SAP HANA in Textile Industry

SAP HANA Contribution to the Transformation of the Textile Industry

In the continually evolving landscape of the Textile and Garments Industry, maintaining competitiveness necessitates a robust integration of SAP HANA and E-commerce platforms. The textile industry, once characterized by handcrafting, has transitioned into a modern engineering domain, utilizing advanced technologies and diverse fiber types for textile production. Yet, this progress brings challenges such as inventory management for dyes, workforce organization, and machinery upkeep. SAP HANA, tailored specifically for textile and clothing businesses, addresses these significant challenges by amalgamating various operations into a cohesive and user-friendly system, thereby enhancing business operations’ efficiency and efficacy. In this blog, we’ll elucidate how SAP HANA facilitates the evolution of Textile manufacturers within the industry through updated technology.

Order to cash

The Make to Stock & Order process in the Textile and Garments Industry unfolds as follows:

Upon receiving customers’ yearly/quarterly or time-based blanket agreement, a Purchase Order (PO) is initiated, which manifests as a Blanket Agreement in SAP HANA. Finished Goods (FG) are continually produced following this agreement. Subsequently, Accounts Receivable Invoices and Incoming Payments are processed, with key reports including Customer Receivables, Cash Flow, and Sales Analysis.

Procure to pay

Utilizing the Material Requirements Planning (MRP) functionality, procurement planning commences at the start of the month, generating purchase requests automatically. Storehouses then create Goods Receipts against these requests, followed by Accounts Payable Invoices and Outgoing Payments in adherence to accounting protocols.

Sales orders for Textiles and Garments

Sales Orders (SO) are generated from blanket agreements, initiated upon PO creation, or confirmed following customer quotations within the Textile and Garments Industries. Through Document Management Systems (DMS), digital copies of POs are attached, alongside fixed payment terms and delivery dates. Order acknowledgments are subsequently dispatched via email directly from SAP HANA.

Sales Quote in SAP HANA

Confirmed Sales Quotations are seamlessly converted into orders, facilitating the closure of quotes within SAP HANA.

MRP

Material Requirements Planning is the cornerstone for production planning and procurement of requisite raw materials, considering existing stock levels, and initiating Purchase Order (PO) creation as per demand. This aspect significantly influences the Plan to Produce the cycle.

Purchase Request in SAP HANA

Purchase Requests (PR) are either automatically generated via Material Requirements Planning or manually created department-wise to address office equipment, consumables, etc., culminating in Purchase Order (PO) generation.

Purchase Order in SAP HANA for Textile and Garments

Purchase Orders (PO) are initiated following Purchase Requests, and undergoing approval procedures. For items with default suppliers, POs are auto-generated by SAP HANA, fetching unit costs from predefined pricelists.

Goods Receipt PO (GRPO) in SAP HANA

Upon vendor delivery based on POs, Goods Receipts are posted against them, thereby debiting inventory accordingly.

Supplier Payment for Textile and Garments with SAP HANA

Supplier invoices are added based on Goods Receipt POs, against which outgoing payments are processed.

Production in Textile and Garments with SAP HANA

Production orders are automatically generated per Bill of Materials (BOM), factoring in demand and stock levels through MRP. Raw materials are issued stage-wise along the production route, culminating in production receipt upon completion. Finished goods are then inventoried, with Product Costing playing a pivotal role within SAP HANA.

Invoice with SAP HANA for Textile and Garments

Accounts Payable invoices are generated, with corresponding payment entries posted, leveraging the Open Document system for optimal control.

This delineates how SAP HANA enhances efficiency within Textile and Garment manufacturing, propelling advancements in operational efficacy within the industry.

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