Finalist: 2024 Best Run SA Intelligent Spend Business Network (ISBN)

TAFE NSW: Implemented SAP solutions to automate procurement processes, achieving compliance, cost savings, and improved customer experience. The system supports over 3,000 buyers, digitizes approvals, and enhances supplier interactions, ensuring efficient, transparent, and compliant purchasing. Download the Document

SAP Australia and New ZealandBest Run Awards 2024
Best Run SAPIndustry WebsiteProduct and Services Featured SAP SolutionsEducation https://www.tafensw.edu.au/Vocational training and education SAP Ariba Guided Buying and Invoicing, SAP AribaSourcing, SAP Ariba Contracts, SAP Ariba SupplierLifecycle & Performance, SAP Fieldglass Contingent,SAP Concur Expense, SAP Application ManagementServices (AMS), SAP eSignature by DocuSignAutomating a complex supply network to supportcontract compliance, insights and decision making.TAFE NSWIntelligent Spend & Business NetworksTAFE NSW is Australia’s largest provider of vocational education and training with more than 500,000 students, 17,000 staff and 130 campus locations. Courses range from horticulture tohospitality, commerce to construction, and aviation to 3D animation.TAFE NSW spends approximately $600m across Property, ICT and Corporate goods and services. TAFE NSW supports over 3,000 buyers across large geographical areas, buying adiverse range of goods and services. The implementation of TAFE NSW Check Out (Ariba and Concur), has supported the simplification and automation of business processes resulting inan agile, flexible, and compliant eProcurement Technology Ecosystem with the benefit of cost and time savings and an improved customer experience.Since going live in 2020 TAFE NSW has: Digitised the entire source to contract process and saves approximately $11m per year through electronic sourcing events Increased the transparency and governance of recorded contracts increasing from 100 at Go Live to now than 500 contracts which has improved contract administration, variationmanagement and enabled 84% of all spend to be under management. 62% of all purchase orders are linked to existing catalogues or contracts with agreed pricing and terms and conditions. Digitised approvals using electronic workflows and electronically execute over 200 high value contracts using DocuSign. On average TAFE NSW issues 20,000 purchase orders each year to over 4,000 registered suppliers with an average cycle time of just 1.18 days. Implemented electronic invoicing to support accurate invoicing and on time payment, particularly supporting faster payment terms for small businesses. Increased the Pcard Fleet from 1100 to 1800 purchasing cards facilitating 80,000 transactions per year in a quick and efficient process. Implemented regular reporting and dashboards that support data integrity, compliance and governance and strategic decision making.
ChallengesProcurement at TAFE NSW supports thousands of buyers across large geographical areas buying a diverse range of goods and services.Procurement’s main customer is a teacher who is less focussed on procurement and just wants to buy the things they need to be able to teachin a classroom. Procurement’s challenge was to implement system that made buying at TAFE NSW easy, compliant and generated value.TAFE NSW needed a sophisticated, yet simple Technolgoy solution that could be easily accessible by a large number of disparatestakeholders, buying a significant volume of low value and diverse range of goods and services. They wanted to guide the buyer to the rightsuppliers for the goods or services they were buying and give the buyer confidence that not only were they purchasing compliantly but theywould also be getting a great outcome, whether that be savings, social benefit or favourable contract terms.TAFE NSW wanted a solution that means their main customer could focus on teaching learners and less time on buying goods and services.As a NSW Government Agency, TAFE NSW is required to operate in a complex operating environment and has and extra layer ofaccountability to be complaint, fair and transparent, so it was critical the Technolgoy solution was reliable, auditable and value for money.Efficiency and effectiveness is a priority and TAFE NSW wanted to make it easy to buy. Seeking to leverage automation, digitising forms,electronic workflows and signatures, integration, notifications, reporting, data and so much more, TAFE NSW had a big ‘wish list’ for theirproposed solution.
SolutionTAFE Checkout was implemented in 2020 and consisted of Ariba Source to Contract, SLP and Guided Buying. It has been complimented with Concur andFieldglass. The deployment of TAFE NSW Checkout was a bold and confident approach that saw the technology widely adopted and utilised from Go Live.The TAFE NSW team has supported the system, its buyers and suppliers through a range of ongoing training and capability development activities including anOnboarding Moodle, Online Training, Knowledge Articles, Intranet Page, MS Teams Channel and a Community of Practice. Not only is support provided for thethousands of internal buyers, but similarly thousands of suppliers have been enabled to transact with TAFE NSW over the Ariba Network.The implementation of TAFE Checkout at TAFE NSW has transformed the way that they interact with supplier. Buying goods and services is now easy andintuitive. Most goods and services can be easily purchased from established contracts or catalogues with agreed pricing and terms and conditions.Sourcing events are processed through the Ariba network and suppliers provide electronic responses which promotes an efficient, fair and transparent process.Contracts are now recorded in a centralised electronic repository ensuring accurate record keeping and supporting business contract managers with contractadministration, variation tracking, extensions, reporting and contract management activities.Over 1800 cardholders now have access to a purchasing card enabling them to quickly purchase low value goods with local, regional and small business. Not onlyhas this reduced administration for TAFE NSW, but supplier’s have responded favourable as it means they can easily supply to Government with minimal processand can get paid at the point of sale.The SAP solution has allowed TAFE NSW to comply with legislative requirements around supplier invoicing and payment and has reduced manual invoicing whichis often accompanied with inaccurate invoices. Now, suppliers can electronically ‘flip’ invoices against their orders and the details are automatically generated onthe invoice to TAFE NSW which removes manual handling, human error and delays in processing.Over 3,500 suppliers are registered in the Ariba network to transact with TAFE NSW. They can digitally receive their purchase orders and contract workspaces andrespond to sourcing events. The Network provides a centralised record of all their past and current transactions which helps the supplier manage their businesswith not only TAFE NSW but with the multiple other organisations that also operate over the Ariba Network.The TAFE NSW is continually partnering with SAP and driving continuous improvement initiatives within the SAP solution to ensure it stays relevant and offers thebest customer experience. TAFE NSW has even established a Community of Practice for Ariba customers that consists of over 20 public and private sector AribaCustomers who regularly meet to share their experiences, success and challenges.
Impact62% of all purchase orders raised arelinked to an existing catalogue orcontract with agreed pricing terms andconditions.Purchasing card fleet of over 1800facilitating 80,000 transactions peryear, ensuring suppliers are paid ontime and with reduced administration.Following the successful implementation at TAFE NSW, buyers, approvers and managers can: Confidently engage suppliers that comply with TAFE’s Policies and procedures, and build a more inclusive and diverse supply chain. The ability to build in to contracts the use of social suppliers directly and indirectly such as the Managed Paper Service where a supplier engages100% with Aboriginal business to supply paper across the TAFE NSW landscape. Speed up purchase requisition's, knowing that due diligence, compliance and good governance are built into the solutions without the need toprovide business cases or engage in additional administration tasks. Reduce the need for ad hoc spend and create contract workspaces that bring spend under management so that TAFE buyers can support a vastlyincreased number of purchase orders, contracts and invoices. Generate procurement data from the solutions and easily generate meaningful reporting needed to make informed decisions.80% Contract compliance wherecontract conditions and pricing are inplace with streamlined buyingmethods.
“”The SAP solution has completely transformed the way that we do business at TAFE NSW. With thousands ofbuyers and suppliers operating across a large, diverse and complex environment, the SAP solution hassimplified our processes and made it easy to buy goods and services.As a Government Agency we often face additional scrutiny so it was critical to introduce a solution that couldembed compliance and support governance and transparency without over complicating the process. Wefocussed on leveraging the smart Technolgoy, electronic workflows, automation, integrations, and reporting toensure the buying experience was intuitive and seamless.One of the best benefits in implementing SAP is the ability to easily identify and transact with small, regional andsocial suppliers. We’ve been able to implement contracts and partner with strategic suppliers and use Pcards toquickly and easily buy low value goods and services from our small businesses.The future of the TAFE NSW eProcurement Technology ecosystem is exciting! With artificial intelligence and newfeatures and functionality being released I’m looking forward to seeing how TAFE NSW can leverage these tooptimise our procurement function, the customer experience and the value that’s generated.Nicole CutlerDirector Procurement Capability and GovernanceTAFE NSW