United Kingdom

Our capabilities - Operational transformation 

Trains on track

Operational transformation teams bring deep expertise in all aspects of business operations – from procurement to supply chain to sales and marketing – so that organisations can develop efficient and effective operations to support strategic business objectives and financial goals. These capabilities allow clients to use KPMG to support their broad enterprise transformation and operational effectiveness strategies. Our operational strategy capability helps clients rapidly analyse opportunities to enhance profitability and cost savings. We challenge the status quo by providing clients with an external perspective on ways to reshape their organisation, take out significant costs and improve the quality of their revenues.

Additionally, our teams offer expertise in the following functional areas: customer strategy and growth, supply chain and business operations, strategic sourcing and procurement, innovation and engineering and post merger integration.


Shared Services and Outsourcing Advisory teams provide clients with the knowledge, data, technology and experience to define strategies for their global business support functions. We provide insights into how to integrate shared services, outsourcing and internal improvement into clients' broader transformation strategy. We offer deep functional knowledge in shared services and outsourcing for finance and accounting, human resources, IT, procurement and other critical business processes. Taking an objective approach, we help organisations transform service delivery models and address change management issues, centralise and optimise capabilities, outsource functions, and create sustainable governance and performance management models.

Some recent examples of client work

Major procurement savings for global telecommunications provider
When advising on a major business transformation program for a UK-based global telecommunications provider, KPMG member firms combined insights about leading procurement practices and cost optimisation with deep experience in tax to deliver a tax-efficient procurement program that included major procurement savings. We implemented a centralised approach to procurement, with the central procurement company located in a low corporation tax EU country to obtain tax benefits. The synergies arising from centralised procurement resulted in savings of 25 to 30 percent. We also developed a tax-efficient supply chain function to provide significant annual corporate tax benefits and one-off VAT benefits.


Using our expertise in merger integration to identify US$432 million in potential savings After acquiring four companies, a US industrial products and metal buildings manufacturer turned to KPMG firms for our expertise in pre- and post-close merger integration. We blended deep insight into consulting and transaction services skills to advise the organisation on how to integrate its acquisitions and reduce costs. As part of a three-phased approach, we developed integration task plans by function, created business cases for synergies by function and produced a rationalised manufacturing footprint. In all, our work identified US$432 million in potential savings from synergy opportunities.


Helping a US-based global material science and chemical manufacturer capture more than US$35 million in incremental margin improvement opportunities
KPMG firms applied deep insight into supply chain leading practices so that a US-based global material science and chemical manufacturer could capture more than US$35 million in incremental margin improvement opportunities. As part of a program to support the company's ambitious growth plans, we identified risks, developed improvement recommendations, provided detailed work plans and worked with the client to implement and sustain improvements.

 

Advising a global oil and gas company throughout its sourcing cycle to save a total of US$900million
KPMG firms advised a global oil and gas company in the United Kingdom throughout its sourcing cycle – from strategy, initial procurement and negotiation of a managed service contract through to the end of the transition to the new service provider. Leveraging deep insights into leading industry practices, we implemented a rigorous transition governance and delivery framework to ensure that all transition activities, risks and issues were managed in a timely and high-quality manner. As a result, KPMG firms helped drive US$300 million of application maintenance savings and US$200 million of savings from application development rate cards. The company realised a further US$400 million of savings by implementing the new managed service delivery model alongside the new vendor contracts.


Using shared services to help a US-based global media and entertainment company to streamline its finance function
A US-based global media and entertainment company asked KPMG firms to streamline its finance function by using shared services to improve controls, standardise processes, reduce costs and increase transparency. We brought deep insight to company executives in how to create their shared services vision and strategy, define the scope of activities to be moved into shared services, develop detailed project and resource plans, design the organisation and define the IT enablers required. KPMG in Poland also helped the client set up a legal entity in Europe and apply for local government and EU grants. After setting the foundation for a successful shared services implementation, we estimated potential benefits of US$11 million annually.