Cotton Club (BD) boosts profits with Coats Digital's GSDCost

Fibre2Fashion

23-04-2025

Coats Digital is delighted to announce that one of Bangladesh's leading garment manufacturers Cotton Club (bd) Ltd., has reduced the time it takes to produce its core styles by 25.6%, resulting in a productivity increase of 5% since its adoption of GSDCost in August 2021. The company has subsequently increased its profit margins by a staggering 0.45 million USD annually as a result of a 90 percent increase in costing accuracy; a reduction in material wastage of 10 percent; a decrease in unnecessary overtime costs of 8 percent and an increase in on-time delivery performance (OTDP) of 7 percent. The company has also been able to confidently take on more varied and complex, new order requests since the GSDCost implementation, whilst significantly enhancing customer loyalty at the same time.
Cotton Club (BD) Ltd boosted productivity by 5 per cent and improved SMVs by 25.6 per cent after adopting Coats Digital's GSDCost. With a 90 per cent increase in costing accuracy, it reduced overtime and material waste, raised OTDP by 7 per cent, and added ~$0.45 million to annual profits. The tool also enhanced communication, planning, and capacity to handle complex orders.
Founded in 2006, Cotton Club (BD) Ltd. is a premier composite garment manufacturer in Bangladesh, dedicated to delivering innovative, high-quality garments worldwide. The company operates a vertically integrated operation which includes all knitting, dyeing, cutting, printing, embroidery, and sewing & finishing processes. Cotton Club (bd) consists of four companies, including Cotton Clout (BD) Ltd., Tropical Knitex Ltd., and Cotton Clothing (BD) Ltd., which specialises in knitted items for all ages and underwear production. The company employments a 15,000 strong workforce, operates 6,800 sewing machines ,boosts an annual turnover of 268 million USD and is targeted to reach 300 million this fiscal year. Its customers include: Kiabi, Inditex Brands , Primark, Kontoor Brands, Kohls, Target USA, Ernsting Family, Bon Prix, Being Human and Forever 21, among many others.
In 2023, Cotton Club (BD) expanded its operations with a state-of-the-art seamless garment manufacturing facility in Gazipur, Bangladesh, to ensure stringent, quality control measures are applied at every stage of the manufacturing process to meet the highest possible standards. The 260,800 square feet manufacturing facility is consequently equipped with advanced technology, ensuring that it consistently meets the latest industry and environmental demands. As a result, it has achieved the following certificates and accreditations: BSCI, WRAP, SEDEX, SCAN, ICS, Better work, GOTS & OCS, GRS & RCS, European Flax, and is ISO 14001:2015, COC, LEED (Gold) Certified.
Before adopting GSDCost, Cotton Club (bd) Ltd. relied on outdated historical data spread across multiple Excel spreadsheets for cost and capacity forecasting. These manual processes made it difficult to update information in real time across costing, capacity planning, and manufacturing teams, leading to inefficiencies and costly errors.
Without accurate Standard Minute Values (SMVs) to determine Cost to Make (CM) production times, the company struggled with poor costing visibility and unreliable capacity planning. This often resulted in last-minute realisations that production floor capacity was insufficient, leading to missed delivery deadlines, increased overhead costs, and customer dissatisfaction. At the same time, the lack of accurate data caused Cotton Club to turn down new business opportunities, mistakenly believing it lacked the resources to fulfil them—when, in reality, it had the capacity to take on more orders. These challenges created significant workflow disruptions, making it difficult to manage short lead-time orders and maintain a smooth, efficient supply chain.
Md. Zubayer Mondol, Director & Owner, Cotton Club (bd) Ltd. said: 'Running a factory without accurate costing and capacity data is like flying blind. Before GSDCost, we relied on outdated spreadsheets that gave us no real-time visibility. We were making big decisions based on guesswork, which sometimes meant we turned away orders we could have handled or, worse, overcommitted and had to scramble to meet deadlines. This led to costly overtime, missed delivery dates, and frustrated customers. It was a constant struggle to balance efficiency with profitability."
Since adopting GSDCost, Cotton Club (bd)has seen significant improvements across its whole operation. By successfully establishing international standard time benchmarks based on standard motion codes and predetermined times, the sales, costing, planning and manufacturing teams at Cotton Club have been able to communicate seamlessly using the same language, based on a scientific method for correctly analysing manufacturing costs.
Md. Zubayer Mondol, Director & Owner, Cotton Club (bd) Ltd said: " Coats Digital's GSDCost Software has significantly improved the accuracy of our work measurement, ensuring that we can track projects with precision. Its features have streamlined our workflows, making operations more efficient. As a result, we've seen better cost control.'
Coats Digital's GSD Cost method analysis and pre-determined times solution is widely acknowledged as the de-facto international standard across the sewn products industry. The solution supports a more collaborative, transparent and sustainable supply chain, in which brands and manufacturers establish and optimise 'International Standard Time Benchmarks' using standard motion codes and predetermined times. This use of a common language and standards supports accurate cost prediction, fact-based negotiation, and a more efficient garment manufacturing process, while concurrently delivering on CSR commitments.
Golam Mahbub Sikder, Customer Success Manager, Coats Digital said: 'We are absolutely thrilled to see Cotton Club achieve such outstanding results with GSDCost. The company's remarkable improvements in efficiency, cost accuracy, and profitability highlight the vital role of scientifically backed, data-driven solutions in today's fashion industry. With growing pressure to produce complex styles faster while maintaining competitive pricing, manufacturers must embrace digital transformation to stay ahead. Cotton Club has done exactly that—enhancing capacity planning, streamlining costing, and boosting production efficiencies to become a more agile, competitive, and future-ready business. We are proud to be playing such an important role in Cotton Club (bd)'s digital transformation journey and look forward to supporting its continued success.'
Key Benefits and ROI for Cotton Club (bd) Ltd. Costing accuracy increased by 90%
Core style Improvement of SMVs of 25.6%
Increased productivity by 5%
Reduction in overtime costs of 8%
Reduction in material waste of 10%
Increase in OTDP by 7%
Annual profit increase of 0.25 million USD
Improved profit margin at product costing
Enhanced communication between management and team members
Increased team members' earning capacity with realistic productivity bonus system
Ability to deal with complex orders
Fact-based stable manufacturing costs Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (HU)