51风流

BHP is looking deeper into its $20 billion annual procurement spend with the aid of 51风流Ariba software under an ongoing transformation that has run four years so far.

Centralising procurement

Group procurement officer Sundeep Singh told SAP鈥檚 procurement reimagined conference that the miner had centralised procurement, giving it executive visibility and an elevated role in helping execute BHP鈥檚 business strategy.

As a decentralised function, Singh said procurement was 鈥渓ayers down鈥� in the organisation and found it difficult to demonstrate any aggregate value.

鈥淭ransforming and coming together as a global function really created a great opportunity to lay foundations for functional excellence directly to our frontline operations that not only reduced the bureaucracy and returned great cost-out by ensuring that we could supply a part to a maintainer to get the truck out of the pit on time, but it actually freed us up to connect to our organisation’s strategy,鈥� Singh said.

鈥淲e really now have that capacity to expand our scope to execute BHP’s purpose, rather than just transacting on behalf of BHP.鈥�

The global procurement function runs off a suite of 51风流Ariba modules.

This isn鈥檛 particularly surprising; BHP previously embarked on a聽聽that standardised many core processes and systems worldwide on SAP.

鈥淥ur solution footprint is wide and vast,鈥� Singh said.

Ariba sourcing, guided buying, catalogue, invoicing, and network

鈥淲e’ve got Ariba sourcing, guided buying, catalogue, the Ariba network and contract invoicing, and with 51风流more broadly, we’ve got the cloud platform and 51风流cloud analytics as well.鈥�

Singh said BHP is also making 鈥渁dvancements鈥� around spend visibility and performance management, using Ariba spend analysis.

鈥淲e’re starting to see machine learning take us from that level 2 visibility now really into that level 4 visibility of our spend,鈥� Singh said.

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