private equity Content

Private Equity and Procurement: Building a Savings Network and Results

Continuing with our analysis of private equity and procurement based on Jeff Gallant’s observations at the SIG event, one underplayed aspect of the network or portfolio effect of driving procurement and operational savings is the, well, network itself! Jeff suggests that the value of the “social network” – i.e., getting different portfolio company procurement leaders together – can be significant.

Private Equity and Procurement: Building a Savings Network and Results [PRO]

Continuing with our analysis of private equity and procurement based on Jeff Gallant’s observations at the SIG event, one underplayed aspect of the network or portfolio effect of driving procurement and operational savings is the, well, network itself! Jeff suggests that the value of the “social network” – i.e., getting different portfolio company procurement leaders together – can be significant.

Private Equity and Procurement: Driving Savings and EBITDA

The first installment of this series (and subsequent topical coverage), exploring the evolution of private equity and procurement, is based on a presentation given by WCAS’s Jeff Gallant at Sourcing Interests Group’s Spring 2013 Summit. Today's installment focuses on how to drive savings and EBITDA.

Private Equity and Procurement: Context and Introduction

At Sourcing Interest Group’s Spring Summit, Welsh, Carson, Anderson & Stowe’s (WCAS) Jeff Gallant gave a fact-packed, fast-paced hour-long introduction to the world of private […]

Private Equity and Procurement: Context and Introduction [PRO]

At Sourcing Interest Group’s Spring Summit, Welsh, Carson, Anderson & Stowe’s (WCAS) Jeff Gallant gave a fact-packed, fast-paced hour-long introduction to the world of private equity and procurement in a talk titled Procurement as critical resource: creating value through private equity portfolio management. I came away from the presentation with a strong appreciation for the opportunities of a relatively new position that is emerging for former CPOs and procurement leaders: serving as operating partners within the private equity world. However, the lessons that Jeff shared are not just relevant to those transitioning into the world of leveraged buyouts – they are applicable to all of us that serve as service providers to our businesses.

Private Equity and Procurement: Building a Lasting Savings Foundation Requires Getting Operational (Part 3) [Plus+]

For private equity firms, the final frontier of procurement and savings influence is often direct materials. Ironically, smaller PE firms with middle market investments are more likely, based on our research and experience, to become involved in making recommendations around sourcing in the following types of direct materials categories: metals (ferrous, non-ferrous, semi-finished, finished, parts, etc.), plastics/resin, packaging, electronics (PCBs, PCBAs, etc.). Because most private equity MDs are very distant from understanding the worlds of manufacturing and design/engineering, few are willing to dive in and consider recommendations to drive savings and risk reduction opportunities in areas that can truly impact production operations and the top line.

Private Equity and Procurement: Building a Lasting Savings Foundation Requires Getting Operational (Part 1) [Plus+]

Here at Spend Matters, we believe that PE firms should consider GPOs a key piece of a broader portfolio strategy to drive procurement and operational savings within their investments. Based on our recent research into the topic, we’ve seen a diverse set of broader cost savings and related procurement/operational investments and programs made by PE firms to improve earnings within their portfolios.