Consulting companies driving procurement transformation

The Big Question: Digital transformation is changing the face of procurement but which consulting firm would you choose to advise you on your next steps...

Glen White
|Apr 1|magazine49 min read

The Big Question: Digital transformation is changing the face of procurement but which consulting firm would you choose to advise you on your next steps?

Procurement consulting is big business and it certainly isn’t cheap but it can be invaluable when it comes to making decisions in numerous areas of procurement, supply chain & logistics - direct & indirect procurement, sourcing strategies, sustainability, technology platforms, risk management, contract management - they are all core parts of the procurement strategy and it’s a procurement leader’s job to figure them all out.

Procurement’s role in the enterprise has evolved. Today, CPO’s & procurement leaders are expected to work strategically as part of the c-suite to form a strategy to mitigate risk, create competitive advantage and help drive enterprise growth.

When it comes to choosing a procurement consultancy firm to help for this strategy, you need to look for a company that can help to build and manage high-performance procurement departments, develop and then deploy clear strategy and vision to become more effective and efficient as an organisation.

Six key aspects in procurement strategy:

  1. Digital Transformation

  2. Cloud & Cyber

  3. Data & Data Analytics

  4. AI

  5. Sustainability

  6. Culture Shift

Now, we take a look at some of the leading procurement consulting companies vying for your consulting dollars.

In no particular order, here’s some of the global players you could easily call upon:

Bain

Bain helps companies develop sourcing strategies for a sustainable future. 

Bain works closely with procurement teams to identify and realise savings across all spend categories and procurement levers and they can help organisations build capabilities to make long term savings and procurement gains.

Services:

  • Strategic Procurement Planning

  • Buy Better + Spend Better

  • Closed Loop Savings Capture

  • Capability Building

  • Digital Foundation and Enablers

 

Client results:

1000+ procurement projects across a broad range of industries.

8-12% Purchase Cost Reduction

Key people:

Caperton Flood - New York

LinkedIn

David Schannon - Silicon Valley

LinkedIn

Chuck Miller - Boston

LinkedIn

Borja Tramazaygues - Madrid

LinkedIn

Gerry Mattios - Singapore

LinkedIn

Tessa Bysong - Chicago

LinkedIn (not found)

Kelly Liu - Beijing

LinkedIn

Phil Barton - Sydney

LinkedIn

Bain Procurement Video

Link to Bain Procurement 

Accenture

Accenture is a global powerhouse consulting company that helps organisations with cost-reduction and growth opportunities associated with all forms of sourcing and procurement.

Accenture’s goal is to transform sourcing and procurement from a business service to a ‘High Performance Driver’ in the business strategy.

Accenture’s procurement consulting practise focuses on the following areas:

  • Procurement strategy

  • Procurement value targeting

  • Procurement operating model blueprint

  • Supply base management

  • Risk strategy

  • Strategic planning & sourcing for core categories

  • Demand management / zero-based budgeting (ZBB)

Key people:

Kai Nowosel - Accenture’s own CPO *(Watch his Exclusive Video here)*

LinkedIn

Ken White - Chicago

LinkedIn

Sean Mckeogh - NCR, Philippines

LinkedIn

Daan Koetsier - Brisbane

LinkedIn

Accenture: Digital Procurement is Now Video

Link to Accenture Procurement

Deloitte

Deloitte’s procurement consulting practice helps organisations reduce their cost base and increase efficiencies by implementing fit-for-purpose solutions that are practical, affordable and results-driven.

Deloitte’s Sourcing and Procurement Strategy services include:

  • Direct & Indirect Materials Sourcing

  • Technology Enabled Transformation

  • M & A Related Services

  • Extended Business Relationship Management

  • Managed Services

  • Talent Development

Deloitte helps companies overcome the challenges of effectiveness and efficiency by looking at three key aspects:

People challenges:

High turnover rates

Limited supply of skilled labour and service providers 

Attracting people to remote locations globally

Process challenges:

Limited procurement negotiating power

Balancing legislation with sourcing from low cost countries for cost-saving opportunities

Coordination of global logistics & distribution networks

Planning & forecasting data

Quantifying Risk

Technology challenges:

Multiple ERP Systems across organisations

Poor Data visibility

Poor Data quality

Limited ability to quantify data 

Key people:

Michael Dahler - New York

LinkedIn

Merril Skyring - Sydney

LinkedIn

Zak von Gordon - Johannesburg

LinkedIn

Deloitte: Sourcing & Procurement Video

Link to Deloitte Procurement

EY

EY’s procurement practice has the vision to be recognised as a ‘global leader’ in procurement, sourcing and supply chain consulting and to be regarded as the trusted business advisor in all levels of the organisation. 

Their goal to do this is as follows:

  • Manage connected stakeholder relationships.

  • Provide thought leadership, experience and innovation by collaborating with stakeholders and suppliers.

  • Challenging the normal, challenging the status quo.

  • Offering transparency into the procurement process.

  • Providing services that can be repeated and leveraged.

EY’s procurement services provide strategic purchasing options for materials and services based on a high level of services and competitive cost, with specific skills in the following areas:

  • Real estate services

  • Workforce management

  • Travel, meeting & event services

  • IT & technology sourcing

  • Professional services, procurement and contract management

  • Talent management 

  • Facilities & services

  • Brand, marketing & communications

Key people:

Ahmit Mehta - Bangalore 

LinkedIn

Glenn Coppinger - Sydney

LinkedIn

Amanda Spencer - London

LinkedIn

Stacy Musho - Mckinney, Texas

LinkedIn

EY - Smart Chain Smart Maps Video

Link to EY Procurement

GEP

GEP is known to help Global Fortune 500 & Fortune 2000 enterprises to build and manage high-performance strategies with the goal of increased efficiency, more effective operations, greater strategic reach and increased impact of the businesses they work with.

GEP works with its client to map the future of procurement with a specific focus on ‘digital transformation’ as they look to embrace new and emerging digital technologies.

GEP helps its client look at ways to dramatically reorganise the procurement strategy, the procurement processes, the people, the required skill sets and all support systems.

Key goals in their record for continual digital innovation are:

  • Cloud Deployment

  • Mobile & Touch Technologies

  • Consumerized Applications Environment

  • User-specific workflows and interfaces

  • Unified Source-to-Pay Software Platform

Other procurement & supply chain services include:

  • Procurement transformation

  • Opportunity assessment

  • Strategic cost management

  • M&A services

  • Supply risk management

Key people:

Jamie Ogilvie-Smals 

LinkedIn

Sébastien Lecas 

LinkedIn

Saraswathy Kizhakkanchery 

LinkedIn

Gareth Thomas

LinkedIn
 

GEP - Video

Link to GEP Procurement

BCG

BCG (Boston Consulting Group) has a pedigree in all areas of consulting, not just procurement but in the area of purchasing. Their goal is to deliver procurement solutions that don’t sacrifice quality and service.

The BCS procurement strategy is that it’s not just about cutting costs, a core procurement strategy requires a deeper look at internal needs and supply market capabilities as well as better collaboration with suppliers and internal functions.

BCG helps businesses understand how to manage fluctuating prices, volatile markets, changing technologies and globalisation through sustainable and efficient procurement solutions that don’t sacrifice quality or service.

Inside BCG, they have their own separate consulting business called Inverto, which is an international supply chain & procurement consulting company that specialises in industry, trade and the service sector.

BCG’s latest thinking on procurement transformation:

  • Digital procurement transformation

  • Supercharge savings with close supplier relationships

  • Procurement & supply chain data - data analytics

  • Empowering the people in digital procurement transformation

  • Focus on quality - mitigate supplier risk management

  • Online collaboration platforms

Key people:

Daniel Weise - Dusseldorf

LinkedIn

Wolfgang Schnellbacher - Stuttgart

LinkedIn

Rafael Desi - Paris

LinkedIn

Robert Tevelson - Philadelphia

LinkedIn

BCG - Video

Link to BCG Procurement
 

McKinsey & Company

McKinsey & Company is a global management consultancy that is trusted by the world’s leading businesses, governments & institutions.

Inside McKinsey, they have a significant capacity of working inside companies from a procurement perspective but it is delivered in a slightly different way. McKinsey helps enterprises unlock the full potential of their portfolios through product and service design and transformation.

McKinsey’s roadmap to client support:

  • Guide the creation of exciting product and service portfolios

  • Increase profitability through product and service life-cycle optimisation

  • Improve agility and effectiveness through development

  • Optimise spend categories

  • Drive productivity and innovation with suppliers

  • Maximise procurement impact through agile digital operating model

20%+ improved margins from portfolio realignment.

30% quality improvement through life-cycle management.

20x ROI (Return on Investment) from next-gen operating-model implementation.

N.B. - McKinsey & Orpheus merge together for a digital procurement drive.

McKinsey and Orpheas have joined together to launch ‘Spend Intelligence by McKinsey’, a service that will enable spend transparency, spend and cost analytics, and value-capital management. This new offering combines Orpheus’s advanced platform technology with McKinsey’s industry expertise in Digital Procurement.

Key people:

Bjorn-Uwe Mercker - Munich

LinkedIn

Andre Rocha - Tokyo

LinkedIn

Roman Belotserkovskiy - Austin, Texas

LinkedIn

Riccardo Drentin - London

LinkedIn

McKinsey - Spend Intelligence Video

Link to McKinsey Video
 

Efficio

Efficio has the strapline as the world’s largest global procurement consultancy so we take a look at who they really are and what gives them the right to hang out with the other major players.

Efficio has 10 offices across Europe, North America and the Middle East and they support a range of clients including blue-chip multinationals, private equity and SME’s for all around the globe. Efficio aims to help its clients reduce costs, improve internal processing and upskill procurement teams so that they can realise faster cost savings.

Efficio’s key differentiator is their proprietary procurement technology and knowledge platform called eFlow. eFlow automates data insight generation, supports saving delivery, facilitates strong supplier relationships and manages supply chain risk.

Key aspects of eFlow are as follows:

  • Cost-saving identification

  • Higher savings delivery

  • Sustainable procurement savings

  • Upskilling the procurement team

Key people:

Jens Pedersen - London

LinkedIn

Alex Klein - London

LinkedIn

Tim von der Decken - Dusseldorf

LinkedIn

Patrick Traynor - Philadelphia

LinkedIn

Efficio - Strategic Procurement Video

Link to Efficio Procurement

For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.

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