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Company Industry Company Size Revenue
BHP Mining >72,000 US$42.9 billion

Executive Overview

A world-leading resources company with operations from Australia to the Americas, BHP saw an opportunity to reap greater value from its procurement processes. Procurement was decentralized and distanced from the leadership core, with limited global coordination, standardization, and purchasing leverage. BHP wanted to create a foundation for functional excellence that would not only reduce costs but also enable procurement to connect to organizational strategy to help BHP “live its purpose.” Achieving this would require the right technology integrated intelligently across the enterprise.

Before: Opportunities

  • Centralize the procurement function across operations from Australia to the Americas for enhanced coordination, standardization, and purchasing power

  • Reduce procurement costs and increase the use of automation across the function

  • Help procurement contribute to organizational strategy rather than simply transacting on BHP’s behalf

Why SAP

  • SAP Ariba solutions for intelligent spend management that allows procurement to become a strategic partner in achieving resilience and agility

  • Ariba Network to help control spending, find new sources of savings, and build a healthy, ethical supply chain

  • SAP Fieldglass solutions for integrated contractor management to help manage compliance and risk

After: Value Driven Results

  • A transformed, centralized, and efficient procurement organization with higher savings

  • Greater automation of channels across guided buying, material and service design, and spend control

  • Increased spend visibility with improved analytics and performance management, including through machine learning

  • A zero-based design concept that enables BHP to rightsize work for risk and value across the source-to-contract cycle and better connect the supply chain with maintenance processes

  • A better customer experience and culture of partnership with vendors, communities, and stakeholders

  • A stronger foundation for BHP’s social value, sustainability, and innovation agenda

  • 100%

    Of spend across capital and operational portfolios centralized – from a paper clip to a multibillion-dollar investment

  • A$500 million

    Spent on local buy programs in Australia to support smaller local vendors

  • 25%

    Automated procure-to-pay processes using bots, set to increase to 75%

BHP logo

Success Story

Helping Procurement Take a Leadership Role with SAP Ariba Solutions

When global resources company BHP set out to centralize procurement across its enterprise, this sparked a transformation that would free the function to connect with BHP’s strategy and become a value-adding partner.

Key to this transformation are a range of SAP solutions, including Ariba Network, guided buying capability, and the SAP Ariba Sourcing, SAP Ariba Catalog, SAP Ariba Contract Invoicing, and SAP Ariba Supply Chain Collaboration for Buyers solutions. Used together, these solutions have enhanced visibility, reduced costs, and facilitated a culture of partnership and an enhanced collaboration agenda with the outside world. What’s more, they have freed BHP’s procurement team to drive social value, sustainability, and innovation across the organization.

Underpinning this best-in-class system, BHP uses the SAP Analytics Cloud solution to uncover deep insights and make confident, data driven decisions . And SAP Cloud Platform helps it stay agile and flexible, connecting processes across the organization and beyond.

A strong, connected procurement organization not only enables best-in-class cost outcomes but also connects the function to corporate strategy for even greater value.
Sundeep Singh Group Procurement Officer, BHP
A large solitary ore truck drives a load of raw material out of an open mine.

Featured Solutions and Services

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Supply Chain Collaboration Solutions

Share real-time information with all your direct spend suppliers, obtain their commits, and tap network-generated intelligence to achieve complete supply chain visibility.

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Sourcing for Indirect and Direct Materials

Source services, indirect materials, and direct materials using SAP Ariba Sourcing, SAP Source-to-Contract Suite, or SAP Strategic Sourcing Suite.

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SAP Ariba Contracts

Speed up contract cycles by 50% and reduce administrative and legal costs by up to 30% when you rid yourself of the paper and ink.

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SAP Ariba Catalog

SAP Ariba Catalog defines, validates, and enriches catalog content with enterprise-grade content management tools and gives employees a simple way to get what they need.

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Guided Buying

Guided buying delivers a simple experience for purchasing goods and services. It guides employees to use preferred suppliers, processes, and policies, resulting in happy employees and compliant spend.

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Ariba Network

Ariba Network is now SAP Business Network, the world's largest business network and a dynamic, digital marketplace where companies connect to get business done.

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