A milestone for local procurement program in Western Australia.
Team Lead: | Scope Of Work: |
James Kelly | Procurement |
| Customized IT |
| Infrastructure |
| In-house |
| Procurement Team |
This global mining corporation sought to build a procurement solution that would engage local providers at any of their global sites.
Critical to their brand reputation, our client sought solutions to distribute resource wealth into local communities without significantly impacting their financial objectives.
Our Mission was to develop a technology solution that would achieve these outcomes, without requiring large ongoing investment from the client.
Our Approach ensured the client continues to meet regulatory requirements and the cultural expectations of stakeholders, with a scalable solution that makes it easy to assess local options in their supply chain process.
CHALLENGE | OUTCOME |
The procurement process can be characterized by manual and resource-intensive activities. The global mining group had challenges across bureaucracy and transparency of contract dealings. Among offline supply chain management, inaccurate data, long lead times, and procurement cycles. This caused significant market risks, potential frauds, cost, low-quality, and delivery risks. | The global mining group tendered a dedicated in- house procurement team and online portal to publish procurement opportunities and spending with WA- based suppliers. We were awarded the project and delivered the solution in 45 days. The customized procurement portal provides transparency of upcoming work opportunities and enables local suppliers to compete for contracts with the world-leading iron ore business. |
KEY POINT #1
The mining corporation aims to strengthen communities wherever they operate. These procurement practices capture the mining corporation’s commitment to partner with local WA-based suppliers and support local industry growth.
KEY POINT #2
The client’s iron ore business has more than 1200 local suppliers, ensuring their contribution to the state economy includes local procurement, taxes, and royalties.
" We have spent almost $57 billion with Western Australian businesses over the past seven years, but we want to do more. Our new procurement programme will make it easier for WA businesses to compete."
RESULT
The iron ore supplier portal has improved the visibility of upcoming contracts, providing the opportunity for locally based businesses to participate in resource projects. The new procurement practices, and those of their suppliers, have helped sustain many Western
Australian businesses and, in turn, local communities. Improving these practices, and ] providing increased opportunity for local suppliers, has stimulated local economies to deliver socio-economic benefits for communities, suppliers, and the organization.
The mining corporation has experienced increased quality of supply, supply chain efficiencies, and reduced cost. Attributing to greater security over critical supply and reduction of operating stoppages. The heightened investment to build trust with local
communities’ and relationships with governments have strengthened the organisations social license.