Practical example
Breaking new ground in procurement
How we optimize the measurability of procurement performance as part of the development of procurement and cross-functional strategies.
Background
Increasing competitive and price pressures, as well as the ever-growing complexity of procurement, call for a shift in thinking. Procurement is evolving from a mere support function to a key value driver for the organization. To operate successfully in global and national markets today, it is essential to leverage synergy potential and economies of scale in procurement. The realignment of procurement strategies with stringent target systems (cost, quality, flexibility, and innovation), as well as their continuous adaptation to changing external and internal factors, is therefore more than ever a key success factor.
Specific task
- Development of a procurement target system
- Defining practical purchasing strategies
- Identification of potential synergies
- Leveraging economies of scale
KBC's Approach
Together with our clients, we identified the key weaknesses in their existing procurement strategy and worked with them to identify opportunities for improvement. In doing so, we took a broader view: we defined relevant areas of overlap and stakeholders early on and incorporated them into the strategy development process. Using a “ground-truth” approach, we specifically incorporated the expertise of the specialist buyers into the strategy process and integrated development issues into the strategy development just as much as 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, including in the implementation of strategic measures at the operational level.
