Digitizing Textile Industry: What are The Benefits?
Digital transformation has the power to change the way a business operates. By taking advantage of workflow automation and advanced technologies, such as artificial intelligence and machine learning, organizations can lower their costs and increase profits.
According to research from the SAP Center for Business Insights and Oxford Economics, 80% of companies that have undergone digital transformation report increased profits, and 85% claim to have boosted their market share. On average, leaders anticipate a 23% higher rate of revenue growth compared to their competitors.
The textile industry can benefit from increased productivity through the automation of manual tasks, such as sourcing and procurement processes. With automation, sourcing, and procurement can be streamlined, reducing the time and resources required to contact suppliers and secure raw materials, yarns, and fabrics
How long does it take to source and procure fabrics for garment manufacturers?
Assuming that a garment manufacturer would like to source directly from international fabric manufacturers, things can get very, very complicated.
The time it takes to source and procure fabrics for garment manufacturers can vary greatly, depending on factors such as the type of fabric needed, the quantity required, the location of the manufacturer and supplier, the lead time for production and shipping, and payment and negotiation terms.
If a garment manufacturer intends to source directly from international fabric manufacturers, the process can become complicated. The manufacturer must contact brokers, traders, and fabric mills to obtain the ideal fabric. If the fabric is common and readily available, the process may be completed quickly. However, if the fabric has a particular composition and materials or is needed in large quantities, the manufacturer must compare and test samples before negotiating terms and price. Gathering information, testing, and sampling can take anywhere from a few weeks to several months, consuming time and human resources in the process.
Sourcing internationally also presents the challenge of language barriers, especially in largely offline textile industries such as Vietnam. Most Vietnamese apparel companies work with a limited number of local suppliers, and small garment companies usually have limited choices of overseas suppliers, either because the fabric manufacturers lack an online presence or because they do not speak the same language.
Digitizing the sourcing process can reduce the time and effort required. By bringing fabric manufacturers together on a digital platform, a garment manufacturer can easily select and connect with direct providers through a digital gallery, execute transactions, and handle logistics without any language barriers
With this platform, garment manufacturers can also have a wider selection and greater access to the international market. The technology and network can help them secure fabrics at the best prices, increasing their profit margins and reducing the time and resources needed.
By digitizing procurement systems, real-time visibility into the status of orders, shipments, and payments can be provided, reducing the risk of errors and misunderstandings and improving collaboration between garment and fabric manufacturers. The digitization of procurement systems also enhances security by protecting sensitive information and reducing the risk of fraud and other security threats.
Digitizing the production process makes it more efficient, transparent, mobilized, and cost-effective, and digitizing sourcing and procurement is crucial for a sustainable supply chain in the textile and garment industry.