Strategic Sourcing Advisory Group

For Corporations and Private Equity Portfolio Companies, SSA Capital focuses on producing tangible savings. We fully implement the savings to produce immediate and long-term cost reductions and business efficiencies. SSA Capital's strategic sourcing services include the following:

I. Assessments

To identify and prioritize opportunities, SSA Capital conducts a thorough strategic sourcing analysis, including:

• Details all purchasing categories & associated expenditures
• Reviews and analyzes key contracts and pricing data and requirements
• Performs appropriate and relevant industry analyses
• Analyzes expenditures across numerous parameters to identify, quantify and prioritize cost savings opportunities

II. Category Cost Savings Implementation

SSA Capital implements category-specific initiatives to immediately capture savings in high opportunity areas as follows:

• Collaborates with the client to prioritize and target specific sourcing categories
• Develops and implements strategies to capture significant cost reductions. These potentially include:
  • - purchasing process improvements
  • - expenditure leveraging
  • - consumption controls
  • - requirement re-specifications
  • - consolidation of suppliers
  • - direct negotiations
• Applies extensive negotiation expertise to establish best-in-class agreements and produce substantial results
• Implements an intensive process that can be conducted in a short timeframe
• Employs a fact and information-based approach to greatly increase a client's negotiation position (benchmarking, cost structure re-modeling, etc.)
• Reviews all components of the supply chain, including base commodity pricing (nickel, titanium, scrap, steel, oil, resin, etc.) to identify potential cost reduction opportunities
• Identifies alternate high potential suppliers and interacts directly with suppliers to create a win-win environment and ensure an optimal competitive environment
• Develops and executes out of the box ideas such as leveraging expenditures across multiple clients or portfolio companies
• Measures and tracks results achieved through scorecards and reports
• Transfers knowledge to client and investment company personnel

III. Due Diligence Services

SSA Capital performs analyses to identify and quantify procurement savings and make an overall recommendation in regards to potential acquisition candidates. SSA Capital works with companies to review various aspects of the business. This can include:

• Collecting all relevant and available data and information related to the company’s procurement process and expenditures, as well as other areas including sales, marketing and product/service offering
• Conducting research related to the client’s industry, competitors and suppliers
• Executing a general strategic sourcing assessment to highlight potential opportunities to capture incremental EBITDA
• Reviewing all sales and marketing operations, organizational structure and product/service offerings to identify areas for revenue growth

IV. Procurement EBITDA Impact

For companies in the process of being sold, SSA Capital conducts a detailed analysis of the procurement landscape and generates a plan to identify and quantify procurement savings that will result in incremental EBITDA. This plan includes:

• A detailed review and analysis of each high expenditure category and supplier
• Specific next steps and action items for securing savings by category and supplier
• Identification of potential incremental EBITDA based on highlighted opportunities

How To Get Started

It’s simple to begin a strategic sourcing initiative with SSA Capital. SSA Capital takes a “hands on” approach and works with existing information and resources in order to limit the time and effort required of the client. Typically, SSA Capital utilizes the following process:

1. Sign a joint non-disclosure agreement
2. Obtain an Accounts Payable run or other report outlining expenditures for the past 12 months
3. Perform an initial categorization analysis
4. Review key parameters, clarify outstanding questions and further refine analysis
5. Outline recommended category initiatives and estimate potential savings
6. Jointly determine initial key opportunity areas to pursue
7. Establish project teams and execute projects

Experience

SSA Capital has executed a number of initiatives to impact expenditures and profitability. We have worked with a large number of domestic and international organizations across many industries and in a wide scope of expense and activity areas. Click here for more details about our experience.

Examples

Click here to see a few case studies which outline the client’s current situation, the project plan, the recommended strategies, SSA Capital’s findings and the results achieved for each area.