
UNRAVEL 05

TYPE OF ENGAGEMENT:
Learning Development Supplier Rationalization
INDUSTRY/COMPANY TYPE:
Energy Sector
'KNOT':
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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.
THE UNTWINE APPROACH:
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'As Is' review of all contracts to determine:
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Contract status - to ascertain if a valid contract with market based rates exist.
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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.
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Benchmark of Learning Service Rates via indirect procurement.
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Re-negotiate and consolidate service contracts lea by indirect procurement.
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UNRAVELING OUTCOME:
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Developed supplier strategy based on a 2 year learning development needs.
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Developed an integrated supplier management process.
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Implemented a procurement governance process.
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Reduced tail.
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Moved from 10% providers in contract to 100%.
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Rationalized same or similar suppliers creating pre-approved optionality in the event existing suppliers could not undertake additional work.
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Reduced supplier spend by £33M (move from 520 suppliers to 28).