Hi everyone,
I have a case interview coming up in a few days. The case will be related to procurement cost reduction. I have been searching in multiple websites and books, but there are really few procurement related cases. At the PrepLounge library I only found one (Fast Dish Restaurant from Inverto).
Does anyone have other procurement related cases that can share with me?
Thanks!
Hi there! I understand your concern about finding procurement-related cases for your upcoming interview. While it can be challenging to find specific cases in certain areas, I can offer you some guidance on how to approach a procurement cost reduction case.
First, it's important to understand the key drivers of procurement cost reduction, such as supplier negotiations, process optimization, and demand management. Familiarize yourself with these concepts and their potential impact on cost reduction.
Next, focus on developing a structured approach to tackle the case. Start by identifying the current procurement processes and analyzing the cost drivers. Then, explore potential areas for improvement, such as supplier consolidation, strategic sourcing, or implementing cost-saving initiatives.
Additionally, consider the broader context of the industry and company you're analyzing. Are there any specific challenges or trends affecting procurement costs? How does the company's procurement strategy align with its overall business strategy?
While it's helpful to have specific cases to practice, remember that the key is to demonstrate your ability to think analytically, structure your thoughts, and provide actionable recommendations. You can apply these principles to any case, even if it's not directly related to procurement.
I hope this guidance helps you in your preparation. If you have any further questions or need additional support, feel free to ask. Good luck with your case interview!
Hi there,
This is really a subset of operations
Remember for procurement/supply chain, first you need to ask objective. In general this will either be "Reducing Costs" or "Fixing/Optimizing Production"
Within Reducing Costs, this could be contract renegotiation, finding new supplies, locking in futures contracts, automating processes (replace labor), changing transport methods, etc.
Within Optimizing Production, this could be a lot of the same i.e. automating processes, finding new suppliers, changing transport methods
Generally, you'll want to segment the supply chain/procurement process to identify problems (i.e. where taking the longest or costing the most).
For Practice Cases Try The Following
1) Search on Operations here (already done): https://www.preplounge.com/en/management-consulting-cases?language=en&topic[]=8&sort=real-case-desc&page=1&perPage=20
2) Google and casebooks are your friend. For example (https://managementconsulted.com/case-interview/case-interview-examples-master-list/)...go to Accenture, Amex, AT Kearney, Deloitte, and LEK sections which specifically call out operations.
3) Send me a message and I can provide you with a few good ones and/or case you in them!
Hey there,
I wouldn't bother so much with cases and instead google “consulting + procurement" to get a really good understanding of the function itself with some real-life examples.
At my time at McKinsey, I did a lot of procurement related projects and the themes were somewhat repetitive (in a good way, there's certain principles undergirding the function that I was able to internalize to add value to the next project). We also published some of our work, which is why I recommend you take a look.
Lastly, if you know what industry you'll be dealing with, add that as a refinement to your google search. I did a lot of procurement in the mining and oil & gas sector, which works VERY different from, let's say, pharmaceuticals or FMCG.
Hope this helps a bit. Best of luck!
Moritz
_______________________________________________________
>> Need a specialized McKinsey coach & mentor?
See my full profile
>> Need real McKinsey cases?
Zero Carbon Mine (hard)
Car Convenience (Intermediate + brand new)
Hi Moritz, Thanks for the reply. The case is regarding a construction and maintenance firm, so I will focus on that industry. Thanks for the insights!
So that means lots of commoditized building materials (maybe some specialized), which have high carbon footprint e.g. steel/concrete, some of which have green alternatives e.g. ‘green steel’. Commoditized materials like copper have high price variation due to increasing demand from electrification. Despite the fact underlying materials are commoditized, there’s still a quality issue you don’t want to neglect, e.g. good steel. You need to understand how and who you’re paying through what commercial framework to identify cost levers. Aside from materials, you’re dealing with LOTS of different contractors in construction/maintencane where it comes down to reviewing/consolidating existing contracts e.g. batch negotiations and/or refine the procurement process to award such contracts. For maintenance, there’s also a huge quality issue where good work leads to effective solutions i.e. low failure rate with decreased down-time due to efficient work during the actual maintence e.g. you don’t want your elevators down all day and loose business because of it. Lastly, there’s always a digital angle to explore e.g., building design, optimized maintenance schedules, etc. Lots to think about :)
(edited)
Lots of great info, thank you!
A bit of a brain dump but perhaps some of it useful ;) Best of luck with the interview!
Hi!
Sorry, unfortunately I don't have any cases that I wrote on procurement, but I can share a few case books with you to search for procurement case examples.
As an alternative, you can feed an example to ChatGPT and then ask for it to generate similar examples. Basically, use it as a case prompt generating machine.
Good luck!
Cristian
———————————————
Practicing for interviews? Check out my latest case based on a first-round MBB interview >>> CodeWave
(edited)
Great suggestion Cristian, thanks!
Hi there!
I've got a few procurement cases in my library (e-commerce and construction). Feel free to send a session request (50% discount applies).
Nick
Hi there,
I have some procurement cases on my personal case library. Feel free to send me a message.
Best,
Alberto
—
Check out my latest case based on a real MBB interview: Sierra Springs
Hi there, happy to share a few cases from my case library (real cases). Ping me a DM, Warm regards, Frederic
Thanks for the help Raj, I'll keep that in mind!