In order to compete globally, companies must make significant changes to production processes, aware of the needs of customers in terms of quality, reliability, product diversity, innovation and timeliness of deliveries. This does not mean sacrificing profit: profitability should be maintained if you want to compete with continuity and success. The cost, thus intended, becomes a basic element for defining corporate strategies. The cost management should therefore be included in the information system, thus allowing the determination of the results for:

Product (yarns / fabrics / accessories / garments)
Activity area (sales area / cost centers)

From the side of:

Technical-accounting (measure of efficiency)
Technical -organizational (measure of effectiveness)
Strategic (management of the competitive position)

Another important aspect is to use advanced computing systems that allow to differentiate the cost per unit of product and per lot / chain / load size, both in terms of variable costs than fixed costs.
Dot.COST allows the management of costs of the entire textile chain: raw materials, yarns, fabrics, accessories and garments.
The considerable potential of the software is mainly due to an analysis designed specifically for the textile industry.
Direct costing and Activity Based Costing
The system allows the calculation of costs, differentiated by variable / fixed (direct costing) and to charge them with the ABC technique (Activity Based Costing), through the organization of drivers specifically designed on the company model for the calculation of worker and machine time, with the aim of determining the industrial cost. These methods provide:

Efficiency. Technological variable that refers to direct resources that have been used (raw materials, labor and energy) in relation to the used technology. The proposed system manages and distinguish these resources by product and by cost center, based on the work cycle, the size of the different production batches, the specific costs related to auxiliaries / dyes, the external workings.

Effectiveness. It is an organizational variable that determines the capacity to produce a suitable and convenient effect in every single management operation. In an increasingly complex situation in the textile, and that changes ever more rapidly, companies must adapt their management and direction system.

Strategy. We refer to some of the considerations needed for proper cost allocation:

  • Budget per season, article, client
  • Reference to a normal production volume
  • Cost of sample book and allocation criteria
  • Fixed costs and allocation criteria (by mt / % / mixed)
  • Financial charges
  • Targets on a man / machine resources.