Case Studies – Ausgrid

Case Studies

Company Overview and Key facts

  • Ausgrid is an Australian owned electricity distribution network business spanning 22,275 square kilometres. It has more than 30,000 distribution substations, 500,000 power poles and 50,000 km of electricity cables
  • Ausgrid has over $1b of spend under management, over 3000 suppliers and 400 users

Business Challenge

  • Ausgrid kicked off a procurement transformation project following an internal audit review. The key objective was to improve governance and compliance while acknowledging there would be substantial savings through compliance and also transactional efficiencies
  • Ausgrid has had a legacy of disparate and complex business processes. These processes include paper-based sourcing, contracts, ordering and invoice processes which not only posed a significant compliance and audit risk, they required numerous resources to manage.

Project Summary

  • Bloom Consulting was selected with our partners Oxygen to deliver the eProcurement project at Ausgrid after a comprehensive market evaluation.
  • Bloom’s role was to provide SAP and Ariba solution design, process and policy improvement advice, change management support and business deployment services.
  • The initial phase of the project includes streamlining Sourcing, Contracts Management and Purchase Ordering processes, including enablement of supplier contract catalogues for improving compliance and visibility. It also includes setting up the ground work for supplier catalogues through the Ariba Network.
  • Bloom has established a road map for ongoing Procurement and Finance improvements through further enablement of the SAP Ariba platform.

Business Result

  • Our work has contributed to Ausgrid being nominated for “Most Improved Procurement Operation- Step Change” by Australasia by CIPS (Chartered Institute of Procurement and Supply).
  • Ausgrid experienced a reduction in end-to-end process cycle-time through full integration of procurement activities allowing for rapid creation of purchase requisitions, electronic approvals and transactional automation with suppliers. Requisitions previously took up to 4 weeks to get approved. After the Ariba implementation, 2/3rd of the purchase requisitions are approved within 24hours.
  • Ausgrid is on its way to achieve compliance to policy and associated delegations, with a much more auditable process.
  • Ausgrid has increased usability and simplicity in their procurement practice.
  • Ausgrid achieved seamless integration with their backend financial ERP system providing real-time consolidated financial and spend reporting.