Learning Tools | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to Learning Tools Procurement

Overview

The market for Development and Training and its sub-segments such as Learning Tools are at an interesting intersection. The market for e-learning services is exploding in developed and developing economies alike. L&D possibilities enabled by gamification, LMS apps and new content delivery methods have impacted the procurement of Learning Tools in a massive way.

Demand is increasing for self-learning tools that offer flexible course durations as per an employee's convenience and schedule.

Labor cost constitutes a key component of L&D providers' OPEX. Factors such as rise in the cost of living, increase in the local wage policies across geographies, and rise in wages and remuneration packages will propel service providers' OPEX and therefore use of automation and other tools will further increase to offset some of the rise in cost of operations.

Trends like these and many others discussed in this report are necessitating a relook at the way Learning Tools is procured and the procurement cost saving opportunities that exist.

Learning Tools Procurement Best Practices

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Learning Tools procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Buyers should prefer to partner with suppliers that have at least 3-5 references of their performance delivery. Buyers can also evaluate these suppliers by taking feedback from their peers in the industry on the flexibility, quality, and adaptability of the supplier.

Buyers need to adopt renegotiation strategies with existing service providers to receive better quotes and discounts. Negotiation can take place based on the supplier's previous performance, performance of employees after the completion of L&D program or technology adoption by suppliers.

Blended learning solutions are a mix of instructor-led learning and web-based learning. These solutions aid buyers to reduce training implementation costs and enhance the effectiveness of training. Hence, buyers must collaborate with service providers that offer blended training solutions.

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Risks in Learning Tools procurement

Learning Tools procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Learning Tools procurement. Some examples include:

The corporate learning and development industry is affected by the economic upturns and downturns of their clients, as these can lead to budget cuts for outsourcing of training and decline in technological spend
Contract-related risks where unfavorable credit terms may severly penalize buyers for delayed payments or entitle the supplier to demand pre-payments or shorten the payment terms are not very common in the category but they do exist in certain situations where buyers' liquidity or financial health is in question
Learning and development has a negative aspect along with its positive outcome, as it brings operational tasks to a halt. This can prove to be a major risk for an organization in case the learning and development programs is prolonged or if timelines are not managed properly. Inability to accurately assess training requirements can result in situations such as those mentioned above, and significantly affect productivity levels of the organization

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Who should read this report

The report is intended to serve as a one-stop reference guide for Learning Tools procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “Learning Tools: Procurement Report 101” as well as for category experts actively tracking the global Learning Tools procurement market.

You may have just initiated your research to design a winning Learning Tools procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

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Key questions on Learning Tools procurement answered by this report

Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

The Learning Tools procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:

What is the spend potential in the Learning Tools market?
What is the correct price to pay for Learning Tools? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for Learning Tools Suppliers Market?
Who are the top Learning Tools suppliers? What are their cost structures?
Which negotiation levers can reduce Learning Tools procurement cost ?
What are supplier margins in Learning Tools market?
What are the best practices for Learning Tools procurement and what are the potential risks?

SpendEdge Insights has helped procurement professionals and sourcing teams manage multiple spend areas and achieve more than $2 billion in savings. Activate your free account today!

Learning Tools Category Insights: What is inside

The Learning Tools market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.

Data

A key highlight of this report is the in-depth outlook created on Learning Tools procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for Learning Tools. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.

Insights

Along with specific category and supplier intelligence, the publication also includes curated insights on Learning Tools market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.

Advisory

Additionally, the report also advises on the best practices and strategies to manage the Learning Tools category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

Category Ecosystem

Buyer and supplier ecosystem
Competitiveness index
Buyer and supplier power
Threat of new entrants and substitutes

Global and Regional Sourcing Insights

Category spend
Spend growth
Dynamics
Opportunities

Pricing and Cost Analysis

Pricing outlook and data
Drivers of pricing
Cost structure and inputs cost
Total cost of ownership
Pricing models and margins

Cost Saving Opportunities & Negotiation Strategies

Buyer and supplier side levers
Quantified cost saving opportunities
Negotiation strategies and quantified outcome

Procurement Best Practices, Strategy and Enablers

Procurement excellence
Sustainability and innovation
KPIs and category enablers
Risk management and outsourcing

Vendor Analysis

RFx essentials and selection criteria
SLAs
Supplier evaluation metrics
Detailed supplier profiles

Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

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Category Research Framework

SpendEdge presents a detailed picture of Learning Tools procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.