How AI is reshaping procurement and supply chain value creation in private equity

This is an interview with Mert Erkan, a vice president at Efficio Consulting, on how AI is being applied to procurement and supply chain work across private equity portfolio companies. The discussion covers where firms can look to reduce costs, strengthen supply chain resilience and improve margins, and why leadership, internal capabilities and executive sponsorship are needed to turn AI insights into measurable results. It also looks at how the traditional 100-day value creation plan is evolving to support continuous improvement over longer hold periods.

1. Private equity firms are described as facing longer hold periods, rising costs and market disruption, with pressure to protect margins and deliver value creation.
2. AI is framed as creating new opportunities to drive procurement and supply chain efficiencies across portfolio companies.
3. Strong leadership, internal capabilities and executive sponsorship are presented as essential to translating AI insights into measurable value.
4. The traditional 100-day value creation plan is described as evolving toward continuous improvement through longer hold periods, with cross-functional collaboration needed to sustain operational gains.