Vietnam’s Son Ha Garment JSC acquires GSDCost from Coats Digital
The implementation has significantly reduced unnecessary man-hours wasted on demanding and onerous manual tasks; improved on-time deliveries; Significantly increased production efficiency and ensured a fair wage can be negotiated into accurate and transparent cost estimates, Coats Digital said in a press release.
Coats Digital has announced that leading Vietnamese leisure and sportswear manufacturer Son Ha Garment Join Stock Company (JSC) has realized a 10 percent improvement in its Core Style Standard Minutes (SMV) values after implementing Coats Digital’s GSDCost is also on track to achieve an efficiency increase target of over 50 percent.
Son Ha Garment JSC was founded in 1969 and is based in Hanoi, Vietnam. It employs 3,400 people and exports 60 percent of its jackets, trousers, sportswear and T-shirts to the United States and 30 percent to the EU. His customers include Columbia Sportswear, Umbro, Walmart, Costco, Quicksilver, A&F, Kohl’s and Levi’s.
Prior to implementing Coats Digital’s GSDCost cost optimization solution, Son Ha suffered from poor data visibility, lost orders and complicated cost negotiations with customers as its costing, sourcing and planning processes were manually created and stored across multiple sources across 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 solely on historical experience and this information was not easily found by all team members who needed it. Not only did the lack of accurate cost data make it difficult to reach a final agreement with clients, but our analog approach meant we wasted hundreds of man-hours on unnecessary manual processes.”
Son Ha Garment needed a standardized solution that would accurately record SMVs through effective, digitized standard movement codes so that it could streamline its costing processes, improve manufacturing efficiencies, implement achievable performance targets to improve employee motivation and performance, and ultimately increase sales, to optimize its profitability.
Le Huu Phong added: “The results were fantastic. We have initially realized a productivity increase of 10 percent and expect this to increase to over 50 percent in the near future. It has made a huge difference to the company that our expense planning reports are fully digitized and all in one place. Our teams now have a single view that gives 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 a solid gender equality policy, employee well-being and fair wages, and the introduction of GSDCost has also meant that we can include fair wage in all of our new fact-based cost negotiations with our customers.
“We look forward to our future collaboration with Coats Digital. The experience has proven to be a very promising start on our digitization journey to improve our operations so we can effectively future-proof our business and ensure we remain at the forefront of the fashion manufacturing sector.”
Coats Digital’s GSDCost method analysis and fixed time solution is widely recognized as the international de facto standard in the sewing industry. The solution supports a more collaborative, transparent and sustainable supply chain in which brands and manufacturers set and optimize “International Standard Time Benchmarks” using standard motion codes and predetermined times. This use of a common language and standards supports accurate cost forecasting, fact-based negotiations and a more efficient apparel manufacturing process, while also meeting CSR commitments, the press release added.
Coats Digital’s enhanced feature of a globalized Fair Wage tool combines International Standard Time for each specific style with detailed factory efficiencies, contracted hours and the country’s fair living wage (data provided by the Fair Wage network). This additional tool enables brands and manufacturers to quickly agree on a fair wage allowance for a specific 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 implementing GSDCost. The textile and apparel industry is becoming increasingly competitive and under constant pressure to reduce costs while offering smaller orders with more style variations, fashion manufacturers can only stay ahead of the curve if they digitize their processes quickly. Standardizing SMV calculations is a surefire way to increase production efficiencies, introduce fact-based, stable cost negotiations, reduce overtime costs and material waste, while motivating employees with achievable performance targets and responding to more complicated job requirements in a timely manner. We look forward to the long-term partnership with Son Ha Garments JSC to ensure they are well-positioned to face a rapidly changing industry environment with greater certainty.”
Fiber2Fashion Newsdesk (KD)