01
Starting point
The product had been sold for about four years and an approved sample already existed.
Case study · Denim
About 25% denim cost reduction with a smaller factory
A case study in which acceptable quality and cost mattered more than factory scale.
−25%
A result from one specific project
This does not guarantee comparable savings in other categories. Outcomes depend on product, volume, specification and market conditions.
02
Assignment
Reduce product cost without a material loss of quality.
03
Criteria
Match the approved sample, maintain acceptable quality and improve unit economics.
04
Comparison
Most manufacturers could not reach the required cost.
05
Decision
A smaller factory offered terms aligned with the project priorities.
06
Trade-off
The factory could not provide financing or deferred payment.
07
Conclusion
Cost ranked above factory scale and financial flexibility in this assignment.
Define the criteria for your project
Compare manufacturers on one structure and make trade-offs visible.