Overview
Background:
With rising costs and complex global supply chains, organisations struggle to fully optimise expenses. KLRES Procurement leverages its expertise in Tactical Price Analysis to unlock significant yet often overlooked cost savings for clients without compromising on value.
Our Innovation:
Our TPA methodology comprises of a 4-step approach focused on gathering exhaustive expenditure data, rigorous benchmarking, actionable recommendations, and seamless implementation support. The success-based fee model aligns our incentives with client interests.
Our Comprehensive Solution:
For this client, we offered end-to-end TPA services spanning data compilation, analysis, presentation of cost reduction strategies, and active assistance in realising those savings. This enabled the client to benefit from our full spectrum of capabilities.
Challenges
Challenges:
The client faced various challenges that KLRES’ TPA helped address:
- Lack of visibility into all expenses incurred across the organisation
- Difficulty in identifying areas of suboptimal spending and potential savings
- Absence of rigorous analysis to unearth cost optimisation opportunities
- Limited bandwidth to implement cost reduction recommendations
Our Client’s Expectations:
The client expected KLRES to take on the complex process of compiling and analysing organisational spend data, while also providing the strategic insights and practical support needed to translate opportunities into realized savings.
Solutions
Aggregated and normalized 12 months of organisational expenditure data from diverse sources into a structured database.
Expense Data Compilation:
Benchmarking & Analysis:
Mapped expenses to external benchmarks to identify areas of excessive spending and size savings opportunities.
Recommendations Presentation:
Proposed a set of prioritised, risk-adjusted tactics to optimise identified expense categories, delivering potential savings of 18%.
Implementation Support:
Assisted client in rolling out recommendations, including renegotiating with suppliers, streamlining processes, and changing behaviours.
Results
£4.2M Annual Savings: Successful implementation of recommendations drove 18% (£4.2M) in cost reductions over the first year.
Enhanced Visibility: Comprehensive data compilation and analysis provided complete visibility into spend.
Improved Sourcing: Benchmarking empowered informed sourcing decisions aligned to industry standards.
Increased Efficiency: Streamlined processes and changed behaviours reduced operational inefficiencies.
Client Feedback
“KLRES’ TPA delivered deep insights into our spend and significant cost savings. Their hands-on approach in implementation was invaluable.”
