Coats Digital recently announced that Viet Vuong Trading Co. Ltd. – a Vietnamese apparel manufacturer – has reduced its fabric wastage to under 2 per cent, resulting in fabric cost savings of almost 3 per cent as a result of implementing Coats Digital’s IntelloCut solution.
The implementation has also made Viet Vuong witness 1.13 per cent Bill of Material (BOM) savings.
Located in Ho Chi Minh, Viet Vuong has three factories and 50 production lines, employing over 3,700 people. The company produces over 3 million jackets and trousers per annum.
According to Coats Digital, Viet Vuong is committed to delivering sustainable manufacturing processes wherever possible, and reducing its fabric wastage to zero is a top priority.
Click here to read a detailed Case Study of Viet Vuong implementing Coats Digital’s Intellocut
Prior to implementing IntelloCut, Viet Vuong used Excel spreadsheets to assess and monitor its fabric costing and utilisation processes. This manually executed operation resulted in limited visibility into accurate fabric consumption calculations and unnecessary wastage due to a lack of available data regarding material usage on the production floor.
“Before IntelloCut, all the cutting data was spread between disconnected spreadsheets and e-mails, so it was difficult to compile the data to analyse key trends related to fabric consumption and wastage. With IntelloCut, we have gained visibility over the entire cutting floor and through the intuitive real-time reports on fabric performance, we now have the ability to make data-backed decisions to optimise fabric utilisation, reduce wastage and ultimately support the sustainable growth of our business,” commented CEO, Viet Vuong Trading Co. Ltd.
With no robust method in place to provide an accurate breakdown of fabric wastage, the management team at Viet Vuong found it difficult to make informed business decisions about how much fabric to buy to fulfil orders.
If the company purchased more fabric than it needed, it would lose profit from dead stock; and if it bought less than was actually required, it would lose profit by having to buy in more material at its own expense, as these additional costs had not been factored into initial customer quotes.
“IntelloCut helped us to establish an efficient fabric planning and cutting process by providing fast and accurate cutting execution plans as well as effective fabric tracking and real-time reporting of the cutting floor. This has allowed us to eliminate error-prone manual processes, saving us a huge amount of time and effort,” added CEO of the company.
Following the implementation of IntelloCut, Viet Vuong could experience the full visibility and tracking of fabric consumption and wastage it needed to make factual data-based decisions about the fabric it purchased and how it was utilised.
The solution increased production efficiencies which meant shorter lead times for customers, but also greatly reduced the time and effort planning teams required to create capacity forecasts, freeing up more time to enhance customer satisfaction objectives overall.
Tan Demir, Associate Manager, Coats Digital, mentioned, “It is great news that Viet Vuong has achieved such significant results since the implementation of IntelloCut. The solution has not only increased Viet Vuong’s profitability, but also helped it realise a few of its ambitious sustainability targets, by reducing fabric waste and operational costs, which are all factors that increasingly become uppermost in the minds of more discerning consumers.”