Procurement Process Review and Mapping

Powerlink is a state government owned corporation, which owns, develops, operates and maintains the high voltage electricity transmission network that extends 1700km from north of Cairns to the New South Wales border. To deliver on the business strategy, the Finance & Business Performance Divisional Business Plan 2014/15 committed to undertaking a review of the procurement and contract delivery process as a performance improvement initiative supporting the strategic theme of agile people and processes. Powerlink engaged the services of Charles Kendall Australia to conduct a review of its procurement processes and procedures with the aim of identifying potential improvements and efficiencies.

The Challenge

Approach

Identification and analysis of the following:

Outcomes

Review of Strategic Contracts Team

SPARQ Solutions provides information and communications technology services to Queensland’s electricity suppliers, Energex and Ergon Energy. The Strategic Contracts Team (SCT) maintains primary responsibility for procurement strategy and delivery on behalf of SPARQ Solutions. Procurement of circa $100 million of goods, services and licensing is facilitated annually by the SCT. Upon acknowledgement that the SCT may be improperly utilised and thereby less able to undertake value adding activities, CKA was engaged to perform a comprehensive review of the SCT.

The Challenge

Our Approach

Upon commencement, immediate action was taken to organise an array of interviews (17 in total) required to obtain insight into current practices, along with any associated shortcomings and opportunities. In addition to interviews, CKA conducted a comprehensive review of records and resources, including an audit of several procurement activities. Investigations addressed:

Outcomes

All investigations were completed, and the report was published within the three week time frame stipulated by SPARQ Solutions.

Thorough investigations led to a comprehensive report capturing a vast range of findings. Across the interest areas listed, 28 improvement recommendations were made. To plan for implementation of each recommendation, the report presented a table that highlighted required activities, prioritised & scheduled activities, allocated resources, estimated effort, and nominated duration. All recommendations were charted to diagrammatically illustrate, for implementation of each recommendation, the estimated level of effort, versus the likely benefits generated.

Procurement Delivery

Origin Energy is one of Australia’s leading integrated energy companies; supplying electricity to 4.2 million customers and developing and producing natural gas. At a time of peak activity and when the organisation was also undergoing a significant restructure, Origin Energy engaged CKA for the role of category specialist to service the Water Solutions team and the Non-Production Facilities, People and Logistics team.

The Challenge

In consideration of staff movements prior to engagement of CKA, there was a steep learning curve involved with continuation of a significant workload that was already previously delayed. CKA’s scope broadly included, for example:

The below list includes some examples of arrangements that required CKA’s attention at Origin Energy.

Our Approach

Outcome

Engagement of CKA provided Origin Energy with flexibility to meet resourcing demands at short notice. CKA’s relevant experience and the ability to manage multiple projects simultaneously resulted in consistent and positive progress throughout the duration of the engagement. Furthermore, in many cases, professional advice and procurement expertise resulted in realisation of tangible cost benefits for multi-year contracts.