Finalist: 2024 Best Run Chris O'Brien

Medibank: Championing Social Impact with Sustainable Procurement for Indigenous Health by collaborating with SAP Ariba to enhance procurement processes, focusing on sustainable and ethical practices. Download the Document

SAP Australia and New ZealandBest Run Awards 2024
Best Run SAPIndustry WebsiteProduct and Services Featured SAP SolutionsPrivate HealthInsurancehttps://www.medibank.com.au/Private health insurance, travelinsurance, life insurance, funeralinsurance, health services andprogramsSAP AribaWe’re a health company working to deliver the best health and wellbeing experience for Australia. From our beginnings as a health insurer, we’ve grown to becomemore to millions of people across the country. We’re giving people more control of their own health by working to provide greater choice, better access and more value.We’re investing more in preventative health and new ways of delivering care, working with other health innovators, hospitals and governments and we’re building moreproducts and services personalised to people’s needs. In doing so, we’re changing healthcare for people across Australia both now and in the future.We are committed to making a positive impact in the communities we are part of and our sustainability report highlights our work to help build a more sustainable futurefor all.We’re focused on addressing some of Australia’s biggest health issues, by funding health and medical research, shining a spotlight on loneliness, focusing on mentalhealth and taking action to close the gap in health equity for Aboriginal and Torres Strait Islander peoples and for people living with disability.As referenced in our 2022-2024 Reconciliation Action Plan (RAP), we have evolved our practice of cultural safety responsiveness with both our employees andcustomers, and this continues to influence our approach moving forward. We’ve worked to build awareness of this not just within our business, but in the broader healthsector, working together with the Australian Indigenous Doctors’ Association (AIDA). We’ve joined with AIDA and Reconciliation Australia to strengthen and create newpartnerships across the health sector to improve cultural responsiveness and health outcomes for First Peoples.Championing Social Impact with SustainableProcurement for Indigenous HealthMedibankChris O’Brien
ChallengesOur journey began over six years ago with a focus on system adoption and procurement efficiency. Initially, we implemented SAPS/4HANA, Ariba, and SuccessFactors. As we matured, our goals shifted towards sustainable and ethical procurement processes.Unfortunately, Indigenous business ownership across the Australian business community is under-representedin relation to population by comparison to other cohorts*. Medibank aims to encourage Indigenous businessgrowth and prosperity to help bridge this gap by embedding best practice culturally appropriate businessrelationship processes and steering trade towards organisations owned by Aboriginal and / or Torres StraitIslander people. For every dollar spent with Indigenous owned businesses, there is an estimated $4.41 of economic and social valuefor Aboriginal and Torres Strait Islander communities*.We have assessed our systems, policies and procedures to check for systemic blockers to Indigenous business engagement.Furthermore, our Indigenous procurement framework clarifies our commitment and aspirations for how Medibank can help FirstNations peoples realise health and socio-economic equity.Having the right procurement and supplier management tool in place would be a key enabler for our initiatives.* Aboriginal and Torres Strait Islander Business Support Roadmap* Supply Nation Sleeping Giant Report
SolutionWe collaborated with SAP Ariba to enhance accessibility and visibility within our procurement network. Recognising thatIndigenous businesses often lack large corporate backing, we focused on making the network more accessible andsupportive. We began by developing an onboarding kit and simplifying the process for suppliers to join Medibank’s network.This kit emphasised our commitment to sustainability and social impact, and also clarified the steps for suppliers to becomea part of the Medibank supplier network.We utilised SAP Ariba’s functionality to flag the Indigenous suppliers on our platform for visibility to our buyers. We alsoupgraded our guided buying tool and SharePoint procurement hub to spotlight Indigenous procurement and sustainableprocurement practices.Developing a stronger sense of connection between Medibank and Indigenous owned businesses was a key commitment forProcurement in our three-year RAP, therefore it was vital that we understood the exact needs of Indigenous suppliers. To dothis, we conducted sessions with suppliers to understand how we could improve their experience with respect to becoming asupplier to Medibank and therefore how we could refine our systems and processes accordingly. This feedback helped usdive deeper into Ariba functionality to create a simpler, more supportive procurement process.Our efforts included reviewing and updating procurement practices to remove barriers for Aboriginal and Torres StraitIslander businesses, enhancing the buyer network with functionalities that showcased sustainability and ESG certifications,and making it easier for buyers to find and engage with Indigenous owned businesses.
ImpactBy working with SAP Ariba, we have been able to significantly enhance our engagement with Indigenous owned businesses acrossAustralia. We set an ambitious target to spend $1 million per calendar year with Indigenous owned businesses from 2022 to 2024. Wehave exceeded this target year-on-year and are tracking to exceed the target again by the end of 2024. Our dedication has helpedimprove equitable health outcomes and economic participation for Aboriginal and Torres Strait Islanders.The SAP Ariba system enabled our Indigenous business engagements and spend, allowing us to connect seamlessly with Indigenoussuppliers and integrate them into our procurement network. This initiative has been crucial to help us achieve the commitments andaspirations of our RAP with respect to the removal of barriers and the promotion of fair and equitable trade.Medibank’s FY23 Sustainability Report is available via our website where you can read about our Indigenous Procurement achievements.Our FY24 sustainability report (due to be published in Q1 of FY25) will continue to shine the light on the work we are doing to supportgrowth for Indigenous businesses, including with respect to supporting job creation, business growth and the creation of educationalopportunities.We will continue to grow our network of Indigenous owned businesses and build meaningful and sustainable relationships.
“”“Improving health and wellbeing for Indigenous Communities through SocialProcurement is something we are passionate about at Medibank. It linksdirectly to our Vision to create the best health and wellbeing for Australia. Weknow that for every dollar spent with Indigenous owned businesses, there is anestimated $4.41 of economic and social value for Aboriginal and Torres StraitIslander communities. Working with our partner SAP Ariba and sharing thesame passion, we have been able to make key changes in the way we use Aribafor our buyers (to more easily access Indigenous Suppliers) and our Suppliers(to make it easier to work with Medibank). It’s one part of an ongoing journeythat contributes to better outcomes for Aboriginal and Torres Strait Islandercommunities.”David Fittler,Hub Lead, Procurement & Spaces, Medibank