Energy provider TransGrid was hailed the overall winner at the CIPS Australasia SM awards 2020.
TransGrid, which also won the large procurement team of the year accolade, aimed to lift its procurement function from a “transactional focus to a strategic business partner” working collaboratively with the business to deliver previously untapped value for money.
In the last two years, the leadership team co-developed a “transformation roadmap” to reinvent the procurement operating model, embarked on a technology transformation to digitise procurement, and established a supplier relationship management programme.
The new strategic procurement operating model was designed to ensure a “business-aligned, enterprise-wide procurement capability that is focused on outcomes for the stakeholders”, delivering on TransGrid’s vision of “one team delivering demonstrable value”.
TransGrid’s procurement function is now an extended arm of the major projects division, securing best value across a portfolio worth more than $6bn. The team has delivered organisational benefits including a 43% reduction of the PR/PO cycle time, with end-to-end RFx lead times cut by 25%, resulting in higher throughput and increased satisfaction.
It has also achieved a 50% year-on-year increase in training investment and introduced role-based rotations to continuously increase and diversify capabilities.
TransGrid’s procurement function has exceeded targets, generating $4.5m savings in 2018 and $6.1m in 2019, and has directly contributed to business growth as a result of its transformation.
The winners at the CIPS Australasia SM awards 2020 in full:
The University Procurement Hub
Department for Child Protection
Supplier relationship management
Kelly Outsourcing and Consulting Group
Alice Bray - Waka Kotahi – The New Zealand Transport Agency
Large procurement team of the year
Leader of the year
Paul Howard - New Zealand Defence Force
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