OVERALL WINNER AND LARGE PROCUREMENT TEAM OF THE YEAR
Energy provider TransGrid keeps more than three million Australian homes and businesses connected to electricity 24/7. Since privatisation in 2015, the firm has been on a journey of change, while adapting to significant growth and a need for large infrastructure investments in the electricity network.
Having started with a transactional team of limited reach and presence – a ‘guardian of spend’ – the leadership team co-developed a transformation roadmap to reinvent the procurement operating model. Under TransGrid’s vision of ‘one team delivering demonstrable value’, which became a partner function directly supporting each business unit. Procurement 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. Furthermore, it has achieved a 50% year-on-year increase in training investment and introduced role-based rotations to continuously increase and diversify capabilities.
At the bottom line, the procurement function has exceeded targets, generating $4.5m savings in 2018 and $6.1m in 2019, and has directly contributed to business growth, thanks to supplier collaboration, performance and price competitiveness.