Tuesday, 06 October 2020 10:28

TAFE NSW targets $33 million in savings through digital transformation


Vocational education and training provider TAFE NSW is targetting $33 million in savings by digital transformation and consolidation of its procurement processes with SAP Ariba.

SAP Ariba said on Tuesday that TAFE NSW is now live with the full suite of SAP Ariba solutions from sourcing to payment, as part of a large-scale digital transformation to modernise and consolidate its procurement systems.

In 2017, TAFE NSW operated as 11 separate units, with different technology systems, organisational structures and product portfolios with a combined operating spend exceeding A$500 million, and previously did not have a centralised procurement function to manage its significant spend, instead, purchasing was handled on an ad hoc basis through multiple, disconnected platforms.

The deal with SAP Ariba, sees TAFE NSW integrating and standardising the end-to-end source-to-pay process across the organisation and consolidating all spend on a single platform in the cloud to help drive efficiency, cost savings and compliance.

TAFE NSW has partnered with Bloom Consulting to implement SAP Ariba solutions for sourcing, contracts, buying, invoicing and payment, laying the foundation for a new procurement platform called TAFE NSW Checkout.

SAP Ariba says that since the rollout, TAFE NSW has trained 2,000 requisitioners and 1,300 approvers on the guided buying capability for SAP Ariba solutions, “enhancing visibility and control across spend categories, with straight-through processing leaping from 2% to 44% within the first month and PO compliance rising to an impressive 93%.”

“SAP Ariba solutions have enabled us to develop a robust and unified spend management platform, which helps streamline the organisation’s procurement processes,” said Giles Curtin, TAFE NSW general manager of Procurement.

“The improved user experience means we’ve been able to onboard thousands of remote staff onto the platform throughout COVID-19, with the end-to-end electronic workflow enabling them to focus on teaching, knowing their buying needs are being met while at the same time achieving significant efficiencies and cost savings for our business.”

Henrik Smedberg, SAP Ariba and SAP Fieldglass ANZ regional vice president said: “By partnering with SAP to improve visibility and management over spend, TAFE NSW has achieved huge savings back to the organisation.”

“Furthermore, TAFE NSW Checkout has really raised the bar on user experience for staff and suppliers alike, and in the midst of a global pandemic no less.”

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