Skip to main content Skip to Footer

CLIENT CASE STUDY


Brandix: Transforming sourcing and procurement to drive competitiveness

Embedding leading capabilities and synergies into the operating model

Overview

Brandix is a leading apparel solutions provider with manufacturing facilities in Sri Lanka and other South Asian countries. Accenture Strategy and Brandix collaborated to transform the provider’s sourcing capabilities and improve its profitability. The program focused on several critical aspects including capital expenditure, packaging, services and indirect materials to help drive strategic cost reduction, define a new agile operating model, design leading processes and institutionalize effective capabilities in the Brandix team. Through its collaboration with Accenture Strategy, Brandix has achieved 5 to 40 percent cost savings across categories. The program effectively managed to help drive cost reduction and build a strong strategic sourcing capability through people, process and structural interventions to sustain the savings.

DOWNLOAD BRANDIX: TRANSFORMING SOURCING AND PROCUREMENT TO DRIVE COMPETITIVENESS [PDF]

Learn more about Accenture Strategy

"The project has significantly transformed sourcing at Brandix. The methodologies and best practices brought in by Accenture Strategy have become a way of life. We have realized the savings to the bottom-line. The project has set a new benchmark for transformation at Brandix in delivering tangible and intangible results."

Ajit Johnpillai

Director, Supply Chain & Logistics, Brandix

Opportunity

Brandix operates in a highly-competitive global apparel supply chain characterized by continuous cost challenges, shrinking lead times and low switching costs for customers. In addition, it faced significant pressure on its profitability due to rising wage costs in Sri Lanka and a slowdown in developed markets. Historically, the Brandix group operated through separate business units addressing specific customer requirements. However, this gave rise to inefficient cost structures and limited exploitation of synergies across entities. To address these challenges, Brandix embarked on a journey to transform its operating model with leading capabilities and synergy across its various entities. Brandix teamed with Accenture Strategy to realize this vision and transform its sourcing and procurement function. Accenture Strategy was selected for its strong capabilities in driving complex cost reduction, holistic approach to transformation, outcome orientation and rigorous, proven change management approach.

Outcomes

Accenture Strategy and Brandix initiated a 15-month program to transform the provider’s sourcing capabilities and improve its profitability. The program focused on several critical aspects including capital expenditure, packaging, services and indirect materials to help drive strategic cost reduction, define a new agile operating model, design leading processes and institutionalize effective capabilities in the Brandix team. Through its collaboration with Accenture Strategy, Brandix has achieved 5 to 40 percent cost savings across categories. The program effectively managed to help drive cost reduction and build a strong strategic sourcing capability through people, process and structural interventions to sustain the savings.