The GSDCost solution will enable SAE-A to accurately measure the cost of making each garment, factoring in fair living wage costs and machine efficacy.
In addition, SAE-A will be able 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. The solution will also enable the company to provide increased transparency around its global labour costs to support its own, and its brand partners’ social responsibility goals.
Established in 1986, today SAE-A operates in Korea, the USA, Indonesia, Vietnam, Guatemala, Nicaragua, Cambodia, Myanmar, Haiti and Costa Rica, and is headquartered in Seoul. It is a key supplier to some of the world’s biggest retailers, including Target, Walmart, Kohl’s, Gap, Mast and Carhartt.
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
“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,” says Travis Han, manufacturing excellence team, SAE-A.
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“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 accurately 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 is the software business of industrial thread company Coats Group.
Tan Demir, associate manager, Coats Digital says: “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 collaboration 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 efficiencies 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.”
