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    Home»Whitepaper»EBIT Leverage of 7.5 to 18 Percent: “Just Place the Order…” Is a Thing of the Past
    Whitepaper

    EBIT Leverage of 7.5 to 18 Percent: “Just Place the Order…” Is a Thing of the Past

    By Kloepfel20. August 20256 Mins Read
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    From Maturity Analysis to a Transformation Roadmap

    In a time when margins are shrinking and supply chains are becoming more complex, a professional maturity analysis in procurement can work wonders. Frank Wischnewski, Head of Transformation at Kloepfel Consulting, explains in an interview how such an analysis can reveal untapped procurement potential within just four weeks. It also provides a clear roadmap for transforming procurement from a reactive order processor into a strategic value driver. The result: 7.5 to 18 percent more EBIT – often faster than you might expect.

    What exactly does Kloepfel mean by a maturity analysis – and what is its purpose?

    Frank Wischnewski, Head of Transformation

    A maturity analysis is a structured assessment of the procurement function’s current position. It answers the question: Where does procurement stand today – compared to similar companies? We use benchmarks based on industry, company size, and performance level. Based on this, we assess procurement across six dimensions: strategy, organization, processes, people, tools, and KPIs.

    We collect both the client’s self-assessment and our own evaluation, and we compare both with the benchmark. The aim is also to clarify, across departments, where procurement should be headed in the first place.

    At the end, the client knows exactly where they stand – and receives a concrete roadmap for targeted development.

    How does a maturity analysis typically work?

    Once commissioned, we begin with structured data collection. This includes existing procurement policies, spend data, and strategic documents. At the same time, we send out an online questionnaire to all relevant stakeholders – from procurement to adjacent departments and top management. The questionnaire uses a 1-to-10 rating scale and takes about 15 minutes to complete. This gives us a 360-degree internal view of procurement.

    What happens next?

    We then conduct on-site interviews – typically around 90 minutes each – with strategic and operational buyers, adjacent departments, and management. These conversations allow for a deeper qualitative assessment. Afterwards, we evaluate all data and impressions, perform a benchmark analysis, and create a roadmap. The client receives a detailed evaluation per dimension, along with specific recommendations for the next three to five years.

    How specific are these recommendations?

    Very specific. For example, if a procurement strategy is missing or no longer aligned with corporate strategy, we recommend concrete measures – such as aligning with corporate goals, introducing transparent annual planning, or developing structured category strategies. We also estimate the potential impact: For one current client, we expect material cost savings of around 10 to 15 percent.

    How long does it take from data collection to the roadmap?

    Two to four weeks, depending on company size and availability. For example, we worked with a company with 12 buyers, conducted 24 interviews, and completed the entire maturity analysis in four weeks.

    Where do you most often find untapped potential in client projects?

    Often it’s in the lack of strategic integration of procurement. Many procurement departments operate in “firefighting mode” rather than acting as value drivers. Processes are inefficient, responsibilities unclear, and procurement is internally perceived as an administrative function rather than a key lever for business results.

    Procurement strategy often doesn’t align with corporate strategy. The focus is on ensuring availability of parts rather than on long-term value creation – true to the motto: “Just place the order…”.

    In the SME sector, procurement is still too often seen as an executor, not a value driver. This leads to organizational inefficiencies. The main potential lies in optimizing the six mentioned pillars: strategy, organization, processes, people, tools, and KPIs. Procurement drives margins, sales drives revenue.

    What surprising insights does the analysis often reveal?

    We frequently see that companies have a clear expectation – e.g., making procurement more digital. But in our assessment, we discover that the basics, such as a solid procurement strategy, are missing. Internal self-assessments from buyers and other departments often produce unexpected results, revealing blind spots.

    How do you turn the analysis into real change?

    That’s actually the biggest challenge. Every transformation means change – and therefore resistance. It’s crucial that top management supports the project. We deliver a roadmap with quick wins to achieve early successes and generate funding for further measures.

    Clear communication and robust change management are key. This includes a communication plan, transparent measurement of progress, and regular updates. A redefined controlling function is also crucial – defining and monitoring KPIs helps procurement make its successes visible and thus gain internal influence.

    And if the organization doesn’t cooperate?

    It’s difficult if only procurement or only management is convinced – success depends on all relevant areas acting together. Sometimes procurement managers feel personally attacked, for example when a private equity investor initiates the analysis. Here, we focus on building trust and collaboration. We always emphasize: This is not about exposing gaps, but about making procurement scalable – a key factor in times of skilled labor shortages.

    What role do digital tools and AI play in assessing and implementing findings?

    They play a central role. We use BI dashboards and AI-driven tools for structuring and analyzing data. These are particularly helpful with heterogeneous data formats or for preliminary review of documents like procurement strategies. This allows us to gain reliable insights quickly and complete the analysis efficiently.

    What concrete economic effect can implementing the recommendations have?

    If a company consistently implements the entire roadmap – which we as consultants usually accompany for only part of the time – we estimate a cumulative EBIT leverage of around 7.5 to 18 percent. In some cases, it can be higher, but we prefer to be conservative.

    Notably, the break-even point for the entire transformation – including our consulting fees and the client’s internal effort – is under nine months. This means the investment pays for itself before the transformation is even complete. From that point onward, the measures generate real profit.

    What do you recommend to companies that believe they are already in good shape?

    A status check never hurts – even if it only confirms that you’re well-positioned. More often, however, we uncover improvement potential that wasn’t previously on the radar. And if that potential translates into an EBIT leverage of 7.5 to 18 percent, that’s real money – especially for larger companies.

    Questions about transformation? Feel free to contact us!

    Contact:
    Kloepfel Group
    Damir Berberovic
    Tel.: +49 211 941 984 33 | Email: rendite@kloepfel-consulting.com

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