Transforming strategic sourcing across Asia with EPG
Situation
A leading global copper mining company sourcing approximately USD 450 million annually from China wanted to strengthen its strategic sourcing capabilities across Asia. While procurement activities were already established internally, management believed greater commercial value could be achieved through a specialist organization with deeper sourcing expertise, stronger supplier networks and dedicated local execution.
Rather than continuing to manage sourcing internally, the company outsourced its entire sourcing organization in Asia to EPG. Acting as an integrated extension of the client’s global procurement team, EPG assumed responsibility for supplier management, strategic sourcing and procurement execution across critical categories.
Key challenges included:
• Maximizing commercial value across a large supplier base.
• Optimizing supplier strategies and procurement categories.
• Reducing purchasing costs while maintaining quality and supply continuity.
• Improving supplier performance and procurement governance.
• Increasing visibility into supplier cost structures and sourcing opportunities.
• Building a scalable sourcing organization capable of supporting global operations.
EPG Contribution
Operating as the client’s dedicated sourcing organization in Asia, EPG managed both strategic sourcing initiatives and day-to-day procurement execution across critical mining categories.
Key responsibilities included:
• Managing strategic sourcing across direct materials, industrial equipment and engineered components.
• Developing category strategies and optimizing the supplier portfolio.
• Consolidating purchasing volumes to increase commercial leverage.
• Conducting clean-sheet cost analysis, should-cost modelling and value engineering.
• Identifying, qualifying and developing new manufacturing partners.
• Negotiating pricing, commercial terms and long-term supply agreements.
• Driving supplier performance, quality improvements and continuous cost optimization.
• Delivering procurement analytics, market intelligence and category reporting.
• Acting as the client’s procurement organization across Asia.
Business Outcomes
By outsourcing its strategic sourcing organization to EPG, the client strengthened procurement capabilities, increased supplier competitiveness and established a scalable sourcing platform capable of delivering continuous commercial improvements.
Key outcomes included:
• 22% average reduction in unit purchasing costs across targeted sourcing categories.
• 60% reduction in sourcing operating costs through a more efficient procurement organization.
• Stronger supplier competition and increased commercial leverage.
• Optimized supplier portfolio through strategic supplier development.
• Greater value engineering and product cost optimization.
• Improved procurement transparency through clean-sheet cost analysis and category management.
• Enhanced supplier governance, sourcing execution and operational efficiency.
• A dedicated sourcing organization delivering measurable commercial value across Asia.
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 business results.
