Vendor Management

NEEDS-BASED RESULTS

 

Vendor Management

SITUATION

Copper mine needed to improve performance by reducing costs and/or improving operational performance through enhanced contractor management.

DRIVER GOAL

  • Reduce Contractor/Vendor spend by R47 million annually

RESULT

  • Identified R52.1 million in savings opportunities in the targeted contracts selected by the General Managers of each area.
  • Delivered R29.9 million in savings.
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Case Study

Contractor & Vendor Management

PDF

Issue

A South Africa-based copper mine need to improve business performance by reducing costs and/or improving operational performance of targeted areas through enhanced contractor and vendor management (CVM).

Highland Approach

Within each area targeted by the General Manager (Underground, Concentrator, Copper Processing and Mine Wide), The Highland Group conducted an analysis to identify and prioritize improvement opportunities and to develop a high-level approach and benefits plan.

Actions Taken

The Highland Group partnered with client teams to:

  • Develop an objective Contractor Scorecard to measure the performance of contractors based on the scope.
  • Implement targeted actions to improve operating productivity and/or efficiency.
  • Design and implement structured systems to sustain the results and continuously improve the operational areas.

 

Define and implement new processes to reduce Contractor/Vendor spend through:

  • Compliance to common procurement principles of effective negotiations.
  • Retendering of current service requirements.
  • Elimination of out of scope CV activities.

Delivered savings of over

R29m

with an additional R30.2 million in process

We [GMs] have a clear path and we all are taking responsibility to obtain the benefits and will walk away with a sustainable process.

General Manager,
 Concentrator

Project Sponsor

Related Information

industry-based

subject matter-based

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.