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.
PE Challenges:
5 Typical Challenges
1.
Ever changing portfolio (exits, new acquisitions)
2.
Limited internal operating resources
3.
Poor cross-portfolio spend data
4.
Require high "signal/noise" - procurement often doesn't make the cut
5.
"Easy" - should not be a big sell to portcos
Treya’s response to these challenges is a 5-prong, fully managed approach to procurement value creation under a vendor funded model.