Summary Of ERP Selection For Shoes And Apparel OEM Manufacturers

OEM is a major feature of China's manufacturing industry.

In small and medium-sized enterprises, many enterprises are OEM.

The so-called OEM is the manufacturer of other big manufacturers, and enterprises do not have their own brands.

For example, many brands, such as mice, household appliances, etc., are not produced by brands themselves, but are commissioned by other manufacturers to produce their own brands.

For these types of enterprises, what should we pay attention to when choosing ERP?

I also encountered many OEM enterprises during the ERP project implementation consultant.

To this end, the author will give you an exchange of experience in this field, and see what aspects of OEM production enterprises can start from ERP selection and what they should learn from.

OEM manufacturers need to comply with some general rules when choosing ERP models. For example, to conform to the characteristics of their own industry, whether they are garment or hardware manufacturing industry, they need to select ERP software that is suitable for their own industries. For instance, pay attention to the size of ERP in line with the scale of their own businesses, instead of wearing big shoes or big shoes.

Following these general rules, we should consider the particularity of OEM enterprises to consider the function of ERP and meet the needs of this area.

First, customer supply management is an inescapable problem for OEM manufacturers.

For OEM enterprises, a big difference from other private brands is a customer supply.

Product management.

The so-called customer supply, is in the process of production, many raw materials are provided by customers.

A trademark that is small to a product can be supplied to a customer as large as a raw material.

In view of this situation, how should we manage it?

In view of the management of customer supply, we need to pay attention to the following aspects:

One is how to deal with the customer supplied goods warehouse, and that is to say, there is a part in the enterprise inventory, part of which is purchased by the enterprise itself for the production of its own brand, while the other part is provided by the customer for the production of their specific products.

In view of this kind of business, how to control the stock management and charge management? Is it necessary to code independently when the product is coded?

Two, there is a distinction between valuation and non valuation.

The price of customer service, that is to say, we must first purchase from the customer side, and then deducted from the accounts payable.

And there are differences between tax and non tax.

The purpose of taxation is to point to the raw materials purchased by the customer, and the customers also need to provide the corresponding value-added tax invoices. Then, after calculating the vat of the sales amount, the price of raw materials can not be directly deducted, but the value-added tax should be calculated in full.

If it is not taxed, it means the raw materials purchased from customers do not calculate value-added tax, and customers do not need to provide VAT invoices. When calculating the vat of sales amount, we must first deduct the amount of raw materials used, and then calculate the value added tax.

The above is the case when the customer value is calculated.

Another way is to provide customers with free supplies. Of course, when defining the selling price, the cost of the customer will not be considered.

At the same time, when calculating the cost of the product, it will not calculate the raw materials supplied by the customer to the cost, nor will it be counted when the inventory amount is calculated.

That is to say, the customer service provided by the customer is not equivalent to the assets of the enterprise, but rather the customer temporarily exists in the enterprise.

Therefore, the situation of customer product management is more complicated. When the ERP product is selected, it is better to investigate whether there is a management plan specifically for the customer service in the ERP software.

Because such a complex situation, if the two development to complete, the workload will be great, and will greatly affect the stability of the system.

Two, how to manage the customers designated parts suppliers and brands?

In the OEM enterprises, there is a special case that enterprises may lack independence when choosing raw materials.

If an enterprise is producing a product, the customer will specify a supplier of some raw material, and the enterprise must purchase them when producing their products.

I encountered this situation when I was implementing a project to a client.

They have a certain product, which is produced by OEM.

This product requires a raw material A. The customer specifies that the raw material must be purchased from a specific supplier.

At this point, the enterprise itself also has a product B, also need to use this raw material A.

There is no essential difference between products from different suppliers, that is, suppliers are different.

In such cases, the following problems usually arise:

First, because there is a certain interest relationship between the customers and suppliers, the price between the two suppliers of the raw material is different.

Sometimes, the price of the supplier specified by the customer is obviously higher than that of the supplier that the supplier is looking for.

For this reason, if the same code is used, it will obviously fail to produce errors.

If two codes are used, there will be one thing with two yards.

At this point, what compromise should be adopted to deal with it?

Two, sometimes there is no price difference between the suppliers designated by the customers and the suppliers they are looking for, and the certification is mainly related to the certification.

For example, the raw materials used for the production of their products must be inspected by customers.

To this end, if the enterprise carries out OEM production for the customer, the customer will give the enterprise a list of optional suppliers. Then, the enterprise can choose the right supplier from this list, and the price must also be discussed by the enterprise itself.

In view of this situation, it is mainly the suppliers in the list and the suppliers who are not in the list, how to choose the products, because there is no obvious difference in price, so the suppliers in the list may buy other products in the list, so there will be confusion at this time.

In view of this situation, how to control the ERP system?

In view of this demand, enterprises in the selection of ERP, it is best to take into account beforehand; and in the selection of time, judge whether the other party has the ready-made function in this aspect.

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