SAFSA Inducts First VVFs and Gets Straight to Work

Posted on April 30, 2010 - 04:27 by admin

On April 19^th, 11 virtual vertical factories (VVFs) became the founding members of the Source ASEAN Full Service Alliance (SAFSA). A VVF consists of a garment factory and a textile mill who have agreed to work together under SAFSA to maximise efficiencies along the supply chain and offer a value-added full-service product to global customers. In August 2009, the ASEAN Economic Ministers recognised SAFSA as a benchmark project for ASEAN economic integration.

The SAFSA Selection Committee, comprised of Chief Delegates of the ASEAN Federation of Textile Industries (AFTEX), and the SAFSA Executive Committee, approved the 11 VVFs following a review of the applications and the SAFSA Service Audit results. Three additional VVFs susbsequently applied for SAFSA membership and are undergoing audits by SGS. If the audit results prove satisfactory, these three applicants will also be invited to join SAFSA, bringing the total number of members to 14.

The ACE project and the Indonesia Textile Association (API) hosted the inaugural SAFSA Virtual Vertical Factories (VVFs) meeting in Jakarta. Eighteen participants from 13 companies representing 10 VVFs attended the event—despite the venue being changed on short notice due to the political situation in Bangkok.

The meeting discussed important foundation issues, such as: Preparation for the first SAFSA Global Forum tentatively scheduled to take place in June in Singapore; SAFSA’s organizational structure; SAFSA’s corporate governance; SAFSA’s long-term sustainability; and ideas proposed by the founding VVFs. Some of the ideas put forward included developing SAFSA “Green Manufacturing” standards, the creation of an ASEAN export credit facility, and a regional textile and apparel training institution.

The meeting culminated in a formal SAFSA member induction ceremony during which each VVF was issued a membership certificate.

ACE Project Specialist Nuntana Tangwinit subsequently traveled to Hong Kong to participate in first ever meetings between SAFSA VVFs and an international buyer. Guess representatives Mr. Jeffrey Streader, Senior Vice President Global Sourcing and Ms. Kitty Ho, Vice President Strategic Sourcing met with five SAFSA VVF teams over four days. Guess committed to visiting the VVF factories in June and will attend the SAFSA Global Forum.