The new processes have helped Optus increase contract compliance by 11 percent and deliver savings of $5 million–$7 million per year.
Optus spends more than $3 billion each year engaging hundreds of vendors on negotiated contracts. However, the telco did not have a central repository for contracts.
This led to:
Inefficiencies, duplication and noncompliance from employees not using approved vendors.
An inability to track spending against negotiated contracts.
Difficulty in knowing when contracts were expiring.
Less than optimal relationships with approved vendors.
As a result, the procurement function was mired in administrative, tactical tasks, rather than value-added activities that could position them as a strategic partner to the business.