Song Hong was established in Vietnam in 1988. Since then, it has grown into one of the country’s top 50 most stable companies in the Forbes Vietnam ranking system. Song Hong has 6 garment production factories, a padding production and quilting factory, a bedding production factory and various workshop factories.
With a production capacity of 4.5 million pieces of garment per month, Song Hong supplies to many famous brands and retailers such as Nike, Levi’s, Calvin Klein, DKNY, Colombia Sportswear and Walmart.
improvement in planned vs actual
reduction in planning time
reduction in reporting time
Song Hong identified several challenges and business pains to address which were having a negative impact on the business, including the ability to:
- Optimise the whole group capacity utilisation to achieve CRD (Customer Request Date).
- Improve productivity with better control of materials based on the production plan and reduce any last-minute changes.
- Reduce bottlenecks in cutting, seam seal and other value-adding processes.
- Reduce staff’s workload by improving speed and accuracy of communication, coordination and reporting.
Prior to the installation of FastReactPlan, communication and coordination between merchandising, planning and production was complicated, unwieldy and time-consuming. Multiple spreadsheets and numerous emails were necessary in order to identify problems and to understand the production status before the plan could be executed.
The critical business need was for the effective management of higher-order volumes of Song Hong’s diverse product mix, to enable the team to make realistic and efficient plans with clear visibility of issues.
It was also important that Song Hong’s future expansion plans were well planned and managed.
Song Hong utilised FastReactPlan’s detailed macro and micro capacity sewing planning boards to manage production capacities, and using the pull system principle, generate T&A target dates based on the production plan.
Song Hong Garment started implementing FastReactPlan in July 2019 and achieved production planning go live within 4 months for phase 1, which was conducted in Song Hong headquarters along with 2 factories in Nam Dinh city.
With the good discipline of the project team and involvement of senior management, Song Hong continued to complete phase 2 go live in 3 more factories in April 2019. The total project timeline took only 9 months to implement FastReactPlan in 5 factories.
“The Song Hong project team were very active and dedicated. The team accepted FastReactPlan from the project kick-off and actively explored what more could be achieved. As a result, the implementation was completed within 9 months.”Peter Ng, Professional Service Manager
“Planning and coordination are easier with FastReactPlan. It now takes only a few hours to create, review progress and adjust the plan. As a result, we have seen a 20% reduction in planning time which has given me the opportunity to focus on aligning all departments to ensure the plan is agreed upon and then achieved.”Nguyen Van Hung, Master Planner
Nguyen Van Hung, Master Planner, Song Hong, continued, “With FastReactPlan’s detailed line level planning board and the ability to consider other production processes, together with clear visibility of the weekly loading, ensures the sewing demand is achievable. This has resulted in a 7% increase in the plan versus actual.
“In addition, the T&A late and failure analysis provides an insight into the root cause of any issues, which we use to support our continuous improvement process. This facility also gave us a tool to negotiate with the buyers when discussing late deliveries attributed to issues within their own control.”
Nguyen Manh Tuong, Deputy General Director, Song Hong, said, “Management can get all the information needed from FastReactPlan without asking for reports from staff. By checking FastReactPlan’s Web KPI Dashboard, management can quickly and easily understand the current status of all factory’s capacity utilisation, forwarding planning, production and delivery status. It was difficult to get information to manage factory costs before we installed FastReactPlan, but now I can get key reports via the system which provides me with sewing line profitability and other necessary details.”
“FastReactPlan’s report generation tool has improved management’s time utilisation and we estimate that we have saved hundreds of man-hours per month because our report templates are now created inside the FastReactPlan system.”Bui Viet Quang, CEO
Bui Viet Quang, CEO, Song Hong, said, “Before the implementation of FastReactPlan, the planning process only assessed the sewing operation, but by using FastReactPlan, we are now able to monitor the capacities of other operations and their status. This has resulted in a more accurate and realistic plan for all departments, which improves customer satisfaction.
“With local Vietnamese consultants and the industry expertise of overseas Senior Project Managers, we have gained a lot of best practice recommendations from the experience of other projects. Availability of local support in the local language, who have been very quick to respond to user queries, has really helped us drive system usage.”
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