Spend Analysis: The first step towards unlocking Procurement benefits is to get comprehensive visibility of the spend. Typically, the quality of spend data at portfolio companies is below par, is spread across multiple systems and is unsatisfactorily categorized. A spend analysis program can help harmonize categories and taxonomies across portfolio companies and allow the management to get a holistic view of the aggregate spend. Subsequently this data can be used to derive actionable business insights, uncover hidden savings opportunities and direct the overall Procurement strategy for the PE firm.
Portfolio-wide Spend Aggregation and Formulation of Procurement Strategy: Valorant works closely with the leadership of all portfolio companies to identify spend areas which can be sourced collectively. Typically, Indirect categories such as Travel, Office Supplies, IT Telecom, Insurance, General Professional Services, Fleet etc. can often be easily aggregated. The aggregated spend can then be sourced by implementing the most suitable strategies including
Suppliers can sometimes be reluctant to work in a cross-portfolio environment due to concerns around ownership stakes and the extent of the PE firm’s influence on company management. Valorant is experienced in drafting and negotiating equitable terms in the contract to assure fair deal for suppliers even as the PE firm continues to add new investments to the portfolio as well as make exits.
Opportunity Assessment and Procurement Excellence for Portfolio companies: Our team of consultants are experienced in applying strategic Procurement principles to companies of all sizes. We work with individual portfolio companies to identify savings opportunities through spend analysis, contract analysis and stakeholder interviews. We understand that time is critical for all PE investments and follow an expedited approach for opportunity identification and execution. After a quick opportunity assessment, our team launches a rapid sourcing program wherein high value contracts are renegotiated and spend is consolidated to key suppliers to achieve quick bottom-line savings. Additionally, to capture incremental value, market bidding (RFP) and demand management projects for pertinent categories are launched simultaneously to get competitive rates, optimize consumption and gain additional leverage on incumbent suppliers. A $400MM PE-owned insurance company achieved 7% savings on their third party spend in just 6 months with Valorant.
Supply Chain and Operations: We work with your operating partner and leaders at various portfolio companies to re-engineer core business processes, rationalize manufacturing and support operations and optimize the supply chain. We will leverage our industry expertise and deep knowledge of supply chain best practices in the areas of network optimization, lean manufacturing, logistics, inventory management and more
With years of experience, Valorant helps PE firms simplify Supply Chain and Procurement operations with a structured approach. Our focus on both company specific and cross portfolio strategies to help your PE firm boost EBITDA and enhance valuations and achieve the desired returns on your investments.
Interested in learning more about how Valorant’s PE performance improvement services can help your firm maximize ROI and optimize investment period? Reach out to us now
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