Consulting for procurement & SCM in process industries
The switch to environmentally and climate-friendly technologies challenges the process industries from two sides: Firstly, the high energy demand must be covered from regenerative sources in the future; secondly, alternatives for petroleum based reactants must be found. At the same time, companies from the process industries can contribute with research and innovations to contribute to the creation of a CO2-neutral economy. With experience from numerous projects, our experts support you in preparing procurement and the supply chain for the challenges and developing them into strong partners for future value creation.
How do we proceed within the process industry?
Triad of cost optimisation, resilience and ESG
The process industry is undergoing a profound transformation, where procurement can no longer focus solely on cost. Disruptions caused by the pandemic, rising geopolitical tensions, and the urgency of climate action have created a new triad of responsibilities: securing competitive pricing, ensuring supply chain stability, and embedding sustainability into procurement decisions.
With regulations such as the EU Supply Chain Law and increasing ESG requirements, procurement has become a strategic function for mitigating risks and aligning with corporate sustainability goals. Companies must evolve their procurement practices to address these challenges while staying ahead of industry shifts.
Creating transparency in the value chain
To navigate this triad effectively, procurement leaders need comprehensive transparency in their value chains:
- Cost Composition: Understanding the breakdown of prices, especially the impact of raw material costs.
- Supply Chain Mapping: Identifying key suppliers and the risks they pose, particularly around ESG criteria.
- Decarbonization Impact: Assessing how the shift to renewable energy and reduced reliance on fossil fuels affects the supply chain.
Digital tools are essential for providing the necessary insights. By leveraging data and analytics, companies can identify risks, collaborate with supply chain partners on solutions, and explore new procurement markets. Together, we can help you build robust risk management frameworks and actionable plans to address price, supply, and compliance risks. We also work with you to design decarbonization pathways and develop CO2-neutral business models.
Tapping alternative energy sources
The process industry’s significant energy demands cannot yet be met by renewable sources. However, political and market forces are driving significant investments in clean energy. To stay competitive, many companies are developing their own renewable energy infrastructure, such as wind and solar power plants.
Procurement must expand its competencies to support these investments, incorporating CAPEX procurement, total cost of ownership analysis, and project management. We provide hands-on support for these projects and offer tailored training to upskill procurement teams for these new requirements.
Intelligent product group management
Procurement in the process industry often applies the same rigorous standards to all purchases, regardless of their criticality. While this ensures compliance for high-risk categories, it can create inefficiencies for low-risk or small-scale commodity groups.
An intelligently designed commodity group management system distinguishes between critical and non-critical categories. By tailoring procurement rules and precautions to the importance of materials, companies can reduce costs, streamline processes, and increase efficiency without compromising safety or compliance.
Our experts in the process industry
Our insights from the process industry
