Private Equity and Procurement: Building a Savings Network and Results

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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.

Based on the healthcare orientation (among other areas) of WCAS’s investments, Jeff noted that many organizations he works with have similar opportunities to focus on joint categories such as gases, lab equipment, implants, paint, travel, supplier diversity, packaging, fleet, etc. The value of the informal information exchange in this closed social network, Jeff points out, can be very significant given the overlap in sourcing and supplier management categories and requirements.

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First Voice

  1. Don Jean:

    Getting private equity portfolio procurement leaders together to capture aggregate spend, to leverage the common spend into current savings and to be able to manage future spend for the benefits of the portfolio and its companies would be easier if there was a common buying platform technology immediately available for use “tomorrow” with Users becoming excellent at the process “in a few weeks”.

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