Home > News > Event Wrap: BBMC Luncheon March 2024

Event Wrap: BBMC Luncheon March 2024

27 March 2024 | BBMC Events

Enduring value found in supply chain partnerships: Anglo American

From inclusive procurement to shorter payment terms, both the aspirational and the practical were on the table for a heart-to-heart between Anglo American and the BBMC at our March luncheon.

Souths Leagues Club hosted 180+ attendees from across the supply chain, all eager to hear from Melissa Hall, Anglo American Performance and Inclusive Procurement Specialist.

The discussion ranged from a high-level overview of the role of mining supply chain partnerships in delivering enduring value, to very practical tips for tendering and advice for approaching the right contact in supply and procurement.

Anglo American is well-known to the Bowen Basin supplier community across their five steelmaking coal operations from Dawson in the south to Moranbah North and Grosvenor in
the north. Perhaps less familiar to the audience is Anglo American’s Social Way 3.0 – its social performance management system, and important for suppliers to understand, according to Ms Hall.

Ms Hall particularly focused on Anglo American’s global inclusive procurement policy: championing sustainable, responsible local procurement that positively contributes to a resilient supply chain as well as the economic and social development of the communities in which Anglo American operates. She says the local element of procurement is not seen as an onerous box to tick, but an enormous advantage on the ground.

“When we need equipment or labour, we need it quickly and we need it in-region. A large percentage of our local suppliers are actually very competitive on price with our major suppliers – if you want to do efficient, timely business for the right price, small business has a lot to offer.”

“There are opportunities across the whole value chain from exploration to closure, and we need the resilience small businesses can bring to our supply chain. Small business is agile, responsive and has room to grow. The demand for steelmaking coal is only increasing, so our opportunity to empower local business stretches into the future.”

However, there are barriers to entry into any large supply chain that Anglo American is working to address. Payment times is a particular example, and Ms Hall says despite the industry norm of 60-day payment terms a different way is possible, including for smaller businesses who need that cashflow for innovation.

Tendering was a particular point of discussion, as Ms Hall answered the burning question: what does make a good tender – and what gets a tender rejected outright?

The answer: wide-ranging statements with no substance and demonstration, like ‘we will’ or ‘we think’. As Ms Hall explained, “It’s one thing to tender and say ‘we will do’, but now we’re getting serious about coming back to those businesses and asking what they have done.”

That shouldn’t discourage businesses from tendering, though – quite the opposite. While Anglo American acknowledges the tender process can be complex, proving results and demonstrating substance, no matter your business size, is the way to get noticed.

“Don’t discount the opportunity for future business if you can’t meet the full scope of a tender – you’ve got to be in it to win it. Putting in a tender does put you on the radar of procurement, and if you work alongside another small or Indigenous business to tender, that shouldn’t disadvantage you.”

And the final point – the key to doing business well is communication. Ms Hall says it’s an enduring partnership, and talking to your local supply chain business partner to discuss availability of your equipment or your services helps to create this partnership.

“Reach out regularly to let us know what your business is doing – where your equipment or people are going to change, and then the supply chain business partner can have the right discussions on site to work around potential roadblocks.”

The next Bowen Basin Mining Club networking event will be held in Mackay in late May.

Tickets will go on sale in early April via www.bbminingclub.com.