Publication of Integrity Garment Supply Chain Innovation Platform of GDTEX & HIKARI

It is hereby certified that Integrity Garment Supply Chain Innovation Platform of GDTEX & HIKARI was officially established on March 15, 2013. This innovation platform and team have been constructed.

1.1 Background of Innovation Platform

For China’s textile industry in the background that the domestic labor and RMB constantly rise, the endurance of personnel engaged in textile with the high strength has declined, leading to constant decrease of personnel. And compared with the neighboring countries, such as Cambodia, Bangladesh, Indonesia and Vietnam which have low cost and currency exchange advantage, China's textile industry faces a big challenge. In such a premise, the president of Guangdong textile import and export Co., LTD. Yang Quanxing found the four major demands of customers and factories through research for many years. The four major demands of customers are to provide a competitive price, time delivery, to provide quality products and timely services. The four major demands of factories are long-term and stable orders, timely and accurate payment, order profit and anytime and anywhere help. Therefore, Integrity Garment Supply Chain Innovation Platform of GDTEX & HIKARI was established, which tailor for the customer’s supply chain system by cooperating with equipment suppliers, banks, export credit insurance companies, and so on , to meet the needs of customers and factories.

1.2 Mutual Agreement

Under introduction of Mr Wang Jianxin, GDT reached full consensus with HIKARI after several discussion. And the two parties decided to establish an innovation platform named “GDT-HIKARI Innovation Platform of Integrity” in terms of Technology, Management, Service, Quality, Execution, Sustainability, Social Compliance and Marketing. Also we have set up innovation bases in HIKARI, GDT head office, GDT Shanghai Branch and all factories.

1.3 Rules of Innovation Platform

Innovation conference is held once every two months, with six sessions in a year. The people who participate in the innovation activities include the innovation team of GDTEX, the innovation team of HIKARI and all people in upstream and downstream of the supply chain of GDTEX. Through establishing innovation platform assessment committee, the assessment committee members recommend several “innovation star” in technology, management and service, execution, quality, environmental protection, social responsibility, marketing innovation through assessment conference, and elects annual innovation award, annual popularity innovation star award, annual company innovation award and reward them each year, promoting and sharing through a variety of media. For example, Through newspaper column, it promotes innovation star, and in each session, after the meeting, the innovation wall will be set in the specific area in the company and factories, with promotion by the company's WeChat public account, official website and etc.

1.4 Collection of innovation suggestions and assessment procedure

1.5 Assessment committee

The members of GDTEX’s assessment committee: Yang Quanxing, Qiao Lu, Cheng Yijun, Huang Zhiqin, Hu Yonghua, Shao Linlin, Huang Jiani, Zhao Yulin, Du Ling, Hou Wensheng, Chen Yuewu, Huang Donghui, Wang Wenhua, Chen Zemin, Tan Hongbo, Xiong Weiwei, Zeng Wensheng, Deng Zhifa, He Huiqiu, Lai Shui, Lai Yuyan, Chen Weimin.
The members of HIKARI’s assessment committee: Wu Liangjie, Zhou Songming, Zhao Yong, Chen Xiaodong, Yu Youshan, Duan Xuedong. In addition, we also invite the supplier representatives of Guangdong Textile to attend the assessment committee, including Wang Xiao, Shao Haijian, Qian Deping, Lu Daju, Yue Tao, Zhen Jinhuan.

1.6 Innovation Segmentation

After Integrity Garment Supply Chain Innovation Platform of GDTEX & HIKARI was set up in March, 2013, the development of the platform is divided into four stage, shown in the figure.

Technology innovation: takes customer order as standard. It constitutes high-efficiency equipment group to provide more competitive price for customers and let the factory get profit.

Management innovation: currently, the innovation platform suppliers solve four major problems for customers through the construction of innovation platform: providing a competitive price, timely delivery, quality products, timely services; solve the four major problems for factories: long-term and stable orders, timely and accurate payment, order profit, anytime and anywhere help. Closely following innovation platform, the innovation execution team is set up within the company; under the condition of the market downturn, for the company order, it makes effective incentive mechanism to improve employees' enthusiasm and capacity, and the departments formulate related processes for effective implementation and unification of all advantages, etc.

Service innovation: mainly revolves around how we make customers and factories moved; through moving customers, we make new customers become old customers, make old customers become loyal customers; at the same time, by moving factories, we make new factory into old factory, eventually become loyal factory. Each staff is anxious for what the customer is anxious for, think of what the customer thinks of, constantly passing move.

Quality Innovation: quality is divided into three stages: product quality, mean value quality and innovation quality. At present, the suppliers on the innovation platform truly implement quality control, and are responsible for the customer through the rectification of products. In view of the customer order, the links that easily cause problems to quality in process are changed to avoid problems. Through making good use of production record and report in the process of each link, it can play a crucial role to improve quality.

Execution Innovation: each enterprise has a lot of rules and regulations, and these rules and regulations may not be always remembered by executives and low-level employees. The people of generation after 80s and 90s don't like being constraint. Based on the characteristics of such social changes, the enterprise’s basic law is made, to make each employee according write their own responsibilities and processes to each big customer. Through content improvement and convergence, the basic law has become intellectual property rights and treasure of the enterprise, and anyone’s leave will not influence the development of the company.

Sustainability innovation: in the current society, air pollution and water pollution are extremely serious; in such bad environment, Guangdong Textile and even the whole supply chain make use of propaganda environmental protection concept, and make its propaganda to the supply chain on how to use environmental protection material and fuel, to request sewage treatment facilities must be set up. Within the company, it advocates environmental protection electricity use, air conditioning, battery, green travel, walking to work, etc., so as to enhance everyone in the supply chain to set up environmental protection concept and behavior.

Social Compliance innovation: is divided into three levels, namely, harmony, sustainable development and care for vulnerable groups. From the first level, harmony first is personal harmony, namely, takes care of staff's health; it can take employee check-up, parent-child games and other activities to make employees keep physical and mental health good. Second, it is family harmony, inviting family members of employees to visit the company, so as to understand the nature of the work and pressure of employees and to offer support to employees. Third, it is team harmony. The mutual concern and care for each other makes the team atmosphere harmonious. Fourth, it is corporate harmony. The harmonious company can retain talent, and then achieve social harmony, ultimately achieve national harmony. From the second level, can namely, sustainable development, is embodied in the sustained growth of production capacity. The third level is care for vulnerable groups, to help poor children and people out of poverty to get rich, and get rid of pain.

Marketing innovation: our ancestors left a word "Confucianism". All marketing is developed to meet the needs of people; whether it is product features marketing, profit model, marketing, green marketing, cultural marketing, health marketing, training marketing, expanding marketing, all are around the needs of people. So marketing is one of the most important profit means and sources to get access to market; if there is no marketing, several major innovations mentioned above are all meaningless, so it is to implement company's marketing and profit to achieve the development of the company.

1.7 Execution Team of Innovation Platform

From each unit, it elects employees with the most innovation, organization, power and responsibility to bear to form the innovation personnel team. These staffs are also the main personnel to dock with the innovation service. Innovation platform informs innovation platform’ related conventions, regulations, policies and regulations, rules through innovation personnel. After years of development, innovation personnel have become the important channels of publicity in the eight areas of innovation platform (technology, management, service, quality, execution, Sustainability, Social Compliance, and marketing).

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