Redesigning a global technology procurement function to create clearer accountability, stronger stakeholder coverage and a more disciplined commercial agenda.
Context
A global technology procurement function needed to move beyond historic ways of working and align more closely to future business priorities.
Rio Tinto was reshaping Technology Procurement to better support the priorities of the IT function under the CIO, while facing increasing cost pressure across a multibillion-dollar global technology spend base.
The challenge extended beyond organisation structure. A global procurement team of around 50 people needed clearer accountability across portfolios, stronger interfaces with IT stakeholders and a model better aligned to future business priorities rather than historic ways of working.
Stakeholder engagement was also concentrated heavily through the Head of Technology Procurement, limiting the function’s ability to engage consistently across major business units. At the same time, there was an opportunity to strengthen management of strategic suppliers and bring greater discipline to cost optimisation across software, services and infrastructure.
What we did
We worked with Technology Procurement leadership to redesign the operating model, strengthen strategic supplier management and establish a more structured approach to cost optimisation.
We began with the Technology Procurement leadership team, using strategy and visioning sessions to define the future ambition for the function and the outcomes the operating model needed to enable. This shifted the design conversation away from existing roles and reporting lines and towards the capabilities, accountabilities and stakeholder relationships required for the future.
From that foundation, we redesigned the global operating model. Duplicated responsibilities were streamlined, accountabilities across portfolios were clarified and new business partner roles were introduced to provide dedicated engagement with high-spend business units. This distributed stakeholder ownership more effectively across the leadership team while retaining existing category ownership.
The redesign was complemented by a refreshed approach to strategic supplier management, with clearer segmentation, governance and executive engagement for the organisation’s most important technology suppliers.
Alongside the operating model changes, we established a structured approach to cost optimisation across software, technology services and infrastructure. Governance, ownership and prioritisation were put in place, supported by a visible pipeline of opportunities that gave leadership a more systematic way to focus effort and monitor progress.
Impact
Clearer accountability. Stronger stakeholder partnership. A more disciplined commercial agenda.
The redesigned model created clearer accountability across the global Technology Procurement function, removing overlap and aligning roles more directly to the outcomes the function was expected to deliver.
Introducing business partners also created a stronger and more scalable interface with IT and major business units, reducing reliance on a single leadership role and bringing procurement closer to key stakeholder priorities.
Strategic supplier management became more structured and deliberate, while cost optimisation moved to a more governed, portfolio-wide approach across software, services and infrastructure.
Together, these changes gave Rio Tinto a stronger operating foundation for technology procurement, with clearer ownership, stronger stakeholder coverage and better visibility of the commercial agenda.