Outsourced Strategic Procurement - Contract Miner

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

Client Problem

The company had a requirement to leverage its global volume to secure better supply arrangement from its suppliers.

Caliba Solution

The company had an in-house procurement team but lacked the capability to manage large, complex tenders across multiple global regions.

Caliba was engaged to work closely with the maintenance, production, technical services and finance teams to develop a group-wide sourcing plan to be approvedby the Executive team.

Caliba integrated into the client’s business to become their strategic procurement team.

The Caliba team managed 6 global supply tenders, multiple supply contracts for the Australia operations, and a program to deliver immediate cost reductions fo rthe operations. The overall operating costs where reduced by $48m per annum.

Caliba was also worked with client’s in-house teams to develop group wide arrangements with its equipment OEM’s, which resulted in improved services levels, warranties, components & parts pricing.

Another benefit provided to the client from the outsourced strategic procurement wasthe improvement in relationships with key suppliers.

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