Endeavour Energy Initiates Procurement Revamp, Deploys SAP Ariba

Endeavour Energy is embarking on a transformative journey within its procurement function, with a project codenamed Zodiac, aimed at revolutionizing its approach to enterprise-wide spending. The initiative is designed to create greater transparency, control, and efficiency in procurement processes, covering the company’s operating model, works management, and asset management. As part of this transformation, Endeavour Energy is deploying SAP Ariba, a comprehensive procurement platform that will enhance contract management, sourcing, and supplier lifecycle management, empowering the organization with advanced tools to streamline operations and drive cost savings.

According to Nicole Croak, procurement and supply chain manager at Endeavour Energy, the Zodiac initiative will also help the utility gain critical insights into its demand planning, particularly as it navigates the significant growth in regions like Western Sydney, which is set to see an influx of infrastructure developments, including the highly anticipated airport. This growth has created an urgent need for efficient procurement processes, particularly in the planning and acquisition of key materials such as poles and wires, essential for expanding and upgrading electrical infrastructure. By leveraging advanced data from its systems, Endeavour Energy has already made significant strides in improving demand-planning processes. The Zodiac project aims to take these improvements further, integrating more sophisticated tools to ensure the utility can meet its future growth demands seamlessly.

Endeavour Energy has been investing in its digital backbone since 2018, having implemented SAP S/4HANA, an enterprise resource planning (ERP) system, which supports a wide range of functions including asset management, works management, finance, human resources, payroll, procurement, warehousing, and distribution. More recently, the utility has adopted the SAP Business Technology Platform (BTP), a suite of cutting-edge technologies encompassing data and analytics, artificial intelligence (AI), automation, and application development, to help modernize and future-proof its business operations.

A particularly exciting aspect of this transformation is Endeavour Energy’s exploration of artificial intelligence to enhance procurement and spend management efficiency. Croak revealed that the company has already developed its own version of ChatGPT, a powerful AI tool that assists corporate and field workers by providing instant access to critical information, such as policies, procedures, and work method statements. This tool has the potential to significantly streamline workflows, offering quick answers to employees' questions and reducing the time spent searching for information.

Looking ahead, Croak envisions a much more profound role for AI in the procurement process. One key area of interest is using AI to guide risk-based conversations around procurement decisions. For example, when evaluating the risks of a $10 million expenditure, AI could quickly assess whether the supplier in question has a positive track record, if there are any potential risks, or if the company has a strong existing relationship with them. AI could perform a preliminary analysis or "once-over" of such proposals, offering a data-driven starting point for deeper discussions between procurement teams.

This approach to integrating AI is not about replacing human workers but about augmenting their capabilities and providing them with the tools needed to make more informed, timely decisions. By leveraging AI to support and enhance the procurement process, Endeavour Energy is positioning itself to drive further efficiencies, improve risk management, and ensure the company is well-prepared to meet the demands of its rapidly growing service areas.

Furthermore, Croak emphasized that the use of AI would extend beyond procurement to support various aspects of Endeavour Energy’s operations. The utility is keen to explore the many opportunities AI presents for improving processes across the organization, ensuring that the technology is effectively integrated into daily operations, and fully realizing the benefits it offers.

In summary, the Zodiac transformation initiative at Endeavour Energy is a forward-thinking project that seeks to not only enhance visibility and control over enterprise-wide spending but also leverage cutting-edge AI technologies to drive efficiency and operational improvements. With the deployment of SAP Ariba and the company’s own internal AI tools, Endeavour Energy is well-positioned to adapt to the challenges of its growing service areas while continuing to lead in innovation and operational excellence.