Winner: Coles Group – Best Tech Awards 2025 Spend Management
Driving excellence: Coles Group's procurement evolution with SAP Ariba Download the DocumentSAP Australia and New
Zealand Best Tech Awards
2025
Zealand Best Tech Awards
2025
Best Tech SAP
Industry WebsiteProduct and Services Featured SAP Solutions
Retail &
consumer
services
www.coles.com.au
www.colesgroup.com.au
Coles Supermarkets, Coles
Liquor and Coles Online
SAP S/4HANA and SAP Ariba
Coles Group is one of Australia’s largest retailers, serving millions of customers each week through a nationwide network of supermarkets, liquor stores and
online. As part of its enterprise-wide “Simplify to Save and Invest” strategy to deliver $1B in benefits, Coles set out to ensure that goods not for resale and
services (GNFR) Procurement was equipped to generate value incremental to strategic sourcing, bring more commercial rigour into the management of GNFR
spend, identify and better manage supply chain risks and enable smarter decisions at scale.
By consolidating billions in third-party spend into a single, integrated SAP platform using SAP S/4HANA and SAP Ariba, Coles created a unified system that
supports visibility, accountability and compliance. This enabled more consistent processes, embedded controls and proactive supplier governance across
categories. GNFR Procurement became a hub for commercial insight and enterprise-wide accountability, embedding risk management and governance across
planning, sourcing and supplier oversight to protect and enhance enterprise value.
This transformation has delivered a modern, insight-led capability that drives cost efficiency, safeguards supplier integrity and positions Coles for long-term,
sustainable growth.
Driving excellence: Coles Group’s procurement
evolution with SAP Ariba
Spend Management
Industry WebsiteProduct and Services Featured SAP Solutions
Retail &
consumer
services
www.coles.com.au
www.colesgroup.com.au
Coles Supermarkets, Coles
Liquor and Coles Online
SAP S/4HANA and SAP Ariba
Coles Group is one of Australia’s largest retailers, serving millions of customers each week through a nationwide network of supermarkets, liquor stores and
online. As part of its enterprise-wide “Simplify to Save and Invest” strategy to deliver $1B in benefits, Coles set out to ensure that goods not for resale and
services (GNFR) Procurement was equipped to generate value incremental to strategic sourcing, bring more commercial rigour into the management of GNFR
spend, identify and better manage supply chain risks and enable smarter decisions at scale.
By consolidating billions in third-party spend into a single, integrated SAP platform using SAP S/4HANA and SAP Ariba, Coles created a unified system that
supports visibility, accountability and compliance. This enabled more consistent processes, embedded controls and proactive supplier governance across
categories. GNFR Procurement became a hub for commercial insight and enterprise-wide accountability, embedding risk management and governance across
planning, sourcing and supplier oversight to protect and enhance enterprise value.
This transformation has delivered a modern, insight-led capability that drives cost efficiency, safeguards supplier integrity and positions Coles for long-term,
sustainable growth.
Driving excellence: Coles Group’s procurement
evolution with SAP Ariba
Spend Management
Challenges
Coles was already operating a high-performing procurement function, with systems including SAP S/4, Ariba, Fieldglass and Concur, robust
governance and policies, delivering ROI above benchmarks. The challenge was to evolve that capability - unlocking greater strategic value aligned to
the Simplify to Save and Invest strategy and management of third-party risk.
This meant engaging earlier in planning, deepening business partnerships and shifting from strategic sourcing to broader value creation. Identifying
additional sources of value from rationalising and better managing demand - which represented a significant amount of untapped value - was difficult
due to inconsistent processes, fragmented data and limited visibility.
In addition to creating value, protecting value was seen as a key priority for Coles though identifying and better managing supply chain risks, which did
not have a formal process and system in-place. This meant that risks were typically managed reactively after the occurrence of an event and in some
instances created avoidable exposure for the organisation. This presented an opportunity to develop a formal third-party risk management program
and implement by enabling centralised risk management through SAP Ariba Risk as an early adopter, with procurement playing a key role in the
design, implementation and operation of this model.
Leaders recognised that with the right tools, visibility and expanded accountability, procurement could contribute materially to the overall
performance of the organisation and deliver value for shareholders - not just by removing cost, but by reducing risk, improving supplier accountability
and supporting more sustainable commercial decisions.
Coles was already operating a high-performing procurement function, with systems including SAP S/4, Ariba, Fieldglass and Concur, robust
governance and policies, delivering ROI above benchmarks. The challenge was to evolve that capability - unlocking greater strategic value aligned to
the Simplify to Save and Invest strategy and management of third-party risk.
This meant engaging earlier in planning, deepening business partnerships and shifting from strategic sourcing to broader value creation. Identifying
additional sources of value from rationalising and better managing demand - which represented a significant amount of untapped value - was difficult
due to inconsistent processes, fragmented data and limited visibility.
In addition to creating value, protecting value was seen as a key priority for Coles though identifying and better managing supply chain risks, which did
not have a formal process and system in-place. This meant that risks were typically managed reactively after the occurrence of an event and in some
instances created avoidable exposure for the organisation. This presented an opportunity to develop a formal third-party risk management program
and implement by enabling centralised risk management through SAP Ariba Risk as an early adopter, with procurement playing a key role in the
design, implementation and operation of this model.
Leaders recognised that with the right tools, visibility and expanded accountability, procurement could contribute materially to the overall
performance of the organisation and deliver value for shareholders - not just by removing cost, but by reducing risk, improving supplier accountability
and supporting more sustainable commercial decisions.
Solution
To strengthen procurement’s role as a strategic business partner, Coles expanded its use of SAP Ariba as the enterprise-wide platform for managing third-
party spend, supplier risk and sourcing decisions. The focus was on enabling greater visibility, accountability and control across the supplier lifecycle.
At the core was the embedding of a four-box procurement model across the business, supported by better data and insights from SAP Ariba to drive
smarter commercial decisions through consolidating spend and improving competitive sourcing, early engagement to influence internal requirements,
optimising fit-for-purpose outcomes and eliminating non-essential activity which does not have a clear linkage to the business strategy.
Procurement’s suite of risk management tools including SAP Ariba Risk deliver a proactive, risk-informed approach to third party management, embedding
controls to identify inherent supplier risks upfront and enabling teams to triage high-risk engagements before contracts are executed.
This includes practices such as:
These capabilities were shaped by real-world events - from COVID-related supply disruptions to increasing scrutiny of cyber breaches and ethical
sourcing across the industry. Coles responded by embedding stronger governance and building resilience into procurement, laying the foundation for
category expansion, deeper supplier insight and integration with the SAP Business Network.
• Proactive triaging of high-risk suppliers during onboarding
• Embedded due diligence across cyber, WHS, privacy, business continuity, labour, ethics and compliance
• Pre-contract compliance checks to ensure supplier standards are met before engagement
• Integrated supplier risk workflows within sourcing and contracting processes
• Cross-functional collaboration with finance, legal, operations and sustainability teams to embed shared accountability
• Scalable governance frameworks that support ESG alignment and future regulatory requirements
To strengthen procurement’s role as a strategic business partner, Coles expanded its use of SAP Ariba as the enterprise-wide platform for managing third-
party spend, supplier risk and sourcing decisions. The focus was on enabling greater visibility, accountability and control across the supplier lifecycle.
At the core was the embedding of a four-box procurement model across the business, supported by better data and insights from SAP Ariba to drive
smarter commercial decisions through consolidating spend and improving competitive sourcing, early engagement to influence internal requirements,
optimising fit-for-purpose outcomes and eliminating non-essential activity which does not have a clear linkage to the business strategy.
Procurement’s suite of risk management tools including SAP Ariba Risk deliver a proactive, risk-informed approach to third party management, embedding
controls to identify inherent supplier risks upfront and enabling teams to triage high-risk engagements before contracts are executed.
This includes practices such as:
These capabilities were shaped by real-world events - from COVID-related supply disruptions to increasing scrutiny of cyber breaches and ethical
sourcing across the industry. Coles responded by embedding stronger governance and building resilience into procurement, laying the foundation for
category expansion, deeper supplier insight and integration with the SAP Business Network.
• Proactive triaging of high-risk suppliers during onboarding
• Embedded due diligence across cyber, WHS, privacy, business continuity, labour, ethics and compliance
• Pre-contract compliance checks to ensure supplier standards are met before engagement
• Integrated supplier risk workflows within sourcing and contracting processes
• Cross-functional collaboration with finance, legal, operations and sustainability teams to embed shared accountability
• Scalable governance frameworks that support ESG alignment and future regulatory requirements
Impact
$5B+ in spend now under
control - GNFR spend now
governed with end-to-end
visibility
>80% channelled through SAP
Ariba - Driving consistency, control
and commercial insight
demonstrated through Q4 2024
best adoption award
Procurement on track to
deliver accountable SSI
targets (over 4 years) -
Greater spend discipline is
protecting enterprise-wide
value
Procurement has become a catalyst for performance at Coles, not only meeting its own transformation goals, but directly contributing to broader
business strategy. The team’s work is delivering measurable cost savings, better commercial discipline and stronger supplier governance, while also
enabling faster, smarter decisions across the enterprise.
Key outcomes and benefits include:
As Coles continues to expand its procurement program across manufacturing, facilities and other indirect categories, the strong foundations laid through
SAP Ariba will support more granular insight into supplier performance, faster sourcing decisions, and tighter integration with ESG and risk governance.
This groundwork ensures that procurement remains a proactive, accountable and people-focused engine of value as the business grows.
250+ supplier risks assessed
annually, with 800+ inherent
high-risk triaged and contracts
segmented for targeted
governance
• Significant procurement-led savings delivered to date, directly supporting Coles’ “Simplify to Save and Invest” strategy
• $5+ billion in total addressable GNFR spend brought under active management, giving the business visibility and control over one of its largest and
most complex cost bases
• 98% of addressable GNFR spend under contract with >80% in GNFR spend flowing through SAP Ariba, enabling consistent processes, real-time
insights and embedded commercial guardrails
• 250+ supplier risk engagements per year – Including 800+ high-risk cases triaged and contracts segmented for targeted value and risk plans
• Centralised supplier onboarding and compliance through SAP Ariba, enabling proactive risk management with a strong focus on labour hire,
insurance and ethical sourcing
$5B+ in spend now under
control - GNFR spend now
governed with end-to-end
visibility
>80% channelled through SAP
Ariba - Driving consistency, control
and commercial insight
demonstrated through Q4 2024
best adoption award
Procurement on track to
deliver accountable SSI
targets (over 4 years) -
Greater spend discipline is
protecting enterprise-wide
value
Procurement has become a catalyst for performance at Coles, not only meeting its own transformation goals, but directly contributing to broader
business strategy. The team’s work is delivering measurable cost savings, better commercial discipline and stronger supplier governance, while also
enabling faster, smarter decisions across the enterprise.
Key outcomes and benefits include:
As Coles continues to expand its procurement program across manufacturing, facilities and other indirect categories, the strong foundations laid through
SAP Ariba will support more granular insight into supplier performance, faster sourcing decisions, and tighter integration with ESG and risk governance.
This groundwork ensures that procurement remains a proactive, accountable and people-focused engine of value as the business grows.
250+ supplier risks assessed
annually, with 800+ inherent
high-risk triaged and contracts
segmented for targeted
governance
• Significant procurement-led savings delivered to date, directly supporting Coles’ “Simplify to Save and Invest” strategy
• $5+ billion in total addressable GNFR spend brought under active management, giving the business visibility and control over one of its largest and
most complex cost bases
• 98% of addressable GNFR spend under contract with >80% in GNFR spend flowing through SAP Ariba, enabling consistent processes, real-time
insights and embedded commercial guardrails
• 250+ supplier risk engagements per year – Including 800+ high-risk cases triaged and contracts segmented for targeted value and risk plans
• Centralised supplier onboarding and compliance through SAP Ariba, enabling proactive risk management with a strong focus on labour hire,
insurance and ethical sourcing
“”“Procurement has played a key role in enabling Coles to deliver more value as part of
our ‘Simplify to Save and Invest’ strategy and mitigate risk through our third-party risk
management program. Our Procurement Technology suite, including SAP Ariba have
played a pivotal role in this process, enabling Coles to extract timely insights for better
decision making, and proactively manage inherent risks within our goods not for resale
and services supply chain.”
Charlie Elias – Chief Financial Officer - Coles Group
our ‘Simplify to Save and Invest’ strategy and mitigate risk through our third-party risk
management program. Our Procurement Technology suite, including SAP Ariba have
played a pivotal role in this process, enabling Coles to extract timely insights for better
decision making, and proactively manage inherent risks within our goods not for resale
and services supply chain.”
Charlie Elias – Chief Financial Officer - Coles Group