The energy transition has fundamentally changed 50Hertz. This also applies to the Purchasing department.
As the enormous investments by 50Hertz in grid infrastructure as and new technical solutions represent large procurement projects that are commercially coordinated by Purchasing. Naturally, the company is also growing in its entirety, i.e. in its basic functions and routine processes beyond all new construction and expansion projects. Accordingly it demands more of the colleagues in Indirect Spend. A visible sign of this growth is the new headquarters of 50Hertz with its open offices right next to Berlin Central Station.
Another factor has also taken great influence for purchasing activities: the non-stop economic boom in Germany leads to bottlenecks which are clearly noticeable in the industrial context. Internationally, this situation is coupled in many countries with the growing importance of power grids for the energy supply of the future. In other words, there is increasing competition among clients in our core business on an international level as well. This makes new approaches in supplier management necessary, creating greater latitude for people who want to make a difference in Purchasing.
In accordance with the key purchasing priorities at 50Hertz, the organisation consists of three teams: Strategic Purchasing, Operational Purchasing and Project Purchasing / Claim Management.
Over the past few years, 50Hertz transferred all purchasing processes to a new Purchase-to-Pay (P2P, SAP-based) platform. The objective was and is to create processes that ensure a professional, compliant and efficient procurement, especially in view of the increasing procurement volume as well as the growing number and complexity of procurement projects. This change influenced the work habits of many colleagues in all parts of the company as well as those of our suppliers and service providers as now they also directly work with our P2P tool via the supplier portal.
This way, 50Hertz ensures both accurate documentation for all award procedures and, thus, transparency. Compliance is an important issue for a company that benefits from a natural monopoly and is active in a regulated market.