The implementation of the internationally recognised Standard Minute Value benchmark, GSDCost, has also resulted in increased order visibility, enhanced productivity performance, improved on-time deliveries and a fair wage being factored into all cost negotiations with customers.
Prior to implementing Coats Digital’s cost optimisation solution, GSDCost, Son Ha Garment JSC suffered poor data visibility, lost purchase orders and complicated cost negotiations with customers due to the fact that its cost, sourcing and planning processes were manually created and stored across a variety of sources within different departments.
The company found that its capacity and cost planning reports were often inaccurate because data was based purely on historical experiences and the information was not easy to find by all members of the team who needed it. The lack of accurate costing data consequently, not only made it difficult to reach a definitive agreement with customers regarding order quotations, but its analogue approach also meant that it was wasting hundreds of people hours on unnecessary manual processes.
Son Ha Garment required a standardised solution that would accurately record SMVs through effective, standard motion digitised codes so it could optimise its costing processes, enhance manufacturing efficiencies, introduce achievable performance targets to improve staff motivation and performance, and ultimately increase sales to optimise its profitability.
Coats Digital’s GSDCost method analysis and pre-determined times solution is widely acknowledged as the de-facto international standard across the sewn products industry. The solution supports a more collaborative, transparent and sustainable supply chain, in which brands and manufacturers establish and optimise ‘International Standard Time Benchmarks’ using standard motion codes and predetermined times. This use of a common language and standards supports accurate cost prediction, fact-based negotiation, and a more efficient garment manufacturing process, while concurrently delivering on CSR commitments.
Coats Digital’s enhanced feature of a globalised Fair Wage Tool combines the international standard time for any given style, with detailed factory efficiencies, contracted hours and the fair living wage for the country (data provided by the Fair Wage Network). This added tool enables brands and manufacturers to quickly agree the fair living wage allowance for any given garment, in any factory in the world.
“The results have been fantastic. We have initially realised a 10% productivity performance increase, and expect this to elevate to over 50% in the near future. It has made a huge difference to the business having our cost planning reports fully digitised and all in one place. Our teams now have a single view providing 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 robust equality policies, employee wellbeing and fair wages, and the adoption of GSDCost has also meant that we can factor in a fair wage into all our new, fact-based cost negotiations with our customers. Le Huu Phong, CEO, Son Ha Garment Joint Stock Company
