Arvind Limited, a leading Indian apparel and textile company, is implementing an ERP solution across its 24 manufacturing locations and central functions to improve efficiency. It has partnered with Infinite Computer Solutions to deploy SAP modules for financials and Datatex Textile ERP for the textile business. The ERP implementation will integrate business processes to enable real-time data sharing, shorten product development and manufacturing cycles, and increase operational efficiency across Arvind.

1. ARVIND LIMITED
Arvind Limited, one of the leading apparel and textile organizations in India, is implementing an
ERP solution as a part of its business transformation. The solution will cover all the 24
manufacturing locations, core central corporate functions like finance, purchasing and HR, and
across its fabrics and garmenting business. The company has signed on Infinite Computer
Solutions (I) Ltd, an IT solutions and services provider for the project, and ongoing support for five
years post go-live.
The fabrics business of Arvind is mainly denim, shirtings, khakis, knits, blends and voiles, and the
garmenting business is spread across shirting, jeans, and knitted apparel. Infinite is the business
and implementation partner for Datatex Textile ERP in India, South Asia and Australia. Datatex is
a global player in the apparel and textile ERP space with broad range of customers that have
annual revenues ranging from a couple of million dollars to over $ 6 billion. Infinite is deploying
global ERP major SAP’s modules for the financial accounting, budgeting and controlling
functionality. Infinite has created a seamless integration platform between Datatex and SAP’s ERP
solution using the middleware technologies offered by SAP.
Pragnesh Shah, project director and vice president of Arvind Ltd, said, “We are very sure this
solution will take us to higher level of efficiency in manufacturing, business and financial
operations.”According to Guruprasad S Rao, head (enterprise solutions group) of Infinite
Computer Solutions (I) Limited, “This would certainly contribute to shorter cycle times for product
development and manufacturing. Shorter cycle times is an extremely critical parameter to be
successful in a highly fashion conscious industry.”
Q.1) what is middleware? Explain the role and contribution of ERP implementation partners of
Arvind?
Q.2) “Shorter cycle times is an extremely critical parameter to be successfully in a highly fashion
conscious industry.” Justify ERP implementation in Arvind.
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A.1) Middleware is computer software that connects software components or applications. The
software consists of a set of services that allows multiple processes running on one or more
machines to interact across a network. This technology evolved to provide for interoperability in
support of the move to coherent distributed architectures, which are used most often to support
and simplify complex, distributed applications. It includes web servers, application servers, and
similar tools that support application development and delivery. Middleware is especially integral to
modern information technology based on XML, SOAP, Web services, and service-oriented
architecture. Middleware sits "in the middle" between application software working on different
operating systems. It is similar to the middle layer of three-tier single system architecture, except
that it is stretched across multiple systems or applications. Examples include database systems,
telecommunications software, transaction monitors, and messaging-and-queuing software.
The distinction between operating system and middleware functionality is, to some extent,
arbitrary. While core kernel functionality can only be provided by the operating system itself, some
functionality previously provided by separately sold middleware is now integrated in operating
systems. A typical example is the TCP/IP stack for telecommunications, nowadays included in
virtually every operating system. In simulation technology, middleware is generally used in the
context of the high level architecture (HLA) that applies to many distributed simulations. It is a
layer of software that lies between the application code and the run-time infrastructure.
Middleware generally consists of a library of functions, and enables a number of applications,
simulations or federates in HLA terminology to page these functions from the common library
rather than re-create them for each application.

2. When implementing ERP (Enterprise Resource Planning) Software infinite computer solutions
should clearly define (at the start of the ERP project) who will have responsibility for which parts of
the ERP system implementation. Understand and account for the fact that the team will need to
take responsibility for certain parts of the implementation. ERP Training, user acceptance testing
and the system blueprint will all require time and input from Arvind internal team.
Role of ERP implementation: The primary responsibility of the Implementation of ERP is
business analysis, application design; development, integration and delivery and application
maintenance and support function for customer relationship management applications and
systems. They are responsible for administering each of the phase of the implementation so that
the required activities occur at the scheduled time and at the desired level of quality and with
effective participation of all those who must participate. For keeping the promises that the
consultants have made during the negotiations, they have to transform their approaches and
methodologies into detailed work plans. The methodology will have to be converted into tasks and
should be allocated to the right people. The time schedule for each phase and each task has to be
determined and the project plan has to be finalized.
They should add value to the project. They bring know-how about the package and about
implementation. This also known as practical knowledge is derived from their expertise, which
stems from practical experience, because the consultants have seen many project and have made
or seen many mistakes, they can avoid the phenomenon of 're-inventing the wheel'.
They will know what will work and what will not. Thus, by eliminating the trial and error method of
implementation and doing it right the first time the consultants help in saving huge amounts of
money, time and effort.
Basic Components of ERP:
 Material Management
 Sales and Distribution
 Production Planning
 Production Management
 Costing
 Quality Management
 Finance and Controlling
 HR/Payroll
In order to compete and win in today's global market field, better management of resources is an
important criterion. Implementation of ERP controls different functions and enhance company
efficiency. Latest technologies equipped with in ERP software package helps in better controlling
and management of data. If implementation of ERP is done according to company goals, it
assures more return on investment. Before planning project, it is advised to design the project in a
realistic approach. This helps employees in maximizing ROI in practical. Some important points to
be kept in mind while evaluating ERP software
a. Functional fit with the company’s business processes.
b. Degree of integration between the various components of the ERP system.
c. Flexibility and scalability.
d. Complexity used friendliness
e. Quick implementation
f. Ability to support multi-site planning and control
g. Technology; client/server capabilities; data base independence, security.
h. Availability of regular customization and hardware requirements.
i. Adaptability to the cultural and social aspects of the Indian firms.
j. Adaptability to regulatory requirements.

3. ERP software helps in increasing customer satisfaction. One can provide better service to
customers as this application will regulate all the work carried out in the premise. It thus helps in
building brand loyalty. Apparel industry is in utmost need of brand loyalty. ERP software is
recommended the most in this industry. The installation of this software is a step towards
progress.
Like in all other technologies, ERP software applications have disadvantages, as well. It is
difficult to customize them. Apparel industries have unique requirements. It may not benefit them
much if not customized according to their needs. One needs to hire an operator who is technically
aware in order to operate the software. They may have to be further trained.ERP can be
expensive to certain apparel units. They are better as compared to other similar software. But it is
sure to increase productivity in the unit. The cost can be covered this way. Overall, the
disadvantages are lesser as compared to the advantages. This software application is advisable in
modern times. It will help units to stay ahead of their competitors.
While considering ERP software, one has the option to choose between web based applications
and desk top based applications. Web based applications would be a better choice to make for a
textile or apparel unit. The software can be accessed by anybody online, then. One can login into
the application with an id and a password and control activities of the unit located anywhere in the
world. ERP software enables the retailer's ability to meet the demand, satisfy customer demand,
and increase sales.
Contribution of ERP IMPLEMENTATION
ERP solution allows department people to share information generated between departments
effectively and timely. ERP solution enables remote access to the live operational data with due
access security and facilitates efficient communication methods to communicate various instant
findings from a process function to concerned persons. It also helps customers to know his order
status order-wise.
System will also provide the complete details on the item including current stock, stock on order,
list of suppliers, last purchased supplier, rate purchased etc. In addition to this, system will also
provide information on supplier supplying to our standards, our cost, our time frame our quantity
with our quality, rating with rejection analysis, etc.
All these (data) information is not created by one department but is picked up from related
databases. This information is automatically generated and one need not wait for the information.
Once information is generated, automatic alerts and reminders are posted too. Today's web
technology allows facility to post alerts and reminders through SMS, and to schedule the task until
it is completed.
For example:- if merchandising department gets an order and they generate the design and
identify the material requirement for the order, purchase department or planning department or
stores can access the material requirement data for the given order and they need not enter the
material requirement data once again. Departments need not be in one location and can be
located anywhere across the world. In other words, purchase department will know the exact
material requirement data item wise and they easily can plan for purchase schedule.
Example, material required on the 10th day of the production process, and the supplier lead time
is two days from the date of purchase order, purchase department can place the order on the
seventh day or on the eight day so that the material will be available on the tenth day. The money
for the material is not blocked for seven days and hence can be utilized for other priorities.
ERP has helped in increasing the quality and efficiency of the manufacturing process. The
manufacturing processes experiences some problems quiet often because of miscommunication
and lack of communication. ERP provides a solution by enhancing coordination by keeping an eye
on the supply chain, warehouse and logistic. It also helps greatly in the function of tracking the

4. progress made in the manufacturing of the product. If any technical problem occurs it can be
tracked down easily. The customer can be answered easily with the statistics in hand and his
queries can be easily answered with the details of the status of the product. Long chains of
communication are shortened and the details can be shared through internet also, thus avoiding
any miscommunication.
It helps reduce operating cost because it integrates processes of the business across departments
onto a single information system. The problem of low inventory or reduced operating cost is ruled
out. Whenever resource is needed it is available on time because everything has already been
planned. The day to day management becomes easy because it keeps a track of the warehouse
also. Everything going into the data warehouse is recorded thus planning for a specific day can be
easily done. Due to the fact that every activity is recorded the actual cost can be calculated easily.
The unwanted ambiguity is ruled out which makes the database user friendly.
Since the product is being managed so well its quality remains intact what the world gets is a
reliable product. Every small detail can be easily taken care of and smooth flow of activity takes
place. The following contribution of ERP software is:
Bill of Materials (BOM): Bill of Materials is normally used as per the procurement or production
deadlines. Through efficient ERP systems several types of BOM can be efficiently managed as
per the requirements of the customer. The software links up with the order and instantly creates
Materials Requirement & Indents. It also links to inventory to check if the specified article already
exists. It is an opportunity for cost saving for manufacturing organizations."
PO Repository: Further elaborating the benefits of the software the sales team can create
Purchase Orders against the styles, even at the client location on their laptops using the Internet
i.e. Create online sales orders, instantly on the ERP Apparel Software."
On-line Pos: "Electronic Purchase Orders are transmitted to the suppliers with online
confirmations, saving time and delays. It lists out orders per buyer/per season/ per month/delivery
date."
Inventory and Warehouse Management: For optimal inventory management processes, a
robust functionality of logistics management is required. ERP technology helps to track materials
on the basis of both quantity and value. It helps to assess your organization's actual stock situation
with ERP apparel software based on quantity- and value-based criteria, and analyze warehouse
activities, such as the physical flow of materials. Real time status of all materials against any
Buyer Order is visible to all, at any location offering complete transparency including materials in
transit.
Order Fulfillment & Procurement Monitoring: ERP software helps to evaluate and improve
order fulfillment using key performance indicators for shipping and order management. It enables
to evaluate vendor performance and transaction history for supply chain optimization, monitor
purchasing operations and provide detailed analysis of purchasing activities and procurement
processes across offices, locations & vendors which will support your production planning.
Production Planning and Import Management: ERP software helps to create a complete plan
for production by allocating orders to factories and lines. It enables to gain control over production
through the planning board, allowing monitoring of an order's status through the supply chain with
drill down to individual processes (cutting, stitching, packing, finishing etc). Furthermore, it
identifies production bottlenecks and optimizes capacities.

5. It helps to monitor the production of offshore factories as well as vendors' and get daily updates on
production quantities per color/per size. Check actual quantities shipped against orders to identify
variance. Receive ASNs, custom documentation as goods are dispatched. Reduce chargeback
through scanning of bar codes with accurate packing lists and delivery notes that are printed
automatically.
Collaborative Time & Action (T & A) Calendars: "ERP helps to monitor and control orders, get
Real Time status on any order across global offices to optimize the delivery cycle. It aids to
generate escalation based alerts to prompt internal users across offices as well as suppliers to
perform on-time."
Sunil winds up the discussion praising about its flexible reporting capabilities. "This ERP Apparel
Software lets you analyze profitability per order/per and drill down to global, region, country, office,
supplier and user level."
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A.2) The Apparel industry (Arvind) is really complex. It sees a lot of variation every minute. As the
competition is increasing and margins and timelines are being reduced, people in Industry have
started realizing that need for cost control and utilizing the Enterprise wide resources to the
maximum have become essential. ERP comes as a rescue to all these issues. Fashion industry
has shorter cycle times as a particular fashion keep on changing and company has very less time
to come up with the need of retailers and customers. For garment sector strategic planning is
important and ERP system is designed to support this through resource planning. It facilitates
report generation which has to be updated every time a progress takes place. This report can be
distributed among employees so that they also know which area has to be given more attention for
the completion of the task. The garment industry is ever-changing and thus it is important to know
the customers need and record it.
WIP (Work in progress) is probably the largest sunk cost for an apparel company. Even if the
company streamlines its input raw material costs, it still needs visibility into WIP at various stages
and the costs being incurred due to various other inputs like manpower, electricity, steam,
chemicals, and consumables. ERP plans the various cost elements from an ideal Bill of material &
routing perspective which can go to the details of manpower, electricity etc. When the actual
production is processed, it helps capture these details, thus revealing the real costs as well as the
deviations. Fixing the main deviations on manufacturing leads to improvement in better capacity
utilization & higher production volume, hence improving top line. Addressing the other deviations
on quality, process losses, rejections, scrap helps improve the bottom line as well. This enables
the companies to meet customer commitments in time and with predictable cash flows. They are
then in a better position to plan for profitable growth.
Advantage of using ERP in ARVIND MILLS LIMITED (AML)
ERP or enterprise resource planning is a commonly used software package for enhancing the
operational efficiency of business resources. It is a composition of software modules assisting
company owners to achieve their goals at a faster rate. Implementation of ERP for an organization
is done on the basis of company requirements. Today, ERP is a widely applied software system in
all types of industrial fields including small and medium sized companies.
Inventory control, better human capital management, customer relationship management and
order tracking are some among the key benefits of implementing enterprise resource planning.
Proper implementation of ERP package according to business needs of Arvind is benefited with
lots of advantages.

6. a. Knowing real time information about business field strategies is one of the core objectives
of ERP.
b. ERP software package, which is a blend of software modules helps in integrating data and
real time information.
c. It helps in better planning and management of resources as per the requirements of
company.
d. Upgrading the needed software modules, better work flow and improved efficiency are
some of the important benefits of using ERP system.
e. It is found to be very efficient in controlling and managing organizations at different
locations.
f. At present ERP is an essential tool package used by many of the multinational companies
for achieving their long term goals.
g. Return on investment, best known as ROI is another core objective of ERP.
h. Proper implementation of ERP package assists professionals to gain more profit by utilizing
available resources.
i. It is a perfect tool adopted by company owners for delivering desired output at affordable
cost.
j. Reducing inventory cost is another core objective of ERP implementation.
k. Better order tracking, knowing customer needs and business requirements by ERP assists
in proper utilization and management of resources.
l. It enhances operational process and maximizes the return on investment rates.
m. Enhancing the customer relationship management is a main feature coming under the core
objectives of ERP. It increases the quality of services, shortens delivery times and
enhances the performance rate offered by companies.
n. Error controlling is another core objective behind ERP implementation in an organization. It
helps in better planning and coordination of business resources so as to achieve maximum
profit.
o. Providing a software map of business functional activities, improving accuracy rate of
results, increasing the flexibility of operation and improving productivity are other core
objectives of ERP
ARVIND Mills Ltd. (AML) has implemented ERP in their manufacturing unit. The SAP
implementation is expected to considerably reduce AML’s time of supply chain. It would also help
the management close track of aspects such as delivery date and status of customer order. The
areas covered under the ERP include material management, production planning, and
consolidation across various units and project configuration.
As a vertically integrated organization, fashion industry is challenged with multiple systems to
support, and a supply chain which is difficult to manage. Through appropriate ERP software,
fashion industry can unlock the value of its operational data through business intelligences, and
improve management by tracking the entire supply chain.