Strategic cost reduction in PE software
Procurement-led savings to fund growth and integration
A global PE fund needed rapid, defensible cost takeout in a newly acquired Norwegian software business to hit value realisation targets post public-to-private. The company lacked a procurement function and had fragmented spend across IT, marketing, real estate, and R&D. We were engaged to embed quickly, build a fact base, and deliver savings without slowing the product roadmap or customer delivery.
Working with the CFO, CIO, and board, we designed a procurement-led cost reduction strategy that created headroom for growth. The work combined Zero Based Budgeting, vendor consolidation and renegotiation across cost of goods sold (COGS) and selling, general and administrative expenses (SG&A). We also stood up light governance, a P2P process, and clearer commercial guardrails, so benefits were visible in the Profit and Loss (P&L) and sustained beyond the first budgeting cycle.
Problem statement
The portfolio company needed to reduce third-party spend fast, with no in-house procurement capability and limited visibility of demand by business unit. Targets were stretching, timelines tight and leadership required an operator who could identify savings across IT, marketing, real estate, and R&D, align stakeholders and convert opportunity into Profit and Loss (P&L) impact within weeks, not months.
Approach
As Interim Cost Reduction Lead, we built a procurement baseline, introduced a procure to pay (P2P)process and supported lead to cash (L2C) design. We co-led Zero Based Budgeting with finance and technology, consolidated vendors, and negotiated improved terms across COGS and SG&A. Category playbooks, pipeline tracking and a simple cadence kept momentum. The approach blended analytics, sourcing expertise and clear storytelling to secure decisions quickly.
Results
The initial three-month brief was extended four times based on impact. Over twelve months, we delivered savings exceeding 12% of the cost base, validated with finance. Funds were reallocated to product and go-to-market, back-office consolidation and targeted M&A. The business now has clearer spend ownership, fewer suppliers, stronger commercial terms and a repeatable model for ongoing efficiency.
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