Consulting case studies

Driving value through a powerful leveraged purchasing program

A large private equity fund was able to achieve impressive savings by harnessing the combined purchasing power of its portfolio companies.

"...the private equity fund has ...found over $150 million in annualized savings, and created over $1 billion in market value."

Client challenge

To drive increased operational value within a complex portfolio of holding companies:

  • Harnessing the shared buying power of disparate companies to deliver incremental value
  • Identifying and instilling leading practices to enhance negotiations and contracts
  • Encouraging collaboration in a traditionally siloed environment

 

PwC's solution

Build an effective leveraged purchasing program by:

  • Analyzing current spend and supplier contracts to identify categories that would benefit from leverage
  • Incorporating PwC experience and develop a platform for ongoing knowledge sharing
  • Working collaboratively with participants to help to establish program utilization and buy-in



Impact on client's business

  • Established a proprietary procurement platform encompassing over 40 categories
  • Developed industry specific capabilities to help manage price volatility through leverage and collaboration
  • Established a program that is built to scale and built to last as the portfolio evolves
  • Created over $150 million in annualized savings and $1 billion in market value 

 

Published 6/2014


Contact us for a more in-depth conversation

Rodger Howell
Principal, PwC's Strategy&, Chicago
Tel: +1 (708) 267 0590
Email
John Plansky
Senior Partner, Boston
Tel: +1 (617) 521 8801
Email