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Customer Overview

UK Power Networks (UKPN) is a distribution network operator for electricity covering South East England, the East of England and London. It manages three licensed distribution networks (Eastern Power Networks PLC, South Eastern Power Networks PLC and London Power Networks PLC) which together cover an area of 30000 square kilometres and approximately eight million customers.

Business Situation

Following separation from EDF energy UK power network embarked on a transformation journey. One of the challenges in procurement area was disparate business processes & solutions across areas. Having majority of the operations delivered with the help of external contractors, it was very important to have a robust process for contract negotiation and execution. The procurement department within UKPN was looking to streamline the strategic sourcing process.

The major challenges in this process were:

  • Engagement and collaboration with stake holders/budget holders
  • Common platform for requirement gathering & lessons learnt
  • Market research and knowledge management
  • A platform to engage with bidders/suppliers
  • A tool to compare and analyse responses from the bidders/ suppliers
  • Contract award and mobilisation

Solution Offered by AmDhan

Amdhan was engaged by UKPN through their SI to help them to address these challenges, Amdhan analysed and proposed a target operating model which included harmonisation of strategic sourcing process & implementation of SAP Sourcing solutions to enable the proposed targeting operating model. Amdhan designed and proposed the business process which included following 7 steps –

  • Opportunity Identification
  • Market Research
  • Category Approach
  • Contracting approach
  • Prequalification and RFP
  • Contracting Negotiations
  • Contract Award and Handover

Amdhan designed detailed (task level) processes in all these with inputs from SMEs across business. We, then, implemented the SAP Sourcing application to enable these processes.

Business Benefits

They key benefits of the implemented solution was –

  • It fostered enterprise wide collaboration; wider business stake holders could collaborate participate in Procurement events and overall Contracting approach
  • The stakeholders outside Procurement department could contribute in formulating Category Strategies. Finalised Category and Sub-Category strategies is available to stakeholder, thus increasing the transparency within business
  • Every Procurement event is linked to the ‘Category Strategy’, thus savings or benefits achieved through an event is directly linked with the overarching strategy
  • Amdhan developed a suite of analytical reports which helped the management to track the progress and alignment of realised benefits to the Define objectives on the strategy level
  • It provided UKPN a platform to run Sourcing events such as RFI, RFP, Auctioning
  • Supplier pre-qualification process was enabled through ‘Utilities Vendor Database’ (UVDB) i.e. Achilles platform
  • The implemented solution also enabled features such as legal contract authoring, contract comparisons (including red lining) The solution helped a buyer (Category Specialist) publish the contract metadata directly to operational procurement system. i.e. it enabled integration between SAP Sourcing and SAP ERP. This helped operation procurement to refer to active contract thus helped realise ‘potential’ contractual savings into ‘actual’ savings.

Whether you are upgrading SAP on-premise or migrating to the cloud, AmDhan can roadmap your journey to achieve the most impactful results. Our complete portfolio of services for SAP S/4HANA include:

  • Solution assessment and strategy workshops.
  • Multi-instance and geographic implementation
  • Sizing and architecture
  • Managed services
  • Migration services to the cloud

After an SAP S/4HANA deployment, organizations are experiencing sizable benefits of:

  • Solution assessment and strategy workshops.
  • Reduced data footprint with consolidated systems
  • An open platform for advanced technology adoption and innovation
  • Increased productivity with simplified role-based user experiences