Why Pricing and Sourcing Are the First Levers in Value Creation
Examining immediate impact strategies for portfolio companies looking to maximize structural performance in the first 100 days through strategic sourcing adjustments and price elasticity modeling.
When speed to value is paramount, two levers stand out for their immediate impact on the P&L: Pricing and Sourcing.
Strategic Sourcing: Beyond Cost Cutting
Effective sourcing is not just about beating up suppliers for lower prices. It's about demand management, specification rationalization, and strategic partnerships. We often find that 10-15% savings are available through better category management.
Pricing: The Untitled Lever
Pricing is often the most underutilized lever in the value creation toolkit. A 1% improvement in price can lead to a 10% improvement in operating profit. We help companies build the confidence and capability to capture the value they deliver.
Vinay Prathy
Managing Partner
Sponsor-facing execution architecture across pricing, operating model, and finance control systems.
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