Organisations need to concede that changes are happening and should acclimatise to them. Readiness is allied with change. Readiness is based on a subjective feeling or a perceived ability. Readiness tends to be conceptualised as a state where a person/organisation is assessed as ready or not ready. This paper highlights on importance of the readiness of organisation towards the knowledge management (KM) solution and a readiness assessment approach has been developed to access the readiness of people, process and technology before the adoption of KM. The element 'people' includes customers as a key member and the framework has developed with the perspective of customer relationship. A readiness assessment framework and approach for KM has been devised for a case study of textile machinery manufacturing organisation and it is also generalised for typical manufacturing industry of India.