Hear how businesses are driving change in procurement to meet the digital demands of today’s economy and prepare for the future. Listen to how these companies have leveraged the SAP Ariba Procurement solutions to improve compliance, gain efficiency, and ensure better controls in their processes.

1. PUBLIC
Sarah Greenough
Head of Commercial, Western Power
How Procurement Leaders Are
Changing to Manage in the Digital
Economy

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Digital Transformation in Procurement
84%
say digital transformation will
fundamentally change the way
procurement services are delivered
over the next 3-5 years
89%
of respondents say that digital
transformation will fundamentally
change the talent and leadership
needs of their business . . .
13% of their staff &
29% of their processes
will be affected by digital
transformation projects in 2017
Source: The CPO Agenda: Keeping Pace with and Enabling Enterprise-Level Digital Trasnformation by The Hackett Group, Jan 2017

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Fast facts about Western Power
• WA State Government owned
corporation
• 255,000 km2 service area
• 1.2 million customers
• 800,000 poles & towers
• 100,000 kms wires
• $1.8 billion revenue

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Power
Generation
Retailer
Western Power
Our
Customers
What we do

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Western Power’s SAP Ariba journey
Implemented
Source to
Contract
(On Premise)
2008
Migrated
Source to
Contract to
Cloud
(On Demand)
2010 Centralised all
purchasing
activities &
restructured
2013
2014
Implemented
Procure to
Pay
2017
Where to
now?

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Source to Contract Implementation
Implemented
Source to
Contract
(On Premise)
2008
Migrated
Source to
Contract to
Cloud
(On Demand)
2010
• Streamlined and fully automated sourcing process,
supporting over 900 tenders to date
• Improved life cycle management, 100+ panel
contracts, tracking key contractual milestones and
performance
• Reverse auction program
• Key enabler supporting Contract Management
Framework
• Improved visibility of sourcing cycle time and resource
management
• Alignment with internal IT strategy migrating off
premise to a cloud solution
• Synchronisation to corporate document management
system
• Automated sourcing request and event risk profiling

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Process Centralisation & P2P Implementation
Centralised all
purchasing
activities &
restructured
2013
2014
Implemented
Procure to
Pay
• 750 Catalogues,100,000+ catalogue lines
• Centralisation of purchasing activities
• Centralised expenditure tracking – full reporting on
category and contract expenditure, requisition items
and payment
• Enforcement of contracts by way of catalogues at
contracted rates
• Tighter procurement processes and improved
purchasing controls leading to reduction in contract
leakage
• Reduction in accounts payable resources as
suppliers input their invoices through the network
• Key enabler to transformation cost reduction
program

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Driving Procurement Change
• The Commercial vision must have strong
alignment to corporate strategy
• The Commercial structure must support future
state – internal capability and succession
planning
• Understanding your stakeholders and their
varying levels of sophistication, have a strategy
for each
• Ongoing end user engagement: acceptance
testing, catalogue workshops, training & feedback
• Change management is constant and requires
dedication
• Maintaining momentum and a strategy to deal
with set backs
• Intelligence is a function of collaboration

9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Lessons Learnt
• Don’t go live until your confident the
system will behave in line with your
expectations
• If you don’t have the in-house expertise
to implement and support the system,
source it externally.
• Stay as close to out of the box as
possible, customisations are both timely
and costly.
• Business engagement and workshops
are essential during catalogue
development.

10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Success
• 1200 suppliers enabled
• 1000+ Western Power users
• 900+ sourcing events run since
implementation
• 750 Catalogues (WP hosted & punch out)
• 100,000 contract items catalogued
• 35% of all transactions fully automated
• 100% all goods and services procured in
Ariba

11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Where to now?
Digital Supply Chain Strategy
• Continue making it easy for our
stakeholders to do business with us
• Allow the system to guide the
buyer/supplier and remove manual
processes
• Bring together key systems and
tools to maximise full supply chain
end to end visibility and support
improved decision making
• Using spend & forecast data to
provide insight and perform
predictive analytics

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14. Contact information:
Sarah Greenough
Head of Commercial
363 Wellington Street, Perth WA
(08) 9326 2819
Thank you.