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Procurement synergies and improvements across five business units (CS172)

Home_Decor_Success_Story

This home décor company’s Private Equity owners engaged SGS-Maine Pointe to help alleviate the pain of post-merger integration across five separate business units under their umbrella.

Each unit had its own unique operating practices and procurement was division centric. In a highly complex environment, the PE firm tasked SGS-Maine Pointe with implementing a cohesive and effective approach that would transform the disparate procurement functions of the five entities into one single, homogenous company with a common set of integrated processes capable of delivering EBITDA value.

SGS-Maine Pointe's 360-degree analysis confirmed the siloed nature of the procurement functions. Procurement roles and responsibilities varied significantly between business units with little or no accountability for cost ownership, a lack of formal contracts with suppliers, disparate ERP systems and a universal failure to leverage spend. Only one of the entities showed any evidence that a strategic sourcing process was in place.

How did this become a success story...? Download the PDF to find out.

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