National Grid Transco: End-to-end procurement solution powers energy giant

Recently merged energy giant NG Transco faced rising procurement costs and lack of visibility to corporate spend resulting from disparate and inefficient legacy processes.

The company needed a single, integrated corporate procurement process to provide consistency in contract spending. It also needed companywide visibility to develop new procurement initiatives while preventing off-contract buying.

IBM provided an end-to-end hosted Ariba procurement solution, with a flexible pay-as-you-go cost model allowing NG Transco to scale solution capacity, modules or number of users on demand. IBM Business Consulting Services configured the solution for the newly defined business processes.

The template-based standard contract structure increases process consistency and efficiency and improves supplier and customer relationships. NG Transco can scale solution capacity, modules and number of users on demand, and pays only for what it uses. Improved visibility to corporate spend and companywide procurement systems have reduced off-contract spending and lowered overall procurement costs through contract consolidation and improvement.