Situation

TasNetworks 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 again to deliver the transformation program.

Approach

Micheal Mallon and Shane Lamont were engaged to conduct 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 & 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.

Outcome

Procurement, Supply Chain, and Infrastructure Delivery Operating Model Maturity Review and Gap Assessment. Spend dashboard and benefit profile that included a category-by-category opportunity assessment, and an operating model change efficiency benefit. Procurement, Supply Chain, transformation case for change and transformation roadmap. Transformation program design and delivery 

Situation

TasNetworks operated a decentralised Procurement, Supply Chain and Infrastructure Delivery operating models with compartmentalised accountability that was ill-understood across the organisation. This required a fundamental shift in the operating model and the integration of its component parts.

Approach

Shane Lamont was the Project Executive and Micheal Mallon was Program Manager and lead for a number of the program streams with the core focus on capability uplift, inventory management, SAP uplift and performance reporting. They included:

- Procurement and supply chain operating model

- Procurement and supply chain policy

- Procurement and supply chain functional strategy

- End to end procurement and supply chain framework (Guides, tools and templates)

- Procurement and supply chain performance framework

- Performance dashboard

- Category schema with UNSPSC codification

- SAP S4Hana / Ariba Business Case – upgrade existing procurement and supply chain technology functionality.

- End to end procurement and supply chain framework training program

- Primary warehouse location assessment and modelling

Outcome

An integrated Supply Chain where the program was given an award for best Procurement Public Sector transformation.

Delivery of new ways of working through an integrated framework that covered; category management, strategic sourcing, supplier relationship management, contract management; P2P, materials, inventory and warehouse management

Situation

Concerns were raised by the CEO of TasNetworks with the State’s Premier and Minister for Finance about the program performance of its subsidiary, Marinus Link. TasNetworks could not directly evaluate the subsidiaries performance as they had their own Board and management structures. It was also a politically sensitive program as it also involved Government stakeholders. An apolitical and independent review was required.

Approach

Shane Lamont and Micheal Mallon conducted a strategic review into the new energy asset delivery program and the development of interim and final reports.

The report development process highlighted significant gaps or errors in:

- Planning

- Value and risk alignment

- Procurement processes and practices

- Supply market assessment

- Commercial models

- Option analysis

The process also highlighted areas that failed to meet minimum acceptable standards across:

- Project background and scope of work

- Tender package and evaluation

- Market release periods

- Contract

Outcome

The review identified significant inconsistencies and procedural gaps and budget blowouts. The report was presented to the State Parliament and the CEO of the TasNetworks which allowed all relevant stakeholders and the decision executives to have a shared understanding of the current active option, the expected outcomes, associated risks, and detailed risk mitigation strategy including scenario plans