In today’s dynamic business environment, procurement organizations must be agile, strategic, and efficient. KCG recently had the privilege to lead a transformative project for a customer with a highly diversified portfolio of business units and a fragmented purchasing organization.
Our mission was clear: to introduce a comprehensive Commodity Management framework, redefine procurement roles, optimize processes, and deliver measurable value.
The Challenge
Our client faced a common yet critical challenge: strong business diversification combined with a fragmented and inconsistent procurement structure. The absence of a unified strategy across business units led to inefficiencies, lost bundling opportunities, and a lack of clear procurement performance metrics.
KCG was engaged to drive a holistic development of the procurement organization — from strategic role definitions to process realignment and KPI implementation.
Our Approach
At KCG, we believe that successful organizational change starts with a deep understanding of the current state. Our multi-phase approach included:
- Comprehensive Assessment: We analyzed the existing procurement organization across locations, roles, KPIs, interfaces, and communication structures.
- Volume & Supplier Analysis: Detailed review of procurement volumes, part numbers, commodities, and supplier structures to identify synergies and bundling opportunities.
- Process and Headcount Evaluation: Assessment of existing procurement processes and organizational capacity in light of upcoming product launches.
- Workshops and Collaboration: Conducted internal workshops to align procurement functions with product development processes and future organizational needs.
- Role and Responsibility Redefinition: Clear separation and definition of strategic versus operational procurement roles.
- Commodity Responsibility Mapping: Proposed a transition plan comparing current vs. future commodity responsibilities.
- Process Adjustment and KPI Definition: Mapping and implementing streamlined procurement processes and setting up robust KPIs linked to supplier and commodity strategies.
The Impact
Our collaboration with the client delivered significant outcomes:
New Procurement Organization with systematic distribution of strategic and operational roles.
Implementation of Commodity Management, enabling bundling of procurement volumes across business units.
Clear and Actionable KPIs for both strategic and operational procurement activities.
Cost Savings exceeding 20%, unlocking substantial value for the client.
Through this project, KCG once again demonstrated that a structured, hands-on approach to procurement transformation can unlock significant business value.
In a world where supply chain disruptions and cost pressures are ever-present, building a future-ready procurement organization is not optional — it’s a strategic necessity.
At KCG, we are proud to support our clients on this journey, delivering tailored solutions that drive real, measurable results.
If you’re looking to transform your procurement function and drive sustainable value, let’s connect.
