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.
Case Study
Contractor & Vendor Management
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.
