Vietnam’s Ha Garment JSC Adopts Coats Digital’s GSDCoast
The implementation drastically reduced unnecessary working hours that were wasted on demanding and tedious manual tasks; improving on-time deliveries; significantly increased production efficiency and ensured fair wages can be negotiated within accurate and transparent cost proposals, Coats Digital said in a press release.
Coats Digital announced that as a result of the implementation of GSDCoast by Coats Digital, Vietnam’s leading leisure and sportswear manufacturer, Son Ha Garment Join Stock Company (JSC) achieved a 10% improvement in its Standard-Minute-Values (SMV) base style and is on target to achieve an efficiency improvement target of over 50%.
Founded in 1969 and located in Hanoi, Vietnam, Son Ha Garment JSC employs 3,400 people and exports 60% of its jackets, pants, sportswear and t-shirts to the US and 30% to the EU. . Its customers include Columbia Sportswear, Umbro, Walmart, Costco, Quicksilver, A&F, Kohl’s and Levi’s.
Prior to implementing Coats Digital’s cost optimization solution, GSDCost, Son Ha suffered from poor data visibility, lost purchase orders and complicated cost negotiations with customers because its cost processes , procurement and planning were created manually and stored on various sources within different departments.
Le Huu Phong, CEO, Son Ha Garment Joint Stock Company, said, “Our capacity and cost planning reports were often inaccurate because the data was based only on historical experiences and this information was not easily found by all team members who needed it. The lack of accurate cost data not only made it difficult to reach a final agreement with customers, but our analog approach also meant that we wasted hundreds of man hours on unnecessary manual processes. »
His Ha Garment needed a standardized solution that would accurately record SMVs through efficient standard motion digitized codes in order to optimize its costing processes, improve manufacturing efficiency, introduce achievable performance goals to improve staff motivation and performance and ultimately increase sales to optimize profitability. .
Le Huu Phong added, “The results were fantastic. We initially achieved a productivity performance increase of 10% and expect this to increase to over 50% in the near future. It made a huge difference for the company to have our cost planning reports fully digitized and all in one place. Our teams now have a single view giving them the access they need to make fast, informed business decisions based on accurate data, wherever they are. Son Ha Garment JSC is absolutely committed to strong equality policies, employee well-being and fair pay, and the adoption of GSDCost also means we can factor fair pay into all of our new labor negotiations. costs based on facts with our customers.
“We are excited about our future collaboration with Coats Digital. The experience proved to be a very promising start in our digitalization journey to improve our operation so that we can effectively future-proof our business and ensure that we remain a leader in the fashion manufacturing industry.
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 common language and standards allows for accurate cost forecasting, evidence-based negotiation and a more efficient garment manufacturing process, while meeting CSR commitments, the statement added.
Coats Digital’s enhanced feature of a globalized Fair Wage tool combines international standard time for a given style, with detailed factory efficiencies, contract hours and living wage for the country (data provided by the Fair Wage Network ). 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.
Patrick Chau, Customer Success Manager, Coats Digital, said, “We are absolutely delighted that Son Ha Garment JSC has achieved such amazing efficiency results after adopting GSDcost. The textile and apparel industry is becoming increasingly competitive and with constant pressure to reduce costs, while offering smaller orders with more style variations at the same time, the only way for manufacturers to One way to stay ahead is to quickly digitize their processes. . Standardizing SMV calculations is a surefire way to increase manufacturing efficiency, introduce stable, fact-based cost negotiations, reduce overtime costs and material waste, while incentivizing employees with achievable performance goals and responding quickly to more complex order requests. We look forward to partnering with Son Ha Garments JSC over the long term to ensure they are well positioned to adapt to a rapidly changing industry environment with greater certainty.
Fibre2Fashion (KD) News Desk