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How Is Costing Done In The Garment Industry

Costing is done to
establish the financial feasibility of creating a given design within a defined
price range, which is acceptable to the target customer. Costing allows the
producer to identify the profit potential of the design, aiding in the decision
of whether or not a design should be taken into production.

Managing cost contributes to the profit-making
aspect of any business. It is also important to realize whether a business can
earn more than the total cost incurred. This benefit can also be passed on to
the customers in the form of competitive pricing. This can keep you ahead of
the competition in the global market.

How Bluekaktus Costing Module Helps Reduce Costs?

According to global researches, consumers will be
extremely price-conscious and thus, buyers will offer extremely competitive

Costs have to be rationalized in the post-COVID-19
world. There is no other option. There are mainly 2 activities involved in
garment manufacturing VA (Value added) and NVA (Non-Value added). VA activities
focus on any activity that a customer is willing to pay for. NVA activities
describe what the customer does not consider as adding value to his product
(E.g. waiting, inspection, etc.). The internal cost spent by a company and
savings made by reducing internal throughput time or rework or any type of
wastages are important for management to keep the industry economically in good

This is where the BlueKaktus Costing module comes
into play. BlueKaktus Costing module performs in-depth cost analysis based on
past and current data, provides intuitive suggestions, and significantly
automates the process of cost management. It holds the experience of various
stakeholders in the organization. By incorporating standard formats and
applying reverse costing, companies can automate the process of cost management
based on the data captured in the system. It provides easy decision-making and
builds cost-efficiency in the system.

Success in apparel manufacturing greatly depends
upon the ability to produce quality garments at competitive prices. Meeting
this goal requires special attention paid to cost and efficiency by garment
companies. This can get difficult if the firm does not possess the
technological expertise to tie together various systems.

BlueKaktus is a highly flexible and advanced
cloud-based solution that saves annual costs significantly. It allows control
and visibility into all crucial manufacturing processes within any company. Its
AI/ ML-based analytics results in intuitive solutions for the garment industry.

Benefits of Implementing Bluekaktus Costing Module

Here’s a quick glimpse of the benefits incurred by
our existing customers:

·5% to 7% savings due to real-time tracking and
proactive alerts

·Over 10% to 15% reduction in Inventory holding by
Supply Chain Optimization

·Lowers down the planning time by 60% to 70%
·Reduces Production Cost by 5-15% by Production
Efficiency Enhancer

·The central database brings down the cost
associated with setting up & maintaining multiple data centers

·Brings transparency in cost negotiation with 2-3%
savings on COGS

·Standardized Documentation & Reports
·Consistent Application of Costing Policies
·Provides archive for all the documents for easy

·Enables real-time collaboration of multiple

·Allows easy-to-use interface with direct data
entry or excel upload

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