Consolidate suppliers, substitute with lower-cost alternatives.
Sodexo grew operating margin 30 basis points to 4.3% by channeling $50B in food purchasing through its Entegra GPO.
Centralized Procurement Through Entegra GPO in Global Food Services
CBRE grew GWS segment operating profit 17% in 2022 through consolidated procurement across its global facilities scale.
Scale-Driven Procurement Leverage in Global Workplace Solutions
Marsh McLennan achieved $400M in post-JLT synergies while growing revenue 36% to $22.7B through vendor rationalization.
Third-Party Vendor Rationalization in Professional Services
AMETEK grew adjusted EPS 13% annually for six years by deploying a lean operating model across 100+ niche acquisitions.
13% Adjusted EPS CAGR Through Systematic Lean Manufacturing Across 100+ Acquisitions
HEICO grew revenue 4x to $3.86B through 100+ acquisitions of FAA-approved aerospace parts businesses.
HEICO Corporation grows revenue 4x through serial acquisitions of FAA-approved alternative parts makers
Steadfast Group grew network GWP approximately 3x to A$11.6B using equity stakes instead of full acquisitions.
Steadfast Group grows network GWP approximately 3x to A$11.6B with equity-stake broker roll-up model
ITW grew operating margin from 17% to 26.8% by cutting SKUs 50-80% and exiting tail customers in every business unit.
~10-Point Operating Margin Expansion Through 80/20 Simplification