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CLIENT CASE STUDY


Optus: Procure to pay transformation

Accenture helped leading Australian telcom player Optus streamline its contract management system by redesigning processes for its source-to-contract and purchasing functions.

Overview

The Accenture team initially developed a strategic roadmap for the source-topay function which was then implemented over a 10-month period. The transformation included business process redesign of the source to contract and purchasing functions, developing a spend taxonomy and associated reports and setting up an outsourced function to establish a help desk, assist Optus employees to purchase goods and services up to the value of $200K.

The Approach

Opportunity

Opportunity

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.

Solution

Solution

The Accenture team initially developed a strategic roadmap for the source-to-pay function which was then implemented over 10 months. The transformation included business process redesign of the source to contract and purchasing functions, developing a spend taxonomy and associated reports and setting up an outsourced function to establish a help desk, assist Optus employees to purchase goods and services up to $200,000.

In particular, Accenture helped:

  • Redesign the business processes for source-to-contract and purchasing functions.
  • Develop a reporting and classification system for procurement spending “spend taxonomy.
  • Set up an outsourced help desk to assist Optus employees procure goods and services of up to $200,000.
Results

Results

As a result of working with Accenture, Optus now has a streamlined contract management process that enables it to:

  • Increase contract compliance by approximately 11 percent.
  • Support strategic sourcing with meaningful spend reporting.
  • Deliver savings by approximately $6-7 million per year with new processes and a specialized buying function.
The partnership of Optus and Accenture on this program was the key driving force behind its success. It has created a new benchmark for effective IT development in support of major business transformation and I am very proud to have had an opportunity to be part of it.

Karen Carmichael

Chief procurement officer at Optus

What's next?