The tight supply conditions for OTR tyres exposed a Bowen Basin Coal mining operation to considerable risk. The site had expiring supply contracts, so it was critical that long-term supply arrangement was in place as a matter of urgency.
Strategic Sourcing of OTR Tyres
- Defining requirements.
- Developing a tender strategy.
- Managing tender & negotiations.
- Developing supply contracts.
The project delivered the following outcome:
- Strategic supply agreements signed with two Tier 1 tyre manufacturers to cover 100% of the site’s requirements.
- Achieved a saving in tyre costs compared to their current pricing.
- Pricing adjustments in line with market indices during the contract term.