BrazilMcKinsey buys Orpheus and launches Spend Intelligence offering
McKinsey & Company has acquired Orpheus, a German provider of spend analytics technology. With the bolt-on, McKinsey significantly beefs up its digital procurement practice, and launches the new ‘Spend Intelligence by McKinsey’ offering.
Founded in Germany in 2005, Orpheus helps organisations optimise their external expenditure. The company’s software helps procurement functions gain transparency on all spend data across the enterprise. Experts from Orpheus then help clients with analysing spend data, identifying value capture potential in product categories, creating concepts to measure success and with execution.
McKinsey will now integrate Orpheus into its Operations practice, specifically into its offering for procurement leaders. The strategy and management consulting giant will combine Orpheus with its own expertise in the field to bring a new offering to clients: Spend Intelligence by McKinsey.
Philipp Radtke, a senior partner at McKinsey & Company and global co-leader of the Operations Practice, said; “The offering is a powerful combination of Orpheus’ advanced platform technology, and McKinsey’s industry expertise and content-rich services in digital procurement.”
“Spend Intelligence by McKinsey will offer clients deeper and more consistent insights into opportunities for spend optimisation through an innovative combination of data, software, category sourcing expertise, and services. It will enable spend transparency, spend and cost analytics and value capture management.”
Designed to support CPOs, CFOs and category managers, Spend Intelligence by McKinsey will be a “core element of the digitally-enabled procurement function of the future”, added Radtke.
The proposition includes traditional consulting services such as strategic sourcing assessment and spend cubes, as well as change and program management and solution services such as technology licenses and spend data processing.
For Orpheus, the change of ownership marks a new journey in its fifteen year history. “Together we can create a much richer solution and service offering,” said Jörg Dittrich, the CEO of Orpheus. He is joined in the move to the consulting firm by the full 35-strong team of Orpheus, including leaders Michael Lauer, Christian Ruck, Jörg Mengeler, Marco Pachovsky and Matthias Schumann.
Orpheus was backed by among others UVC Partners, which provided the firm an initial seed investment in 2012. “Orpheus is a pioneer in the procurement software space with its specialised spend analytics and savings management solution. UVC Partners is happy with the successful acquisition by McKinsey & Company,” remarked Ingo Potthof, Managing Partner at the German financial investor.
