Private equity firms have long recognized procurement spend optimization as a strategic lever for valuation enhancement. Increasingly, leading firms are taking a quantitative, data-driven approach to enable their procurement strategies. But these advanced strategies are often frustrated by a lack of clarity into portfolio company spend data.
In a world where spend visibility is a basic requirement for even average procurement performance, most portfolio companies have a limited understanding of their annual expenditures except for the largest areas.
Achieving procurement excellence begins with spend visibility whether for a portfolio company or across a portfolio. The benefits of full cost optimization are obvious in terms of cash flow, EBITDA, and competitive advantage.
Learn the strategies that reflect how best-in-class private equity firms leverage spend analytics to define and measure value and ROI from strategic procurement programs.