Implementation of Global Strategic Sourcing Organisation
CHALLENGES
● Greenfield projects involving complex sourcing and large capital expenditures
● New Greenfield projects in remote areas without proper local infrastructure, suppliers and human resources
● New operations involving the production of new metals
ACTIONS TAKEN
● Developed a new structure and processes to manage Greenfield projects for CAPEX-related sourcing
● Defined what goods would be bought locally and globally
● Calculated necessary sizes of central and local teams
● Defined roles and responsibilities of new organisation
● Designed central and local procurement processes and KPIs
● Developed analytical tool to support teams to monitor progress
RESULTS
● Total savings so far of USD 6.2 Million. Expectation to generate a total of USD 100 million (13%) savings in capital equipments procurement
● Classification of USD 45 billion CAPEX into Central and Local sourcing