The textile industry or apparel industry is primarily concerned with the design and production of yarn, cloth, clothing, and their distribution. The raw material may be natural or synthetic using products of the chemical industry.
The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralized power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of the textile industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries of other countries. The Indian textile industry has the capacity to produce a wide variety of products suitable to different market segments, both within India and across the world.
Challenges faced by the industry for reporting systems and analysis
- Lack of Price Simulation reporting connected with BOM and Indirect Costs which dent company revenue due to rapid changes in customer preference due to change in fashion trends.
- Lack of benchmarking and content monitoring whether company is a cost effective producer or not
- Information on labour productivity and activity-value analysis
- Less information on managing production life cycle time and debt-cash cycle
Related services where ADITYAM is sharing core consulting knowledge to help a client.
- Discrete Costing Reporting – With made to order production of most of the products in industry, discrete costing reporting helps management to take decision on material mix and utilization of existing idle capacity to derive at bidding price for bulk orders.
- With the help of Trend Analysis Report management will be able to track changes in trends and consumer preference in fashion industry and impact of same on price and raw material to get optimal profit simulation figure.
- In Cost Analysis Report management will be able to derive cost effectiveness of production process to control activities and material which is adding more value to product contribution and monitor them.
- By Variance Analysis Reports management will come to know underutilisation or over utilisation of available resources and can align them across the organization to utilise idle capacity
- Production value and contribution margin analysis for per metre production.
- Product wise, age wise, gender wise and region wise Segment Report will help management to evaluate that which product is in high demand.