A global mining contractor recognised the need to improve the performance of its procurement function with the objective to reduce operating costs and improve its competitive advantage. The company also recognised that it did not have the in-house capability to manage such a project.
A full Procurement Transformation project, including:
- Review of the current tendering, contract management, and purchasing functions.
- Complete 30+ stakeholder sessions across the business to identify the business need, current issues, and areas of ‘best practice’.
- Provide recommendations to move to a new procurement model to achieve the business’ objectives.
- Manage the transition to the new procurement model.
Caliba achieved the following outcome for the client:
- Centralised purchasing function to Brisbane to reduce costs and improve contract compliance.
- Put in place a category management structure to leverage the business’ volume, and to improve relationships with strategic suppliers.
- Developed a procurement governance committee to approve strategic procurement recommendations.
- Managed the initial multi-business unit strategic sourcing projects to deliver the cost reductions for the new model.