$1B
Annual revenue
Procurement Transformation: Building an Agile, Digital and High-Performance Organization
An original equipment manufacturer specializing in compaction machinery and technology. It is headquartered in Germany, operating globally with significant presence in China, Italy, and India and assembly activities in the US. It specializes in construction equipment manufacturing. Procurement is a critical component of its operational success.
Industry: Industrial Manufacturing
Service: Digital & Ai
Service: End-to-end Transformation Digitalization
Service: Operations Strategy and Transformation
Service: People and Organization
Service: Procurement
Our Client
An original equipment manufacturer specializing in compaction machinery and technology. It is headquartered in Germany, operating globally with significant presence in China, Italy, and India and assembly activities in the US. It specializes in construction equipment manufacturing. Procurement is a critical component of its operational success.
4
Countries with major operations
60-70%
Bill of materials content
“We commissioned EFESO to further develop our purchasing organization in order to prepare for geopolitical changes and disruptions in the supply chains. This collaboration has improved our digital landscape, significantly increased operational excellence and dramatically reduced manual effort. As a result, we were able to increase process efficiency by up to 50% and create complete data transparency in real time. This gives us a solid basis for making the purchasing organization 'Fit for Future.'
“
The Challenge
The company’s procurement team struggled to achieve target prices despite purchasing representing the majority of its cost structure. The challenges included:
- Fragmented IT landscape – Multiple ERP systems across global locations with ongoing SAP S/4HANA transitions created disconnected operations
- Siloed procurement functions – Operational purchasing reported to plant organizations while strategic purchasing sat in central functions, creating misaligned targets and responsibilities with conflicting priorities between logistics and cost optimization
- Process and transparency gaps – Existing processes didn’t support spend transparency or strategic sourcing, with huge manual effort and lack of digitalization preventing efficient cross-functional collaboration
Real Results Achieved Together
Through holistic transformation management we revolutionized the manufacturer’s procurement entirely, including organizational structure, processes and digital capabilities. The transformation established a fully connected, measurable procurement function with clear accountabilities and modern digital tools.
Up to 50%
Process efficiency improvement
15-20%
Freed up capacity for strategic tasks
5-20%
Headcount improvement by function
Transformation Impact
- Achieved complete data transparency in real time for data-driven procurement decisions
- Established fully functional and connected procurement organization with clear accountability
- Implemented demand-tailored software tools with improved interfaces, replacing outdated applications
Our Approach
We began with a diagnostic phase which included functional analysis–quantifying effort allocation per employee against best-practice frameworks and conducting stakeholder interviews for qualitative insights. Our team developed over 70 end-to-end procurement processes with clear RASIC assignments, integrating cross-functional touchpoints.
We created more than 50 job descriptions with linked skill matrices, conducting employee assessments to match people to future roles. For digitalization, we identified gaps, selected and adapted tools including spend analytics and idea management and co-developed enhancements with providers where standard solutions proved insufficient.
Throughout the implementation, we acted as the bridge between procurement and IT, ensuring a 100% fit. The transformation included developing tailored KPIs which cascaded from executive to individual level to establish a governance cadence for continuous improvement.
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Workforce transformation, leadership development, and structure optimization. Learn more about our People & Organization consulting services.
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Material costs and supplier volatility threaten profitability. We unlock savings through strategic sourcing, supplier collaboration, and digital procurement transformation.
Facing Similar Procurement Transformation Challenges?
- Struggling with fragmented procurement processes and disconnected IT systems across locations
- Seeking to transform manual procurement operations into strategic, data-driven functions
- Ready to build measurable excellence through collaborative operational transformation
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