Textile/ Garment Industry

After the 20th century, the garment industry gradually became a large-scale manufacturing industry. Moving from manual production (Costments are sewn according to the number of measurements per person at a rather expensive cost) to industrial production, serving the needs of the masses at a low cost. New clothing models are constantly born with styles, patterns, quality, diverse colors, and prices suitable for many different customer segments. The production stage continuously moves to a place with low production costs, from North America, Western Europe to Spain, then to Hong Kong, Taiwan, Korea, to China and transfer oil to South Asian countries and Latin America.

For Vietnam, the industry is the industry with the second largest export turnover in the country, which has made a large number of workers (more than 20% of the workers in the public sector and nearly 5% of the total labor force in the country). However, export turnover is mainly from FDI enterprises. FDI enterprises in the field of garment production, although only accounting for about 25% of the quantity, contribute to more than 60% of export turnover.

PRODUCTION PROCESS

In 2020, the total export turnover of textile and garment products reached about 35 billion USD, down 9.8% compared to 2019. In 2021, although Vietnam's socio-economic situation was greatly affected by the epidemic, most businesses in the industry had orders until the end of the third quarter and even by the end of the year. The reason for this recovery is that the demand for consumer goods in the main export markets of the US, the European Union (EU), Japan, etc. has increased significantly. Currently, textile and garment businesses have stable orders. Therefore, the target of reaching 40 billion USD of export turnover of the textile and garment industry in 2021 is completely positive.

However, in the way ahead, the textile industry is facing many challenges from the complex development of the epidemic. According to the Vietnam Textile and Garment Association, at least 45 textile and garment enterprises have had to suspend production since the Covid-19 outbreak again in May 2021. Factories are forced to stop operating under pressure to both "pay" production costs, and worry about the source of money to pay wages for workers, and then fear of compensating customers or having to change more expensive shipping methods to meet delivery time. Just 14-21 days of production suspension will directly affect the production plan for the whole year 2021.

Textile and garment enterprises produce or process mainly according to Orders/Contracts, so the monitoring process from the Business stage - Production planning - Preparation of production materials - Production statistics - Warehouse semi-finished products - finished products must be attached to Orders/Cons contracts.

For Sales Department:

• Calculate to build a Sample Order.
• Support to determine "Cost Price Estimate", which is the basis for making Price List for customers.
• Support the sales department to determine the delivery response time based on the factory's production capacity and production productivity for each product code.
• After signing the Order/Cont, it is necessary to manage the changes arising at the request of the customer.
• Track the production progress according to each order and the expected delivery time according to the actual production.

For the Purchasing Department:

• Support to determine the Purchase Plan to optimize inventory but still ensure full Materials for the Production Plan and reserve for the Sales Plan.
• Manage and balance materials to meet the regular fluctuations of the Production Plan.
• Determine the inventory cycle and turnover from time to time to make a suitable purchase plan.
• Support good control and evaluate the price fluctuation history of each type of Material to have suggestions for choosing a supplier that is suitable for the purchase demand with the best cost.
• Evaluate and rank Suppliers to make the right choice, bringing the best benefits to the company.
   

For Warehouse Management:

• Export - import - inventory management by batch, by location, by expiration date for raw materials and supplies with expiration date.
• Determine the appropriate maximum and minimum inventory.
• Control the export of materials/import of semi-finished products, finished products according to production orders.
• Manage the amount of available inventory according to Purchase Order and Production Order.
   

For Production Management:

• Actual Planning and Production associated with Orders/ Contracts.
• Batch Production Control, is the basis for tracking future production batches.
• Production requirements are often changed, so planning, preparation (personne, supplies, machinery,...) and production implementation must also be changed accordingly.
• Production Orders must be broken down to each stage with suitable production output based on the inventory balance of each Stage of Semi-Finished Products.
• Must be able to balance Materials for production, allowing the replacement of Materials at the time of Planning and being the basis for controlling Materials for Production later.
• Must support the Production Planning Department to make an automatic production plan based on the productivity of production resources (machinery/ labor/...) according to each spec of the product code according to the production stage.
• Good support for Quality work (QC) in production stages.
• Statistics of Production Results on the line at each stage of production and the actual Consumable Materials for each stage of production.
• The Planning Department can immediately track the production progress, the expected production progress based on actual production and the expected delivery time. Support the department to plan which scenario is suitable to meet the committed progress based on the actual situation (ortwer time, increase production resources,...).
   

For Machine and Equipment Management:

• Need to have a maintenance plan, maintenance of machinery and equipment.
• Plan and implement maintenance and maintenance in accordance with the production plan.
• Must anticipate the need for regular and unexpected materials to serve the periodic maintenance and repair, quickly fix unexpected machine failures.
• Must have a history of maintenance, maintenance, repair of machinery and equipment along with a list of suppliers of supplies, equipment, transaction history, price, delivery time,...
• It is necessary to have informational data about the operating hours of the machine,... to warn of the need for machine and equipment maintenance, prevent unexpected failures.
   

• Manage all potential and traditional customer information, allow marketing and advertising campaigns to be implemented according to company policies.
• Manage all care activities, exchange information - work, customer pursuit of the marketing - sales team. Help manage the calculation of Sample Orders, calculate the planned cost & expected delivery time to build a Price List according to customer requirements.
• Support the sales department to track the production progress according to each order managed and determine the delivery time based on the actual production to help increase the quality of customer service.
• Help manage all supplier information, transaction history, price, payment policy, delivery, product warranty service quality, supplier evaluation.
• Support the Purchasing Department to make a purchase and supply plan based on the company's general business & production plan. Help track and manage orders from the time of purchase to the time of return to the warehouse, quality inspection, warehouse.
• Support the Human Resources Department to manage all employee information, shifts, timekeeping, salary calculation, bonus, social insurance - health insurance, Personal Income Tax,... Establish, evaluate and monitor personal productivity targets (KPI) for each department, department.
• Support in building Sales - Purchasing - Supply - Production Plans.
• Automatic planning of production plans based on the production capacity of each production resource in the factory by the ability to determine the productivity of machinery/manpower/tools according to each product Spec in each stage.
• From the Production Plan according to order/contract (Make to order) or production into the warehouse (Make to stock), it is possible to instantly refer to the data on available inventory; ordered goods; goods on the way to the warehouse; semi-finished products (in stock; on the line),... calculate resources (Materials-Suppliance-Machinery-Workers-Time) to meet the production requirements of the order/contract or warehouse.
• Especially, production statistics in stages by mobile app, simple, easy to use, instant and accurate data, helping the Management Board to have "real time" aggregate data to make timely and correct decisions.
• All production - business data entered by departments and boards will be run to the Accounting - Finance Department to check, authenticate, calculate inventory, expenses, profit and loss, balance cash flow - income - expenditure, loans, investment, etc. to advise immediately when the Board of Directors needs reporting data.