Leading Vietnamese garment manufacturer BAC Giang LGG Garment Corporation (LGG) is in the process of implementing the Coats Digital GSDCost solution.

It will establish international standard time benchmarks based on accurate standard minute values (SMVs) that will provide the foundation to optimise processes and drive increased efficiency and productivity across its factories.

The solution will also enable the company to forge stronger relationships with its customers through greater transparency around labour costs, thanks to GSDCost’s incorporated fair wage tool.

Established in 1972, in the Lang Giang district of Bac Giang Province, Vietnam, LGG produces over 28 million jackets and trousers a year.

The company has six factories across the region, and employs 6,800 people. Customers include Uniqlo, Walmart, Gap, Target and Bosideng. With strong values around community building, promoting fair wages and protecting the ecological environment, LGG has already employed a number of initiatives to increase its value to brands, such as the installation of three-story 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 needed a standardised solution that would accurately record SMV through effective, standard motion digitised codes to optimise the costing process and significantly enhance manufacturing efficiencies.

Pressure

“The textile and apparel industry is becoming increasingly more competitive and we are all under pressure to lower costs effectively,” said LGG CEO Luu Chung. “To do this, however, we need to realise a high level of standardisation. GSDCost will certainly help us achieve this, by standardising our SMV calculation and costing processes. In parallel, we expect GSDCost to deliver improvements of at least 5% in production efficiency, to give us a truly competitive edge.”

With plans to also increase its free on board (FOB) production manufacturing, with price quotes to include all shipping and delivery costs, LGG wanted to additionally enhance the information it shared with customers by showcasing its fair labour wage policy across its factories.

The GSDCost method analysis and pre-determined times solution is widely acknowledged as the de-facto international standard across the sewn products industry. It 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 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. This enables brands and manufacturers to quickly agree the fair living wage allowance for any given garment, in any factory in the world.

www.coatsdigital.com