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:
Cloud & Cyber
Data & Data Analytics
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 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.
Strategic Procurement Planning
Buy Better + Spend Better
Closed Loop Savings Capture
Digital Foundation and Enablers
1000+ procurement projects across a broad range of industries.
8-12% Purchase Cost Reduction
Caperton Flood - New York
David Schannon - Silicon Valley
Chuck Miller - Boston
Borja Tramazaygues - Madrid
Gerry Mattios - Singapore
Tessa Bysong - Chicago
LinkedIn (not found)
Kelly Liu - Beijing
Phil Barton - Sydney
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 value targeting
Procurement operating model blueprint
Supply base management
Strategic planning & sourcing for core categories
Demand management / zero-based budgeting (ZBB)
Kai Nowosel - Accenture’s own CPO *(Watch his Exclusive Video here)*
Ken White - Chicago
Sean Mckeogh - NCR, Philippines
Daan Koetsier - Brisbane
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
Deloitte helps companies overcome the challenges of effectiveness and efficiency by looking at three key aspects:
High turnover rates
Limited supply of skilled labour and service providers
Attracting people to remote locations globally
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
Multiple ERP Systems across organisations
Poor Data visibility
Poor Data quality
Limited ability to quantify data
Michael Dahler - New York
Merril Skyring - Sydney
Zak von Gordon - Johannesburg
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
Travel, meeting & event services
IT & technology sourcing
Professional services, procurement and contract management
Facilities & services
Brand, marketing & communications
Ahmit Mehta - Bangalore
Glenn Coppinger - Sydney
Amanda Spencer - London
Stacy Musho - Mckinney, Texas
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:
Mobile & Touch Technologies
Consumerized Applications Environment
User-specific workflows and interfaces
Unified Source-to-Pay Software Platform
Other procurement & supply chain services include:
Strategic cost management
Supply risk management
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
Daniel Weise - Dusseldorf
Wolfgang Schnellbacher - Stuttgart
Rafael Desi - Paris
Robert Tevelson - Philadelphia
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.
Bjorn-Uwe Mercker - Munich
Andre Rocha - Tokyo
Roman Belotserkovskiy - Austin, Texas
Riccardo Drentin - London
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:
Higher savings delivery
Sustainable procurement savings
Upskilling the procurement team
Jens Pedersen - London
Alex Klein - London
Tim von der Decken - Dusseldorf
Patrick Traynor - Philadelphia
For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.