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Supplier Rationalisation

Case Studies

Outcomes from rationalisation projects we have completed include:

  • One client raised their supplier discount from 18% to 28%
  • For another, we progressively rationalised the supplier base over time, raising the supplier discount to 45%.
  • For a third, we reduced the number of suppliers in core subject matter areas from 12 to 5, increasing the discount by a further 5% (£100k). The analysis also showed how a further 5% efficiency saving could be made.

Our Supplier Rationalisation service:

  • recommends your optimum supplier base,
  • shows how much more you could save on third party supplier costs,
  • minimises the risk associated with changing suppliers.

Many organisations find themselves purchasing training from an ever-increasing number of different suppliers. Too many suppliers leads to problems:

  • Spend is spread across many suppliers. This limits your ability to obtain the best discounts.
  • An inability to manage so many supplier relationships properly. You may not notice service levels and quality slip, until a major problem occurs. The administration of relationships distracts procurement and HR from higher value tasks.
  • Training lacks consistency.

KnowledgePool can audit your training spend and recommend ways to reduce the size of your supplier list and reduce the cost of your learning, whilst still maintaining quality. Using our extensive knowledge of the training industry, together with your predicted training spend, we will demonstrate how careful supplier selection will reduce cost and maintain quality.

KnowledgePool purchases over £25m of training per year from over 1,000 training suppliers: from large national training companies to independent associates. Our supplier management team are constantly negotiating with training suppliers across all subject areas to get the best quality at the best prices.

Choosing new suppliers can be a time-consuming and risky process because you know so little about the other suppliers. This service reduces both the time and the risk, because we'll only recommend suppliers that have passed our quality checks and have a track record with us.