A fast-growing apparel business diversifies vendors and improves controls with strategic recommendations from MGO.
Background
A clothing manufacturer and apparel retailer experienced explosive growth over just a few short years — scaling from a small startup to a billion-dollar business almost overnight. While the company’s sales skyrocketed, its operational infrastructure did not keep pace. They were still operating with processes suited for a small business, leaving them vulnerable as they navigated the demands of large-scale production and distribution.
Challenge
The company was relying exclusively on a single vendor to source their products. While manageable in the company’s early days, this approach exposed them to significant risk as they grew — from supply chain disruptions to quality control issues and pricing inflexibility. In addition, the company lacked standard operating procedures (SOPs) and basic internal controls over its inventory intake, further compounding operational and financial risks.
Approach
MGO was first engaged to meet the company’s audit requirements. During the course of our work, however, we identified broader vulnerabilities in their business processes and supply chain strategy that extended beyond the scope of a traditional audit. Drawing on deep industry experience and our wide perspective from working with many fast-growing businesses, our engagement partner opened a dialogue with management to discuss these risks and opportunities.
Without impairing independence or makong management decisions,the team provided recommendations for management to consider and evalaute
- Diversifying the vendor base to reduce reliance on a single supplier
- Implementing stronger internal controls for inventory management
- Establishing SOPs to support consistent, scalable operations
MGO also introduced the company to multiple potential vendors to help foster competitive pricing, improve quality standards, and create a more stable supply chain.
Value to Client
Following the consultation, the company transitioned to a diversified vendor model and implemented stronger operational controls. This shift:
- Reduced supply chain risk and improved product quality
- Strengthened vendor relationships while enabling competitive pricing
- Enhanced the company’s ability to track inventory and manage payables
This helped the company gain the tools and strategies needed to operate at a larger scale.
Build a Stronger Foundation for Growth
Whether your company is scaling rapidly or navigating operational risks, MGO can provide insights that go beyond compliance to help you identify vulnerabilities and strengthen your processes.
Reach out to our team today to find out how we can go above and beyond for you.