Frank Wischnewski, Head of Transformation at the KLOEPFEL Group, shares insights into a successful transformation project focusing on digitalization, process optimization, and strategy development.
About the Company
The client is a beverage manufacturer operating in both branded and private-label segments, with a procurement volume of approximately €120 to €140 million. Raw materials and packaging are partly sourced from sensitive, temperature-controlled supply chains.
What were the main reasons for deciding to transform procurement, and what goals were set?
The goal was to develop a modern procurement function that not only reduces costs but also actively contributes to value creation. The starting point for the transformation was an initial assessment, based on the client’s clear desire to thoroughly evaluate the procurement status quo and systematically identify improvement opportunities. The company wanted a better understanding of where procurement stood – and, more importantly, how it could become more efficient, modern, and competitive.
Digitalization was a particularly urgent issue. Many processes were still manual, and analyses were created in Excel- resulting in significant time consumption and limited insights. Therefore, the aim was not only to create transparency but also to achieve measurable progress through targeted quick wins.
Additionally, procurement was to be strategically realigned. This included clear category strategies, a reliable data foundation through ERP integration, and stronger connectivity with relevant interfaces such as production, logistics, and sales. This led to better coordination along the supply chain and a significant reduction in waste, especially with perishable goods like fruit.
What specific measures were implemented as part of the procurement transformation?
A key element was introducing a fully digital procurement process via the client’s existing ERP system. This automated analyses previously performed manually in Excel and significantly improved data transparency and evaluability.
In addition, a so-called Spend Cube was introduced, enabling instant expense analysis at the push of a button to strengthen controlling. This allowed structured, timely data collection and better management of procurement activities.
Parallel to this, category strategies were developed and implemented in pilot projects, such as in packaging and raw materials. These strategies resulted in significant savings and a more stable supply chain. Processes were designed to be more automated and efficient, reducing lead times by approximately 25–27%.
At the same time, buyers received targeted training and on-the-job coaching on strategic topics, enabling them to expand their skills from operational to strategic procurement work.
How were employees involved in the transformation process?
Employees were informed about the initiative even before the initial assessment, which was widely welcomed, as the existing procurement challenges were already well known internally.
First, employees participated in an online self-assessment survey, followed by personal interviews with buyers and staff from all interface areas. During implementation, they were actively involved in developing strategies and measures through regular workshops.
To ensure successful integration of changes, a communication concept was developed, including an internal newsletter. This kept the entire workforce informed about project status, interim results, and next steps, ensuring that the transformation was seen as a team project rather than an isolated initiative.
What role did controlling play in the transformation?
Controlling ensures transparency, accountability, and goal orientation. It supports the development of measurable targets – such as savings potential or process improvements – and helps validate these targets. For this, continuous data collection and availability are essential. A key step was converting procurement to a fully ERP-based process, making structured and analyzable data accessible for the first time.
Controlling was also closely involved in defining and tracking KPIs. In a dedicated KPI workshop, meaningful metrics were developed jointly with controlling, serving as the foundation for performance monitoring. This enables objective measurement of transformation progress and continuous improvement.
Which technological solutions or digital tools were implemented to increase efficiency and transparency in procurement?
To boost efficiency and transparency, the aforementioned Spend Cube was introduced, replacing manual Excel analyses with automated expense evaluations. Additionally, indirect categories were fully integrated into the ERP system for the first time – a critical step for automated processes and improved data quality.
In an AI workshop, two further digitalization opportunities were identified: automated supplier evaluation and a tool for extracting data from invoices and delivery notes.
How did sales benefit from the procurement transformation?
Thanks to an improved data foundation, sales can now provide evidence-based arguments to customers such as retailers. Furthermore, closer collaboration in cross-functional teams led to a better understanding of procurement, availability, minimum order quantities, and production capabilities. This enables sales to make more realistic commitments to retailers and avoid unnecessary losses – for example, due to minimum purchase requirements for perishable goods.
Results of the Procurement Transformation
Savings
- Category strategies as a lever for savings
- Packaging: approx. 8.7–9% savings
- Red berries: approx. 5–7% savings
- Levers: improved market transparency, systematic supplier evaluation, structured action planning
Process Efficiency
- Lead time reduction of approx. 25–27%
- Future potential: up to 35% efficiency increase
- Enabled by ERP integration, Spend Cube, and process automation
Professionalization of Procurement Organization
- More strategic working methods among employees
- Trainings and on-the-job coaching
- Use of standardized templates for independent strategy development
Improved Collaboration & Reduced Waste
- Establishment of cross-functional teams with production, R&D, and sales
- Better demand planning and more stable supply chains
- Significant reduction in food waste
Data-Driven Management
- Reliable analyses through digital tools (e.g., Spend Cube)
- Sales arguments supported by data
- Controlling benefits from better-structured, accessible data
Contact:
Kloepfel Group
Damir Berberovic
Phone: +49 211 941 984 33 | Email: rendite@kloepfel-consulting.com