Local Buying Program Supplier Information Sessions : Port Hedland | - PowerPoint PPT Presentation

Local Buying Program Supplier Information Sessions : Port Hedland | 19 September 2017 Newman | 20 September 2017 1

Agenda WHAT: Is the Local Buying Program? WHY: Value and benefit to BHP / Community HOW : LBP portal works WHEN: Timelines WHO: Support contacts 2

What is the Local Buying Program? • Online portal with one point of access for all • Complete procurement to pay processes (different to other procurement portals) • Builds relationships between BHP operations, local small businesses and stakeholders • Assists with building capability and capacity in local supply chain • Delivered by C-Res , making it easier for small businesses to work with BHP 3

BHP’s Vision – driving regional economic development and creating shared value in our communities delivered by: – A robust and transparent community procurement process built on competitive commercial principles; Local BHP Local Business Procurement Capability – Reinforcing long-term tangible and sustainable relationships built on trust and respect; – Developing our internal capabilities to Relationship deliver on local and indigenous sourcing objectives; – Empowering local business communities through business capacity building.

Strategic Partnership to deliver the Program • C-Res are engaged as an agent for BHP solely to deliver the LBP • C-Res is a cost neutral entity which allows reinvestment of funds back into the region • C-Res has successfully been delivering the LBP in Central Qld since 2012 and Hunter Valley in NSW since 2016 • C-Res have staff based in the Pilbara and will be recruiting more 5

Benefits to BHP • Formalised engagement mechanism (www.localbuying.com.au) • User transactions captured in individual ‘workspace’ • Faster Supplier on-boarding • On- line supplier ‘directory’ (visibility on available Suppliers) • Ability for BHP employees to create a strong and diverse local economy and community • Alignment with 1SAP 6

Benefits to Local Business • Simplified engagement tool – website • On- line supplier ‘directory ’ for Operations • Greater exposure and visibility across BHP • Simplified on-boarding process • Quicker payment terms – 21 days from submission of invoice to payment • Dedicated C-Res staff located within the region • Access to economic and community development programs enhancing the long term sustainability of local businesses and the Program • More opportunities for local businesses 7

The story in QLD since 2012 and NSW since 2016… Total approved suppliers - 865 local businesses • 107 in NSW • 758 in QLD Since commencing in 2012 • Total Approved WI’s – 15,857 • Total Approved Spend - $151M • Total payments to suppliers – 25,000+ • Average payment days – 12.2 (from receipt of invoice to payment) 8

Supplier Eligibility Criteria - WA Employ less than 20 full-time employees (FTEs) or equivalent , not including 1 casual employees, subcontractors, trainees or apprentices Businesses must have a s ignificant physical presence in the eligible Local Buying Program areas . For Western Australia , eligible areas are defined by communities with the postcodes of: 2 6721 – Port Hedland 6758 – Nullagine • • 6722 – South Hedland 6760 – Marble Bar • • 6753 – Newman 6751 – Tom Price • • Have an ABN, be registered for GST and have appropriate insurances 3 including Workers Compensation (if an Employer) and Public Liability (mandatory) Provide goods or services aligned with BHP Minerals Australia categories 4 and have the appropriate personnel, management and financial capacity to deliver goods and services 5 Agree to the C-Res Claims Process Demonstrate a lignment with BHP’s Charter and Code of Business Conduct 6 7 Actively support the local community 9

www.localbuying.com.au Register here! 10

Supplier Registration Read all information carefully and have all documents ready Tick all boxes to move to the next page 11

How the LBP works… BHP Identifies goods/ services required and raises Work Instruction (WI) on C-Res processes website portal Suppliers submit claims via Quadrem quotes on website and pays supplier portal until quote within 21 days from due date receipt of claim Quotes close, C-Res Supplier submits processes and provides claims to C-Res recommendation BHP BHP User reviews C-Res receives recommendation Purchase Order on Summary Tab C-Res (PO) via and accepts or Quadrem and rejects a response notifies supplier to Supplier via portal deliver goods or BHP raises perform services Purchase Req (PR) using information on PR tab 12

What can be supplied to BHP through the LBP? Functions / events Goods Services • Catering, cleaning • Landscaping (gravel, plants • Equipment hire – lighting • Venue hire for training and etc) for facilities upgrades plants, generators, meetings • Electrical appliances (fridges, compressors, EWP’s • Employee gifts ovens, air-conditioners) • Freight and courier services • Services Awards • Building materials (local • Site pest control • Entertainment hardware) • Printing of communication • Event security • Glass, window’s and material (signs, newsletters windscreens etc) • Industrial Consumables • Embroidering of site PPE • Safety Equipment/ First Aid • Vehicle Hire/ Bus Hire • Chemicals • Site Maintenance • Signs/ Graphic design • Office Supplies 13

Timeline • Website live for Supplier registrations 18 • 19 th /20 th Supplier Information Sessions Sept • Website live for BHP End-Users, training commences and work opportunities can be pre-loaded for release on the 30 th October • Suppliers start to be advised if registration is approved and can access 2 Oct their workspace • Work instructions start to be released to Suppliers 30 Oct • Supplier training sessions will be offered in Port Hedland and Newman Nov 14

Who do I contact for support? C-Res: Debbie Porter Program Manager – based in Port Hedland 0439 888 237 debbie.porter@c-res.com.au BHP: Peter Barrenger Principal, Local Content, BHP 0401 017 255 Peter.Barrenger@bhpbilliton.com Website: www.localbuying.com.au 15

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