Operations

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Purchasing & Supply Management

We help organizations build competitive advantage through the development of sustainable, world-class purchasing and supply management capabilities.

Sustainable impact is our focus and how we measure our success. Purchasing is often the most significant and easily instituted source of immediate and long-term value creation available to a corporation. We design strategic sourcing approaches to provide immediate impact but also believe that to ensure sustainability, a formal performance transformation program—that includes organizational and cultural changes—must be implemented.

Skill transfer, talent management, culture change, and capability building are equally important ingredients in executing a holistic and integrated transformation. Our clear, consistent, but tailored approaches are what makes us distinctive in building our clients into world class purchasing leaders.

Specifically, we also provide our clients a number of other services, support, and capabilities:

  • diagnostics
  • ePSM tools
  • global sourcing
  • negotiation skills
  • organizational design
  • performance management and implementation
  • post-merger management
  • risk management
  • strategic sourcing of indirect and direct commodities
  • supplier selection, innovation, management, and development

What we do

We have a proven record of rapid impact. On average, our clients save 15 percent by implementing purchasing recommendations across categories and industries. Our consultants have deep functional and industry expertise globally bringing our clients experience based on 1,400 purchasing engagements in past 5 years.

We also offer proprietary tools and databases to accelerate and increase impact, including:

  • commodity savings database
  • expertise database
  • Global Purchasing Excellence (GPE) survey to assess institutional performance and health
  • global sourcing centers in Brazil, China, Eastern Europe, India, Mexico
  • over 30 tools for sourcing commodities (i.e., clean sheets, Linear Performance Pricing, TCO)
  • Global Sourcing Information Exchange (GSIE) database to identify suppliers in low cost countries
  • more than 25 capability building training programs

FEATURED EXPERTS

Yoshinobu Takanuki

Senior Partner, Tokyo

Featured capability

McKinsey model factories

Through our global network of capability centers, clients can “learn by doing” at model factories that simulate manufacturing, call center, and other workplace settings. The focus is on building capabilities—such as lean manufacturing, green operations, and quality control—and skills needed for transformational change.

RELATED INSIGHTS

Article - McKinsey Quarterly

Do you really understand how your business customers buy?

– B2B purchasing decisions increasingly trace complex journeys, challenging the long-standing practices of many sales organizations.
Article

Building superior capabilities for strategic sourcing

– Purchased materials and services often make up 60 to 80 percent of a product’s cost. Companies that don’t invest in... the purchasing team’s capabilities are throwing away value.

Careers

Interested in a career in Operations?

We are currently looking for experienced professionals across all Operations disciplines.
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Advanced Operations Group

Learn more about our group of Operations practitioners who bring deep functional and sector expertise from the industry.

Operations Excellence Program

Learn more about how our unique two-year training program, OEP, develops specialists in operations excellence.