PERTH (miningweekly.com) – Mining giant BHP has partnered with industry body Austmine to launch its supplier innovation programme across Australia.
Following a successful programme in BHP’s Minerals Americas business, the BHP Austmine supplier innovation programme would provide opportunities for Australian mining equipment, technology and services (METS) companies to partner with the mining major to help solve business challenges.
BHP group procurement officer Sundeep Singh said that the company’s ability to build and leverage local capability was crucial to its competitive advantage.
“As our industry shifts towards more remote and technologically-enabled operations, our ability to find unique and innovative solutions to business challenges will be critical,” he said.
“This programme is different to our usual approach to sourcing, where we know what we need to buy. Instead, we will go to the market with a question instead of an answer, and ask potential vendors how to solve it.
“We want to play our part in supporting Australia’s METS sector, so together we can deliver world-leading solutions for the resources industry straight from our operations.
“Now more than ever, as we play our part to support Australia’s economic recovery through Covid-19, our partnerships with Australian METS suppliers can make a real difference to our industry and beyond.”
BHP on Wednesday revealed that its local buying programme in Australia had reached more than A$500-million in approved spend since its launch in 2012. In that time, the programme has worked with over 1 450 local businesses, on over 36 000 work packages, with an average payment period of just 13 days.
“We designed the program to make it easier for local small businesses to work with us, and the response has been fantastic. We continue to work with small and local businesses across the country to improve and grow the programme,” Singh said.
BHP president Minerals Australia, Edgar Basto, said that the local buying programme had enabled BHP’s small business suppliers to grow and develop their companies as the miner grew its own business.
“It has brought our operations and local small businesses closer together. It has increased capability across the local supply chain and boosted regional economic development in our host communities.”
“The programme has grown from supporting our Queensland operations in 2012 to now supporting our operations in Western Australia, South Australia, and New South Wales. It is more important than ever in the current environment, and is growing at the fastest rate since its inception, with half the A$500-million committed in the previous two years alone.”
The programme makes it easier for small business owners to competitively bid for supply opportunities through a streamlined onboarding, procurement and payment process that includes 21-day payment terms or less. Small businesses have greater access to work opportunities with BHP through a central online directory.