Contractor and Vendor Management

NEEDS-BASED RESULTS

 

Contractor and Vendor Management

SITUATION

For many years, contractors at this integrated mining and metals business were left with no supervision to do their jobs with no visibility to their performance.

DRIVER GOAL

  • Increase contractors’ on the job working efficiencies to deliver an extra €1.3 million through better planning and shop floor supervision.

RESULT

Devised and launched program that will:

  • Recover €450,000 in wasted productivity through better management of contractors’ time.
CS-348 large

Case Study

Improved Contractor & Vendor Management

PDF

Issue

For many years, contractors at this integrated mining and metals business were left with no supervision to do their jobs with no visibility to their performance. With the launch of a corporate-wide productivity improvement initiative, site management decided to focus on Contractor Vendor Management (CVM) as a source of benefits. The Highland Group was invited to look at CVM in the Roaster and Cell House where there was significant spend on contractors.

Highland Approach

The key was to get buy-in from the client at all management levels. A scope of work was defined with the General Manager, with metrics and methodology buy-in from functional managers including Finance. One of the client’s engineers was trained in Highland’s analytical process and assisted with a series of detailed studies of contractors’ working methods. This process uncovered 30% to 50% of lost time due to a mixture of inappropriate equipment, poor planning and scheduling, and little or no supervision.

Actions Taken

The Highland Group and the client built a business case defining target milestones and an implementation plan. The impact from this program has been fully accounted for in the 2012 budget, and individual bonuses have been linked in part to the results.

Because the process effectively aligned the different stakeholders from the beginning, a project team crossing the various functions was rapidly assembled to carry the project forward.

Program will improve process throughput through increased plant uptime to the value of

€850k

Related Information

industry-based

subject matter-based

Senior Consultant

Supply Chain

Europe

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Senior Consultant

Working Capital

North America

Joe is an innovative and versatile professional with over 25 years of solid experience building, growing and operating diverse, multi-faceted and geographically dispersed global high-growth organizations. He has an exceptional track record of managing projects that deliver credible and sustainable improvements in cash management, operations, service quality and cost.

Project Director

Working Capital

Europe

Hamid has over 20 years of experience as a management consultant. He has a wealth of experience in process and operational improvements, corporate strategic planning, development and deployment, global sourcing, supply chain management as well as working capital improvement experience (A/R, A/P, Contract & Vendor Management, Inventory, MRO/Materials & Supplies).

Senior Analyst

Mining

North America

Luis is an executive with more than 15 years of experience in managing various mine implementation projects. Most recently, he has been the Lead Analyst for our Discovery and Design process. He is responsible for the assessment and quantification of opportunities as well as developing sustainable solutions for our clients.