Implementing Efficient Procurement Strategies for a Mining Company with Maximum Efficiency
Challenges​
Context
Approach
Results
Challenges​
Predict commodity risks and future trends.
Market fluctuation due to political and war situations between countries makes it difficult to shift procurement to a new country.
Context
Understanding the current procurement strategies.
Closer monitoring of purchased materials in order to anticipate its impact on purchasing indicators.
Facilitate the collection of data to allow for analysis of material prices over several years to identify trends and potential cost savings.
Identify sourcing opportunities to diversify the supplier panel and increase visibility during the budget phase. This may involve researching new suppliers or negotiating with existing suppliers to obtain better prices and terms.
Approach
Conduct a market study for the commodity to gain an understanding of the risks and concerns in the market
Analyze the current procurement strategies of the company, including studying existing suppliers in detail and addressing any geography-related issues.
Conduct interviews with each current supplier to obtain market price data and understand their future plans for pricing, as well as discuss opportunities for rebates and negotiation.
Source alternative suppliers in the same locations as current suppliers to create a backup plan and reduce supply chain risk.
Source new suppliers who are available near the client site location to reduce logistics costs and improve efficiency. This may involve researching potential suppliers and conducting site visits to evaluate their capabilities and capacity.
Results
Medium Term: Contain price and qualify new suppliers
Two new suppliers are being tested in laboratory and on site, with the first tests scheduled for this summer at EMI
Long term: Regionalize the supply of commodities by balancing volume market share
