Turning procurement into a competitive advantage
Situation
An international Electronics Manufacturing Services (EMS) company sourcing printed circuit boards (PCBs) from China wanted to strengthen its sourcing strategy, improve supplier competitiveness and significantly reduce purchasing costs. Existing supplier relationships had evolved over time, limiting commercial leverage and making it difficult to achieve the company’s procurement objectives.
Rather than relying on existing sourcing practices, the company partnered with EPG to redesign its supplier strategy and establish a more competitive, scalable sourcing model across China.
Key challenges included:
• Limited supplier competition within the existing supplier base.
• Insufficient commercial leverage during negotiations.
• Opportunities to optimize sourcing strategies and supplier selection.
• Need for stronger supplier governance and procurement transparency.
• Increasing pressure to reduce PCB purchasing costs while maintaining quality and delivery performance.
• Building a scalable sourcing platform to support future business growth.
EPG Contribution
Operating as an extension of the client’s procurement organization, EPG redesigned the sourcing strategy for PCB procurement while managing supplier identification, commercial negotiations and implementation.
Key responsibilities included:
• Mapping the existing supplier landscape and sourcing strategy.
• Identifying, evaluating and qualifying new PCB manufacturers across China.
• Managing RFIs, RFQs and competitive sourcing processes.
• Conducting supplier due diligence and commercial evaluations.
• Negotiating pricing, contracts and long-term commercial agreements.
• Benchmarking supplier performance and market competitiveness.
• Developing prioritized cost reduction initiatives and sourcing opportunities.
• Supporting implementation of the new supplier matrix and procurement strategy.
• Delivering continuous supplier management and procurement reporting.
Business Outcomes
By redesigning the supplier strategy and establishing a more competitive sourcing model, EPG helped the client strengthen procurement capabilities while delivering substantial commercial improvements.
Key outcomes included:
• More than USD 2.4 million in purchasing savings within 12 months.
• Savings generated from approximately USD 7.5 million in annual purchasing volume.
• Stronger supplier competition through an optimized supplier matrix.
• Improved commercial leverage and negotiation outcomes.
• Better procurement transparency and supplier benchmarking.
• Increased supplier performance and long-term sourcing flexibility.
• A scalable sourcing strategy supporting continued business 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 business results.
