CIMIC has introduced a new digital procurement application which is purpose-built for large, complex projects and organisations to gain efficiencies and mitigate risk across their supply chains.
Our challenge was to enhance our digital procurement solution, in partnership with our vendor, to provide significant timesaving in supplier registration and compliance. We also required a sourcing functionality that could help us manage the issuing of Requests for Tender (also known as RFQs), supplier-response evaluations, contracts and awards.
The digital solution replaces a paper-based vendor questionnaire for onboarding suppliers and provides web-based visibility of:
- the services delivered by our vendors
- the regions in which they operate, and
- our performance ranking and interactions with them.
The solution allows project portals to be established online, RFQs to be sent to suppliers via the system, and it operates in parallel with existing use of SAP and JDE, for generating Purchase Orders.
Key benefits include timesaving in supplier registration and improved efficiency and compliance in managing RFQs, supplier-response evaluation, contracts and awards.
Demonstrating its effectiveness, the solution was recently chosen as the procurement platform for a major transport infrastructure project being delivered by CPB Contractors in a joint venture. In just a few months, the joint venture’s procurement team reduced their vendor onboarding time from 13 to 1.5 days and realised multiple efficiencies across their procurement activities.
In conjunction with this tool, CIMIC Group uses an internationally recognised due diligence solution to assess supplier risks including ESG and modern slavery issues.
Our supplier management enables us to better share social and economic benefits from our projects by optimising local supplier opportunities. In 2021 local suppliers represented 95% of our procurement.