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Interim-to-Permanent Procurement Leadership During Strategic Supply Chain Transformation

A Confidential Case Study

PE-Backed Industrial Technology Company

Context

A Danish private equity-backed industrial technology company, owned by PE, operates in a specialized niche within automation (automation systems).

Following multiple international acquisitions, the company faced:

  • Fragmented supply chain structures
  • Decentralized procurement practices
  • A hybrid operating model (in-house components, outsourced assembly)

At the same time:

  • Margins were under pressure
  • Delivery performance was unstable
  • Quality issues were impacting operations

A newly acquired Finnish entity introduced a strategic opportunity:
transitioning from outsourced to in-house assembly.

The Situation

The leadership team initiated a structural shift:

  • Insourcing assembly capabilities
  • Integrating the Finnish operation
  • Regaining control over cost, quality, and delivery

However, procurement was not equipped to support this transition:

  • No strong central leadership
  • Limited supplier transparency
  • No clear ownership of the transformation 

The Challenge

Three pressures had to be addressed simultaneously:

  • Time – the transition was already in motion
  • Complexity – integration and operating model shift combined
  • Performance risk – delivery instability and margin erosion

A traditional search would be too slow.
An interim alone would not secure long-term results.

Our Approach

FG&P implemented a dual-track solution combining immediate execution with long-term capability building.

1. Immediate Stabilization (Interim Leadership)

  • Interim procurement leader deployed rapidly
  • Mandate duration: 3 months
  • Focus areas:
    • Support assembly insourcing
    • Stabilize supplier base
    • Improve delivery and quality performance
    • Establish spend and contract transparency

2. Parallel Search (Permanent Head of Procurement)

  • Search launched simultaneously with interim onboarding
  • Target profile:
    • Industrial / project-based procurement experience
    • Proven function-building capability
    • Ability to operate in a PE-backed transformation environment

3. Structured Handover

  • Planned transition from interim to permanent leader after 3 months
  • Ensured:
    • Full knowledge transfer
    • Continuity in supplier strategy
    • No disruption to ongoing operations 

Time-to-Impact

  • Interim leader operational within 10 days
  • 3-month stabilization phase completed
  • Seamless handover to permanent Head of Procurement
  • Continuous momentum without interruption 

The Outcome

Operational Impact

  • Successful transition to in-house assembly
  • Delivery performance improved from ~60% OTIF to ~85% within the first year
  • Stabilized supplier base and improved quality consistency

Financial Impact

  • Identification of ~15% cost-saving potential across key categories
  • Clear roadmap for margin improvement

Organizational Impact

  • Established a structured procurement function
  • Clear leadership ownership and accountability
  • Improved cross-functional alignment with operations and management 

Why This Matters

In PE-backed and mid-sized industrial companies:

  • Procurement is often underdeveloped relative to its impact
  • Structural changes expose this gap quickly
  • Slow or sequential hiring increases execution risk

A combined interim + permanent leadership model:

  • Accelerates time-to-impact
  • Protects operational performance during transition
  • Builds long-term capability without losing momentum 

Key Takeaway

When procurement and supply chain become critical to execution,
the priority is not just hiring —

but stabilizing, transforming, and building leadership in parallel.

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