From a cost factor to a driver of value creation – how can procurement evolve from a mere cost centre into a strategic success factor?

A practical example from Swiss industry illustrates the potential of a holistic approach. In a challenging market environment characterised by high volatility, disrupted supply chains, rising energy prices and geopolitical uncertainties, the procurement and warehousing organisation of a leading Swiss industrial and recycling company was systematically developed further. Responsibility for this transformation process lay with Raffaele Starace, who managed procurement and the central warehouse in a high-volume and operationally complex environment.

The starting point was a procurement organisation that had evolved over time, comprising several hundred active suppliers, with limited transparency, a lack of alternative sources and only partially established management based on key performance indicators. Rather than short-term cost-cutting programmes, the focus was on a strategic shift in perspective: moving away from pure cost reduction towards sustainable value creation, resilience and corporate responsibility.

Through the structured renegotiation of key raw material contracts, the introduction of uniform standards, consistent diversification of the supplier base and the establishment of a system-supported contract and KPI management system, double-digit efficiency and cost savings were achieved. At the same time, stock levels were significantly reduced, capital tied up was lowered and delivery reliability was increased to a very high service level of around 98 per cent.

In addition, initiatives in the field of the circular economy and recycling helped to use resources more efficiently. This led to a noticeable increase in the recycling rate and a measurable reduction in CO₂ emissions.

Another key factor in the company’s success lay in the area of leadership. Clear roles, enhanced lean skills and a consistently developed performance culture led to greater commitment within the team and a stable organisation.

The result is a modern, data-driven and robust procurement and warehousing organisation. This example demonstrates how strategically focused procurement, under the right conditions, can make a sustainable economic, organisational and environmental contribution to corporate development.

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