Framework
EBITDA governance for apparel.
OpenCosting is a leadership framework that moves margin decisions earlier, makes assumptions auditable, and reduces volatility that drags valuation discussions.
What leaders get
- A single decision window for EBITDA drivers
- Clear economic intent before complexity compounds
- Earlier exposure of drivers and assumptions
- A gate before irreversibility becomes policy
- Variance attribution that updates the model, not the narrative
The OpenCosting Control Loop
Operating logic
Where to start (Pareto)
Get facts from where production happens. Start with the ~20% of suppliers that drive ~80% of volume, map sub-suppliers, surface hidden costs, and normalize assumptions. What you don’t see, you can’t improve.
1) EBITDA Guardrails
Set the economic rules leadership will defend: margin floor, volatility budget, and a ceiling on complexity cost. These are finance constraints, not aspirations.
2) Unit Economics Forecast
Surface the drivers and assumptions early enough to change the decision. The standard is sensitivities and directional truth—while leverage still exists.
3) Commitment Gate
Before PO/minimums, lock the economics you’re underwriting. If leadership can’t state what is economically fixed, it can’t credibly govern outcomes.
4) EBITDA Bridge
Decompose plan vs actual by driver and update assumptions. The output is a tighter model and tighter governance—not a better explanation.
Cadence
Weekly
- Exposure review against economic intent
- Exceptions escalated as governance, not noise
Monthly
- Irreversibility gates before commitments
- Complexity boundaries enforced
Quarterly
- Variance attribution and assumption refresh
- Intent reset tied to valuation logic