KORN CONSULT GROUP (KCG) recently supported a client facing significant procurement challenges due to multiple business units and a decentralized purchasing structure. With a fragmented organization and inconsistent processes across locations, the customer required a strategic and holistic approach to improve efficiency, transparency, and cost performance. Our team introduced Commodity Management as the central lever to transform the client’s procurement setup.
A Strategic Approach to Restructuring Procurement
Our project began with a comprehensive organizational analysis. KCG examined procurement volumes, supplier landscapes, and the distribution of headcount across all relevant locations. This assessment provided a clear baseline to understand current bottlenecks and identify opportunities for optimization.
Workshops with key stakeholders were conducted to redefine procurement roles both strategic and operational and to assign future commodity responsibilities. Special focus was placed on clarifying location roles, streamlining communication structures, and aligning supplier relationship management with the new organization.
Key Project Objectives
Introduce Commodity Management as a core procurement strategy
Redefine strategic and operational procurement roles
Adjust and standardize procurement processes across the organization
Establish clear KPIs to ensure transparency and performance tracking
Delivering Tangible and Sustainable Results
The project concluded with a fully restructured procurement organization, enabling the client to capitalize on bundling opportunities and significantly enhance sourcing efficiency. Commodity Management was successfully implemented, ensuring clear responsibilities and a consistent approach across all business units.
By establishing systematic KPI distribution and improving process efficiency, the customer realized cost savings of more than 20%, a transformative impact driven by professional analysis, precise restructuring, and sustained implementation.
At KCG, we pride ourselves on delivering tailored solutions that drive organizational growth and cost optimization and this project is a strong example of achieving transformative results for our customers.