Rising raw material costs put procurement teams under pressure, especially when production schedules and strict financial targets leave little room for error. For one KORN CONSULT GROUP (KCG) customer, the challenge was to manage 21 commodities within a €35 million procurement budget while securing materials on time, at the required quality and cost.
The financial framework was clear: procurement had to meet the budget and forecast requirements established by an IDW S6 expert report. Achieving this required hands-on responsibility for both strategic sourcing and day-to-day procurement.
Over 20 months, KORN CONSULT GROUP took over responsibility for all 21 commodities. The team prepared and managed tenders, negotiated supplier contracts, and coordinated procurement through a structured project plan. Supplier selection and award preparation were aligned with project management and the defined financial targets.
The work continued beyond contract negotiations. Through supplier meetings, order management and follow-up after orders were placed, the team supported the flow of materials needed for production. The engagement also helped the customer reorganize its procurement operations.
By the end of the project, procurement orders for seven newbuildings had been fully placed, and two newbuildings had been delivered to the end customer. All budget and forecast requirements were met, and cost reductions were achieved across the managed commodities despite the pressure from rising raw material costs.
The project demonstrates how strategic procurement and consistent operational follow-through can translate demanding financial targets into concrete delivery results.