In yet another interesting development, Coats Digital has announced that ODLO Romania S.R.L, the fashion manufacturing arm of leading sportswear brand ODLO International AG, has witnessed substantial results out of GSDCost implementation.
ODLO is said to have reduced the time it takes to produce its core styles by 13 per cent, resulting in a productivity increase of 10 per cent since its adoption of GSDCost in July 2021.
The GSDCost implementation has significantly increased the manufacturer’s profit margins; improved on-time deliveries; and enhanced team member motivation and earning potential.
Prior to implementing Coats Digital’s GSDCost solution, ODLO based its cost and capacity forecasts on inaccurate historical data stored in multiple Excel spreadsheets which were difficult to update in real-time across all costing, capacity planning and manufacturing teams.
As a result of inaccurate standard minute values (SMVs) regarding CM (Cost to Make) production times, poor costing and planning visibility, ODLO occasionally failed to meet on time delivery targets, which meant steep additional overhead costs and customer complaints due to the often-last-minute realisation that there was a lack of actual capacity available on the production floor.
Conversely, without accurate capacity planning and costing data, ODLO also found itself turning business orders away unnecessarily, when in fact it had sufficient capacity to easily fulfil new order requests.
Shortly after the adoption of GSDCost, ODLO undertook a rigorous GSDCost training programme, as reported by Coats Digital, so that relevant teams could gain a good theoretical understanding of GSDCost motion codes and standard core style sequences.
The on-site training and practical session helped to foster greater team buy-in to the change management programme required internally to get the project fully embedded across all relevant departments.
Sampath De Silva, Administrator, ODLO Romania S.R.L, commented: “Coats Digital’s expert trainers effectively demonstrated method engineering techniques practically at the shop floor level and our teams quickly understood the key principles by observing the actual motions in play. We have subsequently proven that GSDCost is not only a robust software tool, but also a valuable method engineering tool that can make a real difference to our business.”
Following the implementation of GSDCost, ODLO was also able to successfully establish international standard time benchmarks based on standard motion codes and predetermined times. This enabled the sales, costing, planning and manufacturing teams to communicate efficiently using the same language, based on a scientific method for correctly analysing manufacturing costs.
Sampath De Silva further added, “GSDCost has not only enhanced the communication and overall relationship between management and team workers, it has also motivated team members to greatly increase their earning capacity, through our Productivity Bonus Scheme, which is ultimately underpinned by sensible achievement targets.”
It’s worth noting here that GSDCost’s enhanced feature of a globalised Fair Wage Tool – with data provided by the Fair Wage Network – enables brands and manufacturers to quickly agree the fair living wage allowance for any given garment, in any factory in the world.
Harry Champaneri, Senior Consultant, Coats Digital, commented, “We are delighted that ODLO has achieved such amazing results since its adoption of GSDCost. The pressure on the textile and apparel industry to quickly produce more complex style orders in shorter runs, yet consistently offer competitive pricing, is intense. Only those that establish lean and smarter manufacturing processes via robust digitisation programmes will be able to meet the expectations of a more demanding consumer, and ODLO has done just that by improving capacity planning, costing processes, manufacturing efficiencies and ODTP to make it an agile and highly competitive business that’s ready for tomorrow.”
