TYPE OF ENGAGEMENT:

Learning Development Supplier Rationalization 

 

INDUSTRY/COMPANY TYPE:

Energy Sector

 

'KNOT':

• Large supply chain of duplicated service providers and long tail. High third party supplier cost and no supplier management process or up to date contracts in place.

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THE UNTWINE APPROACH:

• 'As Is' review of all contracts to determine: 

  • Contract status - to ascertain if a valid contract with market based rates exist.

  • Nature of service provided - to determine if it could be provided internally and which other providers were providing a same or similar service, with a view to consolidation.

  • Benchmark of Learning Service Rates via indirect procurement.

  • Re-negotiate and consolidate service contracts lea by indirect procurement.

 

UNRAVELING OUTCOME:

• Developed supplier strategy based on a 2 year learning development needs.

• Developed an integrated supplier management process.

• Implemented a procurement governance process.

• Reduced tail.

• Moved from 10% providers in contract to 100%.

• Rationalized same or similar suppliers creating pre-approved optionality in the event existing suppliers could not undertake additional work.

• Reduced supplier spend by £33M (move from 520 suppliers to 28).

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