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Case Study

Business challenge

Our client wanted a Social Progress program designed that leveraged procurement spend of US$8bn to create auditable value for local communities with lasting benefits.

A leading global mining company was operating various assets in remote locations and in areas of underprivileged communities.

Maintaining a ‘social license to operate’ was crucial, given the nature and risks of the industry. However, their relationship with local communities was strained after two environmental disasters. They needed to use their purchasing power to rebuild their relationship with local communities.

Business impact

$0bn

of forecasted additional value generated for local communities

0

spend categories prioritised to kick off the program

0

incentives prioritised including their applicability by supplier type

0

people coached and prepared to implement and run the program

Diagnose the problem by assessing the current situation and streamlining the social progress through procurement program
Define the measurement and identify the initial spend categories to roll the program out to
Design the solution by defining changes required, building the implementation plan, customising incentives

Key Takeaway

It is possible to create procurement programs that increase the value generated for social inequalities in a fair and objective manner, even if your spend dedicated to these causes remains stable
Full understanding of company, supplier and community perspectives is key to designing a solution that meets the Social Program objectives
It is vital to clearly and regularly communicate the approach and value generated for communities to realise the full benefits of the program

Procurement and Supply Chain Left

Mining and Metals