The advantages and benefits of an ERP system are well known to operations experts. What’s often overlooked, however, are the rewards that Private Equity firms can derive from implementing an ERP system at their portfolio companies.

By implementing the same ERP system across their core-companies, for example, a Private Equity firm achieves levels of integration that dramatically improve its portfolio’s flexibility, scalability, and performance. Thanks to standardized business processes where it matters most, it becomes far easier and faster for operating partners to get the kind of reporting they need to stay ahead of the demand signal, maximize their assets’ efficiency and value, and close faster.

Thanks to An ERP system, Operating Partners can efficiently access reliable data in real time to develop an investment strategy that anticipates on shifts in industry patterns.

warehouse design

Operating partners need to be able to turn down the noise and have access to reporting that provides the data that will really help them achieve their objectives. To that end, they require a system that is attuned to their industry’s specificities and business requirements. The system’s configuration must consider, for instance:

  • Industry benchmarks, metrics & KPIs
  • Current performance levels, capabilities, and opportunities for improvement
  • Operational gaps across the network formed by core-companies
  • Industry specific technology solutions

Rely on LIDD’s deep sector expertise to implement an ERP system that is tailored to your requirements. Build a more efficient network, bring your operating costs down, and accelerate your portfolio’s time to value.

The LIDD Difference

More than Technology Experts, our analysts, developers, and engineers are also Supply Chain Experts.

Our ERP implementation teams have years of experience developing solutions adapted to the Food & Beverage, Consumer Goods, Retail, and eCommerce industries. LIDD also involves Supply Chain Experts from its Design and its Strategy practices in every ERP implementation and integration project. Thanks to this multidisciplinary approach, we are able to deliver customized ERP solutions that help operating partners:

Cloud-Based ERP Systems and PE Firms: A Perfect Match

Many ERP systems, such as the first-in-class Oracle NetSuite or Microsoft Dynamics365 Business Central , can be deployed on the cloud as a SaaS instead of an on-premises solutions. With a much lower TCO than an ERP license, these solutions are well suited to companies in the midmarket and singularly advantageous for PE firms.

Advantages of SaaS ERP Solutions

SaaS ERP systems are typically acquired through a subscription model. The solution is hosted on the provider’s servers and subscribers pay a monthly – sometimes yearly – fee to access the platform.

By subscribing to a SaaS ERP, companies get far more than just a software: they also have access to a complete range of maintenance and support services. What’s more, subscribers get access to the system’s new functionalities as soon as they are live on the provider’s platform – no need to wait until the system’s latest version is implemented.

A Perfect Match

A subscription model fits very nicely with a PE firm’s investment objectives. For one, it avoids the high initial expenditure required to purchase an ERP license. It also spares companies from the complexities and costs of implementing the technology infrastructure required to run the solution. Meanwhile, because a SaaS subscription covers services such as maintenance, continuous improvement, and technical support, it does away with the ongoing labor costs associated to hiring and maintaining inhouse IT resources.

Ultimately, with a comprehensive solution and fixed subscription fees, operating partners can rest assured that there will be no surprise expenditures down the line. This makes it easy for them to include their ERP expenses in their financial models as they prepare their portfolio strategy.

Read more about ERP deployment models here.

Read Sean’s Bio

Sean Butler Partner
Sean Butler Partner

Sean Butler leads LIDD’s global Strategy Practice and firm-wide Sales & Marketing. Sean is an expert in the consumer products & retail industries.

At LIDD, Sean advises boards and executives on supply chain transformation, including strategies for the selection and implementation of new technologies, physical infrastructure, and organizational structures. His streamlined project management approach enables him to deliver on major projects that involve many of LIDD’s practices at once.

Prior to his career in consulting, Sean was instrumental in the design and scale of key innovations in the consumer products and retail industries. He served as Senior Vice President at meal kit company Chef’d, Head of Operations, Partnerships & Business Development at Purple Carrot, the leading plant-based meal kit brand, and in key leadership roles at LeanBox, the unattended workplace foodservice retailer.

Read Charles’s Bio

Charles Fallon President
Charles Fallon President

Charles has been working as a supply chain consultant since 1998. He has worked with clients at all levels of the supply chain, from manufacturers to retailers, in a wide array of industries including food, pharmaceuticals, garments and construction materials. He has extensive experience in supply chain strategy, technology, facility design & implementation and operations. Charles holds a bachelor’s degree in Mining Engineering from McGill University in Montreal. 

Read Jean-Martin’s Bio

Jean-Martin Roux Senior Partner
Jean-Martin Roux Senior Partner

Jean-Martin has been a logistics applications and integration specialist since 2005 and helpclients throughout North America implement supply chain technology. He has worked with clients on all facets of their supply chain application park: Warehouse Management Systems (WMS), Transportation Management Systems (TMS), Manufacturing Execution Systems (MES) and Enterprise Resource Planning (ERP). Jean-Martin holds a bachelor’s degree in Industrial Engineering from ETS Montreal.

Read Ben’s Bio

Ben Vanderbeek Managing Director
Ben Vanderbeek Managing Director

Ben has more than 10 years of experience in leading technology teams, with numerous implementations and integrations of NetSuite Enterprise Resource Planning (ERP) software within distribution, ecommerce, and manufacturing industries. He leads the ERP practice at LIDD, including projects to implement Microsoft Dynamics 365 Business Central ERP, and integrate with the Generix Solochain Manufacturing Execution System (MES) and Warehouse Management System (WMS). Ben holds a BS in Computer Science from California State University Long Beach and has earned certifications as a NetSuite Administrator and a NetSuite ERP Consultant. 

Related Services