Strategic Sourcing of Coal

A large African industrial company had an urgent requirement for a new reliable supply of thermal coal, as its current supplier pre-maturely terminated a strategic supply arrangement, leaving the company’s on-going operations at considerable risk. The company did not have the capacity in-house, nor the expertise to put in place such a strategic supply arrangement in a timely manner.


Caliba was engaged over a six-week period to:

  • Develop a sourcing strategy taking into account local supply and demand, alternative coal sources in sub Saharan Africa and discard coal sources
  • Lead a cross-functional team responsible for recommending a suitable energy solution for the specific site
  • Engage the market via the South African SCNet portal, after finalising volume, technical, commercial and BBBEE requirements
  • Evaluate tender responses and negotiate with shortlisted Tenderers
  • Develop the award recommendation to management taking into consideration the client’s energy strategy for its African business


Caliba delivered the following outcome:

  • Multiple category strategies that were well received by business and approved
  • Cost saving targets achieved across all categories in scope
  • Improved the awareness of Procurement in the business, showcasing the value-add Procurement could offer
  • Business engagement significantly improved
  • Transfer of skills to the in-house procurement team resulting in an up-skilled team
  • Contracts in place cover all spend in scope
coal conveyor