About the Client
The client is a Fortune 500 American apparel brand. The apparel store offers a collection of high-end, luxury designer outfits.
Low levels of compliance associated with their purchase and requisition processes along with the limited ability to capture spend data further affected the American apparel store’s ability to achieve enterprise-wide spend visibility.
In addition, the lack of a centralized spend management system negatively impacted the organization’s bottom line. Due to many such factors, the American apparel store realized the need to transform its procurement functions into a centralized function with the help of SpendEdge’s advanced spend analysis solutions.
Continue reading to know how our solutions helped the client tackle the business challenges.
The solutions offered by our spend analysis experts suggested that the development of a centralized spend management system would help the American apparel manufacturing store to enhance their overall performance. Our solutions further helped the American apparel manufacturing store to streamline their spend data, thereby delivering $50 million in CapEx savings, which was equivalent to a 20% rise in their CapEx efficiency.
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Apparel Manufacturing Industry Overview
Demand for apparel is highly dependent on disposable income and the overall economic well-being of the region in consideration. Generally, over the past decade, the global apparel manufacturing industry has benefited from an increasing number of consumers opting to buy more garments at lower prices. This trend has been sustained by significant offshoring of apparel manufacturing from industry establishments in developed countries to developing economies, which has significantly lowered production costs, reducing the overall price of apparel and making apparel products increasingly affordable to an expanding consumer base.
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Such fluctuations in the apparel manufacturing industry pose significant challenges for suppliers in this sector. While a few apparel manufacturing industry players are well-equipped to handle these challenges, the others players in the apparel manufacturing industry have to adopt certain procurement best practices to increase their operational efficiency and reduce costs to preserve margins and maintain the reinvestment rates necessary for future growth.
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