Operating Model Review and Transformation Program Design

A state-owned electricity utility responsible for transmission and distribution across a state of Australia.  

The utility operated a decentralised Procurement, Supply Chain and Infrastructure delivery operating model with compartmentalised accountability that was ill-understood across the organisation. We were engaged to conduct a comprehensive maturity assessment and provide transformation recommendations and roadmap.

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Our Maestro conducted a comprehensive evidence-based maturity assessment to achieve the following key objectives of the project:

• Gain visibility into, and understanding of procurement, supply chain and infrastructure delivery operating model and practices at the Utility.
• Evaluate the maturity and effectiveness of the current procurement, supply chain and infrastructure delivery operating model and practices.
• Identified and recommended operating model and structural changes to increase procurement, supply chain operations value contribution and risk management to enable the organisational strategy.
• Developed a Case for Change, Transformation Roadmap and Benefit Profile to deliver to a fit-for-purpose procurement, supply chain function built on leading practice.
• Identified procurement savings of between 9 and 12% ($20-45M) of spend profile and the potential of more than a 60% ($15M) reduction in inventory holdings.
• Developed the integrated Supply Chain transformation program to confirm and deliver the benefits as well as the capability uplift.

This fractional role was led by one of our Maestros.

• Conducted a high-level spend analysis and identified a potential benefit 9 and 12% ($20-45M) of spend profile and the potential of more than a 60% ($15M) reduction in inventory holdings over 3 years
• Create a Case for Change (transformation program strategy) outlining what we heard, what we saw. Identified the gaps and the provided key recommendations for remediation of the current-state and delivery of the future-state (43 key recommendations)
• Detailed transformation program timeline and roadmap