{"id":45779,"date":"2022-09-02T08:34:10","date_gmt":"2022-09-02T13:34:10","guid":{"rendered":"https:\/\/simfoni.com\/?p=45779"},"modified":"2022-09-05T09:21:01","modified_gmt":"2022-09-05T14:21:01","slug":"4-quick-wins-that-will-improve-your-bottom-line","status":"publish","type":"post","link":"https:\/\/simfoni.com\/spend-management\/4-quick-wins-that-will-improve-your-bottom-line\/","title":{"rendered":"4 Quick Wins That Will Improve Your Bottom Line"},"content":{"rendered":"
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How Private Equity Firms Can Find Immediate Savings Across Portcos<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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The private equity industry <\/span>has<\/span> experienced <\/span>unprecedented growth<\/span>, however, as fears of economic turbulence <\/span>persist<\/span>, <\/span>many firms are searching for new <\/span>and innovative <\/span>ways to cut costs and improve efficiencies across <\/span>their portfolio <\/span>account<\/span>s.<\/span><\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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One way to quickly achieve these goals is by utilizing niche digital procurement<\/a> technology <\/span>to <\/span>aggregate <\/span>and consolidate <\/span>spend <\/span>data from across your entire portfolio<\/span>, <\/span>in order <\/span>to<\/span> provide <\/span>in-depth and actionable views of data<\/span> from across <\/span>disparate systems and <\/span>locations<\/span>. <\/span>The result<\/span>?<\/span> High-level views<\/span> of <\/span>corporate <\/span>spending that<\/span> can <\/span>be used to <\/span>improve sourcing<\/a> strategies<\/span>,<\/span> reduce <\/span>risk<\/span>,<\/span> improve compliance, and <\/span>identify <\/span>opportunities <\/span>for<\/span> cost <\/span>reductions<\/span>.<\/span> Most firms recognize the importance of detailed spend analysis<\/span><\/a>, but few know how to find all the relevant data, aggregate it, cleanse it, normalize it, and make it continuously reveal meaningful, actionable insights. <\/span>That’s<\/span> where firms like Simfoni can help. <\/span><\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Here are four ways private equity can leverage spend analytics to help drive immediate savings. <\/h2>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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1. Supplier Consolidation:<\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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When you can see where your portcos are <\/span>spending<\/span> and across which suppliers,<\/span> you <\/span>can <\/span>also <\/span>encourage <\/span>better purchasing decisions<\/span>. <\/span>A<\/span>rmed with<\/span> ac<\/span>cess to <\/span>cross-portfolio buying power<\/span>, you can aid efforts <\/span>to<\/span> reduce<\/span> the total number of suppliers <\/span>that <\/span>firms purchase from, <\/span>which also enables<\/span> reduced purchasing and processing costs – helping <\/span>your <\/span>portcos to operate more efficiently and at a lower cost.<\/span><\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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With <\/span>Spend Analytics<\/a><\/span>, private equity gains access to unique <\/span>supplier<\/span> insights<\/span>, <\/span>including<\/span> which suppliers are providing the best value<\/span> for your portcos<\/span>. By <\/span>focusing purchasing power <\/span>with<\/span> strategic suppliers<\/span>, the result is <\/span>stronger relationships with <\/span>key <\/span>suppliers<\/span> and <\/span>increased<\/span> cost savings<\/span> from volume discounts <\/span>and potentially<\/span> improved payment terms<\/span>.<\/span><\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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2. Tail Spend Management<\/span><\/span>:<\/h3>\t\t\t\t<\/div>\n\t\t\t\t
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Most companies have a large tail <\/span>spend<\/span> which is <\/span>the <\/span>money spent on low-value<\/span>, high volume<\/span> purchases outside of the <\/span>strategic<\/span> transactions that make up the bulk of a<\/span> company’s<\/span> spend<\/span>. <\/span>Firms <\/span>can’t<\/span> manage their <\/span>tail spend<\/span><\/a><\/span> if they <\/span>don’t<\/span> know where the money is going, so <\/span>w<\/span>ith s<\/span>pend analytics<\/span>, private equity can help portcos take the first <\/span>critical <\/span>step in <\/span>addressing the tail<\/span> –<\/span> opening the door for a<\/span> savings opportunity of<\/span> up to<\/span> 15-30%<\/span>.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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