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How One Fashion Brand Found ₹1.8Cr in Supplier Leakage

November 2024 6 min read

18 months of overcharging went unnoticed. A mid-sized fashion brand was paying significantly more than contracted rates across multiple suppliers—and had no idea until we conducted a systematic vendor audit.

₹1.8Cr
Recovered in supplier overcharges over 18 months

The Situation

This fashion brand had been working with the same core suppliers for 4+ years. Relationships were strong, orders were consistent, and nobody questioned the invoices. The operations team was focused on fulfillment speed and quality—not forensic cost analysis.

During our Complete X-Ray engagement, we requested 18 months of supplier invoices and cross-referenced them against contracted rates, quantity discounts, and payment terms.

What We Found

1

Price Creep (₹42L)

Gradual price increases that were never formally agreed upon. A 2-3% increase per quarter adds up quickly over 18 months.

2

Missing Volume Discounts (₹67L)

Contracted volume tiers weren't being applied. The brand had crossed thresholds but was still paying base rates.

3

Duplicate Invoices (₹28L)

Multiple invoices for the same shipments, processed without verification. This was unintentional but costly.

4

Payment Term Violations (₹43L)

Early payment discounts not applied when payment was made within the qualifying window.

The Recovery Process

Armed with documented evidence, the brand approached each supplier professionally. Most discrepancies were genuinely unintentional—systems drift, personnel changes, and manual errors accumulated over time.

The Lesson

Long-term supplier relationships are valuable—but they require periodic verification. Trust doesn't mean abandoning oversight. The most costly leakages often hide in plain sight, buried in routine invoices that nobody questions.

When Did You Last Audit Your Suppliers?

Our Complete X-Ray includes systematic vendor audits. Most brands recover 5-12% of annual supplier spend.

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