The Blackstone Group is the largest alternative asset management business in the world, with more than $300 billion under management and over 100 portfolio companies in Private Equity and Real Estate investments. As the vanguard in its field, Blackstone derives an increasing part of the value creation through operational improvements. Focusing on the capabilities and competencies of staff performing procurement roles has become a priority and an integral part of Blackstone’s overall strategy to deliver consistent and superior returns to its investors.
Blackstone’s Operating Partner, Greg Beutler who focuses on procurement across the Blackstone portfolio companies globally, created a ‘Procurement Excellence Program’ involving the identification of current individual and group competencies and establishing learning programs to close those gaps. The Blackstone Procurement Excellence Program is part of Blackstone University, developing superior procurement capabilities for the portfolio companies by partnering with ISM Services, a wholly owned subsidiary of the Institute for Supply Management. The ISM Services training delivers action-oriented workshops for high potential staff. Participants in the program receive 3-days of intense workshop instruction and exercises, culminating with individual action plans and commitments to drive value for their company.
Cost savings plans emanating from the workshops are consistently producing incremental savings. Blackstone companies are succeeding with their supply management objectives, no matter the industry they compete in. Company industries range from heavy manufacturing to hospitality and financial services. Beutler states, “ISM Services’ instructors are knowledgeable, engaging and stimulate lively discussion and debate among the workshop participants. Our teams that have attended these sessions have created plans that are delivering aggressive cost savings to impact bottom-line profitability and increasing the value generation for our investors.”