COVID-19 pandemic, he saw an opportunity to draw on his organization’s key values: a passion for innovation and a commitment to support its community. Instead of closing his factory, Cooper led an initiative to retool production in its factory to manufacture PPE, specifically washable protective masks for use by members of at-risk communities.
“We recognized a huge need for protective equipment for vulnerable populations,” said Cooper.
The Klear Vu team quickly got to work adapting its design and manufacturing capabilities to produce washable protective masks. After a few, short design iteration cycles, Klear Vu landed on one that leveraged the sewing techniques used in the manufacture of its popular cushions.
In just two days, the company produced over 1000 masks and expects to have many thousands available in the coming weeks. The first recipients of donated masks were a local nursing home, the Fall River Fire Department and the Diocesan Health Facilities.
Klear Vu is aware of considerable demand in the community and aims to support it. “We wanted a PPE design that would be efficient to manufacture, so that we can produce as many as possible in a short timeframe, while still maintaining processes to keep our employees safe and healthy,” Cooper shared.
The company’s 170,000 square foot facility is being disinfected regularly, and teams are observing appropriate distancing guidelines and utilizing special handwashing stations set up due to the pandemic. Cooper shared that it’s wonderful to see how Klear Vu employees have come together to help the community.
“We are grateful that we could look to our history of innovation to develop a homegrown solution to address a community crisis,” concluded Cooper.
Exenta is proud to partner with Klear Vu. In a time of uncertainty and crisis, focusing on what your organization does best and how it can make those competencies relevant is a hallmark of true innovation.
If you are considering making a shift to manufacture PPE, #StoptheSpread is a collective of American CEOs working to help companies shift production to meet critical needs for PPE. Learn more at #StoptheSpread.
The fashion and home goods industries operate global supply chains that must move quickly to deliver on trend products at the speed of consumer demand. Electronic Data Interchange, or EDI, enables two companies to exchange information instantly about orders, payments, inventory, shipments, production orders, and more.
In today’s global business world, EDI has gone from a nice-to-have to a must-have tool for facilitating rapid commerce. The benefits of using EDI in your business are many, and include:
• Improved order accuracy
• Reduced order processing times
• Increased global supply chain visibility
• Greater operational efficiency
• Faster communication with vendors and customers
EDI Keeps Global Supply Chain Data Flowing
EDI enhances information exchange between apparel and home goods brands and their suppliers, wholesalers, retailers, third-party manufacturers (3PM) and third-party logistics providers (3PL). Brands gain excellent visibility into the status of Work in Progress (WIP) and order fulfillment as each new job or order works its way through the global supply chain.
EDI helps rapidly growing businesses scale more quickly, without becoming bogged down waiting for information. Everything can be automated and scheduled, so your employees no longer need to prepare information and transmit it manually to supply chain partners.
Only EDI can ensure that you are sending and receiving up-to-the-minute information about orders and fulfillment with your trading partners. Customers place orders and you receive the data instantly. Likewise, if you need to place new production orders to 3PMs halfway around the world, they will have the information needed to get to work ASAP. Your warehouse or 3PL will receive the information about shipments arriving from manufacturing or shipments that need to be picked and shipped to retailers.
EDI Increases Order Accuracy and Speeds Fulfillment
With EDI, it’s easy to receive thousands of purchase orders per day and process them in minutes. You can create a catalog with item numbers, price list, sizes and options that customers can receive instantly, at any time, and use to create accurate orders.
EDI can help reduce payment risk and improve cash flow. When an order comes in, EDI can automatically request confirmation of the customer’s credit line with their Factor [ex., Wells Fargo or other institutions]. When orders are filled and shipped, EDI can automatically send invoices to the Factor and the customer.
Manual data entry is prone to error. When your EDI is built into your ERP system, the information flows seamlessly without the possibility of typographical errors that arise when your employees have to rekey data into a separate system.
Improved Visibility Strengthens Customer Relationships
With EDI, brands enjoy unsurpassed visibility into the status of production, inventory, logistics, and order processing. No more having to send employees to Asia or South America to iron out the status of work in progress. No more wondering if you’ll be able to fulfill your biggest orders.
With EDI, you can stay on top of every production order, shipment and sale. And you can extend that enhanced visibility to your customers. Without hiring more employees or spending extra time creating reports, you will be able to deliver better informed customer service that strengthens long-term business relationships.
EDI Opens New Sales Opportunities
Strong relationships with smaller customers may still be built on relationships alone. But without the proper systems in place to provide efficiency and visibility, larger customers simply cannot do business with fashion and home goods brands. Brands that leverage EDI position themselves to do business with the world’s largest retailers and e-commerce platforms, many of whom require EDI as their standard for information exchange. Getting your products into a giant retailer like Walmart, Target or Macy’s can generate business-transforming sales volume and revenue potential.
Exenta ERP Delivers Built-in EDI
If modernizing your business with EDI sounds intimidating—you can relax with Exenta EDI. Part of our next-generation Exenta ERP, everything you need for flawless EDI is built in to the system. Our EDI was designed to be extremely easy use—once you set it up, it works every time. Our technology takes care of data file translation and transmission behind the scenes. No matter the complexity, Exenta EDI puts the information you need at your fingertips.
Every task is completed in once place—no need to go into multiple systems to set up new trading partners. There is no third-party translator to cause technical glitches. Our Customer Support team walks each customer through the process of setting up their first trading partner from start to finish.
Exenta EDI can be a game-changer for brands seeking greater visibility and more sophisticated trading partners. Exenta ERP also provides seamless data handling across multiple channels, including pre-built integration into e-commerce heavyweights such as Shopify, Magento, and Amazon. Schedule an Exenta ERP demo today and ask to see how easy it is to streamline your supply chain with EDI.
In the fashion and home goods industry, retailer chargebacks to wholesalers and manufacturers are disruptive to operations and negatively impact the bottom line. Generally, chargebacks are the result of mistakes—a failure to adhere to the retailers performance standards in terms of order accuracy, order timeliness, or product labeling. The result is a fine levied back against the manufacturer or wholesaler—a chargeback.
For decades, apparel and home goods manufacturers had to accept a high number of chargebacks from retailer customers as a cost of doing business. As Supply Chain Digest editor-in-chief Dan Gilmore once recalled, “in the 1990s, Kmart used to just take 2% off the invoice just on the assumption every supplier would have violations and the automatic deduction was just the easiest approach.” Today, fashion manufacturers would like their customers to be more precise than that when it comes to chargebacks. Fortunately, technology exists to avoid costly chargebacks and greatly reduce the total number that need to be processed.
The Cost of Chargebacks in the Fashion Industry
All major retailers have vendor compliance scorecards with the goal of encouraging their suppliers to improve order accuracy. When orders don’t arrive on time, retail shelves may go empty or the retailer has to overstock other inventory in order to avoid it. When orders are processed incorrectly, the wrong products or sizes may be received. Mislabeling or mistakes on Advanced Shipping Notices (ASN) can create havoc in Receiving.
Out-of-compliance shipments from manufacturers lower retailer productivity and sales revenue. Chargebacks are the mechanism by which retailers recover lost revenue and wasted time. According to Zipline Logistics, chargeback fines can equal up to 20% of an invoice. On a large order, chargebacks can potentially cost manufacturers thousands or even tens of thousands of dollars.
Chargebacks have another hidden cost; they often cause mistrust and resentment between vendors and retailers. Many fashion brands are convinced retailers run their chargeback department as a profit center—and some might. Usually retailers deduct the chargeback fees from the vendor’s invoice, so there is little the manufacturer can do to protest, since the money is on the retailer’s side of the table. From the retailer perspective, retailers—especially giants like Walmart, Target and Amazon, must shore up the reliability of their supply chain in a world of just-in-time inventory, fast fashion, and consumer expectations to receive any product within a matter of hours or days.
Even though chargebacks are one of the most negative aspects of vendor/retailer relationships, they don’t seem to be going away anytime soon. A 2017 Supply Chain Digest study found 43% of retailers and 58% of vendors expect increased chargeback activity over the next few years.
How Shop Floor Control and EDI Help Proactively Defend against Chargebacks
Because most retailers simply subtract chargebacks from the amount they pay on manufacturers’ invoices, the best defense is a good offense. Avoid mistakes using superior business processes and technology.
Shop Floor Control solutions allow a manufacturer, or even a vendor who works with manufacturers, to see every aspect of work in process, in real time. This can help you avoid the chargebacks associated with late delivery of orders to retailers. Not only can you see when each order should be ready for fulfillment, you can also monitor the quality of the products in real time and see the labor that’s being used to produce it.
If an important order is slipping behind on production deadlines, brands can monitor what’s happening on the production floor, even from thousands of miles away. In an instant, you could offer employees incentive pay to speed up production or choose a different shipping method to shave time off delivery. You could also reprioritize upcoming production orders ensure you’ll meet your deadlines for your most important customers.
Our customers typically experience between 20-30% improvement in productivity or cost savings using Exenta Shop Floor Control — all while enjoying real-time visibility and control needed to reduce costly chargebacks.
Sign up for a Shop Floor Control demo and learn what it could do to improve timely and accurate deliveries to your retail partners.
EDI mistakes can be a prominent source of chargebacks if you lack true automation, integration with critical supply chain systems like ERP, and key functionality to scan transactions for mistakes prior to delivery. Generally the mistakes for chargebacks come from an EDI transaction that goes out unchecked. In other words, you don’t have the ability to see that the transaction is missing key data such as a product size, weight, quantity, etc. As soon as you send out the ASN without all of the fields filled in properly, you’ve probably incurred an immediate chargeback from the retailer.
With the proper EDI automation in place, you’ll be notified that there’s something missing automatically and you will be able to proactively review the EDI transactions and correct mistakes before electronic paperwork goes to your customers. Exenta EDI is built into our next-generation Exenta ERP, and it was designed to be extremely easy to set up and to use. Every task is completed in one place without any need for third-party translators or other apps.
Schedule an Exenta ERP demo today and see how our EDI’s automatic checks and notifications can help your team produce flawless paperwork for your trading partners, including POs, ASNs, invoices and much more.