S&B Textiles, a garments manufacturing company with in-house Knitting, Dyeing, and Garments manufacturing units, was acquired by new management while operating at a loss. Dyeing, the most critical and cost-intensive unit, consumed large amounts of electricity, gas, dyes, and chemicals, accounting for a significant portion of production costs. In particular, dyes and chemicals, which have numerous varieties, shades, and quality levels, made up approximately 60% of dyeing costs. The previous cost management system was inefficient, relying on manual Excel-based calculations and a standalone accounting software that merely recorded expenses after receiving them from the dyeing department. This system was prone to errors, delays, and a lack of real-time insight, resulting in significant cost leakages, discrepancies, and an inability to calculate precise costs for production.
