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Home fabrics is a per se a small industry in India owing to the low consumption of furniture in India. The concept of having interior decorators and architects has taken precedence over the past couple of decades.

However if you run a distribution or retail home furnishing business it is very important for you to look at how you are managing your inventory. The home furnishing business is a design and style related business wherein the fabrics go out of flavour very soon. So the five major reasons you should have a close grip on your business is

  1. Tracking Inventory

    – It is very easy to over stock in home fabrics as the designs change very quickly in this line. Hence the knowledge of how trends are shifting are very important.
  2. Keeping the credit tight

      It is quite easy to extend credit to customers and get a lot of sales in this industry, however the challenge comes up when you want customers to stick to their credit limits and not over use the credit extended to them. This becomes a big challenge if proper credit checks are not maintained.
  3. High Service levels

     With the mushrooming of the eco-system there has been a sudden increase in the number of mills and distributors who provide home furnishing fabrics, hence the differentiator now comes down to who can provide the best services consistently. Customers / retailers want quick and reliable distributors to service them.
  4. Operational efficiency

     An inefficient organization can never survive in this business for long and it is imperative that organizations keep up the efficiency game by being on top of orders and purchases.
  5. Managing Stock outs

      A major challenge with home furnishings is managing stock outs. Just as excess inventory is an issue so are constant stock outs. It always happens that the stocks keep going out of stock because there is no predictability of sales orders and this is a major challenge to manage.

Keeping these scenarios in mind it is necessary that home furnishing distributors and mills have an ERP system which addresses their requirements in the most efficient manner.

A well made and well implemented ERP software will not only help manage the stocks and keep the credit control in check and effective reduce stock outs and will also help increase efficiency

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