CASE: Growth Regardless of Economic Cycles – Turning Procurement into a Strategic Competitive Advantage

Rarely have I encountered a leadership team member who can articulate the significance of procurement as clearly and comprehensively as I did in this project. This level of understanding and commitment from leadership is the strongest indicator of success – and precisely why this company has an exceptional opportunity to transform procurement into a competitive advantage.

Developing procurement is one of the most effective ways to accelerate growth and profitability, but it requires a strategic approach, data-driven decision-making, and business-oriented expertise. In this project, I have acted as the procurement director’s and leadership team’s advisor, consultant, and trainer while also initiating the development of procurement analytics.

The company is a Finnish SME in manufacturing, operating in both B2B and B2C markets with global sales. Production takes place in three countries on two continents, which poses unique challenges for procurement and supply chain management.

This case study illustrates how procurement can drive business growth, independent of economic fluctuations.

Why Take the Next Step?

Change happens either through proactive leadership or as a reaction to external crises. Organizations that take a proactive approach to procurement development gain a significant advantage over those that are forced to react. Given that 60–80% of a company’s revenue flows through suppliers, the strategic management of procurement is critical to performance and competitiveness.

Visionary Leadership Recognizes the Potential of Procurement:

• Procurement is acknowledged as a key enabler of business success.

• Its development is driven by strategy, not just operational needs.

• The leadership team actively engages in procurement decision-making and development.

Growth Regardless of Economic Cycles – Business Driver

The company’s goal is to maintain growth regardless of market conditions. Achieving this requires:

• A systematic and long-term approach to procurement development.

• A proactive role in responding to market changes and seizing new opportunities.

• A clear operational model that integrates procurement into business strategy.

What Is the Next Step, and What Is the Goal?

Transformation is only successful when its reasons and objectives are clearly communicated and understood across the organization. Creating a shared understanding is crucial to making procurement development a company-wide initiative rather than just a procurement team effort.

Clarifying the Strategic Role of Procurement:

• Clearly defining procurement’s responsibilities and objectives at all levels.

• Aligning procurement development with strategic business goals.

• Communicating these goals effectively across the organization.

Focus, Focus, Focus

Successful procurement requires a clear focus:

• A Unified Way of Working: Standardized procurement processes and operational models.

• Category Management & Analytics: Systematic category management and data-driven decision-making.

• Efficient Resource Allocation: Prioritizing the most impactful development areas.

How Do We Strengthen the Foundation and Build Competence?

Without the right competencies and operating models, procurement development remains fragmented or stalls in its early stages. Strengthening the foundation means building organizational capabilities, establishing structured ways of working, and leveraging data-driven management.

Developing Procurement Competencies:

• Procurement and purchasing skills are developed in alignment with business objectives.

• Learning happens both through structured training and hands-on experience.

• Competency development is not just an individual effort but a company-wide capability-building initiative.

Clarifying Roles and Responsibilities Across Locations:

• Procurement responsibilities are defined at different organizational levels and locations.

• Cooperation with business units is structured and well-coordinated.

• The distinction between purchasing and procurement roles is clarified.

Where Do We Start, and What Comes First?

For change to materialize, a clear action plan for the initial phase is essential. The first steps are critical as they set the foundation for success and influence organizational commitment.

We Initiate Change Through the Following Actions:

1. Securing Executive Commitment – Ensuring the leadership team understands and actively supports the procurement transformation.

2. Implementing Category Management – Defining procurement categories and creating structured development plans.

3. Leveraging Procurement Analytics – Mapping the current state and launching data-driven procurement practices.

4. Developing Procurement Skills – Building a structured training program for procurement professionals and business stakeholders.

Next Steps

With this solid foundation, we continue our work by further refining procurement development and coaching the leadership team to ensure that strategic objectives are successfully implemented, making procurement a lasting competitive advantage.

Procurement Director’s Testimonial

“We have made a strong start in developing and rolling out category management, gaining new ideas and tools to drive progress.”

“We see you as a deep procurement expert and value the insights you bring from your experience across different companies.”

"Lauri is an excellent choice for companies seeking tailored services, a flexible and personalized approach, and specialized expertise delivered cost-effectively without unnecessary bureaucracy."

Strategic Procurement Development: Do you want to take your procurement to the next level and turn it into a strategic competitive advantage?

📩 Contact me: Lauri Vihonen, +358 50 4381912

📞 Let’s discuss how I can help your organization achieve procurement excellence!

Learn to know my services!