Origin wins contract with fixed-price deal

Origin wins contract with fixed-price deal

The Australian arm of global services organisation Origin recently boosted its growing reputation in the local market by signing a $2.5 million, three-year SAP outsourcing deal with mining company Warman International.

The deal follows the successful "go live" of the Warman SAP system deployed by Origin in January and will enable Origin to manage Warman's global data centre to support the organisation's SAP operations.

For Brian Baldie, Origin Australia's CEO, the partnership with Warman has given the organisation the opportunity to hone its skills in local manufacturing operations with a global spread.

"The Warman contract will show Australian companies that Origin's international presence can be used to great benefit in a local context," Baldie declared.

According to Rex Harrison, Warman International's CEO, Origin won the SAP outsourcing contract for "its ability to support Warman's operations in each of the countries where SAP is being rolled out - Australia, the UK, Brazil and the US".

Operating as a global services provider, Origin was able to unite a team of SAP specialists from its offices in the US, the UK and Argentina to clinch the deal.

Warman officials revealed that Origin, which defeated rival outsourcer Fujitsu to win the bid, differentiated itself by offering the mining organisation a fixed-price proposal - an option not offered by competing tenders.

"We were attracted to their preparedness to cap the price of the implementation, and share with us the basis of their costings including the assumptions they were making," said Richard Hinsley, Warman's group information technology manager.

"Origin's management also showed a willingness to be truly interested in a partnership. They sought to understand our business aims and were committed to assisting us with our implementation objectives."

Hinsley added that this SAP R/3 implementation by Origin is the largest IT investment ever made by Warman, and has so far met budget and is on schedule.

"The project will provide us with an enterprise-wide view of every operational area of Warman," Hinsley said. This includes everything from managing customer requests to receiving payment and "all possible intervening processes".

The SAP application rollout will encompass Warman's anticipated improvements to its on-time delivery performance, shorter manufacturing cycle times, greater visibility of global information, a reduction in inventory levels and improved levels of customer service.

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