When change is not only structural – but also cultural.
Transformation doesn’t begin on paper, but in people’s minds – as clearly demonstrated at a globally leading manufacturer of components. This company, operating independently within an international corporate group, set itself ambitious savings targets at the beginning of 2024. Several million euros were to be achieved through group-wide category management – via negotiations, tenders, relocations, and targeted supplier changes. But despite dedicated efforts, the anticipated breakthrough initially failed to materialize.
Between Ambition and Reality: Project Kick-Off
The challenge was multifaceted: varying levels of procurement maturity across international sites – from Germany to Eastern Europe, India, and China – met a newly created, cross-plant organizational structure. The role of category manager had been defined, but not fully embraced across the board. Not everyone could or wanted to evolve from a local role into the new structure, resulting in an above-average turnover. Language barriers and cultural differences further complicated consistent implementation.
At the same time, the supplier market weakened noticeably. This brought the primary objective – achieving tangible savings – even more sharply into focus. It wasn’t just about process optimization: the goal was to strengthen the role of the committed head of procurement, not undermine it. Psychological sensitivity was essential.
External Support as a Catalyst
To effectively support this transformation, an experienced consultant was brought in – with a clear mandate: safeguard the strategic transformation, accelerate implementation, and deliver measurable results. The project began in February 2024, with a consulting commitment of one to two days per week over a ten-month period.
What Happened in Practice: From Excel to Excellence
The first step was technical – and symbolic: Excel spreadsheets were replaced by a digital PMO tool. All measures were systematically transferred, checked for plausibility, and made centrally trackable. This created transparency and ensured reliable tracking of progress toward goals.
In parallel, a standardized strategy template for procurement categories was developed and introduced. In one-on-one sessions with category managers, strategies were refined and made implementation-ready. Where necessary, the consultant provided concrete input and market analyses – always with the goal of strengthening ownership within the team.
A key component was the new KPI cockpit: the focus on four indicators proved effective – on-time delivery, payment terms, savings volume, and quality metrics. These KPIs became the backbone of the new steering mechanism. Monthly review meetings ensured accountability and continuous progress toward the defined goals.
Negotiating with Structure – and Confidence
To unlock additional potential, a negotiation initiative was launched: for prioritized suppliers, targeted direct negotiations were prepared. A well-thought-out storyline was developed together with the team and tested in pilot negotiations. One key takeaway: good preparation doesn’t replace negotiation skills – but it provides a sense of security, especially in international settings.
Embedding Knowledge – In Minds and Culture
The transformation went beyond processes and tools. A central element was empowering people. Monthly, interactive online training sessions took place – each lasting three hours, focusing on practical topics such as negotiation techniques, annual supplier reviews, project purchasing, portfolio management, or price analysis. New team members were integrated through tailored onboarding sessions.
At the same time, the head of procurement received one-on-one coaching – strategically, methodologically, and situationally. His natural role as a driver and architect of change was not only strengthened organizationally but also personally reinforced.
What Remains: More Than Numbers
After ten months, one thing is clear: the organization hasn’t just professionalized its processes – it has matured. Strategies are robust, actions are trackable, responsibilities are clearly assigned. Savings have been achieved, but the real asset lies elsewhere: in the increased self-efficacy of the teams and their confidence in their own capabilities.
The international procurement organization is now better positioned – not just for the next savings goal, but for long-term strategic development. Because lasting change isn’t a matter of tools – it’s a matter of will.
Project Highlights at a Glance
- Duration: 10 months
- Consulting Days: 48 days
- Locations: Online across Germany, CEE, India, China
- PMO Tool: newly introduced
- Trainings: monthly, interactive, 3-hour sessions
- Objective: savings in the millions & strengthening the procurement organization
4 Core KPIs
- On-time delivery
- Payment terms
- Savings volume
- Quality metrics
All KPIs were tracked monthly and served as central control elements in the new procurement controlling system.
Quote – Consultant’s Perspective
“Change doesn’t happen through processes alone. It takes clarity, trust, competence – and people who are willing.”
– Dr. Stephan Hofstetter, Project Lead & Partner at Kloepfel Consulting
Quote – Client Testimonial
“The combination of structured methodology and situational support helped us take action faster – and finally bring the horsepower to the road.”
– Head of Strategic Purchasing, Client
Author:
Contact:
Kloepfel Group
Damir Berberovic
Tel.: 0211 941 984 33 | Mail: rendite@kloepfel-consulting.com