Global powerhouse SAE-A adopts Coats Digital’s GSDCost to drive improved cost and production efficiencies around the globe
Across multiple subsidiaries spanning 10 countries, GSDCost has enabled SAE-A to create an accurate method standard for production to optimise processes, drive increased efficiency & productivity, and provide greater transparency around labour costs to actively support customers’ corporate social responsibility agendas
SEOUL, REPUBLIC OF KOREA and LONDON, UK – March 23 2022 – Coats Digital is delighted to announce that one of the largest apparel manufacturers in the world, SAE-A Trading Co. Ltd., has implemented Coats Digital’s GSDCost solution in all 41 of its production facilities, across ten countries. The solution will enable the company to establish international standard time benchmarks, based on accurate Standard Minute Values (SMVs), to optimise processes, drive increased efficiency and productivity across its entire workforce, and enable SAE-A to provide increased transparency around its global labour costs to support its own -and its brand partners’ social responsibility goals.
Established in 1986, SAE-A, is one of the world’s largest fashion manufactures, operating in Korea, the USA, Indonesia, Vietnam, Guatemala, Nicaragua, Cambodia, Myanmar, Haiti and Costa Rica, and is headquartered in Seoul. From yarn-production through its fabric mills to retail operations in Korea, SAE-A continues to invest in technology and new innovation to become one of the few apparel manufactures able to capitalise on a complete vertical-integration of its supply chain. With a focus on high standards of quality and a first-in-class workforce, SAE-A is a key supplier to some of the world’s biggest retailers, including: Target, Walmart, Kohl’s, Gap, Mast and Carhartt. SAE-A holds itself to stringent environmental standards and actively supports sustainability, fair wages and educational/medical programmes across the local communities of its global operations.
Using complex time measurements based on time studies and historical data found in a myriad of Excel spreadsheets across its huge global enterprise, SAE-A needed a standardised solution that would accurately record SMVs through effective, standard motion digitised codes to optimise its costing processes in all territories of operation and significantly enhance global manufacturing efficiencies.
Travis Han, Manufacturing Excellence Team, SAE-A said: “As a result of the pandemic, there was increased pressure on the entire global sewing industry to secure new costing and buying schemes that were more accurate, increased efficiencies and facilitated greater transparency within the supply chain. SAE-A wanted to be ahead of the curve and ready for whatever the future might bring, so it was important that we had a common language embedded within all our global facilities to accutarely measure the actual Cost of Making (CM) each garment – factoring in varying fair living wage costs and machine efficacy across all our territories.
“Coats Digital’s GSDCost solution has the highest Predetermined Method-Time Standard (PMTS) reliability in the world, and its robust, systematic training programme, with expert instructors is second to none. In short, we wouldn’t have chosen any other provider. Our process of digital transformation was fast and effective – even during adverse conditions, such as social distancing and immigration restrictions for foreigners – and the Coats Digital team’s flexible approach and determination enabled the solution to be rolled out on schedule”, added Travis Han, Manufacturing Excellence Team, SAE-A.
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. 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.
Tan Demir, Associate Manager, Coats Digital commented: “We are delighted to be partnering with such a forward-thinking apparel manufacturer on the global stage. SAE-A has been quick to innovate and respond to the growing imperative for the fashion industry to digitally transform manual processes in order to mitigate risk and foster greater visibility and collaboartion with customers and supply chain partners alike. SAE-A now has the tools it needs to set meaningful targets based on fact-based capacity data, which will ultimately provide significant cost and waste reduction efficiences that brands and consumers increasingly demand, and we look forward to ensuring SAE-A continues to remain ahead of the game in a volatile and highly competitive environment.”