The 13-Stage Journey

Starting with a comprehensive evaluation, moving through strategic alignment, and culminating in seamless implementation, KGM remains your trusted partner throughout. We define success not only by measurable financial gains but also by the satisfaction of our clients. Our Consulting Services are designed to pave the way for sustained growth and achievement.

Phase 1: Opportunity Analysis

The client's team initiates the process by collecting expenditure data, conducting interviews with cross-functional staff, and reviewing current capabilities. This information enables both KGM and our clients to evaluate, organize, and prioritize potential savings, training, and other business enhancements.

Phase 2: Supplier Exploration

Our experts analyze the global market to identify suppliers that align with our client’s unique requirements. This essential step facilitates tailored benchmarking, differentiation, and improved negotiation results by engaging new suppliers and reactivating existing ones.

Phase 3: Profile Creation

Clients prepare RFQ and RFI profiles to gather specific information required for the cross-functional team to evaluate a supplier’s long-term viability. This marks the beginning of supplier data collection, providing valuable market insights and helping establish industry best practices.

Key Activities: Internal Site Visits-Detailed Category Analysis | RFQ Preparation | RFI Preparation

Phase 4: Supplier Showcase

Client executives and stakeholders unite to generate enthusiasm and introduce their strategic sourcing initiative to the leadership of all potential suppliers. This fosters healthy competition and facilitates knowledge sharing among participating companies.

Phase 5: Profile Evaluation

Clients assess completed profiles through a standardized comparison to refine the list of potential suppliers, gain insights into the market, and establish tailored minimum objectives for negotiations.

Phase 6: Facility Tours

While cost is critical, quality cannot be overlooked. Clients visit the facilities of selected new and existing suppliers, conducting in-depth tours and engaging in direct discussions. This process validates profile responses, confirms capabilities, fosters relationships, and significantly enhances overall market understanding.

Phase 7: Preparing for Negotiations

Through weeks of training and workshops, client teams gear up for negotiations. The market insights gathered from supplier profiles and site visits establish "best-in-class" benchmarks for various topics to be addressed during the negotiation process.

Phase 8: Conducting Negotiations

Client executives meet with the supplier's senior leadership to negotiate over forty distinct issues and assess each supplier's capacity to meet the team's objectives. These negotiable points are recorded in a Memorandum of Understanding, which outlines the terms governing future business agreements.

Phase 9: Supplier Finalization

Client teams, utilizing all the data gathered throughout the process, choose the suppliers that provide the "lowest overall cost" and the greatest value for the goods or services being procured.

Phase 10: Transition Execution

To ensure a successful project conclusion, KGM continues to actively support client teams as they navigate the early stages of contract implementation and collaborate with selected partners to develop transition plans. Written updates, virtual meetings, webinars, and live forums are organized to inform all internal stakeholders about the program.

Phase 11: Partnership Oversight

KGM will initiate the necessary tools, resources, reporting mechanisms, and support systems to ensure ongoing collaboration and information exchange throughout the partnership. Key focus areas include value engineering teams, new product development initiatives, cost optimization efforts, SKU rationalization projects, inventory management enhancements, and quality improvement programs.