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A new approach to digital procurement—Orpheus, a McKinsey company

The role of spend analytics and the procurement function is changing. Against a backdrop of a shifting global economic context, including the Fourth Industrial Revolution, the localization of value chains, and increasing consumer demands for mass customization and personalization, there is a need for organizations to obtain actionable insights that help capture more impact in procurement.

The digitally enabled procurement function of the future will be involved in all business value-chain activities from product development to distribution, while playing a strategic role in managing budgets and costs, anticipating and mitigating supply risk, and driving compliance.

Orpheus, a McKinsey company

To enable this new vision of procurement, we are delighted to announce the acquisition of Orpheus GmbH, a recognized innovator in digital procurement. Founded in Germany in 2005, Orpheus develops software that helps organizations optimize their external expenditure throughout their operations, by analyzing purchasing data streams for value-capture opportunities and measuring realized procurement impact.

With this acquisition, McKinsey brings a new offering to clients: Orpheus, a McKinsey company—a service that will enable spend transparency, spend and cost analytics, and value-capture management. The offering is a powerful combination of Orpheus’ advanced platform technology with McKinsey’s industry expertise and content-rich services in digital procurement.

By infusing best-in-class technology and AI-based analytics with deep supply-market and category-sourcing expertise, and by innovating with service-delivery models including outsourcing, the new offering helps clients unlock the value hidden in their purchasing data: actionable insights that help capture more impact in procurement, sustainably.

Based in Nuremberg and with a robust clientele, Orpheus has a reputation for delivering quality and value in solution areas including automated data extraction; AI-enabled spend categorization; and spend and category prescriptive and predictive analytics, including software agents (BOTs) and procurement impact tracking.

Orpheus, a McKinsey company will support CPOs, CFOs, and category managers with actionable insights to effectively and efficiently address and manage these focus areas, resulting in significant bottom-line benefits. Clients can choose from a palette of technology solutions and services to meet their specific needs, including: one-off spend cubes and opportunity assessments; technology licenses; spend data processing and actionable insight services; and impact program management.

The launch of Orpheus, a McKinsey company redefines a complex, underestimated, and undervalued discipline of Procurement Excellence into an exciting source of value creation for its clients.

For more information on Orpheus, a McKinsey company, please email us.

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