A mining joint venture in Botswana, which consisted of an international contract mining company, and a regional and a local company, had a requirement to improve their strategic supply and service contracts (e.g. drilling services and parts contracts, haul truck parts and services contract, and ‘off-the-road’ (OTR) tyre repairs). The joint venture required new contracting arrangements to be global best-practice and include local empowerment requirements, however they did not have the internal expertise to make this happen.
Services
Caliba was engaged over a nine-month period to:
- Complete an assessment of the current situation and benchmarked current contract performance
- Worked with the cross-functional teams to developed suitable sourcing strategies
- Price and performance benchmarking were based on regional experience as well as global solutions negotiated by the international JV partner
- Lead the market engagement, irrespective of it being tender-based or sole supplier negotiation
- To support effective contract management, select KPIs and targets were agreed with the suppliers
- Develop new contracts based on T&Cs provided by the international partner but customised for the Botswana jurisdiction
- Prepared risk management plans for cases where supplier transition was necessary
Outcome
Caliba delivered the following outcome for the client:
- Optimised contracts were put in place for drilling services, drill spare parts, haul truck parts and services as well as for OTR tyre repairs
- Delivered a 15% cost reduction across the in scope spend
- Improved supplier performance with formalised KPIs and contractual performance review meetings
- Up-skilled internal teams to better manage strategic contracts and hold supplier to account for performnace
