Boutique Leather Clothes Manufacturer Improves Quality and Inventory Control

Leather Garments for men, women and children; and also stylish bags is the hallmark of Ramjee Leathers and Supplies, a premium leather garment manufacturer. With European designs exclusively created for select high-end retailers and boutique brands in Europe, Ramjee Leathers is a traditional company with contemporary global processes. With Microsoft Dynamics NAV, the company has been able to bring about inventory control to improve cost efficacy, and ensure delivery on time by improving quality management and snipping off wastage in time and material.

Business Needs

Ramjee Leathers and Supplies (Ramjee) was established in 1991. Delivering high quality products created from premium quality leather along with technical competency, and strong management has resulted in the company winning the best exporter in Leather Garment Award from the Ministry of Commerce, Government of India.

With a clear focus on style, design and finish, the company also kept a keen eye on productivity and costs. As early as in 2004, the company deployed an Oracle based ERP solution called Leatherman. But as the years flew by and the business grew, Leatherman became inadequate. For financial information, the company used local software package, Tally. This led to integration issues, with timely financial data not being available.

Also, with time, the ERP solution had become slow, leading to productivity loss and high down time. As Leatherman was not integrated with barcode, inventory management and tracking by lot and serial number wasn’t possible.

Solution

The company evaluated several ERP solutions, to replace its aging systems. While SAP brought significant knowledge base and processes, the cost and implementation time-frame would put undue pressure on a business already under pressure due to the currency appreciation and the recession. Therefore, the company decided to look at a more cost effective solution, with a keen focus on the leather manufacturing segment.

With this objective, Ramjee decided to opt for Microsoft® Dynamics™ NAV 2009 using the expertise of Firstware Software Solutions, a Microsoft® Gold Certified Partner. “With Firstware’s expertise in leather manufacturing industry and Dynamics strengths in quick deployment and integration with the Office suite, we knew we would see quick returns,” comments Ramjee Yogasundaram, Chief Information Officer, Ramjee Leathers.

Firstware took nine months to customize and deploy the solution at Ramjee across four locations. The key modules implemented include Finance, Trade and Inventory, Manufacturing, Advanced Sub-contracting, Human Resources and Payroll, Packing and export Import Module. In addition, Firstware Software Solutions Cuero Dynamix for Leather vertical has been deployed.

Benefits

Manage Size, Style and Colour in the Bill of Material
About 60 – 70 percent of the cost of product lies in the premium leather purchased by Ramjee. An ideal process would be to use the size, style and colour to be differentiated in the bill of materials, so that exact quantities can be order for a particular order. “Essentially, we are able to streamline a difficult process of ordering the expensive raw material as per the exact needs of the order. This has enables us control operating costs and helps increase productivity by 22 percent,” says Ramjee Yogasundaram.

Improves Inventory Management and Tracking
A critical factor in any manufacturing is the inventory control. With barcode integration, each piece can be tracked multiple units of measure such as pieces and decimeter for each lot or transaction.

Tracking Resource Productivity analysis
A key metrics to measure shop floor employees is to check the number of garments produced per shift. The second and more important metric is to see how many garments cleared quality control. “We know the productivity of our team and can judge the quality and time management for each person. This helps us measure people internally and also ensure that we are constantly improving overall quality of our products,” comments Ramjee Yogasundaram.

Reduces Packing and Shipping Time
“Packing and shipment process took as much as a day. Automation with Cuero Dynamix, we are able to complete the same task in less than 10 minutes,” explains S. Ramakrishnan – ERP Project Manager.

Payroll management saves 338 Persondays Annually
Each month, a person in the finance team spent a week, physically checking labour attendance and then calculating their monthly remuneration. “With the introduction of biometric attendance integrated with Dynamics NAV, the system records employee attendance automatically and calculates the remuneration. It takes almost no manual intervention and the payroll process completed in just four hours,” comments M. Aanand, Admin Manager.

Better Management of Operating Expenses
The financial data integration with inventory, production and purchase has several benefits. The manual processes, errors, delays and payment pain points have been completely eliminated. No more are there any mistakes and quantity received, payment made to vendors or payment received from customers. “Dynamics NAV sets the ground rules, which ensures we are focused on business metrics such as profitability, cost efficacy, and quality”, Ramjee Yogasundaram concludes.
Customer Size: Medium Organization
Industry: Manufacturing & Resources
Country or Region: India
Solutions:
  • Microsoft Dynamics NAV 2009
Organization Profile:

Chennai based leather garment manufacturer, Ramjee Leathers, with annual sales of U.S.$ 6.6 million (INR 30 crore) produces fashion and motor cycle garments and bags for customers around the world.

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