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Case Study

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$44.5m annualised procurement savings and a further $28m identified for an energy provider

Business challenge

Our client needed to deliver procurement savings within their Australian operation by generating assets across both coal mining and generating operations.

Context

An Asia Pacific energy provider.

They were under pressure with low wholesale electricity prices, soft electricity demand and surplus generation in the market, and rising operating costs.

Business impact

$0m

annualised savings from a total spend of $577m in 22 weeks

$0m

in additional opportunities identified to be evaluated for implementation

Solution

Top Line Solution

Agree and prioritise potential opportunities/savings levers with the procurement team

Manage reverse auctions across several key spend categories, yielding an incremental 10% to 30% savings over and above traditional sourcing

Realign organisation structure with clearly defined key performance indicators (KPIs) cascading from upper management to operational roles and contractors

Optimise current procurement processes, practices, tools and templates

Greatly improve communication across engineering, procurement and vendors

Roll out the cutting edge PiPware toolset to lock in long-term savings tracking and ensure ongoing demand management and spend compliance is maintained

LeftProcurement and Supply ChainLeftOil and Gas