Procurement Services

The procurement discipline is currently facing numerous challenges:

These challenges make companies more reliant on their suppliers to achieve their objectives. Consequently, the added value of procurement in terms of cost reduction, supply chain control, risk management, and goal achievement is essential for businesses to remain successful.

How can the Procurement function deliver the most value? What strategies can companies employ to strike the optimal balance between mitigating risks, reducing costs, and maximizing added value?

With our extensive expertise, we assist organizations in strategy and organization, process optimization, sourcing, and value creation through data analytics. Our approach considers both the Procurement function and the overall supply chain to maximize synergies and benefits.

To address our clients' questions and accelerate their progress, we have developed five service areas in the procurement and supply chain domain. Each service is backed by our industry-leading methodologies, digital tool expertise, and extensive experience across various sectors.

We facilitate organizations to design and implement industry-leading procurement and supply chain strategies to:

1. fuel and support business vision and strategy transitions;
2. enable effective risk control across the value chain to drive competitive advantage.

We redesign operating models across six key areas: processes, people, service delivery, KPIs, technology, and governance. Our goal is to ensure these support the organization’s growth ambitions while unlocking productivity gains through cross-functional synergies.

We start with defining the future vision and determining the level of maturity needed to deliver unique and differentiated capabilities. Then we bring together functional and business stakeholders to identify new capabilities in well-designed sessions. This is followed by evaluating the value (business case) of the new capabilities and using the operating model framework to embed and deliver these capabilities within organizations.

Shareholders, consumers, and employees have increasingly high expectations of the businesses they invest in, buy from, and are employed by. As a result, business leaders face more pressure from regulators and the market to prove that their organizations are acting responsibly and sustainably.

However, companies face challenges in translating ESG targets into actionable plans, for example concerning scope 3, due to lack of accountability, technology, data insights, and expertise. KPMG’s expert supply chain and procurement teams can help address these challenges and opportunities through a wide range of services.

This benefits organizations in the following ways:

• Ensures regulatory compliance, reduces complexity, and improves performance
• Drives cross-functional collaboration for enhanced governance and cost reduction
• Harmonizes data across the organization, advancing its digital journey

Improves integration with suppliers, resulting in cost avoidance, enhanced performance, and better product design

We leverage hypothesis-driven data analytics, comparative benchmarking, and real-world operational insights to rapidly identify measurable improvement opportunities in margin expansion, cost management and capital structures across the end-to-end supply chain and procurement domain.

Opportunities range from quick wins like demand and price optimizations to specification rationalization and transformational initiatives.

Beyond identification, we support you in validating and realizing these savings.

KPMG helps its clients with large-scale procurement transformations to shape their organizational direction.  These transformations can be triggered by organization’s aim to:

1. embed new IT / Digital platforms / innovative technologies like cloud and AI;
2. standardize and harmonize the procurement function across the business units;
3. increase efficiency of process execution.

We support clients in an end-to-end functional transformation journey, starting from creating a common vision of the future Target Operating Model (TOM) to designing and documenting it. We finalize the solution design, build, test, and implement new tools, and finally provide post go-live support and transition. To achieve this transition, we utilize behavioral change methodology to ensure adoption.

Procurement operations involve selecting suppliers, finalizing contracts and managing them to maximize value and minimize risk. KPMG assists in improving these operations by developing sourcing strategies, leading tenders and executing various procurement activities. We utilize procurement process models, KPIs and better practices to increase compliance and contribute to achieving business goals.