Case study | Partners in Performance | Global Management Consultancy

Case Study

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Business challenge

Our client aimed to capture sourcing savings by capitalising on its newfound scale, global presence and prominence in the market.


A global miner was heavily leveraged from a global expansion and wanted to reduce its cost base by running a sourcing savings program.

Procurement was managed individually at each site, rather than from a central position, which limited its buying power. A major expansion project had been completed, and a transition was required from project set up to steady‑state operation.

Business impact


in annual savings off the targeted $630m annual spend base


in savings from global OEM (Original Equipment Manufacturer) suppliers


in savings from sourcing OPM (Original Part Manufacturer) or credible aftermarket parts


in savings from global supply agreements for chemicals, lubricants and drilling services


in savings of parts and services from regional suppliers in South America, Africa and Australia


of spend placed on contract for better transparency and reduced workload

  • Determine addressable spend to identify where there is global scale and overlaps between sites and common purchasers/vendors
  • Establish sourcing strategy per category, such as direct negotiations, global and regional tenders, rapid sourcing on tail spend
  • Engage with vendors to negotiate better conditions, using the client's scale to motivate for discounts/rebates

Key Takeaway

  • Intensive research per market is of paramount importance
  • In an environment where the suppliers are facing cost inflation pressures, a simple negotiation alone is not enough to reach results
  • A thorough understanding of the cost base and supply market is required in order to negotiate productively
  • Collaborative solutions with incumbents need to be defined and implemented
LeftProcurement and Supply ChainLeftMining and Metals
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