BAC Giang LGG Garment Corporation Adopts Coats Digital’s GSDCoost to Improve Production Efficiency and Strengthen Brand Partnerships
The introduction of GSDCost will allow LGG to create a precise method standard for production to optimize processes, increase efficiency and productivity and provide greater transparency regarding labor costs. work and its corporate social responsibility initiatives.
BAC GIANG, VIETNAM and LONDON, UK – March 30, 2022 – Coats Digital is delighted to announce that Vietnam’s leading clothing manufacturer, BAC Giang LGG Garment Corporation, is implementing its GSDCost solution, to establish international standard time benchmarks, based on accurate SMVs, which will provide the basis for optimizing processes and increasing efficiency and productivity in its factories. The solution will also allow the company to forge even stronger relationships with its customers through greater transparency on labor costs, thanks to GSDCost’s integrated fair wage tool.
Founded in 1972, in Lang Giang District of Bac Giang Province, Vietnam, LGG is one of the world’s leading manufacturers, producing over 28 million jackets and pants annually. The company has six factories in the region and employs 6,800 people. Clients include: Uniqlo, Walmart, Gap, Target and Bosideng. With strong values around building community, promoting fair wages and protecting the green environment, LGG has already rolled out a number of initiatives to increase its value with brands, such as the installation of 3-storey house systems, with central air conditioning based on European standards. .
Using complex time measurements based on time studies and historical data found in a myriad of Excel spreadsheets, LGG also needed a standardized solution that would accurately record SMV through efficient standard motion digitized codes. to optimize the costing process and greatly improve manufacturing efficiency.
Mr. Luu Chung, CEO, LGG, said: The textile and apparel industry is becoming increasingly competitive and we are all under pressure to effectively reduce costs. To do this, however, we must achieve a high level of standardization. GSDCost will certainly help us achieve this goal, by standardizing our processes for calculating and calculating SMV costs. At the same time, we expect GSDCost to deliver improvements of at least 5% in production efficiency, to give us a real competitive advantage. »
With plans to also increase its Free on Board (FOB) production manufacturing offerings, with quotes including all shipping and delivery charges, LGG wanted to further build the trust and transparency it shares with its customers, by presenting its policy of fair remuneration for work, through its factories.
Coats Digital’s GSD cost analysis method and pre-determined time solution is widely recognized as the de facto international standard in the sewn products industry. The solution supports a more collaborative, transparent and sustainable supply chain, in which brands and manufacturers establish and optimize “international standard time benchmarks” using standard movement codes and pre-determined times. This use of a common language and standards allows for accurate cost forecasting, fact-based negotiation and a more efficient garment manufacturing process, while meeting CSR commitments.
Coats Digital’s enhanced feature of a global fair wage tool, combines international standard time for a given style, with detailed factory efficiencies, contract hours and living wage for the country. This additional tool allows brands and manufacturers to quickly agree on the living wage allowance for a given garment, in any factory in the world.
Manjula Jeevananda, Project Manager, Coats Digital, said, “It is a great pleasure to partner with LGG on its journey of modernizing and digitizing business processes to provide enhanced services to its customers. As the fashion industry begins to recover from pandemic, recent research shows that nearly 50% of brands plan to shrink the size of their supplier base by up to 25%, in an effort to forge more exclusive and closer partnerships with top performers, automated manufacturers digitally with strong corporate social responsibility credentials. Using GSDCost will greatly help LGG capitalize on this trend, effectively sustaining its business efficiency and increasing the levels of transparency that brands and retailers are beginning to demand. .