The Importance of Procurement Visibility & Spend Analytics in the Private Equity Environment

Executive Insight Brief by SpendHQ Senior Vice President Jake Wojcik

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. The same challenges that stymie most individual companies are exacerbated in a private equity environment. Even if 100% of the portfolio companies have great data, gaining a consolidated view is far harder than it might seem.

Spend visibility is the foundation for any cost optimization program—whether it translates to individual company procurement optimization or a cross-portfolio procurement synergy program—to harness the aggregated purchasing power of a portfolio. Spend analytics are also crucial to capturing the full value of indirect consortia programs, where compliance issues are typically either not visible or are drastically eroding the expected savings realization.

In this Executive Insight brief, we will examine common challenges to achieving spend visibility in a private equity environment and provide proven strategies to leverage spend visibility in order to accelerate the value of your portfolio companies.

Download our guide, The Importance of Procurement Visibility & Spend Analytics in the PE Environment.

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