Apparel Industry Management

Apparel Industry Management 3(3+0)

Lesson 36 : SA-8000 : A Vital Tool for Garment Industry

Benefits of Implementing SA 8000

It has been observed by Dr Kawta Rohitartana of Thammasat Business School that an apparel manufacturing unit in Vietnam after certification was able to increase capacity utilisation from 71.8 % to 87.6% and reduce overtime by 28% with simultaneous reduction in average cost of stitching a garment by around 11%. Further SA 8000 certified manufacturing facilities definitely enjoy a competitive advantage in getting the access in the global market through creating better corporate image .However there are other reasons also for why SA 8000 is getting increasing popularity at international level. Benefits of implementing SA 8000 are as follows:

Benefits for workers & trade unions:

• Enhanced opportunities to organise trade union s & bargain collectively.
• A tool to educate workers about core labour right.
• Less chance of accidents, better work environment leads to building of trust between workers & management.
• Increased stability of the jobs to the workers.

Benefits for the business:

• Enhanced company & brand reputation through adherence to this standard.
• Advantage in marketing the product globally, especially in Europe & America who are increasingly purchasing the products from socially responsible suppliers and manufacturers.
• Improved staff morale & creation of a more committed work force.
• Greater employee retention and less absenteeism.
• Better relationship with the unions & other stakeholder.
• Increased productivity due to employee's loyalty & commitment.
• Increased productivity leads to fewer overtime hours, lower overhead costs& lower production costs per piece.