How ERP System (Oracle) Facilitates Companies in Auditing Process

How ERP System (Oracle) Facilitates Companies in Auditing Process

Technology is now playing a pivotal role in our day to day life matters. There is no doubt in it that usage of technology makes our life not only easy but more productive too. We can now handle multiple tasks at the same time which were not possible in the past. If we talk about oracle software (ERP system) then it’s also one of those inventions which gave us relieve and productivity in our daily work life. An oracle software is extensively using in most of the manufacturing and services industries.

The textile industry is also one of those industries which are getting multiple benefits from this technology. As it’s not only fulfilling the needs of finance but along-with that it’s also performing productive functions of accounting too. In general, if we closely look into the broader prospects of ERP system. Then it covers recording, summarizing and interpreting of accounting and finance data into more precise and efficient manner.

Why We Need ERP System (Oracle)?

The beauty of ERP system is that even an ordinary user can easily understand it within no time. And if we talk about the cost of ERP system then there is no doubt in it that it’s a bit high. But when we compare it with its benefits then it outweigh the cost from all aspects. Most of the big textile firms have their own internal audit functions due to the magnitude of financial transactions. Internal audit department uses different tools to carries out the audit of finance and accounting function. And this could only be fruitful if company uses highly integrated software system. The technology which is not only helps to summarize the data within no time. Along with that the authenticity of the summary/result could not be challenged anywhere.

ERP system makes life easier for auditors as it provides the best solution for auditing of financial and accounting transaction. Since the big organization’s transaction magnitude is so huge. So, the small or less integrated software cannot give the ultimate results in terms of speed and accuracy.

The usage and importance of technology varies company to company. In public limited companies, where people have invested their life savings in shape of investment in shares. So, being investors, they expect accurate, transparent financial position of the company time by time. The external auditors are normally hired by the shareholders to know the exact position of the company. These auditors have task to provide their opinion on the financial data of the company. If the company uses oracle then it makes it easier for external auditor to form their opinion on the financial data. Since there is no question about the accuracy and functionality of this highly sophisticated technology. So, the required outcome is normally obtained without any hassle.

Internal Audit of Purchases through ERP System:

The progress of company normally matters on different factors. A good marketing and production team cannot assure this thing that a company will progress. The financial and purchasing departments are also equally responsible for getting positive outcome. And for a company, the outflow of money equally concern as inflow of money. Because if you don’t have any appropriate check and balance on your financial activities. Then the efficiency of your sales and production teams couldn’t drag the organization on the way of progress. The ERP system didn’t ignore this important aspect too and it also efficiently manages the outflow payables of the organization.

Purchases Audit in Textile Company:

In order to know the in-depth of ERP system, we have to review the complete procedure that how it works in an organization. Let’s take the example of  Textile Company where most of expenses are on material requisition. When an audit of purchases carries out, you need to make sure that you have access to all modules in ERP. And it includes: Purchase requisition (PR), Purchase order (PO), Inward gate pass (IGP), Goods receipt note (GRN), Purchase Invoice (PI) and Purchase invoice voucher (PIV). Once you have complete access on these modules then it will really helpful to view the whole trail of transactions. Auditing these modules shall help to make opinion whether the purchases acquired through systematic procedure.

The purpose of purchase audit is to ensure that expenditures on purchases are actually for the use of the business. Further, we need to check this thing that all the materials are purchased according to agreed cost and units. In some firms, this audit is also called as reverse costing which gives the management about the clear picture of order after dispatch.

Where to Start?

The auditor normally starts with purchase order which is actually a main reason of every activity of order processing. After having the purchase order, he needs to the see all the purchase requisitions which were raised during order processing. And these are mainly includes; fabric requisition, accessories and trims requisitions etc. The purchase requisitions (PR) normally issued by marketing department who is responsible for delivery of goods to Customer. All the PRs normally signed by authorize person of department. The main motive for auditing the PRs is to check whether quantity and cost is in accordance with agreed value.

Purchase Order:

Once purchase requisitions are audited then the auditor normally moves on to Purchase department’s purchase orders. These purchase orders are normally issued against the purchase requisitions by the marketing department. While auditing purchase orders, the auditor is more curious about the quantity and unit price of the material. As these two things must be approved by the authorized person of the top management. All the purchase orders normally have an authorization person’s name on it. The good thing about ERP is that Purchase department’s POs fetches data from PRs. If there is no purchase requisition then no purchase order can be generated. So, the probability of extra or useless buying is not possible if you are using ERP system. But here the auditor normally reconfirms the quantities which are fetches from purchase requisitions.

Inward Gate Pass: 

Inward gate pass (IGP) is normally formed when goods arrived into production facility.  The IGP only signifies the date and time of arrival of goods against specific purchase order. It also shows the total quantity received against PO though. IGP is a proof of a delivery arrival which normally confirms that goods are delivered against specific PO. As the purchase order number is normally mentioned on the IGP. The Auditor normally needs to cross check the quantities of IGP with respect to its generated purchase order. In ERP system, IGP fetches data from purchase order so that each every received unit is checked under the light of demand paper.

Goods Receipt Note:

Goods receipt note is normally created when store & inventory department counted the material quantity. During Audit, the auditor checks the GRN to ensure that it has relevant PO, Quantity, Unit price. Further, he also checks this thing that all the documents are duly signed by the authority that controls the Store & inventory department. ERP integrates GRN with PO and IGP. So, GRN cannot be prepared until or unless the approvals of purchase order.

Invoice Posting:

The auditor needs to reconfirm whether the invoice posting against the PI is correct. Whether, it has proper tax rates, net values traces back to GRN and PO? If these are correct then make sure that PIV prepared on the basis of the whole data correct also. PIV had the correct nominal account in debit side with corresponding credit side. i.e. Purchases and Trade creditors. All these checks is normally performs within no time while using ERP system. Since, the integration of all document into one system can make this thing possible to compare and check value easily.

Opinion: 

An appropriate opinion can be made when an efficient audit is carried out through ERP which integrates each purchasing activity from purchase requisition to stock stacking. Although cost of implementation and maintenance of Oracle is high but the benefits are long lasting from every aspect.

 

ERP system

SuperEasy Way To Learn Everything About Technical Textile Industry

SuperEasy Way To Learn Everything About Technical Textile Industry

The traditional textile sector of the world is undoubtedly delivering its best for the needs and demand of its consumers. But with the passage of time, the consumers of this industry were expecting more from this industry. So, the creation of technical textile industry came into being for meeting the new and upcoming requirements of customers. As we know that in traditional textile, the manufacturers are more concern about the aesthetic aspects of the product. Whereas, in technical textile the main focus is on the function of the product. And there is a least concern about aesthetic features of the products. So, in simple words, technical textile industry product/item is normally make for non-aesthetic purpose. And only function of the product is more considerable in this textile category.

Technical Textile Industry History:

The inception and motive for the development of technical textile industry was to fill the lacking features of traditional textile products. And the consumer of the traditional textile industry wants to keep the same product’s aesthetic but with some added features. So, the new textile form has been introduced which also have additional attributes of recent needs and demands of consumers. As the most of the technical textile industry products are based on synthetic fibers. So, this category of textile demand has boosted up in year 1799 when first synthetic fiber “acetate” was invented.

With the passage of time it transformed into “Viscose” in year 1894. And later-on in year 1924 it was made more refine and called “Rayon”. But the remarkable thing is that all the above narrated types of fiber are not fully synthetic. Because, all the above three types are mainly made with wood-pulp which is a natural ingredient.

The first 100% synthetic fiber named “Nylon” was invented by US experts team in year 1939. And this progress went on into its peak when most useful synthetic fiber “polyester” was invented in year 1953. As it was milestone in the invented list of synthetic fibers due to its useful characteristics and attributes. The technical textile industry sector was continuously taking benefits from synthetic fibers according to its usage and benefits. But the trend has changed when man-made natural fibers was invented and rapidly captured market share under technical textile industry. Although there are number of man-made fibers are available now in the market. Yet “cotton”, “wool”, “linen” and “jute” are most likely used natural fibers in technical textile industry.

Technical Textile Industry: A Growing Sector

Currently, we can see number of categories in technical textile which are using in different field of life. It applies not only in textile sector but you can also observe application of technical textiles in other sectors too. And the prominent sectors which are getting beneficial from it are civil, engineering and medical industry. And if we overall check the usage and growth rate of this category then it’s quite amazing. The overall growth rate is of this textile sub-category is around 4% per year which is more than the main category.

Types of Technical Textile Industry: An Overview

There are multiple types of technical textile  industry products which we can see into the market. But the main famous categories which are enormously using in different products are as follows:

Meditech:

The application of technical textiles  into medical field with some additional function is knows as  “Meditech”. It serves and produces different type of products in this category. And the main prominent technical textiles examples are like surgical disposable components, Diapers, artificial lungs, artificial cornea/joints/heart valve etc. As there are number of medical instruments and wearables which are making under technical textile category. So, the “Meditech” sector is estimating really healthy growth in coming future. This category was valued approximately US$ 12 billion in year 2016. And as per the expert’s findings, it would reach around US$ 20 billion till year 2026.

Indutech: 

The technical textile production is also serving really healthy in industrial growth. And for industrial products, it is offering extensive products  like conveyer belts, industrial brushes, bolting clothes, Printer’s Ribbon, Circuit Boards, Filters etc.

Mobiltech: 

The technical textile industry is participating vigorously role in mobiltech. As it is producing Helmets, Car Upholstery, Auto safety Airbags, Auto Carpets, Seat Belts etc.

Hometech:

You can see multiple products which are producing under this category. It include Vacuum cleaner filters, Window Blinds, Furniture Fabrics, HVAC filters, Stuffed Toys, Fiberfill, Net clothes etc.

Clothtech:

In clothtech, you can have multiple items in market which falls under this category. It includes  shoe laces, umbrella fabrics, zip fasteners, interlining, Hook tape, Elastic fabrics etc.

Buildtech:

The textile which applies in construction and building calls as buildtech. It include Hoardings, Architectural membrane, Canvas Tarpaulin, Concrete Wraps, Pipe etc. As per the study findings, this category was valued in 2016 around US$ 13 billion. And it is forecasting that it would reach up to US$ 22 billion till year 2027.

Oekotech:

Now days, environmental sustainability is big and hot issue. So, the textile which applies towards environment protection from toxic and hazardous material or wasted products calls as Oekotech. The word Oekotech also knows as ecological protection environment textile. The key examples of this type of technical textile are domestic water sewerage and waste  recycling plants, corrosion safety etc.

Other than this you can find number of useful products under Geotech, Packtech and Agrotech textile category. And there are also some other categories in which you would find landmark products of technical textile industry.

Key Players and Market Analysis:

If we analyze the key market players for the technical textile industry then we observes massive demand in developed as well as in under-developed regions. You will find it equally popular in North and Latin America, Eastern/Western Europe, Middle East and Asia Pacific region. Since most of the Asia Pacific region is under developed so the requirement of new infrastructure is needed. So, the demand of technical textile industry products over this region is normally high. This is why, if we analyze the overall earning of technical textile industry of previous year. Then you would amaze to know that approximately 50% of the technical textile earning is derived from Asia Pacific region. Moreover, the analysts are forecasting that the projected future growth rate of the category would be around 6.8% in coming years.

Key Market Players: Technical Textile Industry

There are number of giant companies of different countries which are aggressively dealing in technical textile sector. The main players are like 3M Co, Dickson-Constant, E.I. DuPont de Nemours & Co, Low & Boar PLC, International Textile Group (United State), Avintiv, Berry Global Group (United State), Milliken & Co, Kimberly Clarke (United State), DuPont (United State), Mitsui Chemicals (Japan), Ahlstrom Corporation,  Arville Tex Ltd, Huntsman (United State), Koninklijke Ten Cate (Netherlands), Toyobo Co. (Japan), SRF Limited (India), Lanxess (German), Freudenberg & Co. (German), Milliken & Company (United State), Low & Bonar (United Kingdom).

Other than the above described leading companies in technical textile industry. There are also many other firms which are doing amazingly in this product category. And in order to dominate into the market, these companies are following various growth strategies. And it includes mergers, acquisitions, expansions and partnerships under particular product categories. Along with that heavy investment in new product development is also the part of these strategies. The main motive behind all above steps is to make themselves more dominant into that market. Since the market is at upward trend that’s why everyone is striving its best to grab the maximum market share. And for this, extensive research studies and surveys are done so that companies could understand the actual requirements of their clients. So that they could offer such customized products which could not only conform their needs. But it could also distinguish them from the existing competitors.

Conclusion:  

There is no doubt that the demand for technical textile industry is increasing tremendously. But cost effectiveness element is normally missing in this type of textile category. This is why; we can have a massive price difference if we compare it with the conventional textile product. Although the value or benefits which we are getting from the technical textile products are great. But the high prices and lack of proper knowledge sharing about the technical attributes of the product is missing. That’s why, most of the high feature products couldn’t survive or give the expected results.

How Jeans Industry can be Sustainable through Technology

How Jeans Industry can be Sustainable through Technology

The denim jeans industry is considered as one the most polluting industry of the world especially in terms of water and chemical. The production and washing of one pair denim jeans consumes over 900 gallons of water. It is estimated that almost five billion pairs of jeans are currently produced in every year. And for the production of this, almost 420 million gallons of water is consumed. Moreover, 900,000 tons of chemicals are used in different washing and finishing processes. The water which is used in the manufacturing processes, get contaminated and this polluted water sent back to our rivers, lakes and oceans. As per the World Bank estimation, almost 20% of global industrial water pollution comes from the textile and Jeans Industry. In China, the textile industry pumps-out 2.5 billion tons of polluted water every year.

Jeans Industry Efforts Towards Sustainability:

The Global women’s wear industry reached worth nearly $621 billion. Whereas, the global men’s wear industry reached worth nearly $400 billion and children’s wear industry is worth $186 billion. This abnormal increase is also ruining our nature and its resources during dyeing and production.  And due to fast fashion trend, soon it turned as sheer burden on environment in the shape of waste clothes. Keeping in the view the whole scenario, the jeans industry people started working on the substantial changes in production processes. So that they could satisfy their consumer’s fashion lust without damaging the nature. Thanks to the technology people who strived a lot to give us multiple sustainable manufacturing options to the jeans industry.

Jeanolgia Technology:

Currently, there are so many organizations which researched a lot on the conventional way of jeans industry production process. Till-to-date, fortunately, we have multiple options through which we can meet the current fashion trends without damaging our natural resources. Jeanolgia is also one of those who contributed a lot to make this world more sustainable through eco-friendly production processes. For jeans industry, they focused on two factors which we already discussed above i.e. water and chemical consumption. As per the company, their goal is to reduce the pollution upto 50% which is caused by jeans industry. And for this, they have introduced different technologies like G2 ozone and  eFlow nanobubbles technology. By the help of which you can reduce an average 20 litres of water, 05 grams chemical and 01 kw/h energy.

Not only this, their awesome technology named “One Glass One Garment” is a tremendous achievement towards environment sustainalbity. Yes, it’s possible now that you can develop garment by using only one glass of water. No doubt, it’s milestone in a garment production process as you can safe million gallons of water through this technology. This is why, currently 20% of the global jeans industry is using Jeanolgia technology. All the big and famous brands like Abercrombie & Fitch, Levi’s, Diesel, Polo Jeans, Replay, Pepe Jeans, Hilfiger Denim, CK, Jack & Jones, Lee, Edwin Japan and other big retailers like GAP, H & M, Uniqlo and M & S are currently using their technology extensively. Not only this, if we look at the world then their technology is using in 05 continents and specifically in 60 countries. The main countries include United States, Pakistan, Japan, Russia, Bangladesh, Turkey, India, and Vietnam.

Alliance for Responsible Denim:

Alliance for Responsible Denim is an initiative which was started a year ago. And it was launched by the Hogeschool van Amsterdam, House of Denim, Circle Economy and Made-By. The famous International brands G-Star, Mud Jeans, Nudie Jeans with join hands some small but famous denim labels like Kings of Indigo, Kuyichi, Cool Cat, Just Brands and Imps & Elfs are the first brands to join this initiative. Along with that, the leading denim mills named Bossa, Kilim Denim, Orta Anadolu, Tavex and Tejidos Royo as well as 02 yarn mills were also in first movers list.

The main aim of this collaboration was to make jeans industry smarter, cleaner along with sustainable production processes. As per the alliance members, they are looking for the ways that how they can improve the denim finish in a more sustainable way. Secondly, they are collaborating with the mills to develop such recycled fabric which would come-up with the demands of end-users. And last-but-not-least, they are also encouraging brands to use these recycled fabrics for their upcoming collections. Uptill now, this collaboration developed 40 different fabrics with different percentage of recycled fabric varying from 10% -25%. Now they are trying to stimulate brands to use these fabrics into their collection so that they can mutually contribute towards green environment.

Some Closing Lines:

There are so many other techniques and group of people who are striving to save the nature and natural resources. Some are offering products or methods so that processes or final products can be enhanced towards sustainability. And other are supporting from every aspect to those people who are working for better environment. Sustainability is a name of continues efforts and can’t be stopped at any stage. Every day and every moment we need something new or more refine so that we could influence less to green natural environment from man-made chemicals and other products.

Why Water Pollution is More Critical Than You Think

 Why Water Pollution is More Critical Than You Think

Water is life and it’s a main driving force for all living creatures of our planet. As per Slovakian proverb, “Pure water is the world’s first and foremost medicine”. We as human beings are the solely responsible for the pollution of this precious natural resource. Scientists are continuously discovering the reasons of water pollution. And as per their findings, one of the main reason of water pollution is our industries and especially the textile and clothing industry. No doubt the textile and clothing sector is catering the basic needs of the human beings. But on the other hand, it is also the main cause of water pollution and shortage.

As most of the industrial processing operations are totally depend upon water. The world’s environment organizations are really concerned about environment as well as water pollution issue. Now, they are working together to find out the ways for pollution free world.

Water Pollution in Textile & Clothing:

As mentioned earlier the textile and clothing industry is major entity of water consumption and pollution. The whole fabric making (De-sizing, Scouring, Bleaching and Mercerizing) and garment manufacturing (denim/non-woven laundry) process requires the plenty of water. And the water discharge from fabric and garment making process has full of hazardous chemical and metals.

Although there are ways to treat the water for reusable yet the treatment solution is a bit costly. And most of the small and medium mills avoid to install such pricey treatment plant into their production facility. So, when the untreated water of the mills dilutes into our rivers and lakes then it causes the sever health and environment issues.

Fashion Industry Trends:

The other studies show that the “micro-plastic” is a major component of synthetic clothing which is polluting our water. And it is worse than already banned plastic “microbeads” from cosmetics. And one more recent studies proves “microfibers” from synthetic clothing pollute water even worse than “micro-plastics”.

As per the recent research study of International Union for Conservation of Nature, the micro plastics contribute up to 31% in ocean’s annual pollution. And almost two third of this pollution derive from synthetic textile and car’s tyres. And other than industrial processing; these micro-plastics also enter into the water in everyday home wash and driving. As per study, a new fleece jacket release 1.7 grams of microfibers on each home wash. And polluting content quantity would be double in case of old jacket. This polluted water with microfibers (which is more harmful than micro plastics) directly affect the sea world. These microfibers absorb chemicals and penetrate into animal tissues in a high quantity.

The pollution rate of micro-plastic and microfibers varies country to country. As per recent research on fishes of Indonesia and America, the Indonesian fish was more contaminated with plastic whereas the American fish was infected with microfibers. In few countries car’s tyres causes the main pollution of micro plastics. Whereas, in other continents, synthetic textile is the main reason of micro-plastic pollution.

Water Saving Measures:

Keeping in view the present scenario, we should be more careful about the main causes of microfibers and micro-plastics pollution. And for this, we should make such clothes which uses high quality of natural fibers. We should change our washing instruments by adding washing bag and filters so that it can stop the debris and other fabric fibers.

For industrial processing, the Control Union (CU) issued new standard named Global Recycle Standard (GRS) for wastewater and chemicals. As per the standards, the wastewater treatment and chemical (sustainable chemical) usage should be in accordance with GOTS and Oekotex 100 standards.  The certification and installation cost of water treatment plant is high so small business normally owners avoid to do this. So, here the Govt. should take some productive measures and combine the industrial units at one place. In this way, they can share the combine water treatment plant and other mutual benefits for cost savings. Furthermore, the Govt. should take measures to promote the “World Water Day” (22nd March) theme (“Why Waste Water”). So, that everyone should know the importance of this valuable natural resource.