Category Planning & Strategic Sourcing

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.


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


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