UK-based digital solutions company Coats Digital has announced that Odlo Romania SRL, which is the fashion manufacturing arm of leading sportswear brand, Odlo International AG, has 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.
Odlo has subsequently increased its profit margins; greatly improved on-time deliveries; enhanced team member motivation and earning potential; and been able to confidently take on significantly more new order requests as a result of the GSDCost implementation, according to a joint press release by Odlo and Coats Digital.
Following the implementation of GSDCost, Odlo was able to 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.
As a result, business units can now confidently and fairly negotiate product prices with customers, and a more succinct single view of overall CM costs has enabled Odlo to reduce its SMVs on core styles by 13 per cent and increase overall production efficiencies by 10 per cent.
“GSDCost has enabled us to efficiently establish accurate SMVs based on method engineering which has meant that we have significantly reduced our SMVs on core styles by 13 per cent and improved overall productivity by a whopping 10 per cent. This has not only saved us significant production costs, but also enabled us to confidently take on more new business based on realistic, yet competitive product costings,” stated De Silva.
Since the adoption of GSDCost, Odlo has additionally been able to introduce a popular productivity bonus system based on accurate CM measurements, which has helped build team members’ confidence in achieving realisable productivity goals that increase their earning potential.
The key benefits and ROI for Odlo Romania SRL are reduction in SMVs of 13 per cent; increased productivity by 10 per cent, improved profit margin at product costing; enhanced communication between management and team members; increased team members’ earning capacity with realistic productivity bonus system; improved ODTP; ability to deal with complex orders; and fact-based stable manufacturing costs.