Purchasing in China: how EPSA cut a fashion giant's procurement costs by 40%
One of the four largest fashion retail groups in the world, with a global presence and supply chain network for eight fashion brands (Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque), has called on EPSA for supply chain and purchasing optimisation consultancy services.
In 2020, the customer identified the need to strengthen the stability of its global supply chain for plastic bags and to optimise its sourcing costs and quality control. As the majority of its supply chain resources are located in China, the project was entrusted to EPSA China for implementation.
Proposed solution :
EPSA has implemented a purchasing and supply chain optimisation strategy in China, focusing on the following actions:
- Market analysis: in-depth study of the plastic bag supplier market to identify optimisation opportunities.
- Sourcing new suppliers: Researching, selecting and implementing new suppliers who meet the customer’s strict standards, with a transparent competitive and negotiation process.
- Supplier qualification: Rigorous supplier qualification process based on the customer’s quality and reliability criteria.
- Supplier transfer management: Support in the transition process between old and new suppliers to ensure stability and continuity in the supply chain.
Transforming and optimising the supply chain
Since the project was launched, a number of significant benefits have been observed for the customer, including :
- Annual volume of purchases: USD 4 million.
- Reduction in direct procurement costs: A 40% reduction in the direct cost of purchasing plastic bags.
- Introduction of new suppliers: 6 new suppliers were integrated into the supply chain, improving competitiveness and diversity of supply sources.
- Supply chain stability: Significant improvement in the stability and resilience of the packaging materials supply chain, enabling better management of potential risks and disruptions.
The project to optimise direct supply costs for plastic bags enabled the client to achieve a substantial reduction in costs, while improving the stability of its global supply chain. Thanks to EPSA’s intervention, the customer was able to integrate new suppliers, optimise its sourcing and strengthen quality control, thereby contributing to more efficient and cost-effective management of its supply chain.
Share this article