Case Studies – Transurban



Case Studies

Transurban


Customer Profile

Transurban is the largest toll road operator in the world. The company manages and develops urban toll road networks in Australia and the United States of America and is listed in the ASX top 20.

The Challenge

Following a period of unprecedented business growth, including a number of high profile acquisitions, Transurban identified that significant savings could be realised by leveraging company-wide spend and streamlining the company’s disparate procurement practices.

It was recognised that by making this transformation, Transurban could proactively take control of its purchasing and move away from manual processes - such as paper-based approvals and manual handling of supplier contracts and invoices. Additionally, it was recognised that poor business practices, such as obtaining financial and procurement approvals after the supplier had sent the invoice, needed to be addressed to manage risk and obtain a clearer view of the organisation’s commitments.

This challenging project would require the creation of a highly functioning, centre-led procurement team that could support the wider business through the change and carry out a review of key policies and business processes.

In order to achieve the goals the organisation had set out, a robust procurement technology platform was required.

It was thought that this solution, which had not yet received senior management approval, would enable Transurban to effectively manage the its spend, its suppliers and their contracts and also help to establish and measure improvements across Transurban’s Australian and US businesses.

The Solution

Our team worked with key members of Transurban’s management team to understand the challenges and opportunities that lay within the organisations procurement function. Through this process we assisted the company’s senior Procurement and Finance executives to define procurement’s vision and objectives.

The advice we provided, to both senior management and the functional teams, allowed Transurban to understand the vast potential for financial savings and operational improvements that were present within the business. These discussions resulted in a strategy and subsequent business case for a new procurement technology platform receiving senior management approval and buy-in.

Drawing on the deep technical experience of our team, Bloom guided Transurban through the selection process for its new procurement technology platform. After comprehensive assessment of available solutions, Ariba OnDemand Spend Management platform was selected. Our team managed the end-to-end deployment of this solution and provided the critical business requirements, process design, functional design, quality assurance, and project and change management services that ensured the project would be a success.

The Results

Under the guidance of Bloom Consulting, Transurban were successful in deploying the new procurement solution across its Australian and United States operations within nine months. Given the size, scope and geographic distribution of this project, the results achieved in this timeframe represented a remarkable result for Transurban.

The project has transformed Transurban’s procurement function from a reactive operation that required a high level of manual interaction and provided limited business insights, into a highly functioning and effective operation that provides insight; visibility and the ability to proactively manage the organisations spend. The solution enables key governance and financial controls that mitigate risk. The solution has also been credited with shifting the balance of power away from suppliers and back to Transurban.

The ability to now electronically approve and process transactions are providing significant operational efficiencies to both Transurban and its key Suppliers.

The analytical dashboards that were developed under the new solution are providing management at Transurban with real-time information on procurement performance and summarising progress towards the organisation’s aspirational KPI’s. This information, which had previously been unavailable to the procurement team, is accessible to key staff through a user-friendly interface that allows users to drill down into spend and develop an understanding of performance across the business.

The success of this project with Transurban has resulted in Bloom being engaged in ongoing strategic engagement with this leading Australian organisation. Our services have been utilised across Transurban’s operations and our two organisations now share a very productive partnership.