KEY
RESULTS
$1.2bn
in projects awarded through the portal
3000+
registered suppliers
1,105
work packages / contract opportunities
The Challenge
The procurement process can be characterised by manual and resource-intensive activities.
The global mining group had challenges across bureaucracy and transparency of contract dealings. Among offline supply chain management, inaccurate data, long lead times and procurement cycles. This caused significant market risks, potential frauds, cost, low-quality and delivery risks.
MAIN PAIN POINTS
- Lack of awareness of tendering opportunities
- Disparity in locally awarded contracts
- Inadequate tendering processes
- Unable to guarantee supply chain security
- High resource and process costs
- Change management support and training
The Solution
The global mining group tendered a dedicated in-house procurement team and online portal to publish procurement opportunities and spending with WA-based suppliers. IONYX was awarded the project and delivered the solution in 45 days.
The customised procurement portal provides transparency of upcoming work opportunities and enables local suppliers to compete for contracts with the world-leading iron ore business.
- A procurement web portal for potential suppliers to engage and be awarded contracts
- Built-in supplier registration portal and pre-qualification process
- Supplier single point of opportunity management, submission to tender and supply management
- Client portal to verify and access reputable suppliers
- Dynamic vendor database
The mining corporation aims to strengthen communities wherever they operate
These procurement practices capture the mining corporation’s commitment to partner with local WA-based suppliers and support local industry growth.
A single system to manage all supply chain needs
- Automated functionality to allow for ease-of-use, cost control and maximised production
- Consolidated ordering and management
- Live statistical reporting, including LGA Spend, Supplier Spend and Category Spend
- Ease-to-use procurement process to minimise internal and supplier user training
The Results
The iron ore supplier portal has improved visibility of upcoming contracts, providing the opportunity for locally based businesses to participate in resource projects. The new procurement practices, and those of their suppliers, have helped sustain many Western Australian businesses and, in turn, local communities. Improving these practices, and providing increased opportunity for local suppliers, has stimulated local economies to deliver socio-economic benefits for communities, suppliers and the organisation.
The mining corporation has experienced increased quality of supply, supply chain efficiencies and reduced cost. Attributing to greater security over critical supply and reduction of operating stoppages. The heightened investment to build trust with local communities’ and relationships with governments has strengthened the organisations social license.
$1.2bn
in resource projects awarded through the portal
3000+
registered suppliers
1,105
work packages / contract opportunities
Chris Salisbury
Chief Executive – Rio Tinto
We have spent almost $57 billion with Western Australian businesses over the past seven years, but we want to do more. Our new procurement programme will make it easier for WA businesses to compete for contracts.
Our iron ore business has more than 1200 WA suppliers and we make a large contribution to the state economy through local procurement, taxes and royalties. Providing more opportunities for WA businesses to secure contracts will further boost the Pilbara and state economy.
