We are strengthening supplier capabilities in efficient, closed-loop recycling technologies
Epic Group is a leading figure in the apparel industry, renowned for its journey from a prominent textiles trading house to a state-of-the-art manufacturing powerhouse with facilities in Bangladesh, Jordan, and Ethiopia since 2005. The company is committed to excellence, innovation, and sustainability in apparel manufacturing and design. In an interview with Fibre2Fashion, Executive Vice President, Global Procurement Peeyush Kumar discusses sourcing and procurement at the Epic Group.
How do global market trends and consumer preferences impact the sourcing and procurement strategies in the apparel industry?
Global market trends and consumer preferences have a significant impact on our sourcing and procurement strategies. We carefully monitor demand for sustainably-produced and ethically-sourced items and adapt our material sourcing accordingly. Our goal is to meet consumer expectations around environmental and social standards while ensuring transparency in entire supply chain.
What are the key challenges faced by apparel companies in ensuring ethical and sustainable sourcing of materials?
Key challenges in ensuring ethical and sustainable sourcing include verifying compliance across global supply chains, managing complex supplier networks, and achieving transparency. At our company, we address these challenges through a collaborative approach with suppliers.
Transparency is important to us, so we maintain full documentation of material movements from extraction to finished products. We also conduct regular third-party verifications to validate our processes.
Rather than solely auditing suppliers, we engage them as partners through training and capacity building programmes. This empowers suppliers to continuously improve their sustainability practices and environmental management systems on their own. We also promote collaboration across the supply chain on initiatives to reduce waste, increase efficiency, and conserve resources.
By conducting supplier assessments, we evaluate partners’ performance and ensure they meet our standards through support and resources. This collaborative framework allows us to drive progress while verifying compliance. Working with suppliers as stakeholders in our sustainability goals helps overcome challenges of global operations at multiple touchpoints.
How has the rise of digital technology and e-commerce influenced the procurement process and supply chain management in the apparel industry?
Digital technologies have significantly impacted procurement and supply chain management in ways that would have been difficult just a few years ago. For example, blockchain allows us real-time visibility into materials as they move between suppliers, factories, shipping ports and warehouses. This level of end-to-end transparency was not possible before.
Cloud-based ERP systems also connect our teams globally, streamlining processes like purchase order management and vendor rating. Where it once took days to collaborate on orders, we can now modify plans instantly based on demand signals.
Data analytics further optimises inventory predictions. By tracking sales trends and customer patterns via our e-commerce platforms, we more accurately forecast styles and sizes needed in each region. This reduces overstock by 30 per cent compared to five years ago.
Automation is another area where technology unleashes new efficiencies. At our largest distribution centre, wearable scanners and conveyor systems expedite fulfilment of online orders. What previously took a week can now be delivered to customers within two business days domestically or five internationally.
Together, these digital innovations empower faster and smarter operations throughout procurement, production and delivery. The result is higher customer satisfaction through more efficient and customised service.
What strategies do apparel companies employ to manage risks and maintain supply chain resilience, especially in the face of global disruptions such as pandemics or trade conflicts?
Maintaining supply chain resilience in the face of global disruptions requires proactive risk management strategies. We conduct thorough assessments to identify vulnerabilities across our supplier network and markets. This includes risks like single-source dependencies, quality issues, non-compliance, trade conflicts and pandemic-related shutdowns.
To mitigate these risks, we have diversified our global supplier base strategically. This reduces over-reliance on any one supplier or region. We also build flexibility into production planning to allow pivoting volumes between approved partners as needed.
We maintain dual-sourcing options and detailed contingency plans for each tier of our supply chain. These fallback strategies help secure critical materials and components even if primary suppliers face disruptions. Rigorous third-party auditing of lower-tier suppliers further bolsters our oversight capabilities.
Through these coordinated strategies, we can both identify and address potential disruptions before they severely impact our end-customers. Ongoing resilience planning and risk mitigation are thus cornerstones of our procurement functions.
How do apparel companies balance the need for cost-effective sourcing with the increasing demand for environmentally sustainable and socially responsible practices?
We prioritise long-term partnerships with strategically located suppliers that share our sustainability vision. Continuous education and incentives help suppliers scale up eco-friendly practices over time. Open communication also helps manage costs against rising stakeholder expectations.
Can you explain how Epic Group’s procurement strategies align with the company’s commitment to the ‘Relentless Pursuit of Better’ in terms of product quality and sustainability?
Our procurement strategies directly support Epic Group’s core commitment to the ‘Relentless Pursuit of Better’ through superior product quality and sustainability leadership.
When selecting suppliers, we evaluate credentials like Global Organic Textile Standard certifications, zero deficiency manufacturing, and fair trade accreditations. By 2025, we aim for 50 per cent of materials to originate from organic, recycled or upcycled textile waste sources.
We are currently piloting cutting-edge closed-loop initiatives like fabric recycling in partnership with suppliers. This transforms post-industrial and post-consumer cotton scraps into new fibres, setting the standard for true circularity.
Suppliers must also meet rigorous targets to power 30 per cent of operations through renewable energy by 2023. Through initiatives like these, we work to continuously strengthen our supply chain’s environmental performance.
Advanced traceability using blockchain gives customers assurance that our high standards are met throughout complex global supply networks. Open collaboration further drives continuous quality and sustainability progress, in line with our pursuit of better.
By actively managing procurement’s role in quality delivery and supply chain leadership, we empower relentless improvement that raises the bar for sustainable production in our industry.
How does your company ensure the ethical sourcing of materials and maintain high social and environmental standards in its supply chain?
We have robust social and environmental compliance programmes covering all suppliers and third-party audits. Training helps suppliers prevent issues and make continuous improvements towards our standards over time.
With facilities in Bangladesh, Jordan, and Ethiopia, how does Epic Group manage procurement challenges across different geographical regions?
Regional supply chain managers ensure suppliers and producers comply with all applicable social and environmental regulations. Standard operating procedures harmonized across regions along with centralised oversight and supplier development programmes help manage procurement challenges.
What role does technology play in Epic Group’s procurement processes, and how has it evolved over the years?
Technology is core to our procurement strategy with applications that digitise processes from supplier onboarding to tracking materials. AI and big data help us forecast demand accurately and optimise fabric utilisation to reduce waste. Blockchain will further increase transparency and traceability.
How does Epic Group’s New York design studio influence the procurement of materials and collaborate with your department?
Our NY design studio collaborates closely with procurement to conceptualise on-trend, high-quality products suitable for eco-friendly, ethical production. Sustainable material research, innovation and development happens jointly to translate designs into durable, versatile collections preferred by socially-conscious consumers.
Can you describe a significant challenge that Epic Group’s procurement department has faced and how it was overcome?
When the COVID-19 pandemic hit, it severely disrupted supply and demand across our industry. One major challenge was widespread supplier factory lockdowns in our key sourcing markets.
This caused unfinished inventory to back up at supplier warehouses due to halted production. At the same time, our customers cancelled orders due to stores closing, leaving us with excess finished goods inventory.
To help manage this crisis, we worked closely with suppliers to reallocate orders to regions reopening earlier. We also negotiated delayed payment terms and provided cash advances to prevent inventory from being dumped at distressed prices.
On the customer side, we offered inventory buybacks and provided extended payment windows. This freed up working capital while they dealt with their own challenges.
Through open communication and a shared commitment to long-term partnerships, we overcame what could have bankrupted some smaller suppliers. Our agile actions ensured the benefits of economic recovery were felt throughout the supply chain.
Navigating multifaceted pandemic-driven disruptions underscored the importance of resilient, collaborative relationships in procurement—a lesson that has prepared us for future disruptions.
How does your company measure and evaluate the performance of its suppliers, particularly in terms of meeting environmental sustainability targets?
We track supplier performance via an online scorecard system measuring compliance, waste reduction targets, living wage implementation etc. Feedback helps drive continuous improvements through corrective action plans and incentives. Third-party sustainability ratings/certifications also validate progress annually.
In what ways does the procurement department contribute to Epic Group’s goal of continuous improvement and innovation in manufacturing processes?
Procurement plays a vital role in Epic Group’s pursuit of relentless innovation. Through our Supplier Excellence Program, we prioritise partners committed to advancing sustainability and quality.
We incentivise early adoption of regenerative dyeing and zero liquid discharge systems that use less chemicals and water. Over 20 per cent of our materials budget goes towards suppliers piloting cutting-edge innovations annually.
Our experts also identify opportunity areas by scouting emerging fabrics at material libraries. Feedback from these explorations informs new collection briefs pushing design and manufacturability.
Supplier training funds help build internal R&D capabilities, as we view innovation as a collaborative exercise. We also educate our customers by providing insights into innovative materials and manufacturing technologies in development.
Measurable goals include redirecting 5 per cent of annual efficiency savings towards joint pilot projects. By integrating innovation throughout our processes, we continuously propel our network to higher standards.
We validate innovations through pilots before working with suppliers to scale programmes up for broader implementation. This Relentless Pursuit of Better drives industry-leading impact through procurement.
How do you balance cost, quality, and speed in procurement to meet the ever-changing demands of the fashion market?
Balancing cost, quality and speed remains an ongoing challenge in fashion’s fast-paced environment. To optimise these competing demands, we implement strategic sourcing initiatives and continuous process improvements.
Quality standards are rigorously defined through co-developed metrics tracking attributes like durability, fit and workmanship. Supplier report cards provide transparency to collaborate on enhancement areas.
Risk-mitigation strategies like dual sourcing and inventory placement give flexibility amid demand fluctuations. Minimum order quantities and quick turn prototypes further optimise speed.
Data-driven decision making is critical. Our digital supply chain utilises AI and machine learning to surface trends from historical sales and product lifecycle data. This insights-based approach supports dynamic reforecasting and replenishment cycles.
Strategic partnerships allow for proactive risk sharing through co-planning with select suppliers. Leveraging their production expertise and investment also achieves 5 per cent annual lead time reductions through joint process engineering.
By monitoring a balanced scorecard of cost, quality and lead indicators, and reinvesting 2 per cent savings annually into innovation, our procurement operations stay agile to changing fashion currents. This sustainably delivers value to both customers and suppliers.
What are Epic Group’s future plans or initiatives in procurement to further enhance its industry leadership and adherence to its triple bottom-line standards?
Looking ahead, we are strengthening supplier capabilities in efficient, closed-loop recycling technologies. Second-use opportunities for byproducts will be explored. AI-driven predictive analysis will help ‘mass customisation’ at scale to align to fast fashion trends sustainably. Driving renewable energy adoption industry-wide also remains a priority.
