Outsourced Category Management Team - National Miner

Jim Cowan
Partner, Heavy Industry
Heavy Industry
Strategic Procurement
June 4, 2024
Spend Under Contract
Tenders & Negotiations
Cost Reduction

Client Problem

The client had a requirement to centralise its category management and purchasing function for anumber of its coal divisions, and continue to ensure supply to the operations during the transition.

Caliba Solution

The client had an in-house category management and purchasing team but lacked the capacity to manage the transition.

Caliba was engaged to provide this support for an 18-month period to ensure the successful transition from the site-based model to centralised procurement.

The Caliba team provided support to development a sourcing plan to integrate $610m of supply and services contracts into other client business units. This involved many formal tenders, supplier negotiations, and proactive contract management.

The Caliba purchasing team ensured the operations received uninterrupted supply of items and services during the transition.

The outcome was a successful transition to the new centralised model,and delivering a cost reduction of $45m across the spend addressed by the team.

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