Treya Partners to provide cross portfolio procurement value creation for Private Equity client
San Francisco, CA, December 15, 2019 - Treya Partners continues to expand their service offering for Private Equity clients with the release of the Managed Portfolio Procurement (MPP) program. MPP is a comprehensive, cross-portfolio approach to procurement value creation that is sustainable and flexible. The program drives EBITDA improvements regardless of addressable spend or portfolio company industry.
The inspiration behind MPP was based on direct feedback from Treya’s private equity clients on their challenges with creating, managing and maintaining an effective procurement program. The main challenges were created by an ever-changing portfolio with exits and new acquisitions, limited internal operating resources and/or inconsistent resources, poor cross portfolio spend data, and determining the proper model to fund procurement work.
Treya’s response to these challenges is a 5-prong, fully managed approach to procurement value creation under a vendor funded model.
Treya’s unique MPP program takes a holistic, managed service approach to procurement to produce sustainable best in class vendor contracts through managed Group Purchasing Organizations (GPO) and the development and management of Private Equity volume leveraged vendor agreements. MPP also includes overall program management of all contracts, portfolio company onboarding and the creation and oversight a CFO/CPO forum for the sharing of best practices & thought leadership.
At the front and backend of MPP is Treya’s spend analytics. Treya has included full spend analytics as part of MPP for portfolio wide spend cube, category tracking and reporting, cost reduction identification, and due diligence support.
The highlight of MPP for Private Equity clients is the majority of the program is vendor funded taking out the challenge of funding which historically has been a program non-starter. With the exception of the Portfolio Specific Initiatives, the entire program is fully funded by vendors. Treya’s objective is to come alongside their PE clients as a long-term partner and made the strategic decision to reinvestment the majority of vendor admin fees for various programs back into the Private Equity client.
Treya is forecasting a strong year of onboarding new clients onto the MPP program and anticipates a 5-15% EBITDA improvement for the participating portfolio companies. Rahul Ahuja, a Treya Partner and Founder, stated, “MPP is unique in it’s combination of the multiple levers for procurement value creation as well as the removal of the barrier to entry. We have listened to our client’s challenges and now we are excited to present the Treya solution.” Ahuja added, “This is only the beginning of a program that we will continuously improve as it matures and as we gather feedback from our valued clients”.
About Treya Partners
Treya Partners is a management consulting firm specializing in procurement value creation, strategic sourcing, and spend management advisory services for Private Equity. Treya was established in 2006 by a seasoned group of supply management professionals and has served hundreds of PE-owed companies across a broad range of industry sectors including manufacturing, distribution, retail, financial services, life sciences, healthcare, and technology. Treya delivers meaningful EBITDA improvements from indirect (SG&A) and CoGS categories in addition to implementing transformative procurement projects. For further information, visit Treya Partners online at https://www.treyapartners.com.