Before the rapid development of technology, the story of digital transformation has become a global trend, we are also well aware of the goals and benefits that digital transformation brings. However, there are still many textile and garment enterprises facing the problem of digital transformation to make them more sustainable and more suitable for their businesses. So what are the barriers in digital transformation of the garment industry? What is the solution to overcome that barrier? Let’s find out with Retex in the article below.
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Barriers of SMEs in digital transformation
Cost of digital transformation
Finance is often a barrier for small and medium-sized businesses, but the crux of this problem is not properly identifying the “pain” that needs to be solved. If the problems and problems encountered by businesses cannot be found, it will be difficult to apply technology to the process of managing and operating the system. When the starting point is not accurate, the business’s digital transformation process will deviate. That is also one of the reasons why SMEs in general and SMEs in the textile and garment industry in particular often choose to stay out of the national story of economic development.
According to a survey by the Association of Information Technology Software and Services (Vinasa), only 15% of businesses are implementing digital transformation activities. In which, 99% of SMEs have difficulty in capital, so they often consider digital transformation as the “playground” of the big guys. According to statistics of the Vietnam Confederation of Commerce and Industry (VCCI) 2020 also show that the cost of applying technology is the biggest barrier for SMEs, accounting for 59.8%.
Wrong thinking about digital transformation
Because of financial problems, many businesses have been deploying gear shifting sporadically (for example, only in the planning department or the sewing/cutting department…) and businesses think this is the ways to optimize costs. After solving the problems in each department, enterprises cannot connect these systems together to form a complete process and operation in the digital environment. Therefore, the implementation process faces many difficulties because digital transformation is only a problem of a few specific departments or departments, rather than a general problem of an organization.
This not only costs businesses too much, but also inefficiencies. From there, making businesses no longer motivated to build digital transformation in the future.
>>>> Explore more: Implementation of Lean Manufacturing in Garments Factory
To overcome this, small and medium enterprises can deploy according to the process: To advance, digitize the entire process and apply technology to monitor and verify the feasibility of the process, and data the results. get. Next, improve and upgrade the operation of the business. This is a process that has been consulted by leading experts in the textile industry in Vietnam – Mr. Vu Duc Giang (President of Vietnam Textile and Apparel Association – Vitas).
Digitize the entire production process
Digitizing the entire process in just one system, both saves costs and helps operators easily see the full picture of the production process. Digital transformation can only be done properly when businesses digitize the entire process, and combine IoTs devices to control and evaluate the feasibility.
At this stage, businesses should only deploy basic features in each department, as well as use IoTs devices that are not too expensive to match the business’s finances.
Digital technology improvement
After the digitization phase, managers can evaluate the effectiveness of digital transformation and see the growth of the business. From there, improve technology, upgrade IoTs devices (sensors, buttons to count finished products, ..) to expand and become a big business.
Small and medium-sized enterprises have an advantage in digital transformation because of their small size, workload, and less cumbersome human resource system, accordingly, the application of management software is also convenient and fast and less risky.
Success story: Thien An Phuc’s digital lean factory
In early 2022, Thien An Phuc (Hue City) – A medium-sized enterprise with about 500 workers has implemented digital transformation. Up to now, the efficiency has been clearly seen, such as convenient, fast and accurate data retrieval; improving the working efficiency of workers and expect to increase in the coming time. With this innovation, Thien An Phuc has also continuously improved in the organization and has a digital transformation strategy for the remaining 3 garment factories in Hue by the end of this year, thereby enhancing its position in the textile and garment manufacturing industry number.
Digital transformation is an inevitable process, having a significant impact on the activities of businesses, especially Vietnamese garment enterprises. With the desire to take advantage of opportunities and limit the difficulties that the transformation creates for textile and garment SMEs, Retex – Lean production management platform was born with the aim of supporting textile enterprises to maximize their benefits. excellence in management, transparency in the production process. Thereby saving costs, reducing workload and improving production capacity.