It’s a procurement manager’s worst nightmare: running out of the most important product for the entire company – even to the point of shutting the business down. This happened to KFC, the fried chicken company that – believe it or not – ran out of chicken. Students analyse the KFC case during the session Managing Spend and Suppliers led by Prof. Dr. Frank Rozemeijer. Peter Roozemond, Manager Global Product Development at Avient Protective Materials, shared his experience: “A great crash course with a broad overview of procurement and supply chain management. The KFC case, along with other real-life examples, brought the theory to life.”

The session is part of the Sustaining Competitive Advantage module of the On-Campus MBA. Before students tackle KFC’s chicken shortage, they are introduced to the world of procurement. Frank Rozemeijer begins with the history of procurement, supply chain management, and purchasing performance management. He explains that the way a supply chain is designed makes a significant difference. A substantial portion of the cost of goods sold comes from supplier invoices, but suppliers also play a crucial role in driving innovation and sustainability success. To effectively manage cost, value, and risk, companies increasingly rely on their procurement functions.

Rozemeijer starts with the basics: what is procurement? What is the difference between procurement, purchasing and sourcing? And, what does the role of a purchasing/procurement manager entail? A key revelation is the financial impact of procurement. In the example provided, selecting better suppliers and improving sourcing strategies lead to better time-to-market, enhanced working capital, and ultimately, a significantly higher Return on Net Assets. Professional procurement organisations use category management, strategic sourcing, and supplier relationship management to unlock value for their business stakeholders. In this session, Rozemeijer explores the main approaches companies can use to unlock value – both in theory and practice – with cases such as KFC’s supply chain crisis.

The Sourcing Toolkit

Managing spend and suppliers is no easy task. Procurement professionals must handle numerous challenges and risks. Identifying critical suppliers, implementing risk mitigation strategies, and maintaining strong relationships with key purchasing managers are all essential for gaining better insight into the value chain. Rozemeijer introduces the Sourcing Toolkit, which consists of four key elements: the multi-step sourcing process, spend analysis, the Kraljic Portfolio (a categorisation of products based on business impact), and developing a comprehensive sourcing strategy. Bottom-line is that strategic buyers must have a deep understanding of the supply market and supply chain dynamics. Suppliers do not always prioritise the interests of their clients—it’s often a matter of power dynamics. Rozemeijer then delves into category management and supplier relationship management, concluding with the 5 P’s of Procurement: Purpose, People, Processes, Product, and Price.

Key Takeaways

Taner Atilgan, Lead Project Manager for Large Offshore Projects at TenneT, found the session insightful: “Since I am already quite familiar with procurement, the theoretical part of the session didn’t offer much new information. However, the case studies made the concepts more tangible. The most valuable insight for me was seeing how different people react to the same problem and propose different solutions. It was also an eye-opener to learn about the Kraljic Portfolio—this was my first time encountering it. The framework provided me with a clear understanding of how to approach different products within the supply chain while balancing both commercial and operational priorities. The information shared in this session is indispensable for organisations striving to uphold high standards in their procurement processes.”

Peter Roozemond also reflected on the session’s practical relevance. “I really enjoyed the session. The KFC case turned out to be an almost exact copy of a situation that one of our fellow students had recently experienced at work. This reinforced the message that supply chain management is about finding the best solutions with all value chain partners. I can apply the knowledge gained in my current job and also in my role as co-founder at Velor, where we are on a mission to create the most sustainable and fully circular cycling apparel. At Avient, this session helps me better understand some of the tensions between procurement and innovation. At Velor, it gives me inspiration on how to better manage supplier partnerships and mitigate associated risks.

About Frank Rozemeijer

Prof. Dr. Frank Rozemeijer holds the NEVI Chair in Purchasing and Supply Chain Management at Maastricht University and is responsible for developing PhD research projects (e.g., Digital Procurement Transformation), coordinating the SCM Master course Strategic Sourcing, and supervising master’s thesis projects. He is also the programme director of the NEVI Procurement Leadership Programme (PLP) hosted by UMIO at Maastricht University. Rozemeijer studied Business Economics at the University of Amsterdam, earned his PhD in 2000 at Eindhoven University of Technology, and worked as an assistant professor at RSM Erasmus University. Beyond academia, he serves as a strategy consultant and trainer for international companies across various industries (e.g., KPN, Rabobank, Unilever, IKEA, Stora Enso, Volvo Cars, Skanska, PON Bike, Neways, and Cargotec) to develop their procurement functions. Over the past 20 years, he has built a strong international reputation as a conference speaker and chairman at industry seminars.

This article displays the student insights and experiences of our On-Campus MBA Sustaining Competitive Advantage module. Our On-Campus MBA track is part of the executive modular part-time MaastrichtMBA programme and next to that, we offer also an Online MBA learning format. The programme has a Triple Crown accreditation and is aimed for professionals with at least 5 years of working experience.