Newmont Corporation’s Digital Transformation with SAP Ariba
KPMG LLP helped Newmont achieve improvements across procurement, with dramatic gains in electronic invoicing and streamlined processing.
Client
Newmont Corporation
Industry
Mining and metals
Primary goal
Update procurement operations for today’s digital environment
Platforms
SAP Ariba
Share
As the world’s largest gold mining company, Newmont Corporation extracts roughly 6 million ounces of precious metal each year from its network of operational sites spanning Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea.
The company faces unique supply chain challenges. A turning point arrived when SAP announced it would discontinue support for two critical procurement systems Newmont relied upon: Contract Lifecycle Management (CLM) and Supply Self Service (SUS). With approximately 2,000 vendors on SUS across the globe, Newmont faced significant disruption without a replacement solution.
The situation
When Newmont began examining the gaps in its procurement infrastructure, several key challenges emerged beyond just the discontinuation of SAP support for its legacy systems:
1
Geographical and regulatory complexities
2
The company’s manual non-PO invoice process
3
Migration complexities, particularly open purchase orders
4
Specialized B2B connections would need a complete overhaul
5
Supplier adoption
Newmont saw more than just obstacles in its path; the business identified a significant opportunity. Moving to SAP Ariba would allow the company to update its procurement operations for today’s digital environment. The painful transition process seemed worthwhile when weighed against the gains: automated workflows, globally consistent processes, and instant visibility across all its mines worldwide.
The initiative
When Newmont and KPMG tackled SAP Ariba together, their collaboration went beyond swapping out software and ultimately involved rebuilding the entire procurement approach. The project went far beyond essential system replacement to include several interconnected components:
1
Ariba Network for purchase orders, order confirmations, service entry sheets, and electronic invoicing
2
Ariba Invoice Management for exception monitoring and handling invoice discrepancies
3
Ariba Source-to-Contract for managing contracts, master agreements, RFPs, and RFQs
4
Ariba Procurement Content (APC) for managing internal inventory catalogs
5
Guided Buying to simplify the procurement process for end-users
KPMG, with its extensive experience guiding mining companies through digital transformations, helped design a strategic implementation approach to help minimize disruption while maximizing adoption. Its methodology proved especially valuable as the team confronted the unique challenges of implementing in regions where Ariba had never been deployed before.
The expertise of KPMG also proved critical when the project faced early challenges. “When things weren’t heading in the right direction, KPMG’s team came in and straightened the ship,” noted Darren Schmidt, Newmont’s Senior Manager of Supply Chain Systems and Business Integration.
Results
| Electronic invoicing increased from 30% to 92%. | Out of more than 200,000 invoices processed annually, fewer than 16,000 needed human attention. | The team successfully onboarded over 7,000 suppliers to the Ariba Network across all regions. |
Through their collaborative efforts, Newmont and KPMG achieved substantial improvements across the procurement ecosystem, with the most dramatic gains in electronic invoicing and streamlined processing. The changes took Newmont from disjointed, manual procurement processes to a unified, automated system running the same way at every mine site worldwide.
Dive into our thinking:
Inside Newmont Corporation and KPMG LLP’s Digital Transformation of Procurement with SAP Ariba
Read the full story
Download PDFMeet our team
Karl Kaylor
Advisory Managing Director, Procurement & Outsourcing Adv, KPMG US
Karl Kaylor
Advisory Managing Director, Procurement & Outsourcing Adv, KPMG US