Strategic Tender - Fuel Supply

Sebastian Rapp
Senior Consultant
Heavy Industry
Cost Reduction
June 4, 2024
Spend Under Contrac
200M Litres
Under VMI
ATG systems installed

Client Problem

The coal miner’s fuel supply contract had been in place for over 5 years and was experiencing some drops in performance, including a drop in minimum levels due to lack of drivers for resupply, leading to operational limitations on site.

Caliba Solution

Caliba was initially engaged to provide sourcing options and recommendations for the client’s fuel supply requirements. With a spend of over $90m per annum a tender was recommended and Caliba was engaged to provide tender management services for the client. The objectives of the tender were to ensure pricing competitiveness and maintaining security of supply.

Caliba’s services included the full tender management process from prequalification, document preparation, through to evaluation, negotiations and contract award.

Following several rounds of negotiations with shortlisted tenders, Caliba successfully secured the continuation of the current service provider while effectively mitigating price increases.

Caliba also negotiated the inclusion of free installation and maintenance of an automated tank gauging system for the entire mine site by the supplier at no cost, saving 750+ hours per year in manual dips. Additionally, there was a change of freight forwarder with backup options to address potential labour shortages and their impacts.

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