Product Development and Procurement
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Product Development & Procurement

Unlock the full potential of your portfolio through product and service design and transformation

Guide the creation of exciting product and service portfolios

A collaborative approach to design and development steers the creation of new products, services, and software. Our approach, which combines customer, technology, operations, and market insights, along with our partnership with McKinsey Design, creates exciting portfolios of new products and services that deliver the right experience for your customers.

Increase profitability through product and service life-cycle optimization

Our innovative methodology to optimize products shifts the focus from design-to-cost to design-to-value. Taking a customer-back approach, and leveraging the best from our design and analytic teams, we bring together customer insight and traditional cost levers in new ways, resulting in improved products for both our clients and their customers.

Improve agility and effectiveness through development

By delivering a holistic transformation of engineering departments, we ensure organizations remain agile, effective, and ready to deal with a rapidly evolving market.

Optimize spend categories

Pioneering approaches and digital solutions combine to optimize direct and indirect spend categories as we leverage our innovation, expertise, analytic, and digital tools. By implementing a total-cost-of-ownership approach, we support clients through the complete process to reach execution, including the negotiation stage.

Drive productivity and innovation with suppliers

In a time of rapid innovation, we help clients leverage the broader supply ecosystem to drive process and product development. This results in maximum impact from supplier relationships, using advanced programs to create integrated product and service life cycles.

Maximize procurement impact through agile digital operating model

We guide the creation of a streamlined next-generation operating model, characterized by digital user journeys. By designing agile processes that incorporate source to pay, we help to reduce leakage and to sustain performance to meet future needs.

20%+

improved margins

from portfolio realignment

30%

quality improvement

through life-cycle management

20×

return on investment

from next-gen operating-model implementation

Featured solutions

Cleansheet

Cleansheet analyzes a product’s underlying cost structure to help organizations establish cost transparency, set target... costs, and capture savings.

Numetrics

Optimize your R&D productivity with Numetrics

Featured capabilities

Centers of Competence

Our Centers of Competence bring expertise in cost engineering, category knowledge, and benchmarking that deliver faster and higher impact with our best-in-class procurement and product-development tools.

DTV Labs

Across the globe, ten Design Labs support clients with design-to-value (DTV) efforts, including competitive teardowns, cleansheet costing, training workshops, customer and brand analytics, and idea generation.

Global Sourcing Centers

We offer client support throughout the entire global sourcing process by leveraging best-cost country (BCC) suppliers. A global team of analysts from five Sourcing Centers, located in best-cost sourcing “hot spot” locations, help provide our clients implementation-level support in global sourcing diagnostics; country and category prioritization; supplier identification and evaluation; supplier bidding, negotiation and selection; and global sourcing organization design.

McKinsey Implementation

Find out how we work on site with clients to help them achieve long-term improvement and measurable, bottom-line results. We help strengthen leadership, transform processes, and build capabilities. Learn how we work intensively with clients across all industries and topics to improve performance and produce results: rapid, significant, measurable improvements in productivity, cost, quality, sales, and other metrics.

Product Development & Procurement (PDP) Academy

We take a blended approach to learning, combining assessments with online courses, classroom training, coaching, and group work to create targeted learning journeys for different cohorts. We have a proven methodology focused on creating value.

Source2Pay (S2P)

S2P enables clients to realize the full potential of procurement savings in profit and loss by linking category-sourcing strategies to procurement operations—putting the optimal processes, organization, and digital procurement tools in place that enable simple, efficient, and compliant third-party spend.

Featured insights

Article

A next-generation operating model for source-to-pay

– A next-generation procurement operating model that capitalizes on advances in digital, data, and analytics delivers new levels... of performance across the value-creation lifecycle.
Article

Digital procurement: For lasting value, go broad and deep

– To get the most from procurement digitization, leaders must raise their ambitions along with their skills.
Report - McKinsey Quarterly

The business value of design

– How do the best design performers increase their revenues and shareholder returns at nearly twice the rate of their industry counterparts?
Article

Taking the measure of product development

– Is the way you measure product-development performance harming your company’s health? New research suggests that it might... be.

Careers

Interested in a career in Operations?

A career within our Operations Practice offers the opportunity to work with the biggest companies in the world, on projects that transform their core business and build resilience for the future. We are continuously seeking the best talent at all levels and for all types of roles, and are particularly keen to talk to experienced professionals looking for their next challenge.

Connect with our Operations Practice