Module V· Synergies & Breakeven AnalysisAdvanced
Question

How do you quantify procurement synergies in DD: standard methodology?

Answer

Start with combined spend by category, supplier, region, and contract. Identify overlap, benchmark pricing, volume tiers, supplier consolidation, payment terms, and make-or-buy opportunities. Estimate savings as addressable spend times achievable saving percentage, then phase by contract expiry and implementation risk. Deduct cost-to-achieve and avoid double counting COGS and working-capital effects.