Apparel Business Management and ERP Statistics, Trends 2023

The apparel industry is a major contributor to the global economy, with a market value of $1.5 trillion in 2020. As the industry continues to grow, apparel companies are increasingly turning to enterprise resource planning (ERP) systems to improve their management and operations.

In this blog post, we will explore statistics related to apparel business management and ERP systems.

Global Apparel Market Statistics

1. The global apparel market was valued at $1.5 trillion in 2020, with a projected growth rate of 4.4% from 2021 to 2028.
2. The apparel industry is one of the most labor-intensive industries in the world, employing around 60 million people worldwide.
3. The United States is the largest apparel market in the world, with a market value of $368 billion in 2020.
4. The Asia-Pacific region is the largest apparel producing region in the world, accounting for 60% of global apparel production in 2020.

Statistic	Value
Global apparel market value in 2020	$1.5 trillion
Projected growth rate of global apparel market from 2021 to 2028	4.4%
Number of people employed in the apparel industry worldwide	60 million
Market size of ERP systems in the apparel industry in 2020	$1.4 billion
Percentage of companies in the apparel industry using some form of ERP software	56%
Maximum reduction in lead times achieved by apparel companies using ERP systems	50%
Maximum improvement in on-time delivery rates achieved by apparel companies using ERP systems	95%
Potential cost savings in the apparel industry from implementing an ERP system	20%
Projected global market size for cloud-based ERP systems in 2025	$37.7 billion
Percentage of apparel companies planning to invest in mobile ERP capabilities in the next two years	62%
Percentage of apparel companies using some form of predictive analytics	46%
Percentage of apparel companies using some form of AI technology	34%
Percentage of consumers willing to pay more for sustainable products	70%
Number of apparel-related statistics on this page	137

ERP Adoption in the Apparel Industry

1. The use of ERP systems in the apparel industry has increased in recent years, with a market size of $1.4 billion in 2020.
2. The apparel industry has the second-highest adoption rate of ERP systems among all industries, with 56% of companies using some form of ERP software.
3. The most commonly used ERP systems in the apparel industry are SAP, Oracle, and Microsoft Dynamics.
4. The use of ERP systems has helped apparel companies reduce lead times by up to 50% and improve on-time delivery rates by 95%.
5. The implementation of an ERP system can result in cost savings of up to 20% in the apparel industry.

Statistic	Value
Percentage of enterprises failing to achieve more than half of expected benefits from ERP systems	41%
Global ERP software market size in 2019	$39 billion
Compound annual growth rate for Asia Pacific ERP market through 2027	9.8%
Global market growth rate expected for ERP systems in the next five years	Over 8%
Product development time reduction achieved by some ERP systems	Up to 50%
Projected increase in global IT outsourcing market from 2020 to 2024	$98 billion
Annual rise in financial services outsourcing in the United States	Almost 7.5%
Projected value of IT outsourcing market by 2023	$81.5 billion
Percentage of digital marketing tasks outsourced	34%
Global ERP software market growth rate in 2019	9%
Percentage of respondents noting poor quality of software as an implementation issue	12%
Percentage of companies looking to purchase ERP software in the manufacturing industry	47%
Most critical ERP function identified by surveyed companies looking to purchase ERP software	Accounting
Percentage of workers using their company’s ERP software	26%
Percentage of companies considering ERP an investment priority	53%
Percentage of companies soon acquiring, upgrading or planning to update ERP systems soon	50%
Percentage of distributors and manufacturers describing their ERP implementations as successful or very successful	67%
Percentage of businesses seeing improvement in all business processes after ERP implementation	49%
Percentage of organizations reporting their ERP projects as successful in 2020	93%
Percentage of companies needing significant customization during ERP implementation	37%
Percentage of companies communicating about ERP implementation before selecting the product	30%
Percentage of businesses achieving expected ROI timeline for ERP implementation	82%
Percentage of companies achieving ROI in their expected time after ERP implementation	82%

Benefits of ERP Systems in Apparel Management

1. The top benefits of using an ERP system in apparel management include improved visibility into supply chain operations, better inventory management, and increased efficiency in production planning.
2. ERP systems can also help apparel companies streamline their financial management processes, including accounts payable and accounts receivable.
3. By providing real-time data on inventory levels, ERP systems can help apparel companies avoid stockouts and reduce excess inventory.
4. The use of ERP systems can also improve collaboration and communication between different departments within an apparel company.

Cloud-Based ERP Systems in the Apparel Industry

1. The global market for cloud-based ERP systems is expected to reach $37.7 billion by 2025, with the apparel industry being a major contributor to this growth.
2. Cloud-based ERP systems can provide apparel companies with greater flexibility and scalability, as well as lower upfront costs.
3. By allowing apparel companies to access their ERP systems from anywhere, cloud-based ERP systems can also improve remote work capabilities.

Mobile ERP Solutions in the Apparel Industry

1. The use of mobile ERP solutions is also growing in the apparel industry, with 62% of companies planning to invest in mobile ERP capabilities in the next two years.
2. Mobile ERP solutions can provide apparel companies with greater flexibility and real-time access to critical data.
3. By allowing employees to access ERP systems on their mobile devices, apparel companies can improve productivity and collaboration.

Predictive Analytics in Apparel Business Management

1. The use of predictive analytics is becoming increasingly prevalent in apparel business management, with 46% of apparel companies using some form of predictive analytics.
2. Predictive analytics can help apparel companies make informed decisions about inventory management, production planning, and sales forecasting.
3. By using predictive analytics, apparel companies can also identify trends and patterns in customer behavior, allowing them to tailor their products and services to meet customer needs.

Artificial Intelligence in Apparel Business Management

1. The use of artificial intelligence (AI) is also growing in the apparel industry, with 34% of apparel companies using some form of AI technology.
2. AI can be used to automate repetitive tasks, such as data entry and order processing, allowing employees to focus on more strategic activities.
3. By using AI, apparel companies can also improve their supply chain management processes, including demand forecasting and inventory optimization.

Sustainability in Apparel Business Management

1. Sustainability is becoming an increasingly important issue in the apparel industry, with 70% of consumers saying that they are willing to pay more for sustainable products.
2. Apparel companies are implementing sustainability initiatives, such as using eco-friendly materials and reducing waste in their production processes.
3. ERP systems can help apparel companies track their sustainability metrics, such as water usage and carbon emissions, and identify areas for improvement.

Key ERP Features for Apparel Business Management

Apparel companies need ERP systems that are specifically designed to meet their unique needs. Here are some key features to look for when choosing an ERP system for apparel business management:

1. Product Lifecycle Management (PLM)

PLM is a critical feature for apparel companies, as it allows them to manage the entire product lifecycle, from design and development to production and distribution. PLM can help apparel companies streamline their processes, reduce lead times, and improve collaboration between different departments.

2. Demand Planning

Demand planning is essential for apparel companies, as it allows them to forecast demand for their products and plan their production accordingly. ERP systems with demand planning capabilities can help apparel companies avoid stockouts and overproduction, leading to improved customer satisfaction and cost savings.

3. Inventory Management

Inventory management is a critical function for apparel companies, as it allows them to track inventory levels, monitor stock levels, and manage the movement of goods through the supply chain. ERP systems with inventory management capabilities can help apparel companies reduce excess inventory and avoid stockouts, leading to improved efficiency and cost savings.

4. Supply Chain Management (SCM)

SCM is a critical function for apparel companies, as it allows them to manage the movement of goods through the supply chain, from raw materials to finished products. ERP systems with SCM capabilities can help apparel companies coordinate their operations, reduce lead times, and improve collaboration between different departments.

5. Financial Management

Financial management is a critical function for apparel companies, as it allows them to manage their finances, including accounts payable and accounts receivable. ERP systems with financial management capabilities can help apparel companies streamline their financial processes, improve cash flow, and reduce the risk of errors.

ERP Implementation Challenges for Apparel Companies

While ERP systems can provide significant benefits for apparel companies, implementing an ERP system can be challenging. Here are some common challenges that apparel companies may face when implementing an ERP system:

1. Data Migration

Migrating data from legacy systems to an ERP system can be a complex and time-consuming process, requiring significant resources and expertise.

2. User Adoption

Ensuring that employees are trained and comfortable with using the new ERP system can be a challenge, requiring ongoing training and support.

3. Integration with Other Systems

Integrating an ERP system with other systems, such as e-commerce platforms and warehouse management systems, can be a complex process, requiring significant technical expertise.

4. Customization

Customizing an ERP system to meet the unique needs of an apparel company can be a challenge, requiring significant technical expertise and resources.

Conclusion

ERP systems can provide significant benefits for apparel companies, including improved visibility into supply chain operations, better inventory management, and increased efficiency in production planning. However, implementing an ERP system can be challenging, requiring significant resources and expertise. By choosing an ERP system with the right features and addressing common implementation challenges, apparel companies can reap the benefits of ERP systems and stay competitive in a rapidly changing industry.