Procurement cost optimization
Transform your procurement process with our cost optimization expertise, to tackle market complexities and rising expenses. Our proven strategies ensure your business thrives, even in fluctuating economic environments.
INDIRECT SPEND
Maximize Savings in Indirect Procurement
With a proven track record across all indirect spend categories, including e.g. tech, marketing, and professional services, we help reduce maverick buying and foster cross-functional collaboration.
Find out how we can support you with effective solutions.
Maximize Your Cost Savings with Our Team’s Global Industry Expertise
Manage Volatility & High Cost
Our team brings over 20 years of experience executing cost-out projects across various industries worldwide. We provide expert knowledge to help businesses manage volatility and rising costs, delivering effective solutions in both stable and fluctuating market conditions.
Leverage Potential
We have deep industry expertise and utilize advanced levers for Total Cost of Ownership (TCO) and direct spend reduction. Our proven track record in optimizing indirect spend ensures that companies can capitalize on all available cost-saving opportunities.
Accelerate Results
Our dedicated experts drive negotiation excellence, applying scientific insights from game theory and psychology to take negotiations to a higher level. This strategic approach allows us to accelerate results and secure optimal client outcomes.
Balancing Rising Costs in a Complex Economic Environment
Cost management is currently a top priority for boardrooms across all industries. The current economic climate has significantly increased the complexity of procurement due to ongoing disruptions, sustainability requirements, and the need to innovate – all contributing to rising costs. In addition, high interest rates and the threat of insolvency are putting further pressure on budgets. In this context, companies are looking for ways to reduce costs while maintaining operations.
As part of our holistic offering, we help to counteract rising costs along the supply chain, e.g. in raw materials procurement, to manage working capital and to find the right balance in cost management.
Reactive Claims Handling and Proactive Category Management
Managing costs effective and on the time is paramount to maintaining profitability and a competitive edge. We have developed two innovative digital solutions for:
- Tackling and proactively avoid cost increases
- Maximizing cost decreases
These tools provide a tailored framework to address specific challenges and manage costs dynamically, ensuring businesses can navigate market volatility with confidence and precision, whether through reactive measures to protect value or proactive approaches to maximize it.
Curious about more details? Then look at our video and request the free demo video to get an idea of the tool’s capabilities.
IVM
KGM Strategy Volatility Manager
The IVM tool takes a proactive, more offensive approach to cost management. It is designed to help businesses participate ideally in market volatility, avoiding cost increases and maximizing cost decreases. IVM identifies risks and opportunities ahead of time, enabling companies to proactively contact suppliers when opportunities arise. This tool indirectly steers cost management by establishing fact-based savings goals that reflect the current market situation.
It provides a comprehensive view, combining individual negotiations with a broader strategic perspective, ensuring businesses are always positioned to capitalize on favorable market conditions.
IVP
KGM Strategy Value Protector
The IVP eases reactive claims management. It is focused primarily on avoiding cost increases claimed by suppliers. This solution is designed to be activated when a supplier presents a cost increase claim, enabling companies to evaluate risks and respond effectively. IVP guides users through the end-to-end cost avoidance process, providing step-by-step information on what has happened and what actions to take.
Curious in more details? Then, have a look at our video.
Proactively Enhancing Procurement Processes and Optimizing Cost Management
Opportunity Analysis
We use Advanced Analytics and GenAI to uncover potential savings, providing a comprehensive view of both direct and indirect spending, tailored to industry specifics, and including a TCO perspective.
Advanced Cost Levers
Advanced Cost Levers for Direct Requirements – Industry experts apply advanced commercial and technical strategies, leveraging industry-standard approaches.
Negotiation Excellence
We enhance supplier negotiations with a structured, process-driven approach, incorporating game theory, auction strategies, and Bonus/Malus systems.
Training & Enablement
Our programs upskill procurement teams in cost management, negotiation, and digital capabilities to boost performance.
Our cost optimization insights
Develop creative strategies to achieve NEGOTIATION Excellence
Companies that invest extensively in preparation for negotiations with their suppliers and develop a detailed procurement negotiating strategy can achieve significantly better results.
Our cost optimization experts
