VegaTex is a leading German manufacturer of sustainable leisure and business clothing. The company attaches particular importance to ecological materials (e.g. organic cotton, recycled polyester fibers) and fair production conditions along the entire supply chain.
In 2024, VegaTex generated sales of around € 220 million, with sales being made via bricks-and-mortar retail (60 %), own flagship stores (25 %) and online retail (15 %). The company currently sources its raw materials from 25 different suppliers worldwide, with around 30 % of the procurement volume coming from countries with increased ESG risks (e.g. lack of environmental standards, labor rights issues).
In order to meet both regulatory requirements (e.g. Supply Chain Act, EU Green Deal) and our own sustainability targets, the procurement strategy is to be fundamentally revised by 2026.
They were commissioned to analyze the current procurement situation, assess the risks and develop initial strategic proposals for a more sustainable procurement strategy - including an initial estimate of the financial impact.
Graphic 1: Current procurement structure
Graphic 2: Overview of planned ESG measures
Environmental risks (e.g. use of pesticides, water consumption in cotton production)
Social risks (e.g. labor rights violations, child labor)
Governance risks (e.g. lack of transparency, corruption in procurement markets)
Reputational risks (e.g. high-profile scandals)
Regulatory risks (e.g. sanctions for violations of the Supply Chain Act)
Given
Cost increase
40 million × 15 % = € 6 million
A reallocation of high-risk procurement to Western Europe would result in an additional annual burden of 6 million €cause.
Combination of expansion of certified supply contracts and own audit program.
Complete relocation to Western Europe only for selected critical materials (e.g. cotton).
Parallel introduction of early risk detection (e.g. through ESG scorecards for suppliers).
Goal: Significantly increase ESG compliance while limiting cost increases (<5 % of total purchasing volume).
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