Textile Craft Industries, a garment manufacturing unit in Lahore, faced the classic challenge of growing businesses: operations had outpaced their ability to manage effectively. Production schedules, raw material procurement, and financial tracking had become disconnected. This case study explores how implementing integrated business software brought control and visibility to their operations.
Company Background
Textile Craft Industries had grown from a small stitching unit to a manufacturer producing garments for both local brands and export customers. With 85 employees and significant production capacity, the business was substantial but struggling with coordination.
Fatima Malik, the owner, described the situation: “We were busy all the time, but we did not really know if we were making money. Some orders seemed profitable but caused chaos in production. Others were smooth but I was not sure about the margins. We needed visibility.”
Core Challenges
Costing Uncertainty: Without accurate tracking of materials and labor per order, pricing was based on estimates that might or might not reflect reality. Understanding true profit margins was impossible.
Material Wastage: Fabric cutting and consumable usage were not tracked precisely. Wastage that should have been 3-5% was estimated at 12-15% but no one knew for certain.
Production Scheduling: Orders were accepted without clear visibility into production capacity. Delivery delays were common. Some machines sat idle while others were overloaded.
Cash Flow Stress: Despite good sales, cash flow was always tight. Receivables stretched, and raw material purchases created constant payment pressure.
Selecting the Right Solution
Textile Craft evaluated options specific to textile manufacturing as well as general ERP solutions. Their key requirements included production costing by order, material consumption tracking, integrated accounting, and ease of use for floor supervisors.
They chose a solution that balanced manufacturing-specific features with accessibility. “We could not implement something that needed a computer science degree to operate,” Fatima explained. “Our supervisors needed to be able to enter production data without becoming IT experts.”
Implementation Approach
Implementation began with a comprehensive setup phase. All products, raw materials, and bill of materials were entered. Standard costs were established based on historical estimates, to be refined with actual data over time. Inventory valuation methods were configured.
Training focused on production floor data capture. Supervisors learned to record material issues, labor time, and production output. The data entry burden was distributed across many people entering small amounts, rather than creating a bottleneck at a central office.
Gaining Visibility
The first major impact was visibility into actual production costs. Within months, the system revealed which orders were profitable and which were losing money despite appearing profitable at the quote stage.
“We discovered that our export orders, which we thought were our best business, were actually marginal after accounting for all the rework and special handling they required,” Fatima noted. “Meanwhile, some local customers we undervalued were actually quite profitable.”
Controlling Material Costs
Material tracking transformed fabric management. Every roll issued to cutting was recorded. Yield from each roll was tracked. Actual versus expected consumption became visible.
Wastage, it turned out, was 18% not 12-15%. But with visibility came control. Within six months, improved cutting practices and better fabric utilization reduced wastage to 6%. On their fabric volume, this represented savings of over PKR 200,000 monthly.
Production Scheduling Improvements
With production data in the system, capacity planning became possible. Before accepting new orders, the team could check what was already committed. Machine utilization reports identified bottlenecks. Delivery dates became realistic rather than optimistic.
On-time delivery improved from 72% to 93% in the first year. Customer complaints decreased. The stress of perpetual firefighting was replaced by controlled execution.
Financial Integration
Integrated accounting connected production to financials. Material issues flowed to work-in-process inventory. Completed production updated finished goods. Sales linked to cost of goods sold. The previously disconnected worlds of factory floor and finance office were unified.
Financial statements became timely and accurate. Year-end closing that previously took weeks became straightforward. Tax compliance improved with proper documentation.
Managing Suppliers and Customers
Supplier management improved with visibility into purchase history, delivery performance, and payment status. Better-informed negotiations improved terms with key fabric suppliers.
Customer credit became systematic. Receivables aging was clear. Collection efforts focused on the right accounts. Days sales outstanding decreased from 65 to 48 days.
Quantified Results
After 18 months, Textile Craft measured significant improvements:
Material wastage: 18% → 6%
On-time delivery: 72% → 93%
Collection days: 65 → 48
Month-end close: 12 days → 3 days
Cost visibility: None → Complete by order
Cash flow predictability: Poor → Reliable 30-day forecasts
Lessons Learned
Start with production basics: Accurate data capture at the production floor was foundational to everything else.
Invest in training: Floor staff needed significant training to make data entry part of their routine.
Expect to discover problems: The system revealed issues that were previously hidden. This is a feature, not a bug. You cannot fix what you cannot see.
Changes take time: Meaningful improvement took 12-18 months of consistent effort, not immediate transformation.
Looking Ahead
“We can now scale with confidence,” Fatima reflects. “When we add capacity, we know our systems can handle it. When we quote new orders, we know our costs. We have moved from hoping to knowing.”
Textile Craft’s experience shows that manufacturing businesses can gain operational control through systematic implementation of integrated business software. The investment required patience, but the returns transformed the business.
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