Procurement that strengthened business performance
Situation
A global apparel company sourcing more than USD 15 million annually from China faced increasing cost pressure across knitwear, woven wear and outerwear. Despite significant purchasing volumes, the company had been unable to achieve its procurement cost reduction target of USD 3 million due to limited internal sourcing capabilities, fragmented supplier management and a lack of procurement resources on the ground in China.
To strengthen its sourcing organization and improve commercial performance, the company partnered with EPG as its dedicated procurement organization in China, responsible for both day-to-day procurement operations and long-term sourcing strategy.
EPG Contribution
• Managed the complete merchandising process from product development through production and final delivery.
• Implemented strategic sourcing and category management across knitwear, woven wear and outerwear.
• Established a supplier segmentation and governance model aligned with the client’s sourcing strategy.
• Led supplier negotiations and continuous procurement cost reduction initiatives.
• Implemented quality assurance procedures, including AQL 2.5 inspections and CSR compliance.
• Increased supply chain transparency through end-to-end supplier management and operational reporting.
• Strengthened strategic supplier relationships to improve collaboration, responsiveness and commercial performance.
• Managed supplier contracts and procurement operations as an integrated extension of the client’s purchasing organization.
Business Outcomes
Operating as the client’s procurement organization in China, EPG transformed procurement into a stronger commercial function that delivered measurable financial results while improving supplier performance and long-term sourcing capability.
Key outcomes included:
• More than USD 3 million in verified procurement savings delivered within 11 months.
• Procurement cost reductions achieved across knitwear, woven wear and outerwear product categories.
• Improved supplier governance and greater commercial leverage through structured sourcing and negotiations.
• Increased procurement transparency and end-to-end supply chain visibility.
• Higher EBITDA driven by sustainable purchasing cost reductions.
• A new long-term procurement strategy implemented to support continued business growth and scalability.
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
