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Bangladesh's Cotton Club boosts profits by $0.45 million annually using Coats Digital's GSDCost

 

Cotton Club (BD) Ltd, one of Bangladesh’s leading garment manufacturers, has reported major operational improvements and a rise in profitability after implementing Coats Digital’s GSDCost solution in August 2021. The company has reduced the production time of its core styles by 25.6 per cent, increasing overall productivity by 5 per cent and driving an annual profit gain of $0.45 million. These gains are largely attributed to a 90 per cent improvement in costing accuracy, which also helped reduce material waste by 10 per cent, cut unnecessary overtime by 8 per cent, and improve on-time delivery performance by 7 per cent.

Before adopting GSDCost, Cotton Club struggled with inefficient processes relying on outdated spreadsheets and disconnected data. This made it difficult for the company to maintain visibility across its cost and capacity forecasting systems, often resulting in poor decision-making, missed deadlines, and lost business opportunities. With no accurate Standard Minute Values (SMVs), the manufacturer faced serious challenges in calculating precise production costs and efficiently managing capacity.

Since integrating GSDCost, Cotton Club has been able to establish international standard time benchmarks across departments using predetermined times and standard motion codes. This transformation has allowed its sales, costing, planning, and production teams to collaborate effectively using a unified method to analyse manufacturing costs. The digital upgrade has also helped the company take on more complex and diverse orders with confidence, improving customer satisfaction and strengthening brand loyalty.

Founded in 2006, Cotton Club operates a vertically integrated manufacturing operation, covering knitting, dyeing, cutting, printing, embroidery, and sewing. The company comprises four entities including Cotton Clout (BD) Ltd, Tropical Knitex Ltd, and Cotton Clothing (BD) Ltd, and focuses on producing knitted garments and underwear for global brands. With a workforce of 15,000 and 6,800 sewing machines, Cotton Club reported an annual turnover of $268 million, with a target to reach $300 million this fiscal year.

In 2023, the company expanded with a modern seamless garment production facility in Gazipur. Spanning 260,800 square feet, the facility is equipped with advanced technology to uphold strict quality and environmental standards. Cotton Club holds multiple certifications, including BSCI, WRAP, SEDEX, GOTS, GRS, ISO 14001:2015, and LEED Gold.

Md. Zubayer Mondol, Director and Owner of Cotton Club (BD) Ltd., credited GSDCost with helping the company take a scientific approach to cost control and performance tracking. Coats Digital’s Customer Success Manager, Golam Mahbub Sikder, praised the company for embracing digital transformation to stay competitive and future-ready in a fast-evolving industry.

 
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