Companies today face immense pressure to innovate faster while simultaneously managing costs and supply chain complexities. Organizations are challenged by the need to develop and launch products that resonate with customers, all while navigating rapidly changing consumer expectations, market shifts, and geopolitical dynamics. Our product development and procurement consultants help you overcome these challenges by defining winning product portfolio strategies, accelerate time-to-market, and optimize spend and supplier performance across industries and sectors.
Unlock the full potential of your portfolio through product and service design and transformation
Guide the creation of exciting product and service portfolios
A collaborative approach to design and development steers the creation of new products, services, and software. Our approach, which combines customer, technology, operations, and market insights, along with our partnership with McKinsey Design, creates exciting portfolios of new products and services that deliver the right experience for your customers.
Increase profitability through product and service life-cycle optimization
Our innovative methodology to optimize products shifts the focus from design-to-cost to design-to-value, and growth by design. Taking a customer-back approach, and leveraging the best from our design and analytic teams—including deep learning product digital twins—we bring together customer insight and traditional cost levers in new ways, resulting in improved products for both our clients and their customers.
Improve agility and effectiveness through development
By delivering a holistic transformation of engineering departments, we ensure organizations remain agile, effective, and ready to deal with a rapidly evolving market—including supporting our clients in identifying forward-looking insights through leading benchmarking capabilities.
Optimize spend categories
We leverage proven methodologies to optimize direct and indirect spend categories. A total-cost-of-ownership approach, including considerations of environmental impact, allows us to support clients throughout the entire procurement process to capture the full value available and find new sources of competitive advantage. We also help leading procurement functions leverage the power of analytics, revamp their operating model, and achieve a new step-up in impact delivery.
Drive productivity and innovation with suppliers
In a time of rapid innovation, we help clients leverage the broader supply ecosystem to drive process and product development. This results in maximum impact from supplier relationships, using advanced programs to create integrated product and service life cycles.
Maximize procurement impact through agile digital operating model
We guide the creation of a streamlined next-generation operating model, characterized by digital user journeys. By designing agile processes that incorporate source to pay, we help to reduce leakage and to sustain performance to meet future needs.
Featured Videos
A new approach to digital procurement—Spendscape by McKinsey
Spendscape by McKinsey is a Software as a Service (SaaS) analytics platform that gives you a comprehensive understanding of your procurement spend—with insights that lead to better decisions, more innovation, and growth.
Video
Reimagining procurement
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Noting procurement’s complexity, changes, and strategic importance, Dominique Lebigot, CPO of LVMH Wines and Spirits, advocates readiness for AI, supplier ecosystems, and circular economies.
Featured capabilities
Product Digital Twins
Enabling future customer experiences and accelerating product development
Digital Procurement Engine
Our Digital Procurement Engine approach empowers you to achieve the full potential of your S2P transformations.
Cleansheet
Transform cost transparency into product optimization, resilience, and negotiation power
Spendscape by McKinsey
Transforming spend data into opportunity with Spendscape by McKinsey, the next evolution of Orpheus spend analytics
Source AI
Harnessing the power of generative AI, Source AI provides the unlock for strategic category management. We help clients reach new levels of efficiency, innovation, and cost savings in their procurement and sourcing functions.
Centers of Competence
Our Centers of Competence bring expertise in cost engineering, category knowledge, and benchmarking that deliver faster and higher impact with our best-in-class procurement and product-development tools.
DTV Labs
Across the globe, ten Design Labs support clients with design-to-value (DTV) efforts, including competitive teardowns, cleansheet costing, training workshops, customer and brand analytics, and idea generation.
Global Sourcing Centers
We offer client support throughout the entire global sourcing process by leveraging best-cost country (BCC) suppliers. A global team of analysts from five Sourcing Centers, located in best-cost sourcing “hot spot” locations, help provide our clients implementation-level support in global sourcing diagnostics; country and category prioritization; supplier identification and evaluation; supplier bidding, negotiation and selection; and global sourcing organization design.
McKinsey Implementation
Find out how we work on site with clients to help them achieve long-term improvement and measurable, bottom-line results. We help strengthen leadership, transform processes, and build capabilities. Learn how we work intensively with clients across all industries and topics to improve performance and produce results: rapid, significant, measurable improvements in productivity, cost, quality, sales, and other metrics.
Product Development & Procurement (PDP) Academy
We take a blended approach to learning, combining assessments with online courses, classroom training, coaching, and group work to create targeted learning journeys for different cohorts. We have a proven methodology focused on creating value.
Featured insights
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Transforming procurement functions for an AI-driven world
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Macro challenges and gen AI are pushing procurement leaders to reimagine their organizations. Companies that can make the required shifts could unlock new value for the business.
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Automotive product development: Accelerating to new horizons
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New market entrants have cut automotive time to market in half. Established players need to speed up, or they risk being left...
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The next innovation revolution—powered by AI
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AI isn’t just for efficiency anymore. It can double the pace of R&D to unlock up to half a trillion dollars in value...
Blog Post
Procurement power plays: Getting strategic about cloud
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Some procurement categories can be hard to crack. We explore how a strategic and tech-first approach can help optimize escalating...
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Aim higher and move faster for successful procurement-led transformation
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Procurement can be the first around the track for business transformation efforts. Our research identifies the three areas that...
Featured experts
Bill Wiseman
Seattle
As a senior partner in our Seattle office, brings innovation to client service through new management science for technology...
Wajih Abou-Zahr
Brings deep experience in telecommunications, helping leading companies win market share, drive top-line growth, and transform...
Anna Herlt
Munich
Advises companies as they seek to optimize the value of their research and development investments, particularly within the automotive...
Takehito Sumikawa
Tokyo
Drives company-wide transformations, digital/operation transformations and systematic new business creation projects of global...
Wouter Aghina
Amsterdam
Delivers large-scale performance and health transformations, improving performance, changing culture, boosting organizational...
Dave Fedewa
Atlanta
Serves clients in consumer and retail and leads consumer durables and our growth by design work
Hubert Heersche
Amsterdam
Leads product optimization at McKinsey globally, using digital capabilities and analytics to improve product design and cost
Sander Smits
Amsterdam
Transforms operational performance and optimizes research and development for leading companies in the advanced industries sector...
Koen Vermeltfoort
Amsterdam
Advises oil and gas companies on capital projects, procurement, and strategy
Tarandeep Singh Ahuja
Melbourne
Leads McKinsey’s product development and procurement work across the Asia–Pacific region and the firm’s energy work in Australia...
Peter Spiller
Frankfurt
Advises companies and business leaders across industries on the development and implementation of environmentally-sustainable...
Theano Liakopoulou
Paris
Leads McKinsey’s Operations Practice in France and works with leading companies to drive operational transformations with a focus...
Marta Mussacaleca
Toronto
Designs and leads major operational transformations for basic materials clients; brings extensive expertise in procurement
Elia Berteletti
Seattle
Advises high tech, consumer electronics, and automotive and assembly clients on digital and agile R&D transformations; leads...
Sebastian Küchler
Munich
Serves clients around the globe on R&D topics with a strong focus on transformation toward future technologies, efficiency improvement,...
Ben Mathews
Ohio - Cleveland
Leads restaurants and food service globally and oversees the firm’s product development and procurement efforts
Maria Goodpaster
Seattle
Advises product-centric companies across sectors on procurement, product development, margin transformation, and growth through...
Mauro Erriquez
Frankfurt
Leads McKinsey’s global product development and procurement work and serves clients in materials, automotive and machinery sectors...
Careers
Interested in a career in Operations?
A career within our Operations Practice offers the opportunity to work with the biggest companies in the world, on projects that transform their core business and build resilience for the future. We are continuously seeking the best talent at all levels and for all types of roles, and are particularly keen to talk to experienced professionals looking for their next challenge.