Inside the Strategy Room 266. Transforming procurement to transform your business
Aug 28, 2025
Cole Wirpel, an Associate Partner in Atlanta, Raul Santos, a Partner in Madrid, and Teresa George, a Partner in Chicago, explore how procurement can transform businesses into strategic powerhouses. They share insights on aligning procurement with business goals for improved performance and innovation. The trio discusses the urgent need for speed in procurement transformations, emphasizes collaborative vendor management, and highlights the importance of mindset changes for sustainable budget management. Get ready to rethink procurement as a catalyst for change!
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Procurement Drives Transformation Outcomes
- Procurement success strongly correlates with overall company transformation success, increasing odds by ~1.7x.
- Procurement contributes 25–65% of financial outcomes and acts as a company-wide vector of change.
Overbuild Your Initiative Pipeline
- Build a backlog ~160% of your target to allow for approvals and cancellations across a 1–2.5 year program.
- Expect initial approvals to reduce value by ~30% so plan pipeline depth accordingly.
Set Aspirational Procurement Targets
- Stretch procurement scope so targets feel hard and force new conversations across the business.
- Aim for initiatives that make procurement revisit past decisions and source differently, not just buy cheaper.