Private Equity and the Role of Procurement

Whitepaper: Private Equity and the Role of Procurement

Jeremy Smith Blog, Private Equity, Whitepapers

Despite a reputation as a simple cost-cutter, Procurement can and should contribute more within the realm of Private Equity. Financial engineering is no longer the default means through which Private Equity firms aim to generate value and reliance is shifting towards maximising revenue growth, enhancing working capital and creating higher enterprise value through financial management.

Each of these areas represents a significant opportunity for Procurement to support growth plans, but also actively shape a business’s future direction. The function has at its disposal an extensive arsenal of tried and tested solutions, including supply chain alignment, cost optimisation, Supplier Relationship Management (SRM) and risk management. However, success also depends on Procurement’s ability to move beyond the perception that it exists purely to drive down costs.

A modern Procurement department can balance cost optimisation and growth enhancement to deliver increased value to Private Equity boardrooms and actively shape a business’s strategic direction and competitive differentiation.

Download our whitepaper where we provide an overview of the opportunities for Procurement to create value within the sphere of Private Equity. It contains insights and recommendations on how the function can shed its reputation as a tool to reduce cost and focus on fostering tangible growth. The paper lays out how Procurement can leverage changes in the economic environment to deliver beyond its traditional remit.

Whitepaper Download: Private Equity and the Role of Procurement