Private equity funds and their portfolio companies are increasingly pressured to deliver measurable EBITDA improvements amidst the backdrop of decreasing deal volume, staffing capacity challenges, price inflation, and supply chain risks.
The critical procurement role
In leading organizations, procurement is charged not only with management of spend transactions, but with helping realize maximum value from the external spend and supply base. This role typically includes proactive identification of opportunities to generate value, execution of initiatives to realize that value, and development of mechanisms to sustain that value over time. However, all too often, procurement lacks the spend insight that is a prerequisite for success in this role. In fact, despite seemingly modern information technology systems and processes, most procurement organizations lack the basic spend visibility needed to understand their supply base, to know how much was spent, and on what commodities or services.
Most procurement organizations lack the basic spend visibility needed to understand their supply base, to know how much was spent, and on what commodities or services.
Learn how KPMG can help
KPMG can help deliver cost improvement opportunities through rapid price benchmarking and contract analysis across IT, telecom, and contingent labor spend categories.
