Case Study:

Procurement Transformation

Initial Situation

Historically grown procurement structure, fragmented across functions

No standardized processes, roles or responsibilities across 50+ critical subprocesses (e.g., forecasting, order handling, supplier handling)

Lack of transparency despite multi-billion euro purchasing volume

Demographic shift created risk of knowledge loss due to retirements in middle/top management

Executives facing challenges with outdated procurement processes and lack of transparency – Nextshift Leadership consulting on procurement transformation
Executives discussing procurement transformation project with process digitization and organizational redesign – Nextshift Leadership consulting workshop

Actions & Approach

Execution of a transformation project

1. Vision & Organization

Developed a company-wide Operating Model for Procurement

Structured 50+ processes into strategic vs. operational clusters

Introduced cross-functional role models (Key Users, Process Owners, etc.)

2. Process Design & Digitization

Harmonized key processes:

Forecast screening / Order changes / Supplier contracting & risk management

Identified automation potential (e.g., purchase order placement, excess stock monitoring)

Built KPI-driven steering tools (e.g., Inventory Governance Dashboard, Turn KPIs)

3. Leadership & Change

Empowered decentralized strategic purchasing teams

Clearly assigned responsibilities (e.g., scheduling, planning, commodity product ownership)

Integrated Legal, Finance & Sales Ops to optimize T&Cs

4. Execution & Culture Shift

Multi-phase rollout (Pilot → Training → Go-Live → Coaching)

Established ongoing review & lessons learned processes

Positioned the department as a “Business Enabler” – not just a cost center

Results & Impacts

Transparency: 50+ processes clearly defined, KPI ownership established

Efficiency: Reduced coordination overhead via defined role models

Risk Mitigation: Early warning systems for inventory risks, supply gaps & contract issues

Cultural Shift: True collaboration with Sales, Finance & Legal

Sustainability: Identified and developed next-generation leadership talent

Leadership team celebrating procurement transformation results with KPI dashboards – Nextshift Leadership consulting success in efficiency, transparency and cultural shift