Efficiency of E-Procurement for Textile Industry

The textile industry is one of the largest industries in the country. India has exported over 1.77 lakh crores worth of textile products from January 2021 to July 2021. and the raw material used by this industry is of a huge volume. So you can assess the volume of the raw material used by this industry.

Raw material is a basic requirement for the textile industry to carry out business activities. If there’s even a minor issue, the business can suffer heavy losses. Even delay in delivery puts the business on hold. Hence, it is convenient to say that traditional methods of procurement may create problems at the beginning itself. Not only it consumes time, but also results in major problems at various levels of procurement. These issues of time wastage, inflated cost, faulty materials, and uneven deliveries can be addressed well by modern e-procurement.

You can use e-procurement to purchase raw materials for further production by electronic means. It offers many benefits like saving time, money, and energy. E-Procurement also makes it possible to function more efficiently for both producers and consumers. It gives the competitive edge you or any other business needs.

When raw materials are procured using e-procurement software, you can increase your business’ efficiency, productivity, and decrease the overall cost of production. It helps by avoiding communication errors and delivery processes that usually happen during offline transactions.

However, to fully utilise the benefits of E-Procurement as a business in the textile industry, you need to take care of some important factors such as :

1. A point of contact where they can reach you at all times.

2. Internet connection so that you can receive orders and send raw materials by email.

3. An E-Procurement software to facilitate all the above requirements.

4. A warehouse.

5. Suppliers/manufacturers of raw materials with their business details like contact person, website, email id, etc.

6. Government norms and laws to be upheld for e-Procurement in the textile industry.

7. A computer to receive orders and send raw materials

Some of the features that e-Procurement provides are :

1. If suppliers or manufacturers provide the same quality of material, then they will be able to sell it at a uniform price. This is good for buyers because prices will not change based on the supplier. This might not be possible otherwise due to communication errors during offline transactions.

2. Saves time and money because there won’t be any correspondence by handwritten documents. Banks will save time because they won’t have to put in so much effort for this purpose.

3. You can order raw materials with just a few clicks on the website like you buy anything else online. It increases efficiency and productivity because the raw material is shipped immediately after online approval. This way you can get delivery on time.

4. Sometimes certain raw materials may get exhausted and would be unavailable in the market. With the help of automated updation, you get notified once the raw materials are back in stock. You will be getting timely emails about the raw materials available on the portal.

5. You can set specifications of raw material for each order which help in getting it processed according to the standards given by you to the raw material supplier/manufacturer.

6. E-procurement software doesn’t let you order raw materials that are not legal for human consumption as per Government norms and laws.

7. This software can create more job opportunities by employing e-Procurement software operators.

The benefits of e-procurement in textiles are many. However, there are specific challenges that one must overcome to use it correctly in the industry.

Some key challenges include :

1. Communication gap due to language differences

2. Lack of suppliers/manufacturers who are willing to use e-Procurement software in India.

3. Laws and government norms for using e-procurement in textiles must be followed strictly by raw material suppliers/manufacturers.

4. Lack of suppliers/manufacturers who can provide raw materials with the uniform quality and standards that the industry demands.

As we know, India has one of the largest textile industries globally and raw materials for this industry are purchased in a very large volume, thus e-procurement software can be used to facilitate all such purchases. It makes it easy for suppliers/manufacturers to communicate clearly and directly with the textile industry. Also, it helps in achieving efficiency if used correctly by each stakeholder in the value chain.

We know how difficult it can be for textile industry professionals to locate suppliers of fabric, trimmings, and notions. With our service, we’ll connect you with the perfect vendors anywhere, anytime at any place. Don’t burden yourself anymore with obsolete procurement methods. Come to ofbusiness.com and get more done in less time with the help of our community marketplace today!