A global mining contractor recognised that the organisation was not realising the buying power of its global business units, and should engage the market as ‘one business’ to deliver preferred supply and cost reduction benefits. The organisation did not have the in-house expertise or capacity to complete the multi-business unit sourcing projects.
To provide Outsourced Strategic Sourcing, leading the strategic sourcing for multiple strategic spend items, including:
- OTR Tyres.
- Fuels & Lubricants.
- Mining Equipment Strategic Agreements.
- Buckets and Ground Engaging Tools (GET).
Caliba achieved the following outcome for the client:
- Signed Agreements in place for all strategic sourcing projects.
- Achieved cost reductions above targets for each of the spend categories.
- Reduced supply base to a few strategic suppliers for each of the categories.
- Supplier Relationship Management frameworks in place for each strategic supplier.
- Global Framework Agreements in place with contract management plans.