Procurement Transformation Services

For most companies, procurement is an area of significant underinvestment. So how do you convert your traditional “purchasing” department into a self-funding, ROI-generating strategic asset?  The answer: Procurement Transformation.

KGM Strategy Group builds world-class strategic sourcing and procurement organizations. We bring expertise gained from our work with hundreds of market leaders and blend industry best practices with a solution customized to your environment and designed to achieve your goals.

Procurement Transformation Process & Methodology

We start with an assessment to benchmark your current state against over 750 proprietary procurement management best practices and compare with your current performance against both your objectives and against leading practices. Next we work closely with you to build a plan to close the gaps. And then we implement, getting into the trenches to make sure the new processes and procurement organization deliver.

KGM Strategy Group’s methodology focuses on our proprietary 10-point Procurement Capability Model and includes all of the areas that are critical to procurement success. Each area includes two additional levels of depth with best practices mapped to each component, enabling us to readily identify gaps and determine the areas where you want to pursue best practice and where “good” is good enough.

ISG_WEB_ProcurementGraphic-V2 TARGET VALUE MANAGE AND SUSTAIN TRANSACT 1.0 Procurement Strategy and Governance 2.0 Spend Analytics 3.0 Category Strategy 4.0 Strategic Sourcing 5.0 Procure to Pay Process 6.0 Supplier Management 7.0 Category Management 8.0 Contract Management 9.0 Procurement Organization 10.0 Procurement Technology

Building Your Team for Long-Term Success

Our procurement transformation services focus on long-term sustainability, including:

  • How big should your organization be?
  • How should it be structured?
  • What are appropriate goals, KPIs, spend management levels, and compensation for the team?
  • What key skills and tools are needed?

We address all of this and more as we deploy a strategic procurement organization and operating model that balances achieving results with meeting the needs and expectations of your enterprise.

Equip your procurement team with best-in-class capability tools and “playbooks”—including key topics like Strategic Sourcing, Category Management, and Supplier Management—customized for your organization and environment.

Govern your procurement function like world-class companies govern theirs – with hard-hitting, easy-to-understand metrics, policies, and processes that drive compliance with your procurement objectives.

Elevate your procurement team’s skills with our world-class strategic sourcing and negotiations training that can also be offered as a refresher for seasoned teams.

Make your procurement operation as effective as possible with customized, targeted strategies to increase engagement with the business stakeholders who need procurement’s services leveraging our unique “Stakeholder Influence” model.

Leverage our deep analytical approaches and tools to develop your prioritized strategic roadmap for the next 12 months and beyond.

“KGM Strategy Group provided lululemon with category expertise, functional training, and best practices that allowed us to accelerate our procurement transformation, capturing value faster while elevating the level and performance of the procurement team.”

Michael van Keulen
Director of Global Procurement
lululemon Athletica Inc.


  • Delivered 3-year savings of $110MM (14x ROI) and established internal procurement function for $50B retailer
  • Drove 9% savings on over $115MM in annual spend and established an internal procurement team and capabilities to continue driving value for the organization
  • Delivered over 15% in year-over-year savings for capital equipment purchases and designed internal procurement organization for $400M data center colocation provider

Ready to Take Your Procurement Function to the Next Level?


Ready to Take Your Procurement Function to the Next Level?

Point of View Perspective

Creating a Valuable, ROI-Generating Corporate Asset: Top Moves to Transform Procurement

You have probably seen the statistics showing that the leading companies on the Fortune 500 have approximately 70% to 80% of their indirect spend under management. These mature organizations can also achieve anywhere from 2% to 4% incremental savings year over year on this spend through optimizing the procurement strategy for just their indirects.

How are they doing that? How does your company stack up?


“We used KGM Strategy Group as a fundamental part of our procurement transformation at lululemon. They provided category expertise, functional training, and best practices that allowed us to accelerate our transformation, capturing value faster while elevating the level and performance of the procurement team. KGM Strategy Group exceeded expectations by being an extension of our internal procurement team and remains a strategic advisor going forward.”

Michael van Keulen
Director of Global Procurement
lululemon Athletica Inc.

More Testimonials

Learn more about our Procurement Transformation services.