Expenditure Assessments and Strategy Development
SSA Capital conducts a thorough strategic sourcing analysis in order to identify and prioritize cost savings opportunities. The assessment process is as follows:
I. Expenditure Assessment
SSA Capital conducts a review of and analyzes procurement spend and procurement processes to identify cost reduction and process improvement opportunities in order to develop targeted savings strategies for expenditure categories.
II. Due Diligence Services
SSA Capital performs analyses to identify and quantify procurement savings and makes an overall recommendation with respect 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
III. Procurement EBITDA Impact
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 for companies in the process of being sold. 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:
- Sign a joint non-disclosure agreement
- Obtain an Accounts Payable run and/or other report(s) outlining expenditures for the past 12 months
- Perform an initial categorization analysis
- Review key parameters, clarify outstanding questions and further refine analysis
- Outline recommended category initiatives and estimate potential savings
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