Fashion Retail
Procurement outsourcing did much more than just cut costs for a fashion retailer
Situation
A European fashion retailer sourcing more than USD 12 million annually from China wanted to improve profitability, strengthen supplier performance and expand its product assortment. Although the company had an established sourcing operation, it lacked the internal procurement capabilities required to fully capture the value of its China supply chain.
Key challenges included:
• Procurement cost reduction targets were not being achieved.
• Limited procurement resources and local expertise in China.
• Supplier management focused on execution rather than long-term development.
• Product development, merchandising and production required stronger coordination.
• Limited procurement visibility and commercial control.
• Procurement was not operating as a strategic driver of business performance.
To accelerate its procurement transformation, the company appointed EPG as its dedicated procurement organization in China, integrating operational execution with strategic procurement leadership.
EPG Contribution
Operating as an extension of the client’s procurement organization, EPG assumed responsibility for both daily procurement operations and long-term supplier development.
Key initiatives included:
• Managing the complete merchandising process from product development through production and shipment.
• Implementing strategic sourcing to strengthen supplier competition and expand the supplier base.
• Driving supplier development through structured performance management and governance.
• Supporting product development and design to improve commercial competitiveness.
• Implementing quality assurance through AQL inspections and production follow-up.
• Driving continuous procurement cost reductions through supplier negotiations and sourcing optimization.
• Increasing procurement transparency and end-to-end supply chain visibility.
• Supporting procurement strategy to improve scalability, resilience and long-term business performance.
Business Outcomes
By operating as the client’s procurement organization in China, EPG delivered significantly more than procurement savings. The engagement strengthened procurement capabilities, supplier performance and operational control while creating measurable financial improvements across the business.
Key outcomes included:
• USD 2 million in realized procurement cost reductions within the first 12 months.
• An additional USD 1 million in identified savings under implementation during the following six months.
• A stronger and more competitive supplier base through strategic sourcing and supplier development.
• Improved merchandising, product development and procurement execution.
• Increased procurement transparency, governance and commercial control.
• Higher EBITDA driven by sustainable purchasing cost reductions.
• A scalable procurement organization positioned to support future growth.
Client Confidentiality
To protect our clients’ commercial interests and confidentiality, company names have been omitted. All business cases are based on actual client engagements and measurable procurement results.
