How does K3 support procurement in the fashion industry?

Sourcing and procurement processes are undergoing a shift within the fashion industry, particularly as companies look to diversify their strategies to lessen their exposure to supply chain disruptions.

The overly extended linear supply chain model has proven inadequate in today’s volatile climate, but that doesn’t mean there aren’t solutions that can provide an advantage… like K3’s.

Enabling comprehensive business planning

Business planning is essential for aligning procurement strategies with overall business goals, but few ERPs are tailored to the nuanced needs of fashion and textile organisations.

K3 Fashion, embedded in D365 Finance, Supply Chain Management and Commerce, extends Microsoft’s flagship ERP to enable buyers to create detailed sourcing and capacity plans. These plans can be created at both the vendor and production facility levels.

Equipped with this functionality, buyers have granularity into the entire procurement process, allowing them to make informed decisions based on efficiency and cost-effectiveness.

A key feature in K3 Fashion’s planning capabilities is the ability to differentiate between different purchase order types. Whether that includes sample orders versus bulk orders, raw materials versus finished goods or something else entirely doesn’t matter.

K3 Fashion does it all.

This differentiation adds a layer of flexibility, allowing procurement specialists to split capabilities and divide orders based on destination or inventory needs, such as store allocations and replenishments.

Enhancing procurement with CSR capabilities

While legislation around Corporate Social Responsibility has slowed somewhat, it is still a huge factor that fashion companies must contend with.

K3 Fashion’s robust CSR capabilities ensure that all orders placed with vendors and factories meet a company’s required certifications.

Buyers, in particular, benefit from this as they can be more confident in sourcing materials and products with the knowledge that these items adhere to their business’ criteria.

The solution not only tracks the certification statuses of suppliers but also manages planned renewals, proactively preventing issues before any purchase order creation.

This feature mitigates bottom-line risk and ensures that the procurement process adheres to the highest standards of ethical and sustainable practices.

By embedding CSR into the procurement workflow, K3 Fashion helps buyers maintain their commitment to responsible sourcing without compromising on efficiency, which is crucial for building and maintaining brand reputation in today’s market.

Enhancing sample management

Procurers often face the daunting task of managing sourcing various materials, like fabrics, that will be instrumental to the final products.

This means they must choose wisely, or else valuable money will be wasted.

This is another area where K3 Fashion really shines for procurers, as it facilitates proto-samples, salesman samples, and pre-production samples.

Rather than hoping a specific material will work, procurers can now work with an efficient sample management solution to ensure they decide on the best option available for their business.

Proactive risk management

Unlike most ERPs, which only support quality control at the end of production, K3’s extensions to D365 ensure that QC can take place at every critical step in the process.

For people working within procurement, this means they have access to QC during the material selection and fabric inspection phase.

This point overlaps quite heavily with the previous one, as K3 Fashion supports the creation of proto-samples, salesman samples, and other pre-production samples, as well as the thorough quality assessments required before mass production begins.

With a robust tool for QC in play, procurers can source more confidently and that’s exactly what K3 Fashion provides.

Leveraging technology to enable better decisions

Access to real-time data and efficient decision-making are paramount to success in fashion.

K3’s native embedment in the D365 technical landscapes ensures that users only operate from within one system, eliminating the need for third-party solutions and APIs.

Crucially, this ensures that the tech stack is kept simple and allows data to seamlessly flow throughout an organisation.

For procurement teams, this means faster decision-making, improved forecasting accuracy, and the ability to respond quickly to market changes – key factors in maintaining a competitive edge.

Want to know more?

The capabilities outlined in this article represent just a small sample of how K3 supports companies in all facets of fashion.

If you’d like to learn more about how we can support you, feel free to drop us a line today!