Cloud ERP for Garment Manufacturing: The TAL Apparel Case

Posted by Ho Nguyen

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TAL Apparel Limited, a provider of fashion supply chain products and services, has just finished the first phase of migrating its legacy ERP to Infor CloudSuite - a modern cloud-based ERP system. The transition went smoothly with minimal business disruption and is expected to help TAL Apparel Limited achieve impactful cost reductions and operational improvements.

Cloud ERP for Garment Manufacturing: a Success Story of TAL Apparel

Apparel producers facing mounting challenges

TAL Apparel Limited is one of the world’s largest apparel producers and currently operating 11 factories in Asia and employing more than 25,000 people. One out of 6 shirts sold in the U.S. since 1983 was produced by TAL Apparel.

In today’s digital age, the garment manufacturing industry is facing mounting challenges from disruptive innovations such as big data and cloud computing, and the global move towards omnichannel retail. As such, garment manufacturers like TAL Apparel need a robust yet agile industry-specific ERP solution to be capable of responding to fast-changing market needs.

Read more: Beyond the Amazon Deal - How Whole Foods Reinvents Itself with a Cloud Retail Suite

TAL Apparel opted to replace its legacy on-premises ERP software with Infor CloudSuite to speed up business innovations and leverage Infor’s built-in industry best practices. Additionally, cloud ERP offers lower one-time hardware and software investment compared to traditional on-premises software.

"The Infor team understands our industry very well," said Dr. Delman Lee, President and CTO for TAL Apparel.

Infographic: The Economics of Cloud ERP at a Glance

Cloud ERP for Garment Manufacturing: a Success Story of TAL Apparel

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The benefits of moving to the cloud

Starting in April 2016, the project aimed to migrate all 1,500 users in 6 different over to the new system. The objective was achieved with a downtime of just 3 days. Rapid implementation has always been another inherent advantage of cloud ERP. In this case, the project team was able to reduce heavy batch jobs, such as MRP and monthly end closing jobs, by 50 per cent.

By migrating to the cloud, the TAL Apparel’s system will continually be upgraded by Infor with latest innovations, features, and functions.

"Going to cloud has already become a trend for enterprises. The major value that cloud brings is fast and resilient on-line expansion of business as well as improving the cost structure of the enterprise,” said Graham McColough, Vice President, Managing Director, North Asia, Infor.

TAL Apparel is just one among many companies that are realising benefits of the transition from legacy on-premises systems to cloud-based platforms. Koch Industries, the U.S. second largest private company, is moving its core financials and HR processes to the cloud with Infor CloudSuite, the company announced on July 11.

JR Watkins, a US-based home care, body care, and gourmet food products manufacturer, believes that they are going to save half a million dollars in total cost of ownership (TCO) over the next 5 years simply by switching to Infor CloudSuite.

Additionally, moving to the cloud also helps significantly cut down customisation requirements. Initially, they had 20 modifications in their system. And at the end of the ERP project, this number went down to 4.

When the company started with the ERP project, Infor, everyone was thinking of a 9 to 12-month period. But the company later aimed for a 4-month timeframe in order to beat the business season. Eventually, the project was finished in 3 months.

There is little doubt that cloud computing will continue to be a major ERP trend for the foreseeable future. So what are the other technology trends? Download our white paper and find out.

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Topics: Enterprise Resource Planning ERP

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