Digital transformation for TAFE NSW

Thursday, 08 October, 2020

TAFE NSW is rolling out a new centralised procurement system as part of its large-scale digital transformation.

It has implemented the full suite of SAP Ariba solutions from sourcing to payment, aiming to modernise and consolidate its procurement systems.

TAFE NSW serves over 400,000 students across more than 130 campuses and online through TAFE Digital, and its supply chain is extremely diverse. In 2017 it operated as 11 separate units, with different technology systems, organisational structures and product portfolios with a combined operating spend exceeding $500 million.

At that time, it 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. TAFE NSW turned to SAP Ariba solutions to integrate and standardise the end-to-end source-to-pay process across the organisation and to consolidate all spending on a single platform in the cloud to help drive efficiency, cost savings and compliance.

In partnership with Bloom Consulting, TAFE NSW implemented SAP Ariba solutions for sourcing, contracts, buying, invoicing and payment, laying the foundation for a new procurement platform called TAFE NSW Checkout. By automating and simplifying the entire source-to-pay process for procurement and business stakeholders, TAFE NSW has been able to improve governance and compliance across the purchasing cycle. Furthermore, replacing its disjointed, manual, paper-based processes with a fully integrated, online buying experience has enabled TAFE NSW to increase savings, shorten the time to procure goods and free up administrative burden so staff can focus on its core business — teaching.

As a result of this digital transformation and the improved processes — from more competitive, strategic sourcing to digital contract compliance — TAFE NSW expects to achieve up to $33 million in savings over the next few years.

“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.”

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

“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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