Barclays Bank Mauritius – July 2019

Barclays Bank Mauritius: a digital transformation across the African financial sector

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Barclays Bank Mauritius: a digital transformation across the African financial sector WRITTEN BY

CATHERINE STURMAN PRODUCED BY

STUART IRVING

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Barclays Bank Mauritius is undergoing a significant supply chain transformation.Vinay Bachoonum, Head of Strategic Sourcing at Barclays Bank Mauritius, tells us how…

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here is a significant need to rethink the way in which procurement engages with the supply chain, particularly in the

African banking sector. As financial organisations take a greater look at the products they procure, 04

their source of origin and the difference they can provide to customers, technology is also playing a leading role in enabling the procurement and supply chain to become better aligned and support businesses more effectively.

“Procurement should not be looked at in isolation, especially with technology taking the lead. This way of thinking in procurement has helped me to really make a difference instead of being in the back seat,” states Vinay Bachoonum, Head of Strategic Sourcing at Barclays Bank Mauritius. “The right procurement specialists and expertise is increasingly vital. As a procurement specialist on the island I have been active in making sure that we really make a difference. In this challenging environment we have technologies taking over exponentially.”

Noting that procurement has previously gained

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“ Procurement should not be looked at in isolation, especially with technology taking the lead” 06

— Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius

a negative perception, recent improvements in legislation surrounding anti-bribery and corruption laws across Africa have fully transformed the banking landscape in relation to public procurement. Undertaking independent review panels, where procurement decisions can be challenged, as well as bid openings in public sector procurement, as well as the online submission of bids has reignited conversations as to how procurement can better support the financial sector as it continues to be transformed through digitisation. “I think we should now be moving towards online actions and applying a consortium

CLICK TO WATCH : ‘BARCLAYS COLOURS OF LIFE’ 07 approach to buying common goods for

unlike many other supply chain leaders,

the government, ensuring that we spend

his career has been one which has

more time on strategic procurement, for

been meticulously planned out,

example. When it comes to Barclays,

becoming a member of the Chartered

there has been significant improvement,”

Institute of Procurement and Supply

adds Bachoonum.

(CIPS) back in the early 2000s. With

Throughout his decade long tenure

the ambition to become a professional

at Barclays Bank Mauritius, Bachoonum

buyer and supply chain specialist, he

has witnessed the procurement industry

remarks that while many find this

shift from being reactive to an increasingly

position to be somewhat thorny, it is

proactive and agile division, ensuring

one which enables individuals to orbit

that businesses remain resilient amidst

within organisations and gain a greater

the ever-changing demands of its

understanding of the internal customer,

customers. However, against such

the external supply base and the

seachange, Bachoonum explains that

supplier community. w w w.mu.ba rc l a ysa frica . com

B A R C L AY S B A N K M A U R I T I U S

“It’s ensuring a balance between what

It is exciting and formed part of my

organisations are looking for and how

thought process when I wanted to build

to get things executed from the supplier

a career in supply chain management.”

community. The supply chain comes

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with procure, supply management, cost

DATA GENERATION

reductions, due diligence and negotia-

Throughout its procurement opera-

tion. If you look at the bigger picture in

tions, Barclays Bank Mauritius has

logistics and supply chain, it is a huge

worked to implement robust govern-

pipeline of value adding services so

ance around its buying processes, and

that it becomes very exciting,” he says.

has enhanced its privacy tools and

“The role touches every part of the

embedded new policies and standards.

economy, from logistics, distribution

Establishing a new way of buying and

and production, to manufacturing and

enforcing clear segregation between

fast-moving consumer goods (FMCG).

buying and the supply management

functions has also provided a number

of goods and services in the near

of advantages in building strong

future at Barclays Bank Mauritius,”

relationships between teams.

says Bachoonum. “This has been

Additionally, from a technology

a gradual move. Being an island,

standpoint, accessing advanced

the level of sophistication and the

data analytics has seen the business

readiness of the supplier community

gain essential insight into various

is important. We should be pushing

trends in the market, where sophisti-

things that are aligned to the readi-

cated processes and electronic

ness and the culture that lies within

request (ERFx) solutions are now

the supplier base, which mainly

used not only for bidding but also

constitutes small to medium-sized

as a bidding solution.

organisations. However, we also work

“The system will also be used to execute E-auctions for certain types

with large multinationals for specific hardware and supplies.”

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CUSTOMISED SOLUTIONS By improving its spend management and analysis through technology, Barclays Bank Mauritius has taken a greater look at its suppliers in order to source ways to unlock greater efficiencies. “We are investing heavily in the right tools, making sure that we can extract data from the systems both from spend analysis perspective, but also from supply management perspective,” adds Bachoonum.

“Spend analysis is done on a monthly basis so that we can see whether we have any spend that is outside

the normal procure process. All data generated can be shared and we can show the factions where money is going. It’s important to have the relevant data to trigger the right decisions as to whether we outsource or bring solutions in-house.”

Such technological focus has also extended towards the company’s investment in a system which has enabled the creation of a central data repository, enabling automated reporting of high-quality regulatory

“ Being an island, the level of sophistication and the readiness of the supplier community is important” — Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius

data which is sent to the Central Bank.

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With all information remaining increasingly time sensitive, the system has reduced ongoing risks of fines and incorrect submissions and poor-quality data being sent. “We had to invest in a solution, where we went through a selection process. Nelito Systems proposed a solution and has ensured that we are able to capture the right data, in the right format and in an automatic manner to the regulator,” says Bachoonum.

“I’ve been heavily involved in the negotiation of the contract to ensure 12

the bank is protected in terms of key attributes and requirements. These solutions can then be used across the organisation. However, it is challenging in the sense that we are negotiating with a supplier that has credentials for delivering projects outside of the country, but not in the country,” he adds. “Due diligence was quite strong to ensure that they could build a customised solution, and we could also agree on expectations on both sides.”

SUPPLIER RELATIONS Procuring for a global bank with such a strong reputation as Barclays has no doubt led to increased pressures

across the procurement and supply chain. To counteract this, Bachoonum has sought to support its limited supply base across Mauritius and support them in remaining compliant within all regulations and standards.

“With regards to data privacy, for example, we need to educate suppliers.

I have been involved in influencing suppliers, looking at what this investment in processes would provide as a yield, which will enable them to deliver similar goods and services to other high level organisations. There is a need to implement a proper way of measuring performance, and if things go wrong how to easily recover,” explains Bachoonum. “Some suppliers felt it was over-engineering, but I presented it as an investment that would greatly improve the way they deliver.”

The business is continuing to grow in leaps and bounds, yet the company has revealed that it is set to become part of one of Africa’s largest diversified financial services group in 2020.

Decoupling from Barclays after a century will see the business become fully part of Absa Group, one of the largest financial institutions in South Africa, which will lead to further advantages for the business. w w w.mu.ba rc l a ysa frica . com

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“ Nelito Systems proposed a solution and ensured that we are able to capture the right data, in the right format and in an automatic manner” — Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius

“We’re very proud of the Barclays brand, and were aware that there would be a transition period,” notes Bachoonum. “It is a chance for us to become a regional bank instead of a global one. It’s a great opportunity for us to become a completely African driven bank. The business is very confident and is embracing the Absa brand. We need to create opportunities for our customers.”

Set to become a completely different franchise, the organisation remains passionate in reinforcing its strong roots within Mauritius. Bachoonum is incredibly positive on what the future holds for the organisation, where it will remain active on the main continent, look at new customer-led innovations, such as the mobile wallet, and explore further territories as part of its five-year plan.

“We want to really mark ourselves in the local market but also in the offshore market,” he concludes. “We have a plan, and we are moving steadily in the right direction to achieve our goals.”

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Barclays Bank Mauritius www.mu.barclaysafrica.com