Management strategies for the reduction of production costs in the apparel industry

Abstract

Production costs, essential for determining profitability and setting appropriate prices, are important for companies seeking to optimize their resources. This study analyzes how small and medium-sized enterprises (SMEs) in the apparel industry in Cuenca, Ecuador, face the challenge of reducing costs without sacrificing quality. The objective is to design management strategies to reduce costs while maintaining product quality. A qualitative-quantitative approach was applied, using analytical-synthetic and inductive-deductive methods to analyze data obtained through surveys of 28 companies in the sector. The approach allowed us to identify patterns in costs and current practices, facilitating a comprehensive understanding of the factors affecting profitability and efficiency in the industry. The results indicate that high costs stem from expensive raw materials and inefficient processes. Suggested strategies include seeking cheaper suppliers and automating processes. It is concluded that the implementation of modern, integrated cost management is necessary to improve the competitiveness and sustainability of textile companies in Cuenca.