Breaking New Ground in Purchasing - KBC
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Real-World Example

Breaking New Ground in Purchasing

How we optimize the measurability of procurement performance as part of the development of procurement and cross-functional strategies.

Background

Increasing competitive and pricing pressures, as well as the ever-growing complexity of procurement, require a shift in thinking. Procurement is evolving from a support function to a value driver for the organization. To operate successfully in global and national markets today, it is essential to leverage potential synergies and economies of scale in procurement. Realigning procurement strategies with stringent performance targets (cost, quality, flexibility, and innovation) and continuously adapting them to changing external and internal factors is therefore, more than ever, a key success factor.

Specific Task Description

  • Development of a Procurement Target System
  • Definition of Practical Purchasing Strategies
  • Identification of Potential Synergies
  • Leveraging Economies of Scale

KBC Approach

Together with our clients, we identified the key weaknesses in their existing procurement strategy and collaborated with them to develop opportunities for improvement. In doing so, we took a broad view: we defined relevant areas of overlap and stakeholders early on and incorporated them into the strategy development process. Using the “ground-truth” approach, we specifically incorporated the expertise of the specialist buyers into the strategy process and integrated development-related issues into the strategy development alongside the requirements of the quality department. Ultimately, we standardized the strategy development process in procurement for all 216 retail groups in the product portfolio.

Impact Achieved

The KBC Procurement Strategy System (PSS) served as the foundation for developing over 200 individual procurement strategies, covering more than 1,000 employees and a procurement volume exceeding €30 billion. Thanks to the modular approach of the analytical methods, our clients received a strategy process and a strategy system that can be adapted to all requirements. Specialist buyers became strategists, and the resulting procurement strategies achieved full acceptance, even during the implementation of strategic measures at the operational level.

Portrait photo of Stefan Kemény, Senior Partner at Kemény Boehme Consultants (KBC). A man with short, dark blond hair, gray temples, and square, dark horn-rimmed glasses, smiling broadly at the camera. He is wearing a dark blue jacket over a white shirt without a tie, his hands loosely clasped in front of his body, with an upright and engaging posture.
Portrait photo of Stefan Kemény, Senior Partner at Kemény Boehme Consultants (KBC). A man with short, dark blond hair, gray temples, and square, dark horn-rimmed glasses, smiling broadly at the camera. He is wearing a dark blue jacket over a white shirt without a tie, his hands loosely clasped in front of his body, with an upright and engaging posture.
Stefan Kemény
Senior Partner

We not only helped our clients develop a theoretical concept, but also implemented it. The KBC-PSS approach has already helped numerous clients ensure the standardized development and centralized control of procurement strategies, as well as their efficient management.