Procurement, Supply Chain and Infrastructure Delivery operating model review and transformation

Background: This Australian electricity utility engaged ArcBlue to undertake a Procurement, Supply Chain and Infrastructure Delivery operating model review and transformation program.

 

Service: Advisory & Change – Infrastructure Procurement; Procurement Transformation

CHALLENGE

The client was a State-owned company that is responsible for electricity transmission and distribution. It also owns and operates a telecommunications network throughout the state. It is a participant in the Australian National Electricity Market (NEM) that operates an interconnected power system that extends from Queensland to South Australia.

They currently operate a decentralised Procurement, Supply Chain and Infrastructure Delivery operating model with compartmentalised accountability that is ill-understood across the organisation.

ArcBlue was engaged to conduct a comprehensive maturity assessment.

RESULTS

We achieved the following key objectives:

  • Gain visibility into, and understanding of procurement, supply chain and infrastructure delivery operating model and practices
  • Evaluate the maturity and effectiveness of the current procurement, supply chain and infrastructure delivery operating model and practices
  • Identify and recommend operating model changes and opportunities that increases the procurement, supply chain and infrastructure delivery value contribution and risk management against the organisation strategy
  • Develop a category schema and spend dashboard followed by a category-by-category opportunity assessment to identify and recommend category strategy and savings opportunities
  • Develop a Case for Change, Roadmap and Benefit Profile to move to a fit-for-purpose procurement, supply chain and infrastructure delivery operating model and better practice

ArcBlue conducted more than 365 stakeholder interviews with the final Maturity Assessment Report and Case for Change report endorsed by the organisation’s Executive Leadership Team and the Board. ArcBlue will now support the 18 month transformation program.