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.
Services
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
Outcome
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
