Managing portfolio purchasing

The challenge

A world-leading private equity house wanted to manage its portfolio company spend and implement portfolio-wide supplier agreements in Europe. The was the first time that such an initiative had been attempted in Europe, so in addition, the PE firm wanted to be able to demonstrate high levels of buy-in and participation across their portfolio.

Our solution and objectives

We delivered a pan-European portfolio purchasing project covering 11 portfolio companies across 14 countries in scope for Europe. We supported the client using our leveraged portfolio purchasing methodology. Our first step was to establish ‘Category Councils’ with over 30 representatives from the 11 companies. We developed and validated both the spend baseline and potential savings by portfolio company. We also sourced a range of categories including fleet, mobiles, office supplies covering development of category and go-to market strategy, all required tender documentation, supplier briefings and negotiations, eAuctions, and implementation planning. Finally, we also modelled award scenarios, and prepared recommendations for supplier selection.

Measurable results

We delivered total savings of 11% across all categories, including 34% savings on mobile telecoms which represented an ROI of 12:1 against fees.

Qualitative results

  • We helped achieve multi-company and regional buy-in to the principle of joint purchasing which can be sustained through the ongoing use of the Category Councils.
Follow us