PROCUREMENT EFFICIENCY THROUGH TECHNOLOGY TRANSFORMATION
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PADDY POWER BETFAIR TARGETS PROCUREMENT EFFICIENCY WITH DIGITAL TRANSFORMATION WRITTEN BY
SOPHIE CHAPMAN PRODUCED BY
JUSTIN BRAND
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PA D D Y P O W E R B E T F A I R
As the company invests more in technology, Paddy Power Betfair is ensuring efficient procurement processes with spend analytics, as Colum Colbert explains
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ith the gambling industry continuing to evolve with changing legislation and new technologies, Ireland’s
Paddy Power Betfair (PPB) has operations across Europe, America and Australia. The firm manages several brands which have 04
evolved along with the industry. When Paddy Power was founded in 1988, it followed a traditional gambling model with shops on high streets. As well as growth within its business model, the company has expanded its global presence through mergers and acquisitions. In 2010, Paddy Power acquired Sportsbet, one of Australia’s leading bookmakers. In 2015, Paddy Power and UK-based Betfair agreed to merge. Since the merger, the company has sought to increase its global operations further. Director of Procurement, Jack McMahon, joined Paddy Power – prior to its merger with Betfair – in April 2015. McMahon has over 20 years’ experience in procurement, operations
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PA D D Y P O W E R B E T F A I R
“ My advice here is clear and simple: choose your suppliers carefully. Look for those who truly can be your partners.They can be critical to your success” 06
— Colum Colbert, Head of Procurement Services at Paddy Power Betfair
and supply chain. With this he sought to implement standard processes and procedures to support stakeholders within PPB. “Our focus has always been to support the business proactively in engaging with our supply base. Our job is to maximise value and minimise risk,” Jack says. “Our long term plan is to operate on a common platform for systems, process and procedures. Hence, our Global team can have a standard language and get to best practice. This also helps offer opportunities
CLICK TO WATCH : ‘PADDY POWER – STANDING OUT’ 07 to staff to transfer between Regions
arranging supply, making sure that the
and develop within PPB.”
supply chain is uninterrupted and
Colum Colbert joined Paddy Power
monitoring quality throughout. The
five years ago. He has been working
second is achieving good value for
with the procurement team for the past
money within that supply chain. Now
two years. “Within procurement, my
that I’ve worked in the industry in PPB
own area of Procurement Services is
for two years, I think these two activities
not about sourcing. Procurement
are part of a bigger picture. I think they
Services manage the procedures,
both fit into a greater overall context of
policies and the systems – what I would
managing supply chain risk. Besides
call the ‘infrastructure’ – that enables
risks around security of quality supply
and supports procurement.” He argues
and value for money, there are also
that procurement has traditionally
legal, tax and IT security risks.”
centered around two things: “The first is security of quality supply, such as
The Procurement Services Head suggests that since joining the w w w.pa ddy po we rbe t fa ir. com
PA D D Y P O W E R B E T F A I R
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company, he has witnessed greater
“With a clearer systems strategy in
embedding of its PO system. Provided
place, we have been introducing various
by Oracle, Colbert notes that the role
tools that enable us to achieve procure-
of this system in the P2P process has
ment excellence, what we call ‘Procure-
become clearer to the wider business
ment 2.0’. A good example has been our
overall. The key message of “No PO –
implementation of spend analytics
No Pay” is gaining traction for an increas-
provided by Efficio. We have achieved
ing share of the company’s spend. The
global spend analytics with spend
PO system has created a greater sense
categorised according to procurement-
of spend governance in the company’s
relevant taxonomy. This facilitates
overall P2P systems strategy.
global category management and
Colbert also observes that over the past two years, operations within his
savings planning,” comments Colbert. The partnership with Oracle is enabling
team have become more concerned
the firm to transform its process for
with achieving and delivering best
contract preapproval, or Deal Sheet.
practice, policies and procedures.
This process helps manage legal, tax,
E XE CU T I VE PRO FI LE
Colum Colbert A Chartered Accountant, Colum formerly worked for 12 years as a manager in Baxter Healthcare’s Finance Shared Services Centre. Here, he managed areas including Finance Training, AP, Procurement Services and GL. He joined Paddy Power Betfair (PPB) plc in late 2013 as Senior Manager for Disbursements, covering AP and Payroll. Since 2017, Colum has led PPB’s Procurement Services team, responsible for driving Systems strategy.
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STRONG
COUNTRIES
“ Efficiency is critical.We don’t want to invest in anything that — Name of Person, makes life Position and company less efficient” — Colum Colbert, Head of Procurement Services at Paddy Power Betfair
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IT security and value-add risks in buying.
enabler for people to engage in
By using the Oracle cloud technology,
procurement activity.”
with the help of developer Namos
This concept of partnership with sup-
Solutions, the betting business is
pliers has been key to PPB’s systems
transitioning from a manual to a more
strategy to date. “Many suppliers may
automated process. Paddy Power
claim to be ‘partners’ of their custom-
Betfair are also implementing Market
ers. However, this may often be a mere
Dojo’s eRFx tool to streamline tendering.
cliché or lip-service”, Colbert states.
“Efficiency is critical. We don’t want to
“On our procurement systems journey,
invest in anything that makes life less
our providers truly have been good to
efficient,” says Colbert. “I hope that this
us and for us. I have been astounded
technology and automation develop-
by their flexibility and customer service
ment makes it easier and becomes an
ethic”, adds Colbert. “For example, w w w.pa ddy po we rbe t fa ir. com
PA D D Y P O W E R B E T F A I R
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“ Our focus has always been to support the business proactively in engaging with our supply base. Our job is to maximise value and minimise risk” — Colum Colbert, Head of Procurement Services at Paddy Power Betfair
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PA D D Y P O W E R B E T F A I R
1988
Year founded
2016
Merged with Betfair
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Shops located in Ireland
Market Dojo sold us an eRFx licence.
meet our bespoke requirements. The
They then stayed with us and ‘held our
common denominator among these
hand’ as we actually launched suc-
providers was that they didn’t simply
cessful eRFx events. Efficio, our spend
sell and then leave us”, Colbert states.
analytics providers, have shown great
He adds “my advice here is clear and
agility in quickly turning around requests
simple: choose your suppliers care-
for data loading, analysis and reporting.
fully. They can be critical to your
Namos Solutions, builders of our Deal
success or failure”.
Sheet tool, invested huge efforts in customising Oracle technology to
In the coming years, Colbert expects the company to have a more globally
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integrated procurement function that
of course have to integrate our procure-
collectively encompasses systems,
ment function with these new compa-
processes, policy, and supplier and
nies too,� Colbert concludes.
risk management. “We will globally integrate more of the procurement activity across the existing Paddy Power Betfair entities. There may even be more entities and brands within our business. If Paddy Power Betfair makes further acquisitions, we would w w w.pa ddy po we rbe t fa ir. com
Paddy Power Betfair Belfield Office Park Beech Hill Road Clonskeagh, Dublin T +1800 238 888 www.paddypowerbetfair.com