Queensland Metals' new supply chain boss has told a Mount Isa audience that Glencore's local operation wants to turn their supply chain from just being an essential service to a competitive advantage.
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Clemens Engelbrecht, Supply Chain General Manager Queensland Metals gave the first presentation at the new iHub at this year's MineX.
Mr Engelbrecht said Glencore was a significant commodity supplier and were first or second in each of the commodity markets they operated in Australia.
"In zinc, copper and lead we are the largest so it is important for us we remain leading in that field," he said.
"That means we have to be more efficient at what we do and remain competitive."
Mr Engelbrecht said they were working on six factors to realise their vision of competitive advantage and the business firstly wanted to move from current 75pc contracted spend to 90pc at best in value.
"In the contract we stipulate how we are going to operate, we then reduce any grey areas and ensure there is a commitment for a longer term period, and that's really what we want to achieve," Mr Engelbrecht said.
"For local suppliers we want to ensure those contracts are kept in place."
He said the second item was increasing the savings realisation from 90pc to greater than 97pc with continuous improvements and discounts achieved.
"We want to make sure everything we buy is contracted, those things that are not on the contract, we need to make sure the contract is flexible enough to get them on the contract as soon as possible.
The other factors Mr Engelbrecht mentioned were: moving from efficient purchase order distribution to automated ordering, increasing DIFOT (delivery in full, on time) from 80pc to 95pc, moving to outsourcing of working capital and pro-active masterdata management.
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
