For most PE funds’ portfolio companies 50% of revenues are spent with suppliers. We are extremely proud of our record working with major stock listed companies and Private Equity to deliver value through aggregated sourcing. The resulting improvement in service, quality and innovation has often proved even more important than the double-digit percentage cost savings we have delivered.
In a world of such high change and complexity we believe it is essential to have strategic relationships and have the right level of importance with a strategic supply base. We believe a well managed Private Equity company and strategic supplier relationship, that sits above individual portfolio companies, is essential lever to optimising value from expenditure.
We have developed deep relationships with world class suppliers by giving them the opportunity to grow through strategic interaction with their customers. Along the way we have gathered an unrivalled understanding of best in class commercial terms.
Scale is fundamental to the PE Procurement Partners philosophy . Not just economic scale but cross portfolio scale, cross sector, cross geography and cross cultural. These different perspectives all create value and are released best at the level of the Private Equity company
Through many years experience working with Private Equity firms we have developed a proven, tried and tested process for delivering value for multiple organisations through Aggregated Sourcing.
There are 5 key steps within the process:
- We provide PO Platform templates for the collection of data.
- We work with a client company analyst to ensure we optimise data collection. Constant advice and support is provided to the analyst as we go through the process of securing our data.
- The data is loaded into the PO platform and the analysis begins. Our analysis is a combination of automated business intelligence and the use of category experts.
- The analysis is converted into a business plan defining the size of the business opportunity and key milestones for delivery
- The PE procurement partner community work together to make a reality of the benefits.